A UNITED STATES DEPARTMENT OF COMMERCE PUBLICATION \ *««r«s o» • C if. \ : o % DETAILED CASE STUDIES Supporting Documentation For The EDA Growth Center Evaluation U.S. DEPARTMENT OF COMMERCE Economic Development Administration DETAILED CASE STUDIES: SUPPORTING DOCUMENTATION FOR THE EDA GROWTH CENTER EVALUATION FEBRUARY 1972 U.S. DEPARTMENT OF COMMERCE Economic Development Administration GROWTH CENTER EVALUATION TASK FORCE TABLE OF CONTENTS CHAPTER PAGE I INTRODUCTION 1-1 II ADA, ARDMORE, AND DURANT , OKLAHOMA 2-1 III BANGOR-BREWER, MAINE 3-1 IV BOWLING GREEN, KENTUCKY 4-1 V CORPUS CHRISTI-ARANSAS PASS, TEXAS 5-1 VI FORT SMITH, ARKANSAS 6-1 VII NATCHEZ, MISSISSIPPI 7-1 VIII PANAMA CITY, FLORIDA 8-1 IX PINE BLUFF, ARKANSAS 9-1 X SWAINSBORO, GEORGIA 10-1 XI TRI-CITIES, TENNESSEE-VIRGINIA 11-1 XII GOLDSBORO, NORTH CAROLINA 12-1 XIII PERSONS INTERVIEWED 13-1 XIV GUIDE FOR POSITIVE ACTION PROGRAMS 14-1 CHAPTER I INTRODUCTION This document presents the detailed case studies prepared by a 10-man task force evaluating the effect of the growth cen- ter policy of the Economic Development Administration (EDA) . The case studies are based on data collected through approxi- mately 500 on-site interviews in 13 EDA-designated economic development centers between February and April 1971. Between three and seven man-weeks were spent in each center; 45 EDA projects were examined. The case studies form the companion volume for Program Evaluation; The Economic Development Administration Growth Center Strategy . The following topics are discussed in connection with each center: description of the center and its associated redevelopment areas, history of the center's designation, effectiveness of the Positive Action Program, role of the district staff and board in carrying out the growth center policy, impact on EDA projects in the center, and status of the center's economic development process. In 11 of the 13 growth centers examined, EDA projects had been approved and 90 percent disbursed since preparation of the community's Positive Action Program. In Goldsboro, North Carolina, no EDA projects had been approved at the time of the evaluation although the center had submitted a Positive Action Program. Thus, EDA's growth center policy in that center was evaluated only in terms of the impact of the Positive Action Program. In Ardmore, Oklahoma, an EDA project had been approved but had not been completed at the time of the evaluation. Ardmore ' s inclusion in the study was based on its role in the unique demonstration project taking place in the Southern Oklahoma development district. The final chapter of this volume contains a list of the persons interviewed in each growth center. Also, because the sections on the Positive Action Program refer repeatedly to EDA's guidelines for writing the PAP, those guidelines have been included. The aggregate findings of the task force for all growth centers studied are contained in the volume mentioned above. Also in that volume are the Economic Development Orders that pertain to the Agency's growth center policy, a detailed description of the methodology used to conduct the evaluation, and examples of the questionnaires used by the task force. 1-1 CHAPTER II ADA, ARDMORE, AND DURANT, OKLAHOMA INTRODUCTION The 10-county Southern Oklahoma Development Association (SODA) Economic Development District contains three designated redevelopment areas and three economic development centers. The centers are Ada, Ardmore, and Durant. The redevelopment areas are Coal, Johnston, and Atoka Counties. Ada, the first center to be designated, was originally chosen as the sole subject of the in-depth evaluation. How- ever, two factors led to the decision to include Ardmore and Durant in the analysis: (1) Durant was the site of a com- pleted EDA project; and (2) all three centers were involved in the SODA district's unique and broad efforts to obtain government assistance in designing and carrying out a com- prehensive development program. ±/ A three-man evaluation team visited the district and the centers during the period March 31 to April 9, 1971. The following pages constitute their report. DESCRIPTION OF GROWTH CENTERS AND REDEVELOPMENT AREAS Population Total population of the SODA District in 1970, as re- ported by the U.S. Census, was 163,997, an increase of 2.6 percent since 1960 but a loss of 11.56 percent since 1950. —'This program is entitled the SODA Intergovernmental Demonstration Project. SODA's objective is to develop, with state and federal assistance, a management system that will effectively coordinate federal, state, and local resources in carrying out a multi-year development program for the 10-county area it serves. The first phase -- to develop a multi-year work schedule -- has been completed and is being evaluated. Thirteen federal agencies are taking part in the project; EDA has served as the leading federal agency. 2-1 Total population of the three redevelopment counties in 1970 was 23,460, which* represented 14.7 percent of the district population. Atoka, the most populous RA county with 10,972 people, was the only redevelopment area to show an increase in population during the decade (6 percent). Coal County's loss was less than 1 percent and Johnston's was 7.6 percent. Ada's 1970 population was 14,869, Ardmore ' s 20,881, and Durant's 11,118. All three grew over the decade 1960 to 1970, Ada by 3.6 percent, Ardmore by 3.5 percent, and Durant by 6.2 percent. Further population figures for the district, and informa- tion on changes during the 19 50-1970 period are shown in Table 2-1. TABLE 2-1 SODA DISTRICT POPULATION Total Population 1970 Change 1960-70 Change 1950-70 SODA 163,997 2.60% increase 11.56% loss GROWTH CENTERS : Ada 14,859 3.6% increase 7.10% loss Ardmore 20,881 3 . 5% increase 16.72% increase Durant 11,118 6.2% increase 5.47% increase RA COUNTIES: 23,460 (14 .7% of SODA Distr ict Population) Atoka 10,972 6.0% increase 23.10% loss Coal 5,525 0.4% loss 31.42% loss Johnston 7,870 7.6% loss 25.81% loss 2-2 Physical Location of Centers and Associated RA's As shown in Figure 2-1, Ada is at the northern apex of the triangle formed by the three growth centers, slightly over 80 miles from Ardmore to the southwest and over 100 miles from Durant to the southeast. Durant and Ardmore are ap- proximately 50 miles apart. Ada is in Pontotoc County, Ardmore in Carter County, and Durant in Bryan County. Geographically, the three growth centers are in good positions to provide the necessary services and job opportuni- ties to most parts of the redevelopment areas and to support each other in these efforts. , Each growth center is within 15 miles of at least one redevelopment area, although each center is a little more than 30 miles from the largest town in the nearby RA. Ada is well within commuting distance of part of Coal County and of the northern portion of Johnston County. Durant is geographically well-located to influence the southeastern corner of Johnston County and southwestern parts of Atoka County. Ardmore is situated strategically for serving most of Johnston County and currently does serve as a trade center for much of that county. FIGURE 2-1 SOUTHERN OKLAHOMA DEVELOPMENT ASSOCIATION ECONOMIC DEVELOPMENT DISTRICT ADA ARDMORE Key * □ DURANT Evaluated EDC Other District EDC or RC Redevelopment Area 2-3 Some parts of the redevelopment areas, have weaker ties to the centers, however. The eastern two-thirds of Atoka County and the eastern third of Coal County are too far to be consider- ed within commuting distance of a growth center and are not drawn by retail trade or services to a center. Inadequate transportation networks in these redevelopment counties further aggravate this situation. The areas are serviced by two-lane county roads, which, while paved and permitting speeds of 65 miles an hour, are circuitous and dangerous at high speeds. Sociological Composition Both the growth centers and the redevelopment areas have a relatively small black or other minority population. Ardmore has a Negro population of approximately 9 percent. Durant has no Negroes within its city limits although Bryan County has a black population of approximately 2-1/2 percent. Ada's black population is 4.5 percent. In the redevelopment areas, Atoka County's Negro population is approximately 6-1/2 percent, most of which is concentrated in the city of Atoka; Johnston County's is approximately 3-1/2 percent; and Coal County's is 1.7 per- cent. The Indian population is equally sparse and unevenly dis- tributed, appearing mainly in the redevelopment areas. Ardmore has very few Indian families, and the Indian population of all of Carter County is less than 2 percent. The situation is similar in Durant. Ada's Indian population is 3.8 percent. In the redevelopment areas, Indians constitute approximately 7 percent of the population of Johnston County, 6 percent of Coal County, and 5 percent of Atoka County. While the growth centers and redevelopment areas contain relatively few members of minority groups, they contain a large proportion of the economically deprived. Per capita income in the growth center counties ranges from a low of $2,302 in Bryan County (Durant) to a high of $3,076 in Carter County (Ardmore) . Even though these figures represent an average increase of approximately 50 percent from 1960 to 1970, they still indicate that the economic status of the general popula- tion in the growth centers is just slightly above the poverty level. An even more dismal picture is projected by the redevel- opment areas . The per capita income ranges from a low of $1,525 in Atoka County to a high of a little over $1,700 for both Coal and Johnston Counties. It is not surprising to 2-4 learn that social security and welfare payments are the chief sources of income for many of the residents of these counties. In fact, these transfer payments are the chief source of income for 20 percent of the population of Ardmore and the second most important source for residents of Durant (where income from agriculture is first) . Transfer payments represent 17 percent of all the real income flowing into the SODA district. Economic Relationship Between Centers and RA's While the three growth centers serve as retail service centers for their related redevelopment areas, residents of the redevelopment counties also travel to and shop at Oklahoma City to the north and Sherman, Denison, and Dallas, Texas to the south. In "fact, 14 percent of the workers in the Durant area commute to Texas for employment. All of the growth centers are attempting to change this focus and to develop a definite sphere of retail sales and services influence within a 30-mile radius. Durant has mounted a specific campaign through its newspaper to accomplish this goal. The growth centers also provide a certain number of job opportunities for their surrounding counties. Parking lot surveys of two manufacturing firms in Ardmore indicated that about 7 5 percent of the employees' automobiles came from the home county of Carter and 25 percent were commuters from other counties. However, only 4 percent of these came from the redevelopment county of Johnston. It was claimed that 40 percent of the people working at the Ardmore Air Industrial Park come from outside of Ardmore 's city limits. A similar parking lot survey of three manufacturing firms in Durant indicated that 8 percent of the employees came from the home county of Bryan and 2 percent commuted from other counties. Of the commuters, about 15 percent were from the two redevelopment areas of Johnston and Atoka Counties. Persons interviewed stated often that employees were generally will- ing to travel 15 to 20 miles to work, and this was supported to some extent by the parking lot surveys. It was also borne out by the fact that 4 percent of Durant ' s entire work force comes from the city of Atoka, 32 miles away and that 14 per- cent of the Durant area workers commute 2 6 miles to Denison or 32 miles to Sherman, Texas. Some employees of the Uniroyal plant in Ardmore commute from as far away as 50 miles but this is considered a temporary phenomenon. it is expected that these workers will eventually move closer to the plant . (One 2-5 reason cited for immediately beginning expansion of the Ardmore high school facilities was to accommodate families of Uniroyal workers who will be relocating • ) HISTORY OF DESIGNATION OF THE CENTERS Ada was designated an economic development center for the SODA District on February 21, 1967, at the same time the district was approved. Ardmore and Durant were designated on December 5, 1967. Designation for all three of these cen- ters plus Pauls Valley had been requested in the initial growth center application, on the grounds that no one city in the district had unqualified superiority in all elements. At that time, however, EDA's policy was to designate only one center for a district. It was not until this policy was rescinded in November 1967 with the designation of Swainsboro, Ga. , as a secondary growth center, that Ardmore and Durant were reconsidered for designation. Their approval came a few days later. In the interim period local officials had decided not to recommend Pauls Valley for designation, feeling it was too far removed geographically from the re- development areas and it was a secondary and not a major re- tail trade center in the district. Earlier, to support the application for growth center designation, a consulting firm and the development district's staff had independently rated the four communities. Both teams made use of a 25-element rating scheme, consisting of social and economic factors. Included were such indices as strength and number of commercial wholesale and retail establishments, availability of social and health services, transportation and educational facilities, and bonded indebtedness. Each element in the scheme had a maximum score of four; the maximum any town could be assigned was 10 points . Both the consultant and the district staff, separately conducting the rating exercise, had accorded Ardmore the highest score, Ada the second highest, Pauls Valley the third, and Durant the fourth. For the reasons stated earlier it was decided not to advocate the designation of Pauls Valley, leaving the other three cities . Even though Ardmore had a slight edge in the ratings, Ada was recommended for designation first because of its proximity to two of the three redevelopment counties (Coal and Johnston) . At the same time, to make certain that Ada as 2-6 the district seat would not overly influence the operation of the district and to compensate for the long-standing rivalry between Ada and Ardmore, the district located its staff in Ardmore. The staff continues to have its offices in Ardmore even after designation of Ardmore and Durant as growth cen- ters . Following are the justifications used in requesting that all three centers be designated: The cities have similar capabilities and strengths and none of them can be considered superior to the others . No one city can influence the overall economy or provide the necessary services to the entire district The geographic location of the three cities is ideal to serve the three redevelopment areas. All are within 30 miles of at least one redevelopment area county seat, and Ada and Durant are within 45 miles of all three. All of the three centers have shown potential for growth . To divide the district into three districts each allied with a growth center would reduce both the political lobbying power of the district as a whole and would limit the district's financial ability to support and promote a meaningful economic develop- ment program. ROLE OF THE POSITIVE ACTION PROGRAM IN THE CENTERS Preparation Initial Positive Action Program (PAP) documents for the three growth centers were submitted in May and June 1968. All have since been updated, Ada's more than once. Ardmore and Ada updated their PAP ' s in January 19 69 in connection with new project applications. Durant updated its PAP in November 1970, in connection with the Le Tourneau plant ap- plication. Ada was completing another updating at the time of the field visit. In Ada and Durant, the Chamber of Commerce took the lead in preparing the documents. They received assistance 2-7 and information from many individuals and from a broad spectrum of the leadership in the community, including public utility of- ficials, heads of educational facilities, newspaper publishers and owners of other communications media, local government of- ficials, and banking representatives. The SODA district staff provided staff assistance and gave advice as needed. For Durant ' s latest update, a district staff member put the final document together under the supervision of the Chamber of Com- merce. In Ada, the staff had worked very closely with the chamber in the latest update, but the final document was actual- ly being prepared by the chamber. In Ardmore, the PAP was prepared by the city manager and his staff, and the district staff provided only minimal assistance. All of the documents show the endorsement of a broad group of community leaders. All were forwarded by the appropriate city mayor with an endorsing letter. Content In its Order on Economic Development Center Strategy of March 11, 1968, EDA says it will consider project proposals from a growth center "only if the center forwards a Positive Action Program detailing the steps the Center is willing to take to insure that the unemployed and underemployed from the Redevelopment Areas benefit from the Center's growth." Guide- lines for the Positive Action Program were issued in September 1968. Within the context of these guidelines and the economic development order, the evaluation team drew the following con- clusions regarding the PAP documents from the three growth centers: When unemployed and economically underprivileged members are mentioned, the reference is usually to the center's own citizens, not the redevelopment area residents. Rather than explicitly stating program objectives, the PAP's describe programs and leave the reader to infer the goals that will be accomplished. Most of the programs listed are of long stand- ing (the Community Action Program for example) and not addi- tional efforts the city will undertake in line with its responsibility as a growth center. For those few activities that are new and related to the growth center concept, there is in most instances no designation of officials responsible for carrying out the program. Inferences can be drawn from the endorsing letters from heads of local programs which ac- company the PAP. Often, however, these letters are phrased in terms so general that it is difficult to determine exactly what will be done and to what extent the signer plans to take responsibility. 2-8 While these general comments can be made about the PAP's from all three centers, at the same time each document was found to reflect the special situation of the particular growth center and the thinking of the center's leadership at the time of its preparation. For that reason, specific comments fol- low. Ada Introduction Ada has submitted Positive Action Programs to EDA on three occasions. The original PAP was prepared by a SODA district staff member together with Ada community leaders and submitted in May 1968. This document, whose content was similar to the Economic Development Profile that accompanies project applica- tions, was updated in January 1969 in connection with a business loan application for the Solo Cup Company. Another updated version and progress report had been written and was being reviewed by Ada leaders at the time of the field visit. Both the 1969 PAP and the PAP in preparation were studied by the field team to evaluate the effect of the Positive Action Pro- gram on the residents of the redevelopment areas and on the growth center. The 1969 Positive Action Program for Ada presented 16 ac- tion programs which the community was undertaking to meet its responsibilities as a growth center. The program described industrial development projects ,, job training activities, vocational education plans, health services and health planning, housing, extension of city services to outlying areas, and expansion of the county library system. At the time of the field visit, all items in the action program had received at- tention; many had been completed. Of the 16 commitments in the program, none could be considered a new activity that would not have taken place in the absence of the PAP. However, several of these ongoing community development activities could be expected to have regional impact. Industrial Development The seven industrial development projects included new streets, new access road to an industrial park, a site for new highway headquarters, and options on industrial land. Several of these were connected with EDA-financed projects, for example, the access road to the industrial park where Brockway Glass had located. Their relevance to the PAP is simply that they will 2-9 contribute to the growth of the city itself; they show no at- temp to relate Ada's growth to unemployed and underemployed persons in neighboring counties. One industrial project demonstrated the uncertainties that can accompany development activities. Pontotoc County had passed a $2-million bond issue to buy land and construct a plant to house Kilpatrick Furniture Mill, in the expectation that within a few years the company would employ about 175 people. The county government was using rent payments from Kilpatrick to help retire the bond issue. During its visit the evaluation team found that the company was having financial difficulties, was employing fewer than 50 persons, and was in the process of laying off more employees. Residents of Ada and Pontotoc County were concerned about this, both because of the loss of jobs and because of the effect on future develop- ment. Jobs and Job-Training Activities Jobs and job-training activities included a commitment to help recruit Indians for working at Solo Cup Company, vocational education programs in Ada, and description of on-the job-train- ing programs operated by existing industries in cooperation with the Neighborhood Youth Corps and the CAP agency. Solo Cup Company had begun its operations in Ada at the time of the field visit. Solo had indicated it would hire Indians. The Chamber of Commerce had committed itself in the PAP to calling upon the Neighborhood Youth Corps, the Community Action Program, the Bureau of Indian Affairs (BIA) , and the local employment service to help Indians get jobs. As reported in the project impact section of this report, Solo had hired 16 5 employees, 9 5 percent of them women, and personnel staff members indicated that 10 percent of the women were minority group members. The chamber had met its commitment within the city, and had worked through the BIA and the employment com- mission outside Ada. The PAP contained no provisions for hiring unemployed and underemployed residents of redevelopment areas per se, and there was no indication that any outreach program had been attempted. With respect to vocational-technical training, the PAP noted the city's lack of a vocational-technical school and reported that the Chamber of Commerce was working on a proposal for establishing such a facility. No school had been established at the time of the field visit but there was much community interest, and the project was discussed again in the PAP under review. 2-10 Health Services Health programs described in the PAP reflected part of Ada's efforts to become a major health service center for the area. The Valley View Hospital had completed a $1.8 mil- lion expansion program and was serving six counties, including Coal and Johnston Counties. A regional health and social services center was being planned. A survey of Pontotoc County was being undertaken by the city-county health department to "make possible more comprehensive health planning for minority deprived groups . " At the time of the field visit, Pontotoc County had re- cently approved a bond issue to construct the social services center. When the complex is completed, all people-oriented health and social services programs will be housed under one roof. This program serves all EDA-designated counties within the district and provides outreach to all counties except Coal. Lack of funds prohibits Coal County from participating. The health survey was still being conducted at the time of evaluation. It is taking place under the direction of the Communicable Disease Center and the Oklahoma State Department of Health, and as part of a district program. Public Housing Public housing had been built to accommodate the aged, low-income families, and Indian families. Under construction at the time the PAP was written, 65 public housing units had been completed at the time of the visit. In another housing program, the local Tribal Council supervises the upgrading of houses and leases them to Indian families from outlying areas. This program brings these families nearer to schools, health services, and employment opportunities. It is, again, an on- going community activity, not a result of the Positive Action Program. The field team was impressed with the 65 newly built, ranch-style units of public housing. Set on a hillside near the town's main street, the development included wide streets with trees and play areas. Extension of City Services The city had annexed Hammond Heights, an adjacent minority settlement, and had provided police, health, garbage, and sewer 2-11 services to the area. Also, using FHA loans, Ada had extended its water system more than 52 miles into the surround- ing rural areas. Extension of the local library system was planned; a multi-county mobile system was envisioned. At the time of the field visit, the library program was under way and further expansion was being considered in the PAP-in-process. The water program was continuing and plans for annexing other adjacent areas were under consideration. PAP Impact The evaluation team recognized that many worthwhile com- munity activities are taking place in Ada. The industrial development projects described, for example, demonstrate Ada's flourishing economic development process. The PAP clearly shows that Ada's facilities and services are being expanded in such a way as to encourage the city's growth. Several of the programs described in the 1969 PAP have significance beyond Ada. Two of these, the health survey and extension of city services, will affect Pontotoc County. The other three — the new hospital, the health and social services center, and the library extension service — can be expected to have an impact on the redevelopment areas. Yet, the Positive Action Program in effect only redocuments existing center programs. There were no new commitments on the part of the growth center to the target population. Some of the activities described will affect the poor; they, however, are parts of existing projects that would have taken place regardless of growth center designation or the PAP requirement. Of the projects with potential regional effect, they will have impact in a trickle-down sense. There is no specific means shown for linking them to the unemployed and underemployed of the redevelopment areas. Community leaders of Ada are intent on industrial develop- ment within the city. City officials estimated that 300 RA residents were recently employed in the new and expanded industries. However, the field team found that two large employers, Brockway Glass Company and Solo Cup Company, employed no RA residents, and one new firm, Vindale Mobile, employed nine RA residents. On this basis, the team surmised that a very small portion of the work force in Ada comes from the redevelopment areas . No outreach program has been developed to change this situation. 2-12 Newest PA P The updated version and progress report on the 1969 PAP was being reviewed locally at the time of the evaluation. Although the document was not officially submitted to EDA at the time of the visit, its preparation was of interest to the evaluation team. Prepared by a committee of the Chamber of Commerce under the direction of its manager, this document was principally concerned with industrial development. Its main thrust was a report on the progress of five organizations^./ set up under chamber leadership to coordinate and promote de- velopment in Ada. After being written by the chamber committee, the PAP was then mailed to more than 100 individuals, most within Pontotoc County, for comment and suggestions . Copies were sent to all chamber directors, civic groups, and area school superintendents (including some in nearby RA counties) , as well as unions, bankers, medical associations, and the local community action agency. Responses were reviewed and sum- marized by a subcommittee of the chamber, headed by a down- town merchant, and recommendations were ordered by priority. At the time of the visit, the report was under study by the chamber's board of directors. After the report is formally adopted, the chamber plans to organize committees to act on the recommendations; at that time city officials and other public and private interests will be asked to become directly involved. As a result of the PAP Committee's activities—and within the context of chamber activities and the interests of those responding — the following goals had been set:.?/ Establish a vocational-technical school; Develop additional industrial sites; Develop traffic survey of Ada and its immediate environs ; Encourage additional recreational areas; —/These organizations are described on page 2-36 under Economic Development Process. 2/ — These goals were subsequently adopted and the updated Posi- tive Action Program was submitted to EDA Washington. 2-13 Consider extending city limits; and Develop selected community facilities (e.g., foot- ball field house and a mental health center) . While some of the proposed activities could have regional impact (voc-tech school and general industrial development) , the field team noted that most of the goals of this PAP, also, are concerned with development of Ada and only remotely relate to regional growth. A missing ingredient was any official participation by the city of Ada. No work was 'done on the up- dated document by any city official. Although the city manager commented on the draft, it is not certain whether the city agrees with the priority list established by the chamber or whether the city will play a role in implementation of the goals . The evaluation team found considerable awareness of the program on the part of local citizens. Many businessmen and civic organizations were taking an active interest, even though there was no broad-based PAP Committee as such. The people involved in updating the PAP felt that the exercise had been helpful to them in determining the future development of the city. They did not seem to understand, however, that an important purpose of the Positive Action Program is to ensure that benefits from the growth center's development accrue to the unemployed and underemployed in the RA counties as well as to the target population within the center. Ardmore Ardmore ' s first Positive Action Program was submitted in connection with the project application for an access road to the Ardmore Industrial Airpark. While the document refers to the unemployed and underemployed and the hard-core poverty citizens of the six-county surrounding area, it concentrates on what has been done and what is being done for the center's own minority population. In view of the figures given earlier on the low per capita income for the RA counties, and in view of the fact that Negroes make up only 9 percent of Ardmore ' s population and that Indians in Ardmore are almost statistical- ly non-existent, clearly a large percentage of the target population is being overlooked. 2-14 Current center programs described in the PAP and aimed at the black population include the Equal Employment Op- portunity Council, whose efforts are in securing employment with local business firms for the city's Negroes; the Human Relations and Job Placement Center Program; "Operation Pride/' whose program is aimed at enlisting citizen participation in improving the environment of the city; and the Community Action Program, whose efforts are to improve the status of the city's black population. Other programs discussed include the work of the voca- tional-technical school, construction of low-rent housing, education of Indian children residing at the Carter Seminary, formation of a rural water district and provision of water services to impoverished areas adjacent to the city, and expansion of the city's library system to directly serve the city's poor neighborhoods. While certainly worthwhile pro- grams, these are all past projects or on-going efforts. In the updated PAP of January 1969, emphasis moved from Ardmore ' s own minority population to the economically dis- advantaged in general. This document is concerned with crea- tion of job opportunities and provision of necessary services for the poor. It shows a growing recognition of the growth center's responsibility to the unemployed and underemployed in the redevelopment areas; it also continues to show a sense of obligation to the center's own poor. Job opportunities that will be available to the target population are discussed, particularly those arising from the establishment of the Uniroyal tire plant in Ardmore. Location of the Uniroyal plant is seen as a chance for many citizens to upgrade their present job status, and for many of the unemployed to fill those jobs to be vacated. Pref- erential recruiting and hiring of citizens of nearby re- development areas will be undertaken, according to the PAP. Information about job openings will be passed on to the un- employed and underemployed by the Oklahoma State Employment Service, the area vocational-technical school, the Human Relations and Job Placement Center, the Community Action Pro- gram, the welfare department, neighborhood meetings, and news media. The PAP did not describe how the preferential recruit- ing program will be carried out, how the information network will be coordinated, and who specifically will conduct this program. The evaluation team attempted to determine the status of these activities. With respect to jobs for RA residents 2-15 at Uniroyal, the plant had over 4,000 applications on file. The plant was hiring only 8 to 10 employees a week. This indicated very careful screening by Uniroyal to get the best-qualified and most experienced employees/ which the team felt would very likely limit opportunities for residents of the RA's. However, it was too early to tell what the eventual outcome will be. The team conducted a limited parking lot survey of Ardmore firms and estimated that approximately 10 percent of the present work force comes from RA counties. They did not find that this figure was the result of any deliberate action on the part of any individual or organization. The outreach ef- forts to contact the unemployed and underemployed, as discuss- ed in the PAP, the team found to be underway. The areas served, however, were limited to non-designated counties or to Ardmore itself. For example, the Ardmore Employment Security Office does not provide services to any of the re- development areas, although it does sponsor a daily radio broadcast of job openings. The CAP agencies are decentralized to serve only one county each, and there was no indication that the agencies exchange job information on any regular basis . The Human Relations and Job Placement Center had done, and was continuing to do, a commendable job in placing Negroes and other minority members in jobs. All of Ardmore businesses, with the exception of the banks, now have minority employees. The director of the center enjoyed favorable re- lationships with the Uniroyal plant management, and he had been successful in placing a number of Negroes in the plant, some in responsible positions. However, the center serves only the citizens of Ardmore and people who live just out- side the city limits. The area vocational-technical school is listed in the PAP as another facility which would assist the economically disadvantaged by preparing them for employment. The team found that despite commuting difficulties, a number of students do come from the RA's to participate both in high school and adult education programs. At the time of the visit, 36 high school students and 110 adults from RA counties were enrolled. However, the vast majority of the 600 students came from places other than the RA's and were not economically disadvantaged. The school's service to the target popula- tion has been even more limited by the establishment of the Skills Training Center in Sulphur, Oklahoma. Money for teach- ing under the Manpower Development Training Act has gone to Sulphur. As a result, the Ardmore Vocational-Technical 2-16 School had no students in the MDTA program during the 1970-71 school year as contrasted with 140 in the 1969-70 school year. Efforts being made to improve race relations, through such activities as the Equal Employment Opportunity Council, Opera- tion Pride, and Let's Talk, were justifiably sources of pride, the evaluation team felt. Progress was being made. However, these again were activities limited to the citizens of Ardmore. Two programs which may affect residents of the RA's are construction in Ardmore of low-income rental housing for Indians, being undertaken by the Chickasha Indian Housing Authority, and expansion of the Chickasha Library to serve the 10 counties of the district. Neither project had been started at the time of the visit, so impact could not be assessed. The field team concluded that, to date, the RA's have re- ceived few benefits from the Ardmore Positive Action Program. Whatever benefits have accrued have been largely incidental. This, the team felt, is due not only to the programs that have been considered but also to the personal commitment of many of the city leaders involved. Key Chamber of Commerce members, city officials, local bank officers, and even members of the SODA district board were unfamiliar with the PAP as a document. Their understanding of the PAP as a vehicle for achieving certain objectives was not only minimal, in most instances it was non-existent. Even after the purposes of the PAP were explained, there was little recollection of the docu- ment. This included the author also; he had viewed the docu- ment as a paper requirement to qualify for project financing. Durant The first PAP for the Durant economic development cen- ter describes Durant as both a retail trade and a social service center. This is the total of its commitment to the redevelop- ment areas. The rest of the document addresses the center's own population. To create new job opportunities for minority members, the city has established an Equal Employment Opportunity Committee. (In Durant, this applied only to the Indian minority. The city government has hired a limited number of minority residents . Durant is also providing certain services, listed in the PAP as satisfying the city's responsibility as a growth center. For example, Southeastern State College is planning a program to offer an Associate Degree for registered nurses 2-17 and is also planning a new vocational skills training program for the unemployed and underemployed. The city is attempting to implement a comprehensive planning and capital improvements program, which should improve the conditions of the worst areas of the city. Rehabilitation of the downtown shopping area has begun and low-cost public housing is being investigated. Finally, Durant has agreed to supply water to a rural water district and has agreed to provide consultative services to surrounding areas (not RA's) to help with their local sewage and water treatment systems and to provide added library services . The updated PAP (November 19 70) gives clearer evidence of the growth center's recognition of its responsibility to the redevelopment areas. In addition to the activities listed earlier, the new PAP includes the following new program plans: creation of new job opportunities for which RA residents would be eligible; an outreach program using the Oklahoma State Employment Service to guide prospective employees into existing and proposed industrial jobs; use of the Southeastern State College to meet vocational-technical training needs; proposed creation of a curriculum at Southeastern for allied health professions; development of a skills training center at Southeastern along with an outreach program to recruit the unemployed and underemployed in the RA's for such train- ing; and extension of the boundaries of the center to include the Durant Industrial Airpark to provide for future industrial development. While the updated PAP shows the community to have a better understanding of its responsibility to the RA's, the extent to which this commitment will be carried out — particularly in terms of active recruiting and preferential hiring of RA residents — will have to await the start of operations at the Le Tourneau plant. Based on the previously mentioned parking lot survey, RA residents at the present time appear to be receiving a greater share of the jobs in Durant than they are in Ardmore . A survey of Peabody-Galion, a major manufacturing firm in Durant, showed that approximately 17 percent of the work force comes from the RA's. Thus a pattern of employing RA residents already exists. The city of Durant also has very little un- employment. It is estimated to range from 2.9 percent to 4.6 percent. A major employer would have to hire from the surround- ing area. This could be advantageous for RA residents. 2-18 Futhermore, Durant has an outreach agent in the Oklahoma State Employment Office. Unlike the office in Ardmore, this office does serve two RA counties CAtoka and Johnston) . It has staff members visiting these counties twice a week. Some of Durant' s other efforts could also be produc- tive. The skills training center and the curriculum for allied health professions at Southern State College were being developed, along with the outreach program to recruit candidates in RA's for such training. Within the city, progress has been made in other respects For example, Durant has recognized the need for improved housing, and specifically low-income rental housing. Plans were well underway to construct 150 apartments and to clear a large area for a mobile homes park. The businessmen have recognized the need to rehabilitate their downtown shopping area, and the city has realized the need to do a better job in zoning. As a result the planning commission has become very active and productive. Again, these and similar pro- grams affect the center's own citizens; they have little or no direct effect on residents of the redevelopment areas. The water services to outlying communities were being pro- vided; these communities are all within the boundaries of non-RA Bryan County. In summary, the field team felt it was too soon to determine the actual effect of many of Durant ' s positive action programs. Several of the efforts mentioned were promising but were still being developed. However, the evaluator's overall assessment at the time of the visit was that the Positive Action Program is having minimal impact on the RA's. ROLE OF DISTRICT AND BOARD Introduction In analyzing the role played by district staff and board members with respect to the growth center policy, the evalua- tion team emphasized these groups' efforts to insure that unemployed and underemployed RA residents benefitted from EDA growth center investments and center services. For example, staffs and boards were judged to be effectively implementing the growth center strategy if: they encouraged, employers benefitting from EDA growth center investments to hire the target population; 2-19 growth center board members advised and assisted RA board members in their efforts to stimulate development; and the staff explained the PAP ' s purpose to growth center residents responsible for preparing the document, and provided assistance when necessary Promotion of Growth Center Strategy- Attitudes The board members, especially those from the RA counties, view the growth centers with some envy. They see the growth center getting most of the federal projects and they find it difficult to see how these projects will help their own con- stituents. At the same time, they see that the growth cen- ters have the resources and capabilities needed to make the most effective use of such assistance. Consequently they do not oppose such projects. Board members from the non-designated counties seem to be neutral regarding the growth centers and the growth-cen- ter policies associated with them. They appear to be more concerned with the district as an effective organization. They recognize that the district can secure funds from other federal sources besides EDA, and that such funds can amount to considerable sums. For example, during the period of November 1, 1969, to July 1, 19 70, the SODA executive com- mittr r ee received project requests totaling over $12 million froiri 9 of the 10 counties. These requests included projects related to health, airport construction, recreation, plan- ning, water, sewer, and highway construction. During this same period 9 of the 10 counties received notification of grants totaling almost a half-million dollars. Other than people involved in SODA operations, redevelop- ment area residents have little understanding of the growth center concept; few even know that such a policy exists. However, they generally resent the fact that the larger cities are getting most of the federal dollars, although this resentment is not very vocal. The location of such firms as Uniroyal and Le Tourneau in the growth centers is looked upon with favor as providing employment opportunities for them or their friends. RA residents would have preferred that the plants locate in their counties, but they are glad that the firms located in a city nearby. 2-20 The district staff believes in the growth center strategy. They devote much of their time to the growth centers, mainly because the centers make most of the demands for their services. They believe that the RA's in their district are not economically viable, a belief supported by the fact that Atoka County almost went bankrupt two years ago and consistently has to return highway funds because it is unable to provide its matching share. The other two redevelop- ment counties are in similar dire financial straits. How- ever, even though the staff devotes much of its effort to the growth centers, staff members do not forget their responsibility to the RA's. They constantly attempt to impress upon the centers the need to think in regional contexts and to help the RA's in any way possible. Geography As described previously, the district office was established in Ardmore to reassure the other counties and cen- ters that Ada, the first designated growth center, would not dominate the district. The district staff is very conscious of the delicacy of the relationships existing among the growth centers and between the growth centers and other com- munities in the district. As a result the office is located at the Industrial Airpark, which is 15 miles outside of Ardmore. Staff members try to give each center the same amount of attention. At the same time they attempt to give some attention to other communities by rotating their board meetings among all of the counties. Recently they began a circuit-riding arrangement which brings at least one staff member to each county every month. The efforts expended on the centers, however, overshadow this kind of activity. The field team concluded that, while no one growth center dominates the activities of the district office, the centers collectively do dominate the activities. As noted previously the location of the growth centers in relation to the RA's and to each other is very favorable. Only the extreme eastern portions of Coal County and the eastern two-thirds of Atoka appear to be out of the sphere of influence of one or more of the three growth centers . This favorable geographic location of the growth centers, however, has not yet been translated into favorable eco- nomic benefits to the RA's. Relative Influence of Board The Southern Oklahoma Development Association was founded as a non-profit corporation on November 19, 19 57. It was organized by three counties (Garvin, Carter, and 2-21 Murray) to promote and support the construction of the Arbuckle Dam and Reservoir. Ceasing to function during the early 1960 's after approval of the dam and reservoir, it was reactivated in 1965 as a result of a tourism study of eastern and south central Oklahoma sponsored by the Bureau of Indian Affairs and the Area Redevelopment Administration. With the enactment of the Public Works and Economic Develop- ment Act in 1965, the association served as an ideal nucleus for the formation of an economic development district. The corporation was reorganized to meet the requirements and criteria established by EDA for economic development districts. A board of directors which at first consisted of 20 voting members and 20 alternates was organized. Each county sent two voting members and two alternates. One voting member and one alternate were selected by the Board of County Commissioners of each county; the mayors of all incorporated municipalities in each participating county co- operatively selected the other voting member and alternate. Subsequently the 10 Soil and Water Conservation Districts (SWCD's) in the SODA district requested membership on the board. They were accepted and each SWCD was permitted to select one voting member and an alternate, thus increasing the board of directors to 30 voting members and 30 alternates. The composition of the board appears to be balanced in re- presentation of the various interests of each county. There has been some criticism that the board does not adequately represent the interests of the poor generally, and the minorities, specifically. This question is presently being examined. While the interests of all the participating counties and municipalities are given balanced consideration in board deliberations, the field team gained the impression that the growth centers generally dominate the board. The last three presidents of the association came from growth centers (one from each center) . The other elected officers of the associa- tion also came from growth centers. This gives the centers considerable influence, particularly with the district's executive committee, which acts as the operating manager for the association. The executive committee is formed from among the member- ship of the SODA Board of Directors. It consists of one member from each SODA county plus the three elected officers of the association. Thus 6 of the 13 members are usually from a growth center. 2-22 Influence of the centers is also continued by the formula used to finance the operations of the district, a formula based on pro rata share allocations from the participating governmental subdivisions. The total population of the 10 counties, as of the last census, serves as the 100 percent basis of computation for the allocation formula. Each county contributes an amount in the same proportion as its population bears to the 100 percent basis. Payment of this share is borne by participating governmental subdivisions in the county. Thus, the board of county commissioners of each county in the district pays one-third of that county's assessment. Another one-third is provided jointly by the municipalities within the county that are participating in the district program. The other one- third share is provided by the board of supervisors of each of the 10 Soil and Water Conservation Districts in the SODA district. This method of allocation places the bulk of the financial burden upon the more populous counties and cities. Their burden is increased even more when some of the RA counties, e.g., Atoka and Johnston, are unable to contribute their al- located shares, as has been the case in the past year. Yet the populous counties appear willing to bear it: it does provide them with a lever for maintaining their influence. The influence of the growth centers is also apparent in the caliber of their representatives on the district's executive committee and board of directors. Their training, experience, and general capability is usually superior to that of the representatives from other communities. However, this superiority is never flaunted. Every attempt is made to insure that all members are full participants in the deliberations of the executive committee and the board. At the same time such talent insures the predominence of the growth centers . Services of Staff and Board The district staff attempts to carry out the full range of functions expected of it. This includes planning, counseling, advising on problems, setting priorities for projects, promoting growth center strategy throughout the district, assisting in preparation of Positive Action Pro- grams, preparing applications, and "grantsmanship. " The staff's chief contribution has been in assisting the centers to prepare PAP ' s and in preparing application forms for all of the district members. This latter work falls short of 2-23 covering the full range of the "grantsmanship" function. District staff members generally wait for a project to be initiated at the growth center or RA level, and they then steer it through the bureaucratic maze. The staff recognizes that it needs to assume a stronger "grantsmanship" role, but has not yet done so. The staff's role in its other functions is equally one of reacting to proposals and not of initiation. However, the staff deserves credit for the high degree of communication among the board and executive committee members. The committee meets once a month and the board meets every three months. Meetings are well-attended and participation is high. The staff circulates a news and information publication to keep members informed. It also has instituted the circuit-riding arrangement mentioned earlier, the purpose of which is to keep board members informed about district developments and problems and to keep the staff informed about local developments and problems. As a result of such activities and because of the past history of the district, the board and committee members have a well-developed sense of regionalism. There is no problem in thinking in district-wide terms even though such thought has not yet been translated into district-wide action. In terms of action, there was no evidence that individuals were assisting each other in solving common or related problems; in fact, there was evidence of a consider- able amount of parochialism and competiveness. But the team felt some progress was being made to overcome this insularity. EDA PROJECT IMPACT At the time of evaluation, EDA had awarded the three growth centers $2,938,000 in public works projects, $500,000 in business loans, and $47,000 in technical assistance funds. These funds were concentrated primarily in Ardmore and Ada. Of the public works funds, Durant received $417,000, Ada received $742,000, and Ardmore received $1,779,000. In ad- dition Ada received a $500,000 business loan to assist the Solo Plastic Cup Firm in locating there, and $47,000 in technical assistance funds. Subsequent to the field visit, Durant was awarded an additional $72,000 in public works funds and $2,350,000 in business loan funds to aid in the establishment within the city of the Le Tourneau plant. Although many of the projects in the individual growth cen- 2-24 ters were under way, few were completed at the time of the visit Therefore the full impact of EDA's investment could not be assessed, but an evaluation was made to the extent possible. Ada Since its designation as a growth center, the city of Ada has had four EDA projects and has received two technical assistance grants, for a total funding of $1,289,000. 1. Industrial Access Road An industrial access road was built to serve the Brockway Glass Company, one of the largest and oldest firms in Ada. EDA investment was $113,500. The project applica- tion indicated that the construction of an access road was critical to Brockway ' s decision to stay in the area and to expand. Conversation with plant officials indicated that road improvement was only one of several factors in their decision to stay. As a result of its expansion program, Brockway now employs 347 people, 97 more than in 1967. Since Brockway ' s cost of expansion was close to $10 million, it was not felt that EDA's $113,500 investment could be considered critical to keeping the company in the area. Also, expansion plans well-preceded the access road project. Hence no new jobs were attributed to this project. 2 . Renewal of Business District In mid-1967, shortly after Ada's designation as a growth center, EDA approved a project designed to modernize the central business district. The project involved acquiring certain property in the downtown business district, demolish- ing shabby buildings, and constructing parking lots on scat- tered sites in the core of the retail district, thereby bringing in more business for the downtown merchants. EDA's investment was $445,000. At the time of the field visit, the project was still under construction, so it was not possible to assess the economic benefits of this investment. Downtown merchants, however, were optimistic about the positive impact these improvements would have on their trade. 2-25 3 . Solo Cup Company EDA has provided a business loan to the Pontotoc County Industrial Development Authority to aid in the location of Solo Cup Company in the industrial park. The company manufac- tures plastic cups. Total cost of purchasing the land, build- ing equipment, and machinery for this branch plant amounted to $2 million. EDA's share was $500,000. At the time of the field visit, the plant had created 165 jobs, all attributable to EDA. Plant officials expect to employ 300 people when the plant is fully operational at the end of 1971. Of the 165 employees, 95 percent are women, and slightly more than 10 percent are members of minority groups. Although company policy prohibited distribution of employee questionnaires, the personnel manager believed that more than 75 percent of Solo employees live in Ada or within Pontotoc County, and the remaining 2 5 percent commute from nearby Garvin County, a non-RA county west of Ada. 4 . Ada Industrial Park The Pontotoc County Industrial Authority, a non-profit cor- poration organized to promote county development, owns a 40- acre industrial area. EDA helped finance a project to improve access to this area and increase water capacity so that exist- ing firms could expand their work force. EDA investment was $183,500. The field team found that no significant expansion had taken place; in fact one firm found it necessary to temporarily lay off 12 employees pending an improvement in its cash flow. The evaluation team found that one new firm, Vindale Mobile, had moved into the park, and had employed 60 people. Employee data from Vindale showed that of the 49 hourly employees, 7 had come from RA counties. On the basis of these data, it was estimated that 9 of the 60 employees were present or former residents of the redevelopment areas. At the time of the visit, however, 4 5 of 49 hourly employees resided in Pontotoc County, indicating that at least 3 of the RA residents had moved to Ada or its environs. From these data, it was estimated that 5 of the 60 employees lived outside of Pontotoc County. The field team found no additional service impact, such as water service to residential areas, from EDA projects in Ada. These projects, though providing employment opportunities for residents of Ada, had little effect on RA residents. 2-26 There was no evidence that the projects would have any impact on the redevelopment areas in the future. 5 . Technical Assistance Grants Funds amounting to $47,000 were awarded by EDA for two technical assistance studies. One for $22,000, while allocated to Ada, was a broad study to determine the suitability of counties in the district for new or expanded manufacturing and distributive businesses. The contractor was to tentatively indicate what specific industries should find the area attrac- tive and what locations seemed best. The other grant, for $25,000, was to assist SODA with an action plan for a central warehouse and industrial complex that would attract industrial and commercial enterprises. The Uniroyal Tire Plant located near Ardmore after this study was completed. Plant officials said that the study was one of many factors that led to the plant's location; however, they indicated it was not a critical factor. Ardmore Ardmore has had five public works grants totaling $1,753,000, and $26,000 in public works supplemental funds. Projects included: (1) the construction of a complete water main loop around the city, $460,000; (2) extension of 12th Avenue from Commerce Street to Interstate Highway 35, $158,000; (3) construction of an industrial park access road along Interstate Highway 35, $223,000; (4) expansion of the facilities of Southern Oklahoma Area Vocational-Technical School, $425,000; and (5) construction of a four-mile access road eastward from the Industrial Airpark to U.S. Highway 177, with a bridge across the Washita River, $487,000. Of the first four projects, undertaken to serve the Uniroyal plant, only the water main loop around the city was near completion at the time of the team's visit. The sup- plemental funds were to construct a sanitary sewer outlet for the park in which Uniroyal is located. The Uniroyal plant had located but was not yet in full operation. Due to the incomplete state of projects and plant, no evaluation of their economic impact was made. The fifth project, the access road from the Industrial Airpark, had been delayed because of dif- ficulties in acquiring rights-of-way, and construction was just beginning at the time of the visit. Hence, its impact also could not be evaluated. 2-27 All of these projects show great promise. There is much to indicate that they will greatly benefit residents of RA counties. Durant Durant has had one public works project. Its purpose was to extend the municipal water service facilities within the city limits by constructing (1) a river pump station, (2) a coagulation and sedimentation tank, (3) chemical feed building, (4) 750,000- and 250 , 000-gallon elevated storage tanks, and (5) water distribution mains ranging in size from 6 to 14 inches. Cost of the total project was $834,000. Of this total, $417,000 was provided by an EDA public works grant. The project was begun in 1968 and completed in January 1971. The project was intended to provide better water services mainly to the southern parts of the city by bridging gaps in the present system and by providing extensions to certain industrial areas, both those used presently and others slated for the future. Ninety percent of the project was intended for industrial use. In addition, the project extended a main line northward from the city's present facilities, closing certain loops in the existing system. The areas to receive this improved service were Southeastern State College and its surrounding residential land. The project application stated that the project would re- sult in the creation of approximately 155 jobs. These were distributed as follows: 35 jobs in the U.S. Department of Agriculture Water Research Laboratory, 70 jobs in the Four Seasons Rest Home, and 50 jobs in the Peabody-Galion plant. Both the Water Research Laboratory and the Four Seasons Home were located in the northern part of the city adjacent to Southeastern State College, and they had water services avail- able prior to the completion of this project. Citation of them as beneficiaries is difficult to support. In fact, in the final Requirements and Certification Report, the Depart- ment of Agriculture Water Research Laboratory was not cited as producing any new jobs through the project. Furthermore, there is no documentation from anyone at this facility giving evidence that this project was needed for its operations. Con- sequently, the 35 jobs initially claimed are discounted. 2-28 The situation at the Four Seasons Rest Home is similar. Also located in a subdivided residential area in the northern part of the city, the home had water services available from the existing system when the EDA-funded water project was being considered. In fact construction of the rest home was over 70 percent completed when application for the water service project was initiated. Evidently the rest home was not relying on the project. It is true that the capacity of the service was not as great (6 inches as contrasted with the new 12-inch pipe) and the water main was not as close. But these are not considered critical factors, especially when one learns that the home's maximum water usage is 75,000 gal- lons a month and that construction of the home was started before the water project was initiated. Therefore, the 70 jobs claimed for this facility are also discounted. Extension of the main line to the northern part of the city fulfills the 10 percent residential use originally cited in the project application. This part of the project has made it possible for the city to improve its critical housing situation with the construction of low-income housing under Section 235 of the Housing Act.£/ The project has also made possible the preparation of a large adjoining area for a mobile home park, and it has helped construction of a community swimming pool that is intended to serve the entire city. All of this in the northern part of the city was made possible at a cost of $56,000, or less than 7 percent of the cost of the entire project. The main elements of the project construction in terms of water mains and storage tanks were in the southern section of the city. This section is generally considered to be for industrial use, although much of the poor residential area is here also. The project here closed loops in the existing system and improved services by extending water lines to areas not being served at the time. Lines were extended along the recently completed Interstate 35 to the southwest of the city, along U.S. 69-75 to the south, and in an area of the McLean Drive region to the southeast of the city. It was clear that the purpose of this effort was to provide better service to both current and potential industrial users of water. Benefit to residential users was only incidental. —'Title II, Section 235 of the National Housing Act established a mortgage insurance program to aid low-income families in becoming homeowners. Under this program HUD pays the dif- ference between the payment required and 20 percent of the homeowner's monthly income. 2-29 The project application cited only one firm as a benefi- ciary -- the Peabody-Galion Company, maker of truck dumpsters. Claim was made that 50 additional jobs would be created if the water service was made available within the city. The firm would then move from the Durant Industrial Airpark, where there was well-water service, and the relocation would permit the firm to expand by 50 new jobs. Investigation revealed the fol- lowing: The Peabody-Galion firm was established in Durant in 1960. In 1969 it had two plants, one at their present site and the other at the Industrial Airpark. The company decided to consolidate these two operations and locate the firm within the city limits of Durant, thereby securing more favorable fire insurance rates. This was made possible with the approval of the EDA project. Further investigation indicated that the area in which the Peabody-Galion plant relocated had other industrial firms long before this project was initiated. These included a large warehouse and trucking firm and Durant Electronics. The lat- ter is a plastic toy manufacturer and a large user of water -- approximately 200,000 gallons per month — during its peak production periods. The toy manufacturer has been in this part of town since 1965, which would indicate that the region had adequate water service prior to the project. However, the Peabody-Galion plant did locate in a section that had no nearby mains, and did expand its work force by 50. Without the project, expensive construction would have been necessary on the part of Peabody-Galion to tie in with the existing water system. This may have precluded the firm from relocating in Durant. These 50 jobs, therefore, are credited to the project. The Peabody-Galion firm appears to be a sound company whose products have a steadily growing market. The Durant plant presently employs 227 people. Of these, 195 are hourly employees whose hourly rate averages approximately $2.98. At the time of evaluation, hourly wage rates ranged from $2.07 for new employees to $3.47. Wages of the salaried force ranged from $7,000 to $20,000 per year. Total annual payroll was slightly over $1,000,000. The firm is one of a kind in the area and its employment is very stable. Thirty employee questionnaires were distributed among the hourly wage employees at the firm, a sample of slightly more than 15 percent. Of the forms distributed 21 were returned, a sample of 11 percent. 2-30 Prior to evaluation of the questionnaires, a rough estimate of the number of RA residents employed was made on the basis of the parking lot survey previously mentioned. By the survey, almost 17 percent of the jobs in the plant were held by RA residents. Therefore, approximately 8 of the 50 jobs created by the project should be held by RA residents. However, returns showed no jobs going to residents of redevelopment areas and 14 jobs held by formerly unemployed and underemployed residents of the growth center. Table 2-2 presents additional data on the water system's impact. In addition to the jobs created as a result of the water project, the team found several other benefits. For example, 150 low-income rental housing units were built in the area serviced by the new water lines. Also, extension of the lines south along Interstate Highway 35 to the city limits will per- mit quicker and cheaper extension of service to the new Le Tourneau plant, which will be located three miles outside of the city along the highway. Future Project Impact in Ada, Ardmore, and Durant Future job impact in Ardmore will add 1,000 jobs to the total presently attributable to EDA. This employment at a Uniroyal facility will be related to an EDA public works invest- ment of $1,292,000. The Le Tourneau plant to be constructed in Durant is projecting employment of 400. On the basis of the discount formula, £/ since construction was not to be completed within one year of the evaluation, these jobs are not included in the future impact figures. In Ada, it is expected that Solo Cup Company will add 135 jobs within the year, bringing Solo Cup Company's total to 300 jobs, all attributable to EDA. With the 275 jobs presently attributed to EDA, these 1,135 projected jobs increase the total job impact to 1,410. With present EDA investment amounting to $1,214,000, the additional public works grant raises total investment to $2,506,000. EDA's investment per job then becomes $1,777. ECONOMIC DEVELOPMENT PROCESS Ada Introduction Ada is a town on the move. The business and commercial interests in the town have dozens of projects and activities T7 See Program Evaluation; The Economic Development Administration Growth Center Strategy , page A. 5. 2-31 < Q < CN 1 -z. CM "— LU \- _1 u PQ < < Q_ H s: <_> LU ~D O cc Q_ < Q w < O Pi 1 « CO Pi D h H Pi Eh O < U D W J Eh < u w o o o r- CN cn o o o in (N m cn r^ ro cxi ■H cn cn CM "3* o o o CN CM O O IT) O o o O o o o IT) ^ ». r^ co co 00 ro ■H o\o IT) O ro cn 00 cx\ in 00 o ro *. ». oo o CN o o o o o o CM c/> o o o o o in o¥> o in m (d i i CO 4-1 •H rH Tl T3 CO 73 rH CO 4-> 4-> 4-J (0 CLi fO 0) OJ CD CD Qj-H P G c d >i 4-1 04 3 c P P Pi 4-) g PL, C CD CD CD Sh tn •H U 3 3 30)g CD 'O i 5* n n u "H £} -H § £! C CD -0 •H -p ^H. r ) •H O -P -H ■HDH •H CO CO CO rfl -P O P TJ CO a> Pi > X! > O fO C 0) 4-> 4-> 4-1 P 4-1 C C Pi C H Pd >i (1) Cm (1) CL. <: < CO < D U H 1-3 iH •n 1 m 1 CO p 1 CO CO H 2-32 to diversify their economic base and provide job opportunities for area citizens. This effort is aided by a competent and imaginative Chamber of Commerce, whose many members have been investing time and money for 10 to 15 years. The general at- titude among this group is that Ada has to grow through the creation of more job opportunities for all, especially the youth of the area, if Ada is to survive as a viable community. Conservative chamber estimates indicate that only 200 of the 1000 high school graduates in the Ada area are able to find local employment, with the remaining 800 assumed to have left the area in search of job or training opportunities. This interest and effort to broaden the community's eco- nomic base has been going on for more than a decade, and some positive results are in evidence. Almost all of the new job opportunities have been created in the past five years, less- ening the town's dependency on one or two traditional employers. Most of the new plants have located in Ada through the work of two chamber-organized groups, the Ada Industrial Development Corporation and the Pontotoc County Industrial De- velopment Authority. It is estimated by the chamber that the new job opportunities have increased by 35 percent in the past five years, although most require low skill levels and pay minimum wages. Ada is a young community by eastern standards, having been founded by four families in 1896. By Statehood (1907) it had grown to a community with a college, two banks, and a railroad. After World War II the agricultural base of the area changed from farming to cattle ranching, which required more capital and more land. Ada now enjoys the role of a regional retail trade center with customers coming from distances of over 25 miles to shop. Much local effort is being spent to improve the appearance and accessibility of the down- town area in an effort to maintain and expand its markets. City Government's Attitude Toward. Development Comments similar to those on Ada's Positive Action Program apply here as well: the role of the city of Ada in the SODA District and in local development activities is one of general support rather than aggressive leadership. The city is limited in its activity because of a small tax base mixed with an in- creasing demand for services. This situation has been relieved a little in the past year or two with the passage of a one-cent city sales tax that had been turned down twice by voters. Much of the new industry is located on tax-free land or outside the city limits and thus represents only modest 2-33 new income opportunities for the city. The city now sees it- self "catching up" on projects that were not done in the past for lack of funds. The city and county have had no difficulty in passing bond issues for development activities during the past 10 to 15 years, nor have these public bodies been reluctant to propose them if the need arose. It was the consensus of those interviewed that the role of the city government in most recent years had changed to one of leadership in area development. It now acts in those areas directly related to traditional government services such as water and roads. The more aggressive leaders in the business community view the city government as too passive, but this is not really critical for development because of the ag- gressive leadership provided by the chamber. In sum, the com- bination of the city and the chamber working together to pro- mote the industrial development of Ada appears to be effective. City planning and city-county planning are taking place in Ada. The city manager at the time of the field visit was attempting to put together a comprehensive city budget to guide future activity. There is a joint City-County Planning Commission, led by a part-time consultant from the University of Oklahoma. The commission's major efforts to date have been devoted to zoning. Lending Policies of Ada's Financial Institutions The banks in Ada, working within the Pontotoc County Industrial Development Authority, have played a prominent role in the development of local projects. The president of the county's largest bank serves as the authority's president, and officers from other banks within the city and county serve as authority board members. Local banks have participated in some positive manner in every one of the EDA-assisted local projects -- they have purchased bonds issued by local citizens' groups and industrial development authorities, and bank of- ficers and staff have served as leaders of development proj- ects. Bank officials have served on industry-hunting teams organized by the chamber, and many bank officers have served as chamber officers and as committee chairman of chamber pro- grams concerned with economic or social development. Local banks are also participating in a Small Business Association program sponsored and promoted by the Ada Growth and Develop- ment Group to provide for expansion of the local soft drink bottling plant. All interviewed gave high marks to the local banks for their positive attitude toward the economic develop- ment of the area. 2-34 Attitude of Dominant Economic Group Toward Economic Development Most people interviewed were unwilling to point to any dominant economic group in Ada. Rather, they felt that a balance exists between the various interests in the town. While in each group there is some opposition to development, it is not enough to slow down the forward thrust of development activities. Downtown merchants, cattle interests, and oil interests were listed as strong groups, but the cattle and oil people do not participate in current economic development activities . Cooperation of Local Community Organizations in Develop- ment Efforts Most community organizations have been primarily concerned with civic improvement and only in the past five years have some of these groups become interested in economic trends both in the city and the county. Some are now taking effective ac- tion to support development activities. As might be expected in such a small community, leading citizens participate in a broad range of community activities and there is much overlap- ping of leadership and membership in organizations. The chamber and the city have effectively used these civic organiza- tions to promote support for city-wide projects or to generate support for bond issues. Effectiveness of Ada's Development Planning Efforts Ada is a small commercial and retail center surrounded by ranches and farms, with very few towns of significant size nearby. The need to "plan" has not been a pressing one, nor has there been much support for planning among the population. Rights of property are held in very high regard and are generally translated into the right to be left alone to develop one's property as one pleases. As the city of Ada began to grow and diversify its eco- nomic base, the need for some control became evident. Because Ada is Pontotoc County's largest city and the county seat, a joint City-County Planning Commission was organized. As now structured, the commission consists of the city mayor and county chairman, plus five members appointed by the city and five by the county commissioners. Its main impetus has been to protect and regulate the general development in and around the county seat. 2-35 The commission has a part-time consultant, and various members of the city public works staff assist in some of the zoning and ordinance enforcement. Their work thus far has been limited to physical planning and coordination of certain water resources related to rural farm needs. In addition to the work of the city-county commission, the SODA staff has assisted Ada with regional planning matters that included Pontotoc County. For example, considerable interest exists within Ada to create a vocational-technical center to serve both local citizens and those from other areas. SODA and the local chamber are pulling together appropriate groups and firms on a more regional basis than the resources of the city alone now permit. Effectiveness of Community Organizations for Economic Development As indicated earlier, the PAP Committee is essentially a creation of the Ada Chamber of Commerce and its conclusions and priorities were working their way through the chamber's board at the time of the evaluation. In addition, five other organizations created under the chamber's aegis promote com- mercial or industrial development. These groups cover func- tional areas of development, and descriptions of their activities follow: The Ada Industrial Development Corporation, headed by a local businessman, is a holding corporation of land and building sites for use in attracting new industry or expanding existing Ada firms. It was formed in 19 50 by local citizens, and was responsible for development of the industrial park. The Pontotoc County Industrial Development Corpora- tion, headed by the president of a large Ada bank, served as the local development corporation in financing the location of the Solo Cup Company. Formed four years ago, the corporation includes one representative from each of the five banks in the county, the three county commissioners, and four members selected by the Ada Chamber of Commerce. The Ada Growth and Development Corporation, led by a local attorney, is interested in ventures to build a sound local economy and provide job opportunities. It is composed of young business and professional men 2-36 in Ada, and is assisting the Small Business Associa- tion in the expansion of an existing coca cola plant. The Sciences and Natural Resources Foundation of Oklahoma, headed by an Ada businessman, is interested in developing a 420-acre park specializing in environ- mental research. Twenty acres of the park are present- ly occupied by the federally financed Robert S. Kerr Water Research Center. The foundation is seeking to diversify the economy of the area, while drawing at- tention to Ada as a center for research and technology The East Central Oklahoma Building Authority, headed by an Ada newspaper publisher, is the vehicle used by the State of Oklahoma to build a Regional Health and Social Services Center in Ada. Willingness of the Public to Pay for Development Projects Ada and Pontotoc County have exhibited an above-average willingness to finance development projects, especially in the past five years. Every issue either directly on in- directly concerned with industrial development matters has been passed by the citizens. In addition, combinations of citizens, primarily businessmen, have organized and raised funds to be used as matching funds in development projects such as the access road to the expanding Brockway Glass Company. Although a public referendum on urban renewal failed five years ago in Ada, many attributed its defeat to lack of information and understanding rather than outright opposition. This case study has already referred to the city of Ada's recent vote to add a one-cent sales tax to provide additional funding to the city to match increasing costs and demands for services. Local leaders have shown imagination in putting together various development organizations and sources of financing. The Pontotoc County Industrial Authority was able in 1966 to pass a $1,260,000 industrial revenue bond issue. With the money, the authority purchased land, buildings, and equipment to entice a firm to relocate from Oklahoma City. Although the hopes for high employment (up to 300 jobs) have not materialized, local citizens still support attempts by development organizations to improve the local economy. Unfortunately the county has exhausted its bonding capacity and is unable to participate further in the financing of any expansions of existing firms or in the location of potential companies . 2-37 Cooperation with Neighboring Redevelopment Areas Some of the strongest and most consistent leadership of the SODA district has come from residents of Ada. For example, the first president and organizing force behind the fledgling district organization was an Ada resident. Because Ada is also a natural trade and commercial center for nearby counties, the notion that a rising economic tide can benefit all has a large acceptance. Obviously, the Ada business community's interest is motivated in part by the desire to have tax-pay- ing, job-holding citizens in the general commuting area who will make good customers for their stores. Aside from the district organization, no real device has existed to pull together the various counties, except in functionally narrow areas such as water resources and soil conservation. While the notion of regional cooperation in these matters has existed for many years, the district concept has enabled many to extend this cooperation into other areas such as law enforcement, juvenile delinquency, and health care. Ardmore Background Ardmore has gone through several periods of development and retrenchment and can be categorized currently as being in a reawakening stage of development. At one time a major por- tion of the city's income came from large cattle and oil interests. Allegedly 70 large-holdings millionaires were liv- ing in the city at one time. As the cattle industry retrenched and the oil industry began to centralize its operations, the influence of these groups began to recede. Some influence remains but at a much reduced level. Ardmore next went through a period of development result- ing from federal expenditures. A major airbase was established on its outskirts, providing impetus for the city's growth. After one closing and a reopening, the airbase was finally closed, and the city again faced a period of retrenchment. Current Attitudes Toward Development New hope appeared in 1970 when Uniroyal, with its potential employment of 1,000, located in the city. Ardmore sees itself beginning another period of development. However this up-and- 2-38 down history has instilled a cautious and even doubting attitude in both the city's leadership groups and the local citizens. They are in favor of development, but they are not eagerly pushing and promoting it. Further, the town's leadership is in a state of flux. The old leadership of cattle and oil men has generally been de- pleted. Those that remain are not very active. Their role consists mostly of giving highly conservative and' cautious advice. To some extent, they are opposed to economic develop- ment as upsetting the existing status quo. New leaders are developing, but no dominant group or coalition of groups has emerged, so far. The city government officials are in a leadership position, but their approach is very cautious; they have been reluctant to take the lead. However, they have cooperated actively with various groups, especially the Chamber of Commerce, to the point that the chamber and the city decided to combine their industrial development efforts under one manager whom they pay jointly. Community Groups and Development Efforts The chamber mainly consists of young businessmen, and it has taken the lead in certain areas. Because of turnover in the position of the manager and because the businessmen members are still unsure of their freedom from the dictates of the old oligarchy, the organization has been primarily concerned with non-controversial activities such as constructing a new high school, extending the Chickasha Library System throughout the SODA district, securing hook-up for higher education cable television, and promoting the establishment of an institution of higher learning in Ardmore. The Chamber of Commerce is interested in industrial development, but aside from helping to fund the position of manager of the Industrial Development Corporation, the group seems to lack energy and a systematic approach. Other organizations and individuals are also providing leadership. Among these are the utility companies, the news- paper, and various social organizations, as well as such individuals as a local newspaper reporter, the manager of the Oklahoma Gas and Electric Company, and the chairman of the SODA executive committee. However, the leadership appears to be splintered; at least it has not yet coalesced. 2-39 Other Factors Affecting Development Other factors are also holding back the development pro- cess. The banks are still generally highly conservative and parochial in their lending policies. One is beginning to break out of this mold and to seek investment loans actively. The citizens themselves display conservative and parochial at- titudes. They indicate little or no sympathy for the redevelop- ment areas and the economically disadvantaged citizens there. In fact they show little sympathy for their own poor popula- tion. At the same time they have demonstrated a willingness to tax themselves for development purposes. They have passed a $5 million revenue bond to be used for capital improvements, over-subscribed a $1 million bond for industrial development, and passed a one-cent sales tax to be used for improvements in city services. Summary On the whole, Ardmore can be categorized as being on the threshold of an economic upsurge. This position is the result of various fortunate circumstances such as its location between two major metropolitan areas, its favorable position in re- lationship to two interstate highways, its designation as a site to be served by the new rail passenger system, and the location of a firm like Uniroyal within its city limits. The evaluation team felt these opportunities need to be recognized and exploited if their full potential is to be realized. It can be said that the town is beginning to recognize these op- portunities, but the exploitation is slow in coming. Pur ant Background Durant, like Ardmore, is in the beginning phases of the economic development process. Unlike Ardmore, however, Durant has not been there before. There is a feeling that something new is happening in the town and a certain air of excitement about it all. Again, unlike Ardmore, this awakening was not due to the location of a large industrial firm within its limits. Rather it was the refusal of a major firm to locate there that brought on the resultant organization and activity. Corning Wares was invited to establish a plant in Durant. After an extensive 2-40 survey, the firm turned the invitation down. The city leaders asked the company to send a representative to tell them its reasons for refusal. The company did so. Among the reasons cited were inadequacy of the city's health facilities, lack of housing, appearance of its downtown area, and lack of various social amenities. The leaders accepted the criticisms and determined to do something about them. The city was fortunate that it, unlike Ardmore, had a stable, well-integrated group of leaders. The town had previously been led by cattle and rich farming interests. Typically they were highly conservative, but they also insured a high degree of economic stability in the city and the area. This stability continued even after industrialization was begun. Local Leaders' Attitudes Toward Development Industrial development was started on a small scale with a number of small firms. Transition from a predominantly agricultural economy was gradual and evolutionary. The transi- tion from the old leadership to the new has also been gradual and evolutionary. As the old died out or stepped down, the young came into their own. The young saw the need for greater industrialization, they were quick to grasp the implications of the criticisms of the Corning Wares Company, and they were united enough to take action. This action and its progress has been described elsewhere in this report. It is interest- ing to note that, unlike the situation in Ardmore, these young leaders were actively assisted, both financially and personal- ly, by members of the old leadership clique. The city leaders exercised their influence primarily through the Chamber of Commerce; however, as energetic citizens they were also members of other civic and social organizations. They did not hesitate to make use of these groups to promote development objectives. As a result, there is an unusual harmony among all groups in the city regarding the need for, and the value of, development. Local Lending Policies Durant also has some of the same road-blocks to develop- ment as Ardmore. For example, the two banks in town are still highly conservative in their loan and investment policies, though some changes are taking place. One bank is beginning to seek investment opportunities, and both banks subscribed heavily to the $1 million bond issue passed several years ago. 2-41 Citizens' Willingness to Finance Development The citizens of the town appear to be in favor of develop- ment. They supported the $1 million bond issue. They passed a one-cent sales tax which was used to pave certain city streets, most of which were in the poorer sections of town. They are expected to pass another bond issue for $152,000 for utilities to the Le Tourneau plant which is locating in their city. However, underneath all of these positive aspects, there lies the fundamentally cautious and even doubting at- titude of a man of the soil. They are waiting to see if it will all work out and they are not letting themselves become overly optimistic. Concern for Target Populations As noted previously, the attitude of Durant and its leadership toward the redevelopment areas is becoming more positive. Durant and surrounding areas have long been under the trade and service-center influence of Denison and Sherman, Texas. Durant is trying to break away and establish its own sphere of influence. People who represent commercial interests in Durant recognize that they need to secure the as- sistance of redevelopment area residents if they are to suc- ceed. Consequently they are beginning to realize they must also help the redevelopment areas to progress. Hence, they look with some degree of favor on the employment of redevelop- ment area residents in Durant. However, there is no evidence that they would actively promote such hiring. Furthermore, the extent to which this favorable attitude applies to the un- employed and underemployed is probably very limited; the evaluation team found a strong bias against the poor and destitute generally. This bias applied to all poor regard- less of race. Summary In summary, it can be stated that Durant is beginning to wake up to economic development. The town's leadership, which is capable and very close-knit, sees the need for it. Some of the town's underlying problems that may deter develop- ment have been recognized and something is being done about them. Generally the town's leaders are taking a comprehensive approach to development; they are not stressing industrial de- velopment only. At the same time, the citizens support the leadership but approach the entire subject of development cautiously. On the whole, the picture looks promising. 2-42 EDA's Contribution in the Economic Development Process EDA has helped foster the economic development process in the district as a whole and helped perpetuate the process in the growth centers individually. EDA contribution to the district is evidenced in its funding of the district staff, which has been active in pro- moting the concept of economic development throughout the district. EDA has also contributed to the further develop- ment of the process throughout the district by its leadership in the SODA Demonstration Project. EDA's contribution to the economic development process in each of the centers is best evidenced in the various proj^ ects which were funded in the centers. Comments on these projects have been made previously in this report. However, it should be noted, that in each instance, projects contributed either to a regeneration of the economic development spirit or to an awakening recognition of the need for such a process. While EDA influence was only one of the factors keeping the development process alive, or awakening the process, EDA's contribution was recognized and appreciated both in the district as a whole and in each of the growth centers individually. 2-43 CHAPTER III BANGOR-BREWER/ MAINE INTRODUCTION The Eastern Maine Economic Development District is composed of six counties in northeastern Maine: Hancock, Knox, Penobscot, Piscataquis, Waldo, and Washington. The two towns of Bangor and Brewer, astride the Penobscot River, constitute the one economic development center of the district. Redevelopment areas include the entire counties of Washington and Knox; four labor areas designated on the basis of unemployment; and two Indian reservations. Figure 3-1 is a map of the district. FIGURE 3-1 EASTERN MAINE ECONOMIC DEVELOPMENT DISTRICT Greenville Redevelopment Area Eastern Portion of Corinna-Newport-Dexter Redevelopment Area BANGOR-BREWER Indian Island Passamaquody Indian Reservations Stonington-Blue Hill Redevelopment Area Evaluated EDC Other District EDC or RC Redevelopment Area Designated Indian Reservation 3-1 EDA field evaluators visited Bangor-Brewer and the district in February and March 1971. DESCRIPTION OF CENTER AND ASSOCIATED REDEVELOPMENT AREAS Population The Eastern Maine Economic Development District is a large, sparsely settled area. While about equal in size to the combined areas of Massachusetts, Connecticut, and Rhode Island, the district has less than three percent of the combined population of those states. The district should be classified, from an economic point of view, as one with very slow growth. In 1970, the district had a population of 259,469, a decrease of 665 residents since 1960. This represented about one quarter of the total population of the state of Maine. By 1970, the EDA-designated growth center of Bangor- Brewer had registered a population loss of 11 percent over the previous decade, from 47,021 to 42,468. The Bangor-Brewer urban area, which consists of the growth center and nine suburban communities, showed a loss of 1.9 percent--78 , 749 in 1960 to 77,236 in 1970. This slight decrease represents a substantial out-migration. The urban area had a natural population increase (total births minus deaths) of approxi- mately 12,000 persons during the decade. Employment Data on employment in Bangor-Brewer also indicates very slow economic growth. Although covered employment^/ increased by 8.7 percent from 1964 to 1970, there were substantial losses in the government and manufacturing sectors. The increases in jobs were concentrated in the transportation, trade, and service sectors. The first two of these are not primary growth sectors. The figures largely reflect a tightening of the counting techniques used to make up the labor and employment statistics. That is, formerly uncounted persons, such as part-time, small firm, and service employees are now appearing in the 19 70 roster. The employment mix reflects a situation common with the coming of automation throughout the country. There has been a decrease in manu- facturing jobs (despite an increase of productivity and sales in this sector) and an increase in non-manufacturing jobs, particularly services. In the case of Bangor-Brewer, there has also been an increase in wholesale trade. 1/ Covered employment refers to employment subject to social security tax. J 3-2 Where, as in Bangor-Brewer, the growth center has been stagnant, it is not surprising to find the same condition exists in the surrounding redevelopment areas and non- designated counties. Population and employment figures confirm this condition. Redevelopment Areas The redevelopment areas had a total population of 95,372 in 1970, five percent less than that for 1960. Covered employment showed a comparable drop. Out-migration for the redevelopment areas during the decade was also quite extensive — close to 18 percent of the 1960 population. Washington and Knox Counties were the original two redevelopment areas, designated on the basis of unemployment in March 1966. They continue in this category. Three "sudden-rise" areas have been designated since 1966. They are familiarly known as the Lincoln area, made up of several towns in Penobscot County; the Corinna-Newport-Dexter area, also mainly in Penobscot County; and the Stonington-Blue Hill area in Southwest Hancock County. Greenville, a small area in Piscataquis County, has been designated on the basis of amount and duration of unemployment. The two Indian reservations designated are Indian Island, an island in the Penobscot River adjacent to Old Town in Penobscot County, and the Passamaquoddy Reservation, consisting of two areas in Washington County. Relationship Between Center and RA's Washington and Knox Counties, Greenville and the Passamaquoddy Reservation are, for the most part, out of commuting distance from Bangor-Brewer. The furthest point is Calais, the county seat of Washington County, 128 miles away on the Canadian border. Within commuting range, on the other hand, are Indian Island which is 12 miles away, and parts of the Corinna-Newport-Dexter, Lincoln, and Southwest Hancock County areas, which are 30 to 40 miles away. 3-3 Indian Island is an Indian village with a population of only 400. Because of historical prejudices and low skills, commuting from this Indian village is marginal. Corinna- Newport-Dexter and Lincoln are situated near the interstate highway to the growth center, but Maine winter road conditions make the trip to Bangor hazardous, and traditional home-area work patterns inhibit those who might otherwise commute. Thus Bangor-Brewer is, at best, a commercial center for the redevelopment areas. Shopping for specialized goods and services will bring the RA resident to the growth center, but everyday items are purchased in the towns and villages of the RA's. Migration to the center for jobs is limited by the scarcity of employment and reasonably priced housing. Other Data The growth center is a microcosm of the entire district Its population is virtually all white. Identifiable minority groups — American Indians and French speaking Canadian-Americans--account for less than one percent of the center population. There are only a handful of blacks — probably less than a hundred. Educational levels in the growth center are high — 1960 data show an average attainment of close to 12 years of schooling for adults over 25. Despite the high educational levels and the relatively low unemployment rates of the Bangor-Brewer urban area, poverty has been a persistent problem. The Office of Equal Opportunity (0E0) reports that 12 percent of Bangor-Brewer families were living in poverty (family income below $3,000) in 1960. Available data suggest that this ratio has persisted throughout the 1960 's. Later figures for all of Maine show that in 19 70 40 percent of Maine families had annual incomes below $4,000. Along with low income in Bangor-Brewer, the problem of poor housing plagues the growth center. A Community Action Program survey in 196 8 showed that out of 11,358 units, 4,500 or 40 percent were substandard. These figures were higher than estimates that had been developed in 1960. HISTORY OF THE CENTER'S DESIGNATION Bangor-Brewer was designated the economic development center for the Eastern Maine Economic Development District 3-4 on March 13, 196 8, at the same time the district was designated. Justification for designation of Bangor-Brewer was based on its being the only economic and trade center in the district. The two cities, it was pointed out, really act as one social and economic unit located on opposite sides of the Penobscot River. ROLE OF THE POSITIVE ACTION PROGRAM The first Positive Action Program for Bangor-Brewer was prepared by the district staff in early 1968 and was approved by EDA in May of that year. An updated version was approved in May 1969, and another revision was being reviewed by EDA at the time of the evaluation. The original PAP Committee was formed in 19 6 8 mainly to approve the program developed by the district staff. Its membership was substantially changed in the fall of 1970 and now includes many members with a particular interest in economic and social problems. Among the new members are both city managers and the executive directors of the Penobscot Valley Regional Planning Commission, the Community Action Agency, and the State Employment Security Commission. At the time of the field visit, the newly formed PAP Committee had met four times (once a month over four months) . The general feeling of members was that the committee should serve primarily as a forum in which (1) to exchange information about each other's programs and policies and (2) to try to come to grips with the problems of development in Bangor- Brewer and the problems of the poor and unemployed. The members also appeared interested in defining their roles more clearly on the PAP Committee and in becoming more active in carrying out the positive action program. While in the past the district staff had been responsible for drafting the PAP documents, committee members felt now that their own contributions to an updated program would be valuable. According to the district staff, EDA has never clearly explained the PAP as anything more than a paper prerequisite to project approval. The committee itself sees the major value of the PAP as a vehicle for communication among growth center leaders. On the other hand, committee members do not emphasize the growth center's responsibility to the redevelopment areas. One reason, perhaps, is that the growth center has many problems of its own. 3-5 After extensive discussions with personnel in each program mentioned in the initial Bangor-Brewer PAP and its updated versions, the evaluation team concluded that almost all PAP programs listed existed prior to Bangor-Brewer *s designation as an EDC. The new programs are, for the most part, incidental to the growth center strategy. The PAP covers, for example, the program of the Eastern Maine Vocational-Technical Institute, located in Bangor. This is a state-supported facility which requires a high school diploma for admission. It is neither PAP-generated nor addressed to the target population. Another program mentioned is the advertisement of job opportunities by radio and television at the request of the State Employment Commission. This activity is not a new program resulting from the PAP. It has been going on for some time and is not directed toward any one segment of the population. The city of Brewer is planning public water and sewer facilities for some outlying areas; these plans too were described in the PAP. The outlying areas are suburbs, not redevelopment areas, and this plan has no relationship to the PAP. One relevant PAP program was, unfortunately, unsuccess- ful. It involved buses given to Bangor by the Air Force when it deactivated Dow Air Force Base. These, it was hoped, would serve as the starting point for city-sponsored transportation for commuters from the RA's. The program proved unworkable and was never implemented. In summary, the Bangor-Brewer PAP describes many development-related activities going on in Bangor-Brewer. These are positive and valuable programs, but they cannot be attributed to the PAP. Commitment to the redevelopment areas because of the EDA program was a concept mostly unknown to those involved in the programs. No one interviewed attributed any program or change directly to the PAP, except improved communication within Bangor-Brewer itself. ROLE OF DISTRICT STAFF AND BOARD Staff Views on Growth Center Concept The staff of the Eastern Maine Economic Development District seemed competent and involved in the problems of the area. In their view, EDA has never given a precise enunciation to its growth center concept and has never placed particular emphasis upon the PAP requirement. They 3-6 see Bangor-Brewer as the only trade and service center in the district—which is in fact the case. They acknowledge the travel distance and transportation difficulties that exist between Bangor-Brewer and the RA's, but they recognize that there is no alternative growth center of equal size or influence in eastern Maine. The question a situation such as this raises for the district and for EDA is whether a district not possessing a center which is growing should have any designated economic development center at all. RA Residents' Attitudes Residents interviewed in the redevelopment areas confirmed that they do look to Bangor for shopping and some services, especially medical because of the recently expanded regional role of the Eastern Maine Medical Center located there. However, RA residents feel the center is simply too far away for daily commuting. As an alternate migration point, RA residents almost unanimously viewed Bangor as unattractive. They explained that the few jobs available paid little more than those available in the redevelopment areas and that housing in Bangor, especially in the $50 to $100 a month rental range, was extremely limited. Beyond these pragmatic considerations, the team found, there were also cultural factors that worked against migration. People in the rural areas of eastern Maine have clung tenaciously to their land for generations, despite a persistent pattern of declining incomes for small farmers and lumbermen. .When they have moved, they have gone reluctantly, and mainly to areas where high-paying jobs attract them. The Hartford area has attracted many, but all the major cities of Southern New England contain substantial numbers of former Maine residents. Services of District Staff and Board Staff offices of the district organization are in Brewer. An additional staff member is permanently assigned to the Washington County redevelopment area. His office is in Machias. The Brewer staff spends a high proportion of its time out of town. This gives the district organization high visibility in both the center and the RA's. Staff members are deliberate in their efforts to give greatest attention to the areas of the district that they feel need it the most, i.e., the redevelopment areas, and do not allocate a large amount of time to the growth center. 3-7 Since both Bangor and Brewer have city governments that are effective in gathering federal aid and promoting economic development, this seemed to the evaluation team to be an effective distribution of time. Fifty-four representatives of the six counties form the district corporation. Thi^ includes nine members of the corporation's Board of Directors. The number of representatives, by county, is shown in Table 3—1. Counties contribute funds to the district on the basis of population. Since the population of Penobscot County is about equal to the total population of the other counties, Penobscot contributes about 50 percent of all district funds. Yet district activities are well-distributed throughout counties, with staff work concentrated in the redevelopment areas. TABLE 3-1 REPRESENTATION IN THE EASTERN MAINE ECONOMIC DEVELOPMENT DISTRICT/ INC, 1970 NUMBER OF NUMBER OF COUNTY POPULATION MEMBERS OF CORP. MEMBERS OF BOARD Hancock 34,540 8 1 Knox 29,013 7 1 Penobscot 125,393 24 3 (EDC) Piscataquis 16,285 2 1 Waldo 23,328 5 1 Washington 29,859 _8 _2 TOTAL 258,418 54 9 3-8 Assistance provided by district staff members is quite extensive. They help develop project applications, coordinate with state agencies, collect information, and prepare both Overall Economic Development Plans and Positive Action Programs. They are also working with state agencies to rationalize conflicting sub-state boundaries in eastern Maine. Comments on the staff by those interviewed through- out the district were highly complimentary. The district staff has acquired the management responsi- bility for a Law Enforcement Grant under the Safe Streets Act. This planning effort was designed for the six-county area of eastern Maine primarily because of the existing capabilities in the district organization at the time the state became involved in the program. This is both a credit and a credibility builder to the district organization, for while EDA projects may take several years to show results, the Law Enforcement grant involves an immediate payoff in terms of project dollars. Several of the district board members serve also on the board that oversees the law enforcement grant. New channels of communication have opened up for these community leaders, and opportunities for coordination have become apparent as well, particularly since the district staff serves both boards. Already, staff members reported, there have been formal and informal exchanges of information among these leaders that otherwise would not have taken place. Some of the growth center projects which the staff has helped to develop are: Application for a $35,000 technical assistance study to ensure orderly growth of Bangor International Airport Industrial Park. Application for $125,000 to determine the feasi- bility of an air cargo redistribution center for Bangor International Airport (funded by Federal Aviation Administration) . Help to a private developer in securing the financing to construct a convention center and motel for downtown Bangor. Assistance to the city of Brewer for the East-West Industrial Park Project funded by EDA for $387,000. 3-9 EDA PROJECT IMPACT Introduction At the time of evaluation, three major projects had been completed in the growth center. Two of these were business loans to Eastern Fine Paper Company and Chapman Precision Products, companies which otherwise would have gone out of business. The third was a feasibility study for an industrial park at the airport in Bangor. In computing EDA investment per job, cost of the feasibility study was not included, since technical assistance projects do not have as their primary purpose creating direct jobs. Two other projects, the Bangor International Airport Terminal and the Brewer Industrial Park were in the construction and design phases, respectively. They were evaluated only in terms of future impact. Table 3-2 gives summary information on job impact. Projects 1. Chapman Precision Products On March 4, 1969, EDA approved a $300,000 business loan to Chapman Precision Products, Inc., of Bangor, a wholly owned subsidiary of Dead River Products, Inc., a conglomerate based in Maine. The loan represented approximately 50 percent of total project cost. One purpose of the loan was to save the 42 existing jobs at the Old Town plant of C. M. Chapman's Sons. The Chapman plant was over 100 years old and was technologically outmoded. It was expected that the loan would enable the company to move the Old Town operation to new quarters in the former Air Force buildings at Bangor International Airport, purchase new equipment, diversify its production line, and by the third year expand its work force to 153 persons and its annual payroll to approximately $1 million. It was projected that an additional 80 persons beyond the 153 would be employed when a second shift was added. 3-10 (N I n PQ < r- LU LU a: PQ i cc o CD < PQ O < Q_ O LU -> O DC a. < Q LU ^ T3 1 O O a> rH O > rH O fO rH CM «. K to ■•» *> J CTl O — - "^r ro < lo m 1 00 Eh CN 00 vr> VD 1 H O «. 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W h) >H O M 3 tP •H <4H >1 rH to H •H tO X! 0) P >H P •H d) 1 O M P Q) >H •H -P (U to PL, 4J tO H O P O rji CN to P » •H -H in > CO- d) !H 0) • d) m -P 0) to p p aj -H to to M Ph e d) tO n -P P P •rl tO Cn >h in u (D H +J P *d to to •H 0) +J fO -p •H W to tO D. X e to rji O -rl p -n P •H to tn > >i d M p to d S g u d> SH d) to O -H to tO m X £ - P to O -H u fO O m 2 ro to X! ■d to O d) X 13 t-i +> QJ to •r-| > >i M !H (1) >1 u tO P H cu-d i >i 0) Jh u r-i (0 tO CD -P <-i to P X) fO d) rH to SH P O rj 1 to to i X P p >H P rH rH fO to O rH p P fO < H H to * * + * 3-11 At the time of evaluation, two years after the loan was approved, Chapman Precision Products employed 37 persons, a slight decrease from the 42 employed when the loan was made. Annual payroll was approximately $200,000. During 1970, employment reached 52 persons, but economic conditions affecting the aerospace industry caused the layoff of 9 persons about a month before the evaluation. Chapman is an old, family-owned enterprise that makes machined parts for aircraft engines and sells 90 percent of its products to one company, Pratt and Whitney. Its supplies come mostly from other states in New England. Almost no supplies are purchased from the eastern Maine area. With the help of the University of Maine's Technical Services Program, the company is considering whether to produce a new product in the bio-medical field and is developing three other new products to help diversify its product line. The plant manager stated that the company has no firm plans for expansion at present, but if its diversification plans are successful, more persons may be employed in the future. Analysis of employee questionnaires distributed at the time of the field visit indicates the following: No employees commute from the redevelopment areas (95 percent of the employees live in the Bangor metropolitan area) . The average one-way commuting distance is 9.1 miles. No employees have moved to Bangor from a redevelop- ment area during the last three years. One employee is a former welfare recipient. Two-thirds of the employees have increased their yearly earnings by taking jobs with Chapman Precision Products (Chapman pays relatively high wages for the area) . Approximately six percent of the employees are part of EDA's target population (e.g., employed not at all or only part-time prior to joining Chapman) . 3-12 As the above statistics make clear, EDA's funding for Chapman Precision Products has made virtually no impact upon the redevelopment areas of the district. Nor y in fact 7 has the impact upon Bangor been large, in view of the small number of employee's and the few materials bought in the eastern Maine area. The company did hire some new employees during the past two years when it moved to its present quarters and temporarily increased its work force to 52. These em- ployees received a week of training at the Eastern Maine Vocational-Technical Institute and 20 weeks of on-the-job training in the plant. This arrangement was developed with the cooperation of the Maine State Federated Labor Council. In its application to EDA, the company stated that it would advertise widely in the redevelopment areas for employees when it increased its employment. Since employment never increased by more than one or two employees at a time, this was never done. 2. Eastern Fine Paper Company Background On March 4, 1968, the Standard Packaging Company, a conglomerate, closed a number of subsidiary paper plants including one in Brewer employing 700 people, and one in Lincoln, a nearby redevelopment area, employing 550. Since the plant in Brewer was by far the largest employer in the town, the shutdown created much concern within the community. In response to the situation, a group of individuals who had been involved in the mill operation before close-down formed the Greater Bangor-Brewer Development Corporation and began a drive for private capital investment from commercial banks and bond sales. The town's Office of Economic Development provided information on EDA, and with the prospect of EDA funding, the group was able to secure a first mortgage from the Canal National Bank of Portland, Maine, in the amount of $1 million. In addition, the group sold $450,000 worth of 8 percent mortgage bonds to individuals and organizations in the area. Some of the bonds were purchased by individuals who had lost their jobs with Standard Packaging. On September 10, 1968, EDA approved a loan of $1.55 million providing about 50 percent of the total project cost of $2.95 million. In October 1968, the plant opened its 3-13 doors again, under the new name of Eastern Fine Paper Company. Nine months later EDA approved a 90 percent Working Capital Guarantee of $300,000 to support another loan from the Canal National Bank. Project Impact Eastern Fine's plant is composed of a group of old brick buildings, some quite antiquated and dating back as far as 1889. Although employment is lower than it was before the shutdown of Standard Packaging, the present operation appears to be stable and well-managed. In 1969, the mill showed annual sales of $12 million and affiliated with a Canadian paper corporation which guaranteed payment of the mortgage bonds. At the time of evaluation, Eastern Fine was planning to reactivate a coating machine which would allow production of more specialized papers and increase its market. Management estimated that activation of this machine would result in nine new jobs. The evaluation team found little relationship between EDA's loan to Eastern Fine Paper Company and the Agency's growth center strategy. Application to EDA for funds to reopen the plant was made in March 1968. The project applica- tion contains no commitments to the growth center concept and the Bangor-Brewer PAP includes no description of what Eastern Fine Paper Company might do for the target population of the center or of the redevelopment areas. At the same time, however, the plant has had considerable impact upon Brewer. Through the loan, 397 permanent, direct jobs are attributable to EDA as saved, at an average wage scale of $7,304 per job. Investigation of support industries (i.e., transportation and lumber-pallet suppliers) revealed that 16 secondary jobs in railroad, trucking/ and lumber opera- tions can definitely be attributed to the existence of Eastern Fine. Wages for these jobs range from $2.00 to $4.63 per hour. EDA's investment per job for the 413 jobs is calculated at $3,753. Eastern Fine's paper making and finishing operation is a traditional industry in this part of eastern Maine; hence, the loan had no diversifying effect to speak of. The firm is cooperating with the City of Brewer in sewage treatment and pollution control programs and seems to be meeting its own pollution problem adequately. Since it does not run a pulp 3-14 mill, as its predecessor did, the company's effluent load on the Penobscot River has been reduced to about 3.5 percent of the 1967 level. Employee questionnaires were completed by 90 percent of the Eastern Fine employees. Analysis of the questionnaires indicates that none of the EDA-attributable jobs went to residents of redevelopment areas. Eleven employees were previously unemployed and 63 were previously underemployed. These 74 jobs account for 18 percent of the total saved at Eastern Fine. Total annual salary for the 74 jobs is $494,764. This places EDA investment per job for unemployed and under- employed at $20,946. Further estimates based on the questionnaires indicate that average income change for all employees was an addi- tional $1,726 per job or 34.8 percent over previous income. Eighty-nine percent of the jobs went to heads of households and none to minority group members. Salary spent in RA's could not be viewed as substantial since no employees live in those areas. Further, there is virtually no trade center in the redevelopment areas to attract Eastern Fine employees. Eastern Fine buys approximately $150,000 worth of pulp every month from Lincoln Pulp and Paper Company in the Lincoln redevelopment area. From Georgia-Pacific Corporation in Washington County (another RA) , it buys about $140,000 worth of pulp per month. Both Lincoln Pulp and Georgia- Pacific have national markets. Plant officials of the two firms stated that if they did not sell to Eastern Fine they would simply pick up business somewhere else. Thus Eastern Fine's impact on the redevelopment areas through these purchases appeared to be negligible. The effect of this project on outmigration is difficult to assess; however, no one has moved from an RA to work for Eastern Fine. At present, there are no additional public services provided because of this project. For the future, a joint city-industry sewage system is being planned. This system will not extend to the redevelopment areas. Summary Eastern Fine Paper company is considered a success story by local residents, for Brewer and for EDA as well. Articles 3-15 in local newspapers cite the accomplishments of an enterprise which a few years ago was dead and a community disaster. The 413 jobs saved by reopening the mill have a substantial role in maintaining the stability of Brewer as an employment source. But the EDA loan to Eastern Fine is more a response to a sudden-rise situation — where an increase in unemployment results from the closedown of a major source of work — than it is part of the growth center policy of accelerating growth in an economic development center in order to alleviate economic distress in the redevelopment areas. The mill's reopening avoided a severe cutback in employment, but it caused no major growth in the economic development center of Bangor-Brewer . Further, impact on redevelopment areas has been non-existent in terms of direct employment and minimal in terms of indirect economic spillover. In summary, never having been linked to the PAP or to the growth center strategy, the Eastern Fine project produced little that can be evaluated positively in terms of that strategy. The question remains, then, whether the mill's opening would have had some impact on the target population and on the redevelopment areas if the growth center strategy and its attendant positive action program had been employed. 3. Dow Air Force Base Technical Assistance Study A contract for $10,000 for a technical assistance study was awarded in late 1968 to the R. W. Booker Associates of St. Louis, Missouri. EDA's cost was $9,000. -Booker Associates was to produce a development plan for a 105-acre industrial park outside of Bangor, land 'that had formerly been part of the Dow Strategic Air Command Base that closed in 1968. The study area did not include that portion of the airport that contained the Air Force buildings and other structures, and no overall development plan had ever been done for the base. (The city manager announced award of a contract for such a plan during the evaluation period.) Booker Associates concluded that the portion of land its staff studied could be used successfully as a traditional industrial park and presented a general development plan. Submitted in February 1970, the plan included a listing of the most attractive target industries and probable development costs. At the time of the field visit in February 1971, one building had been erected in the area—a branch office of the Merrill Trust Company. Negotiations were in process with a second company that was interested in building in the park. 3-16 Merrill Trust's new branch resulted in eight new direct jobs, but they cannot be attributed to EDA. The bank was planning before the study to open a branch office in the city, and, in fact, was interested in a site very near the indus- trial park. The presence of the bank within the park may serve to attract other firms into the area and, over time, the study might be seen in retrospect as a key element in Bangor-Brewer ' s growth. At the time of the evaluation, how- ever, no contribution to the growth center strategy could be measured. Future Project Impact As discussed earlier, Eastern Fine Paper Company was planning to start up a new coating machine and this was expected to result in nine new jobs at the Brewer plant. According to the discount formula, 1/ this allows seven jobs to be added to the final employment figure for Eastern Fine. These jobs would reduce EDA's investment per job at Eastern Fine from $3,753 to $3,690. Chapman Precision Products, recipient of an EDA business loan, had no firm plans for expansion at the time. The Bangor International Airport had generated 16 3 new jobs since its conversion from Dow Air Force Base. This employment was not attributable to EDA. However, EDA funding of the new airport terminal at the same location will allow handling of cargo freight as well as passengers. It is estimated that this diversification of air traffic will generate 75 new jobs. As complete construction of the terminal is expected within one year, the discounted employment figure for the facility is 38. EDA investment for the terminal is $1,652,000. The Brewer industrial park was not yet under construction at the time of the evaluation, but the project application estimated that future jobs would come to 1,000. According to the discounting formula, none of these can be incorporated into final figures for job creation since construction will not be completed within one year from the time of the field analysis. When the above figures for future employment and cost (excluding the project for which no projection could be made) are included, the total number of EDA-attributable jobs comes to 495 in Bangor-Brewer, total EDA investment is $3,502,000, and the EDA investment per job is $7,074. T7 See Program Evaluation: The Economic Development Administra - tion Growth Center Strategy, page A. 5 . 3-17 ECONOMIC DEVELOPJVIENT PROCESS Background Prior to the .mid-1960 ' s , economic development in Bangor and Brewer had received mixed degrees of attention. The city of Bangor had set up an industrial development division in the 1950 's and, even before that — particularly in the 1930 *s when the city changed to a city manager system — Bangor had given attention to industrial development, often in cooperation with the Chamber of Commerce. Routine planning problems such as zoning ordinances had been met and a master plan had also been drafted. The city of Brewer had been less active in this regard but also had developed a comprehensive plan with concomitant zoning and building ordinances. Two events occurred in the mid-60' s which focused the attention of the Bangor-Brewer community as a whole on economic development and community problems. One was the 1968 closing of Standard Packaging Company's Brewer subsidiary and the attendant loss of 700 jobs. The other was the announcement in late 1964 that the Strategic Air Command was phasing out of Dow Air Force Base in Bangor and that the base would be closed in 1968. The closing of the air base meant the loss of some 8,000 servicemen and their dependents and an estimated 5,000 direct and indirect jobs, many held by local residents. When the first large continguent of servicemen moved out in late 1967, the community suddenly realized that employment and population losses already occurring in other New England towns might also happen in Bangor-Brewer. There was fear of economic depression; thus the community was ripe for overall economic development planning and for aggressive use of federal programs. Planning and Development The community's effort in response to the closing of Standard Packaging in Brewer has been described. Community leaders as well as laid-off workers were among the purchasers of the mortgage bonds that were sold to open Eastern Fine Paper Company. Response to the closing of the air base was varied. Some community leaders considered it a white elephant, with poor potential for development. Others wanted to negotiate for its continued life. The Bangor city government, however — 3-18 deeded the base and its facilities — responded to the closing with a comprehensive development program. This included plans for the base and plans for other areas in the community as well. Responsibility for the base was placed with a new division of the city government. Development was approached in two ways: one concerned attention to the airport itself; the other involved establishment of an air industrial park. (The EDA-financed technical assistance study discussed earlier was part of the latter.) Development projects outside the base included a down- town Bangor urban renewal program, financed in part by a HUD 701 planning grant; 1/ two low-income housing projects, also funded by HUD; expansion of Bangor's Eastern Maine Hospital Center into a regional facility, aided by funds from HEW; and an industrial district, put together through zoning and covenants by the city, to accommodate many of the business firms displaced by the downtown urban renewal. By 1970, Bangor International Airport had been success- fully promoted as a major diversion airport for congested East Coast commercial fields and as a port of entry for international flights of U.S. charter and non-scheduled airlines. This phase of the airport development has resulted in 163 new direct jobs, a motel building boom, and a firm potential for more development. EDA's contribution has been a $1,6 million public works grant for a new air terminal.— ' The parallel development — the air industrial park — has not been so successful. Only five companies have been induced to the air park. These include Chapman Precision Products, one of the evaluated companies; a manufacturing unit of General Electric; and three smaller firms. Direct jobs created total 1/ Section 701 of the Housing Act of 1952 provides grants to foster community, regional, and statewide comprehensive planning to attain orderly and efficient urban growth. 2/ The terminal was being constructed at the time of evaluation. 3-19 256, including the 37 attributed to Chapman Precision, but this figure is far short of the estimated 5,000 jobs lost with deactivation. About 200 acres and two former Air Force buildings are still unused and available for industrial development. (EDA's technical assistance study of the air industrial park concerned a piece of this unfilled portion.) Outside the base, the industrial district put together by the city has a better record and is now about 98 percent full. It houses mostly warehousing and other regional service industries, attesting to Bangor's economic role as a service center for this entire Maine area. Many of the firms that relocated here from the downtown area date back to the last century when Bangor was a major transhipping point for lumber supplies destined for coastal and international ports. Local Planning Agencies Two planning agencies were established in the growth center to administer the HUD and HEW funds. The Penobscot Valley Planning Council, with responsibilities parallel to those of the development district, was established in 1968 to administer the HUD grants. The Penobscot Valley Planning Health Council, whose jurisdiction is also the six-county district, administers the vast influx of HEW funds. Communication and cooperation appeared to be good between EDA's district organization and the HUD council. There appeared to be little interaction, however, with the health council. Within its field of interest, the Penobscot Valley Planning Health Council has played a strong role in develop- ment. Health council activities include an extensive out- reach program to the redevelopment areas and other district counties. Local clinics cover all types of physical and mental problems as well as dentistry, and, perhaps more important, support the Eastern Maine Hospital Center as a regional referral center for specialty medicine. The program includes construction of special data-base facilities for communicating diagnostic services to the local clinics. Expansion of the hospital into a facility with a regional role has been so pronounced that it is now one of the major employers in the growth center. Local Attitudes Toward Development Despite the growth center's extensive use of federal funds to carry out its development program, there is much 3-20 evidence of the traditional Maine reservations toward accepting help from the outsider. Urban renewal projects have been defeated by the electorate in Brewer and in Qrono (within greater Bangor area) . 0E0 programs have been criticized and in some cases emasculated. Against this background the growth center governments* attitude toward development has been quite positive, parti- cularly since Dow's closing. EDA's support has been welcomed as one of several institutions advocating development. Citizens in Bangor have always been willing to finance development efforts. This has been less true in Brewer in the past, but EDA appears to have had some influence here. Currently some community leaders in Brewer are attempting to build support for a new municipal housing authority and for low- and middle-income public housing, as well as for a sewage treatment plant. At the time of the field visit, construction was about to start on an EDA-financed industrial park in Brewer. Planning activities appear effective. While the center's banks were characterized locally as conservative, data from the annual bank statements do not entirely support this description. Loan-to-deposit ratio is in the 60 percentile range, a conservative to moderate figure. EDA has had little influence on the financial institutions. The growth center's dominant economic group was identi- fied as a combination of the bankers and a selected group of established manufacturers, particularly those in lumber, pulp, and paper businesses. Before Dow's closing they showed little interest in development and were suspicious of out- side aid. Their position has now changed, although they are still hesitant about acceptance of federal aid. EDA was described locally as one of several planning and development institutions that may have had some influence on this group. Local community organizations have consistently supported development efforts, including school bond drives and develop- ment of the center's industrial parks and the air base. These organizations were active both before and after EDA's arrival . Attitudes Toward Target Population Locally, the poor have been viewed as deserving their status because of their own laziness. Also the poor are expected to be stoic and self-reliant. It is generally felt 3-21 that any willing worker can make a living somehow, even if this means chopping wood and digging clams. Statutes have been used in the last year in Bangor to give welfare reci- pients bus fare and spending money and return them to their county of origin. Although attitudes such as these persist, some change has been registered, and can be at least partly attributed to EDA. Here too EDA is one of several institutions active in this regard; the bulk of concern for the poor has resided with the Community Action agencies. Since the redevelopment areas are so far away, Bangor- Brewer has little influence on them. The connection between the growth center and the redevelopment areas has been via the several federally sponsored regional planning groups such as the development district and the Penobscot Valley Regional Planning Commission. The major concern which the business people in the community have for the outlying areas is as a market for goods and services from Bangor-Brewer . Moreover, it is widely believed that there are enough problems of unemployment and low income within the center itself to occupy available resources. EDA's Influence on Economic Development Process EDA's arrival in Bangor-Brewer came after the bulk of development planning efforts were under way. The growth center had already begun to seek help actively from state and federal programs to achieve its development objectives. While EDA definitely contributed to the economic development process, its part has been one among many. Its influence is viewed as moderate. Further Development Activities At the time of evaluation, application had been submitted to EDA for a $76,000 grant, which would finance additional water and sewer facilities at the Bangor industrial district and which was keyed to a broader plan that could have strong economic impact on the Bangor-Brewer community. The Bangor airport authority is actively promoting Bangor as an air freight depot for cargo coming from Europe. This diversifica- tion of air traffic was discussed under Future Job Impact. If the airport should become an important East Coast port of antry, the Bangor industrial district would change from a regiona /arehousing depot to a distribution center of national scope. 3-22 This in turn would mean increased jobs for warehousemen and truckers as well as for service personnel who work directly at the airport. 3-23 CHAPTER IV BOWLING GREEN INTRODUCTION The Barren River Area Development District was designated by EDA in January, 1967. The district is composed of ten counties, five of which are redevelop- ment areas. Two economic development centers are located within the district. The field team visited one of these centers, Bowling Green, in March, 19 71. Physical Location The Barren River District is located in south central Kentucky. Its southern boundary is the Tennessee state line. Bowling Green is located near the geographic center of Warren County. Three of the five RA's, Allen, Butler, and Edmonson Counties, are adjacent to Warren County. Although the two other RA's, Metcalfe and Monroe Counties, do not border Warren County, they are only a one-hour drive away. The district's secondary EDC, Glasgow, is in Barren County, an area immediately east of Warren County. Metcalfe and Monroe Counties are adjacent to Barren County. Glasgow (population 11,200) was not included in the field team's evaluation. Figure 4-1 is a map of the district. FIGURE 4-1 BARREN RIVER AREA DEVELOPMENT DISTRICT BOWLING GREEN GLASGOW Key * □ Evaluated EDC Other District EDC or RC Redevelopment Area 4-1 Population Table 4-1 lists the population figures for the district. TABLE 4-1 COUNTY AND EDC POPULATION I960 1970 Allen County (RA) 12,269 12,598 Barren County 28,303 28,677 Butler County (RA) 9,586 9,723 Edmonson County (RA) 8,085 8,751 Hart County 14,119 13,980 Logan County 20,896 21,793 Metcalfe County (RA) 8,367 8,177 Monroe County (RA) 11,799 11,642 Simpson County 11,548 13,054 Warren County 45,491 57,432 Total 170,463 185,827 Bowling Green (EDC) 28,338 36,253 District Sociological Data The district contains 14,355 non-whites, most of whom are blacks. This figure represents 7.7 percent of the district population. More than one-third of these non-whites live in Warren County. The population of Bowling Green is 9.2 percent black. In contrast, the population of the five RA counties contains only three percent blacks. The other four counties in the district have a total non-white population of about 7,500. This figure represents percentages ranging from 7.4 to 12.6 of the population of each of these counties. 4-2 The black population of the district, therefore, is concentrated in the non-RA counties, especially in the growth center county. EDC's Economic Relationships Bowling Green's economic structure has changed considerably during the past two decades. During the 1950' s it was a regional commercial center serving the surrounding agricultural counties. In the early part of the next decade, Bowling Green emerged as an important manufacturing center for food, apparel, wood products, and machinery. The trend was augmented in 1970 by the opening of two major branch plants of national corporations, Chrysler and Firestone, each employing more than 700 people. Employment covered by social security within the EDC county increased from 10,514 to 14,521 from 1964 to 19 70. The growth figures do not, however, reflect the impact of the new Chrysler and Firestone plants. The 19 70 employment data includes only the first quarter of that year. The new plants did most of their hiring after March, 19 70. The prospects are bright for economic growth in Bowling Green. Firestone expects to double its work force within the next few years. Chrysler anticipates its employment to increase to more than 2,000 people within the near future. Other manufacturers are expected to locate in the area. Bowling Green's role as a commercial and cultural center for the district has been enhanced by the growth of shopping centers and the expansion of Western Kentucky University. Non-county residents are using the EDC's shopping facilities. A quick parking lot survey revealed that 40 percent of the cars were registered in counties other than Warren. Western Kentucky University has expanded its main campus and its extension facilities. More than 11,000 students were enrolled in the fall term of 1970. HISTORY OF CENTER'S DESIGNATION The Barren River Area Development District was organized in two separate districts prior to its desig- 4-3 nation by EDA. The Upper Barren River Development Council included Barren, Hart, Metcalfe, and Monroe Counties. The Lower Barren River Development Council was composed of Allen, Butler, Edmonson, Logan, Simpson, and Warren Counties. The consolidation of the two councils was encouraged by EDA and by the Kentucky Program Development Office. Both organizations thought the merger of the councils would be consistent with the basic district plan for Kentucky. Official designation was made on January 7, 1967. Bowling Green was an obvious choice for the growth center. It had favorable geographic location within the district, and it was already established as the most important city in the district. It was also the center for all state and federal government program activity for the district. The city first formed a district board and hired the staff. They then prepared an OEDP and a PAP. Bowling Green was designated as a growth center in October, 1968. POSITIVE ACTION PROGRAM (PAP) Preparation The PAP was prepared by the vice-president of the First Federal Savings and Loan Association of Bowling Green. The author was a member of the industrial development committee of the Chamber of Commerce. The committee was in the process of convincing Chrysler Corporation to locate a plant northeast of Bowling Green. The corporation wanted water and sewer facilities before it would locate. The economic development representative for the area urged the committee to apply for EDA financing of the water and sewer lines and for Bowling Green's designation as a growth center. Each of the members of the seven-man committee, the mayor, and the county judge prepared a section of the EDA public works application. The bank official submitted the PAP in October, 1968. Commitment to PAP Goals No one connected with the programs cited in the PAP was familiar with the PAP or with the growth center concept. At the time it was written, the PAP was considered as simply a federal prerequisite for obtaining 4-4 the EDA project. The city council had neither debated the PAP nor submitted a resolution of support for its goals . No one involved with the programs cited in the document submitted a letter of support for the PAP. Several months after the document was written, the Chrysler Corporation issued a policy statement concerning redevelopment area recruiting. PAP Goals The primary emphasis of the PAP is focused on physical improvement to Bowling Green. Four goals are listed, however, which could benefit RA residents. One project involves improving and enlarging a lock and dam to permit river shipping to Bowling Green. According to the PAP, this would enhance the possibility of industry locating in Butler and Edmonson Counties. The construc- tion of two toll roads would provide access to Interstate 65 for the RA residents. A third proposal is the announcement of job and educational opportunities in the local newspaper and through the local television station. The fourth proposal involves a regional Health Department Center specializing in preventive medicine. Shortly after the PAP was submitted to EDA, the district director urged the Chrysler Corporation, the CAP agency, the Employment Security Office, and the district organization to seek out prospective Chrysler employees. The director specified as target areas the outlying counties and the 'Bowling Green Model Neighbor- hood area. The latter area had had a 27.5 percent unemployment rate during one recent year. City officials believe that some of the PAP goals might accrue to Bowling Green through implementation of a Model Cities program. Bowling Green supports the Model Cities program for the purpose of helping the city's poor find jobs and housing. Its expressed aim is to improve the conditions of the 7,200 people living in what has been designated as the Model Cities area. This location includes a Model Neighborhood, an area so designated to receive special attention. Progress of PAP Goals In July, 1970, a Model Neighborhood Employment Service opened to serve the residents of that area. 4-5 A total of 617 residents applied for help in finding employment. As of February, 1971, the employment service had placed 172 people in jobs and 72 people in MDTA- financed training. Because 83 percent of the housing in the Model Neighborhood is substandard, the Model Cities plan projects a need for 2,121 housing units within the next five years. Large portions of the Model Neighborhood are already in or scheduled for urban renewal. The non-profit Housing Development Corporation (HDC-) has been financed by Model Cities to stimulate low-income housing through the use of HUD programs and a no-interest loan fund. The HDC has operated since July 1, 1970. It currently has 23 houses under construction by eight builders. All these units are being built under HUD programs . The housing program is reaching out to the RA's. The district's executive director has arranged for the HDC to share its expertise on low-income housing with other towns in the district. At the time of the field visit, meetings between HDC and local officials had been held in Morgantown and Russellville . Summary and Conclusions There is no specific action program aimed at improving the circumstances of the poor and unemployed from the RA's. All programs listed in the PAP were already ongoing. The development process in Bowling Green, however, has involved the surrounding communities and RA counties through the extension and community college courses offered by Western Kentucky University, the courses offered at the vocational- technical school and its extensions, and the health services provided by the city-county hospital. Bowling Green also serves as a retail trade center and an employment center for the area. Two specific actions have been taken which are in accord with the growth center concept. The Chrysler Corporation recruiting campaign and HDC ' s meetings with small-town officials are aimed at improving conditions for RA residents. Both these actions were initiated by the district director who acted independent of the PAP. This may suggest a pattern for future implementation of the growth center concept. 4-6 DISTRICT STAFF AND BOARD Location The district headquarters is located in Bowling Green. The growth center is within reasonable commuting distance of three of the five redevelopment areas. Being located in Bowling Green, the staff is naturally more familiar with the conditions within the city. Composition The district's board of directors consists of 46 members. More than half, 25, are from the RA's. Five are from Bowling Green. Five are from the secondary EDC, Glasgow. Eleven are from non-designated counties. The board meets once a year. They have very little personal or informal contact. Policy matters are handled by a 12-member executive committee. This committee consists of six members from the RA's, two from Glasgow, and two from non-designated counties. Financing The local matching funds are assessed on a population basis. The total share is $13,000. Each counties' contribution is listed in Table 4-2. TABLE 4-2 COUNTY FINANCIAL CONTRIBUTIONS Allen $ 935 Logan $1,590 Barren 2,165 Metcalfe 638 Butler 730 Monroe 898 Edmonson 612 Simpson 882 Hart 1,080 Warren 1,470 4-7 Board Members ' Attitude There is little awareness of the growth center concept among the board members. They were unaware of the PAP. The distinction between the RA's and the EDC were not clear to them. Generally, the members were more concerned with the basic needs of the area they represented. The district board members frankly stated that their primary concern with the district organization was to attain the location of a Chrysler plant in the city. They envision the organization serving to bring area leaders together for the solution of problems. Board members from the RA's acknowledge that Bowling Green's growth has had important benefits for their communities. Another benefit for the RA's was the technical advice from the district's staff. RA board members identified the ten percent bonus money available to them on EDA public works grants as another advantage. They felt that Bowling Green was an asset to them in terms of jobs and services, but they did not connect this situation with the EDA program. District Staff's Attitude Staff members serving the district are quite concerned with providing services to the RA's and with providing jobs for RA residents. The executive director was largely responsible for Chrysler's recruiting in the RA's. He also encouraged the HDC to advise communities in the outlying counties. In cooperation with Western Kentucky University and the University of Kentucky, the district staff has initiated seminars on the problems of municipal financing, the design of model ordinances, and budgeting procedures. Communities throughout the district attended these discussions. The attitudes and activities of the district staff seem to originate with the executive director and his concern for the area he serves. District Staff Services The staff serves more than one organization. They administer the development district board, the law enforcement planning board, and the health planning board. They also administer a Public Service Career 4-8 Grant monitored through EDA. The executive director feels that the location of these functions within his organization will provide the base for a more effective and coordinated approach to the problems of the area. In addition to specific EDA projects, the district staff has been instrumental in tapping the resources of the state university for Bowling Green. A faculty member from the university is now serving on the city commission. The staff is helping with the planning and coordination of a city park. They have assisted in sewer and water improvement planning beyond the facilities immediately financed by EDA. Summary and Conclusions The district staff has been extremely effective. This has largely been the result of the attitude and industry of the executive director. It was his encourage- ment that led to Chrysler's special recruiting campaign in the RA's. He also assisted in packaging a new employee training program using state vocational-technical school facilities, Labor Department funds, and Model Cities project support. This program was clearly aimed at the EDA's target population. Board distribution and financing have not had any apparent effect upon staff , allocation of resources. The residents of the redevelopment areas feel that they are being served quite well by the development district with project application assistance and technical assistance. The staff members were always more than willing to travel to the RA's. The executive director pointed out the difficulty in carrying out established priorities. Although EDA requires the districts to state certain priorities in their OEDP for the second phase, the financing to meet these priorities depends heavily upon EDA's decisions and the availability of local matching funds. Not knowing what EDA will approve makes it difficult for the director and the staff to organize priorities into a genuine strategy. 4-9 EDA PROJECT IMPACT Although listed in EDA's project directory as three distinct projects, the Agency's assistance in Bowling Green has primarily been for the improvement of one industrial site. Water and sewer lines were extended to a location just outside the city at a total cost of $1,504,000 (50 percent EDA public works grant and 50 percent public works loan) . The Chrysler Corporation became the first beneficiary of this project. The company had wanted to build a plant in Kentucky. Their prime requirement was the presence of adequate water and sewer facilities. The EDA-financed project fulfilled this need. The new Chrysler plant manufactures large commercial air conditioning units for complexes such as shopping centers and universities. The plant has a national and Western European market. The total number of jobs created by this facility is about 700. One hundred managerial and professional positions were filled by current Chrysler employees who moved to the new site in Bowling Green. EDA-Attributed Jobs Six hundred jobs at the Chrysler plant can be directly attributed to the EDA project. Approximately 100 of these new jobs were clerical. The others were production-line workers. The annual payroll represented by the 600 new jobs totals $4,178,720. This total averages out to $6,965 per employee. The jobs are all full-time. The employer is stable. The new plant represents a diversifi- cation of the manufacturing sector and of the area's economy as a whole. Chrysler Recruiting In March, 1969, the Chrysler personnel director arrived in Bowling Green to begin recruitment of workers for the plant which began operation in January, 1970. At the suggestion of the executive director of the EDD, the Chrysler official conducted a series of one-day interview sessions in nine small towns outside of Bowling Green. These sessions were held in three of the five RA counties. Approximately 900 applications were received 4-10 LU LU CD O m 3r 1 o ^r PQ ■z. LU •— 1 _J CQ H- < u 1- < Q_ o LU ~) o a: o_ < Q w o <; & w en H 55 £ E-i Pi CO W >H ^ Eh CO Pi H «■ «. o ^r «. Pi Eh Pi CN -=r o O r~- CTi r- r- LD ro a\ W U ffi H o o O ro •^r co m «. «b r^ & W U 00 LO <-{ cr> CN <-\ CN >x> m W J —' «• »- «. CO i-h rH rH ■«* O V> {/> ■CO- a u o M EH CM w u Pi w Eh S3 H H >i rd ■H C Sh CU T3 •H e a -P m >i rd s o o X5 >H Sh fa M O Pi Q) a b TS o Cm g Xi CU o O •4-> -P cu <1 -p w >H b Ph fd Eh Sh CO CO CO CU Sh H (U U C c 1 En 4-> Ch p •p +J ■P rd 0) c CU (U Sh < CO •H u 3 3 D d CU g g cd D U u -Q X! Xi TJ •H r^J -P +J ■H l-H U -H o -H •H CO -H CU CO -H CO CO rd H ^ +J Sh >. CU co CU CU CO > -P Sh -p -P -P C -P O CO Pi CU > > W u t« c -P -P CD ■PHC Pi c c >i CU CM (U < << Ti < Cm u H H t-H •1—1 u 1 1 -H I £ co pa § Sh < SH <: H 4-1 1 from the nine towns. RA residents submitted approximately 750 applications. The Bowling Green office for recruiting Chrysler employees was open daily from March through June. Those applicants chosen were given intensive training which lasted eight to thirteen weeks. The length of training was dependent upon the skill level required by the job. The program was a combination of vocational- technical and on-the-job training. The program was managed by a separate section of the Chrysler Airtemp Division at an estimated cost to the company of $160,000. Other training costs were defrayed by state and federal training programs. The recruitment costs to the company were negligible. The recruitment drive was supported by active radio, television, and newspaper coverage. In the small towns, the local CAP agency assisted the personnel director. In all cases the director left application blanks which could be completed and returned. These recruitment activities were not initiated by the personnel director, nor as a result of direction from the Chrysler Corporation. He stated that, without the suggestion from the district director, he would have stayed in Bowling Green for his recruitment activities. Employee Analysis Two methods were used to analyze the backgrounds of Chrysler's 600 local employees. Interviews were held with the plant's personnel director, and questionnaires were distributed to 20 percent of the workers. Forty-one percent of the questionnaires were returned. Both data sources reveal similar results. The personnel director estimated that 240 of the new employees were residents of RA. counties. The questionnaires indi- cated that 2 37 RA residents were employed by Chrysler. The random sample revealed that 149 of the workers were formerly unemployed or underemployed. The director had indicated that 200 had not been fully employed. He also estimated that 45 blacks had been hired. The other data indicated 50 blacks were employed. The personnel director thought that approximately 25 percent of the new workers had never completed high school. The questionnaire results indicated that only 13 percent had not completed high school. 4-12 The attrition rate of the 600 new employees is amazingly low. Only eight percent have left the plant. The personnel director felt that the production-line workers were doing an excellent job. The Chrysler Corporation's quality control procedures attest to this. In fact, the efficiency of the workers was instrumental in gaining a multi-million dollar contract for air conditioning units in a large California university. The absentee rate of the new employees is within the corporation's allowable five to six percent margin. Improved Services Improved public services as a result of the EDA project have been negligible. A few fire hydrants have been attached to the water line. Eight homes and 21 small businesses have abandoned their septic tanks and coverted to the new sewage system. Future Job Impact Expansion at the Chrysler plant is planned. It will result in the creation of approximately 1,600 new jobs. The hiring for these jobs has not begun. Therefore, the discounting systeml/ allows 1,200 of these jobs to be counted as future employment. Should this figure reach fruition, the EDA investment per job for the Bowling Green project will be lowered to $836. Project Evaluation The Bowling Green project financed by EDA has pro- duced 600 new jobs for area residents. Nearly 40 percent of these jobs were taken by RA residents. Future estimates are for 1,600 new jobs when the plant expands its activities The new plant has provided a diversifying and stabilizing effect on the economy of the area. All 600 jobs now held can be directly attributed to EDA. T7 See Program Evaluation; The Economic Development Administration Growth Center Strategy, page A. 5. 4-13 ECONOMIC DEVELOPMENT PROCESS Introduction Until a few years ago , the development process in Bowling Green was practically dormant. The city was run by a political machine that dispensed public services on the basis of favoritism. Money for capital improvements was lacking because of low taxes. The city's development process was activated when a reform movement overturned the old political machine. Bowling Green now supports a Model Cities program, has established an extensive urban renewal area, and is working to catch up with some of the much needed capital improvements. Government The central issue in the development process in Bowling Green is the conflict between the old political machine and the opposing reform movement. The chief successes of the reform movement have been the adoption of the city manager form of government and a modernized tax structure. These changes were brought about largely as a result of two growth factors: the movement of new industries into the area and the growth of Western Kentucky University. These factors have radically changed the socio-economic structure of the area. Prior to the 1968 elections, the city had a mayor- council form of government. Its legacy, as one community leader told us, was a "notable lack of community spirit as far as governmental bodies were concerned. " The present mayor and one of the four city councilmen were part of the old political machine. Both men have attempted to reinstate the old governmental form. Their efforts have not been successful. The city manager form of government was adopted in the 1968 elections. The present city manager took office late in 1969. The new system has already begun to function much better than the old. The city manager has been able to create a license inspector's position. The manager has also created and staffed a city engineer's office and hired a city planner. 4-14 Services The Western Area Vocational-Technical School is located in Bowling Green. It enrolls 780 students. Twenty percent of the students attend evening classes. The school has branches in both redevelopment area counties and non-designated counties. No high school diploma is required for admission, but an entrance test is used to screen potential students. The entrance test is a source of complaint. The Model Cities plan states that "there is only one vocational training program in Bowling Green, and its level of entry is so high that those who need the training the most cannot qualify for entrance." For those who do qualify the tuition is only four dollars per semester. The main campus has five buildings on a 30-acre tract. A vacant dormitory at Western Kentucky University is being used to house some of the vocational school students. Western Kentucky University has grown from a student body of 3,000 in 1961 to its present enrollment of 11,000 students. It offers degree work in area and community development. It has an agreement with the state Employment Service to train para-professional social workers. The university also has an extensive small business assistance program. There is one hospital in the county. It serves other nearby counties. This out-of-county policy was recently the subject of criticism. The local newspaper noted that a much higher proportion of the hospital's bad debts came from residents outside of Warren County. Community Organization Prior to 1968, many development activities took place without support from the city government. Indeed, some programs were openly opposed by the local government. The extensive urban renewal and the Model Cities programs were initiated outside of government sanction. A very successful industrial development program was administered by the Chamber of Commerce. At the time of the field visit, the Chamber of Commerce had just received a study by the TVA on the urban renewal potential of downtown Bowling Green. The study had not been discussed with the city council. 4-15 Local private organizations and service clubs are just beginning to take part in the development process. The Jaycees are becoming more active. A black church is sponsoring public housing. Several churches are supporting day care programs. College fraternities have undertaken clean-up projects in the Model Neighborhood. A service club is sponsoring the construction of a building for a local girls club. A recent program has been initiated by accounting students to help Model Neighborhood residents with financial problems. Most of this activity has taken place since the Model Cities program began. The local newspaper, the Park City Daily News, was opposed to the Model Cities program before and after its establishment. Most of its criticism was based on the expense of the program. For the same reason, the newspaper has opposed many community development projects. Formerly, general opposition was expected when development programs were suggested. The attitudes have changed over the last decade, however. Community Attitudes One of the city councilmen stated that local taxes in Bowling Green are "still absurdly low." The basic sources of local revenue are property taxes and an occupational tax. The latter tax is levied on employed residents and non-residents and on all business firms in the city. The business firms pay tax on their profits. The employees pay an income tax of 1.5 percent. The occupation tax was a result of the reform movement's drive in the mid-sixties. The drive was initiated, in part, because of a legislative freeze on property taxes. Very few bond issues have been submitted to the voters in recent years. There are two major reasons for this. First, there is a state law requiring a two-thirds majority for the passage of all non-revenue bonds. Second, the nation-wide taxpayers' revolt has been as apparent in Bowling Green as elsewhere. A school bond issue was passed in 1968. A similar bond issue failed to pass in 1970. The main plank of the old political machine platform was low taxes. For many years capital improvement projects lagged far behind the needs of the community. 4-16 Until a ten million-dollar bond issue was floated in 1964, only the old downtown area of the city had sewers. The bond issue provided sewer lines and a new treatment plant for the entire city, except for the area that is now the Model Neighborhood. Eighty-five percent of the Model Neighborhood lacks an adequate water system. Only 15 percent of the area is served by sanitary sewer facilities. Storm sewers in the area are non-existent. The government leaders in 1964 felt that most residents of the Model Neighborhood could not afford the hook-up charges. Consequently, the number of hook-ups would not justify the expense of the lines. The area is now getting sewer and water facilities through an urban renewal program. In recent years, Bowling Green has significantly increased its appropriation to the Model Cities program. The city's contribution rose from $6,381 in 1968-69 to $85,000 in 1970-71. Planning and Development The new city-county planning commission has signifi- cantly increased the planning activities in the area. A HUD 701 planning grant was received for a special land-use plan in the Model Neighborhood. Many activities have been initiated and coordinated by the Model Cities program. Most of these activities have been aimed at improving the conditions of the Model Neighborhood residents. These residents comprise nearly 20 percent of the city's population. Only 1,900 household units contain the 7,200 individuals. Forty percent of these households have incomes below OEO poverty levels. Only 14 percent of the households earn over $5,200 per year. More than 60 percent of the county's welfare cases are located in this neighborhood. The unemployment rate for the county was 2.5 percent in 1969. In the same year, the unemployment rate in the Model Neighborhood was 27.1 percent. Seasonal unemploy- ment affected 40 percent of the neighborhood's households Many of its unskilled residents are dependent upon agriculture for employment. More than 50 percent of the Model Neighborhood streets and sidewalks are dilapidated. There were no 4-17 storm sewers there until Model Cities began operations in 1969. Eighty-three percent of the area's housing is substandard. Fifty-three percent of its housing is dilapidated. General living conditions, including public services, physical comforts, and housing supply, are considerably below the conditions found in the rest of the city. Of the estimated 700-800 unemployed in the area, 617 have applied for help in finding jobs. The Model Neighborhood Employment Service has placed 172 people during its first nine months of operation. Seventy-two others have enrolled in MDTA training programs. Most of the dilapidated housing is already scheduled for destruction. The Housing Development Corporation has found a need for 2,122 new and replacement housing units within the next five years. Some of these will be provided through public housing projects. Others will be built under the HUD 236 program. No-interest loan programs may be utilized to help low-income families purchase their own homes. The problem for the Model Cities Agency is being compounded by a continuing immigration of rural residents into the city. They are seeking jobs and housing. Many of these are farmers who need part-time employment to supplement their earnings. The Model Cities agency is fearful that this in-migration of rural poor will eradicate hard-won economic gains. The agency is considering the establishment of employment centers in the outlying areas to serve these rural residents. However, no one is ready yet to assert the feasibility of this plan. Banks There are five financial institutions in Bowling Green. They listed total deposits of $131 million at the end of 1970. Their loan to deposit ratio was nearly 60 percent. This represents a somewhat conservative banking position. According to several community leaders, the banks are serving local businesses quite adequately, but low-income people, particularly blacks, find it difficult to obtain loans. 4-18 Federal Programs Bowling Green has become extensively involved with a variety of federal programs. The city has many more federal projects than the evaluation team found in cities of comparable size. Some help in obtaining these programs was given by a congressman who lives in Bowling Green, but the efforts of local groups are mostly responsible for this success. Federal aid received by the city during 1970 included: a $700,000 loan from the Farmers Home Adminis- tration to extend water lines to suburban and rural areas of Warren County; in-service training initiated for the city police department with the use of a Law Enforcement Assistance Administration (LEAA) grant; LEAA grant for the purchase of equipment; LEAA grants to 22 policemen for study at the university; a two million-dollar loan to the local rural electric association to finance electric lines in Warren County; educational opportunity grants in the amount of $431,000 to Western Kentucky University; a $275,000 loan to the water-sewer and sanitation commission for the extension of sewer lines to the suburbs ; nearly $5.5 million reserved by HUD for two urban renewal projects; and $520,000 in grants to the Southern Kentucky Economic Opportunity Council by 0E0 for poverty programs in a six-county area. A total of more than nine million dollars in federal aid went to Bowling Green and Warren County in 1970. In contrast, Bowling Green's city budget for 1970 was only $2.8 million, and Warren County's school budget was $3.4 million. 4-19 HUD has approved a total of $1,149,000 in supplemental funds for the Model Cities program. The Model Cities Agency was able to use this leverage to obtain program activity funds amounting to $10,346,000 for the year. This is one of the highest leverage rates in the country. Summary and Conclusions It is difficult to make an evaluation of EDA's impact on the economic development process. Clearly, the central issue in this process has been the political conflict. This has little to do with EDA. Nevertheless, one of the underlying causes for this political turmoil has been the growth of the city. The EDA project was an essential element involved in Chrysler's decision to locate in Bowling Green. This project was a supplemental element involved in Firestone's decision. The development district has helped to obtain federal financing for many other projects. Bowling Green's political reform movement, therefore, has been assisted by EDA. The major impact on EDA's growth center policy in the city has come from the district's executive director. The Dean of the College of Commerce at Western Kentucky University acts as the research coordinator for the district organization. He has made several studies to assist the cities and towns of the district. One study proposed a uniform crime reporting system. Another analyzed the financial practices of small towns in the district. The conclusion to this study was a recommendation for the use of standard financial practices and ordinances. The dean is now conducting studies involving health and alcoholism. The economic development process in Bowling Green has had an impact on the residents of the RA counties. The concern for Bowling Green's poor and unemployed is evident in the increased spending by the city for the Model Cities program. The district organization has been instrumental in helping the residents of small towns in the RA's. The Chrysler recruiting program and HDC ' s technical advice were given their impetus by the district organization. 4-20 CHAPTER V CORPUS CHRISTI-ARANSAS PASS/ TEXAS INTRODUCTION The Coastal Bend Economic Development District is in southeastern Texas and extends about 100 miles westward from the Gulf of Mexico and about 200 miles north-south from Gonzales to Kenedy County. Twenty counties form the district; four are redevelopment areas. FIGURE 5-1 CORPUS CHRISTI-ARANSAS PASS DEVELOPMENT DISTRICT SAN ANTONIO—, VICTORIA ARANSAS PASS CORPUS CHRISTI 5-1 Evaluated EDC Growth Corridor Other District EDC or RC Non-District SMSA Redevelopment Area The two towns of Corpus Christi and Aransas Pass constitute one of two economic development centers for the district. Corpus Christi was designated in December 1966, at the same time the development district was officially recognized. In September 19 6 8 the boundaries of the growth center were extended about 20 miles to the northeast to include Aransas Pass. Figure 5-1 is a map of the district. An evaluation team visited Corpus Christi-Aransas Pass and the Coastal Bend district between March 18 and March 26 , 1971. DESCRIPTION OF THE CENTER AND ASSOCIATED REDEVELOPMENT AREAS Corpus Christi is located in the southeastern part of the Coastal Bend district, in Nueces County. Aransas Pass, approximately 20 miles away, is located in Nueces, Aransas, and San Patricio Counties. Corpus Christi had a 1970 population of 204,525--a 22 percent increase from 1960. Aransas Pass's 1970 population was 5,813--a loss of 16.4 percent. The Corpus Christi Standard Metropolitan Statistical Area (SMSA) consists of Neuces and San Patricio Counties and therefore includes Aransas Pass. The SMSA population in 1970 was 278,443, 4.4 percent above 1960 figures. The large increase in the population of Corpus Christi and the small increase in that of the SMSA reflect the active annexation policy of the city and the emigration from the counties to the city of agricultural workers displaced by mechanization. Except for Corpus Christi, Nueces and San Patricio Counties have a predominantly agricultural economic base. In 1969, they led other district counties in total income from agriculture, which amounted to $38 million. The four designated redevelopment areas are Goliad, Karnes, Wilson, and Gonzales Counties. They are located in the northern and northwestern part of the district. Their total population in 1970 was 45,958. All four had population losses over the decade, Goliad having the largest with -10.3 percent and Wilson the smallest with -1.7 percent. The redevelopment county nearest Corpus Christi is Goliad, approximately 70 miles away. Goliad County adjoins Victoria County, site of the district's second economic development center, Victoria. The nearest redevelopment 5-2 area community with a population exceeding 1,000 is approximately 80 miles from Corpus Christi. Wilson and Gonzales Counties are approximately 100 miles away, although they are only about 20 miles from San Antonio, southeast Texas' major urban center. Mexican -American citizens compose approximately 50 percent of the population of the Corpus Christi SMSA and 35 percent of the population of the redevelopment areas. Blacks make up five percent of the population in Corpus Christi and eight percent in the redevelopment areas. As the area's largest city, Corpus Christi has always been the dominant industrial, commercial, and retail center for the district. This position was further strengthened in 1926 when the port was built. The city's influence and impact on the western and northern counties of the district is minimal, however; they were, and continue to be, attracted to San Antonio. While Corpus Christi has grown over the past several decades and continues to do so, the city's growth is not as great as that of many other comparable SMSA's in the state or in the nation. While its unemployment rate is only 4.5 percent, its under-utilized work force, particularly among females, is considerable. A labor survey in 1969 resulted in the registration of over 21,000 women available for employment, 1800 of whom declared that they had to work. It has the second lowest median family income of the 10 SMSA's in the state. Indices such as these have made influential public and private groups, as well as individual citizens, anxious to attract labor-intensive industries such as textile and garment manufacturers to the city. Some of those interviewed view the city's geographical location as not especially good for importing raw materials or exporting finished products and feel they will have to put out considerable effort to keep Corpus Christi growing. They have succeeded in attracting a Levi Strauss and a Haggar plant to the area and have subsidized these plants to some extent, even though they are generally opposed to direct subsidizing of private firms . Estimates place the percentage of commuters in Corpus Christi 's work force at around 10 percent. They journey from such places as Beeville, Alice, Robstown, and Kingsville — between 10 and 40 miles away. Few RA residents 5-3 commute in. The Reynolds plant in Corpus Chris ti reports two residents of Goliad County in its work force of 2,100. At the same time, about five percent of the city's working population commutes to jobs outside the city. This traveling is generally within a 20-mile radius. HISTORY OF CENTER'S DESIGNATION Corpus Christi was EDA's first designated economic development center. No special group or individual played a dominant role in the designation, though some active congressional interest was shown. The Economic Development Representative was also active in helping to form the district organization and to secure designation for the center. Five cities were considered for growth center designation Beeville, Kingsville, Victoria, Port Lavaca, and Corpus Christi. A consulting firm helped evaluate these, using the following seven criteria: proximity to redevelopment areas, population trends, labor force participation rate, family income figures, economic activity, attraction as a retail trade area, and availability of transportation facilities . Corpus Christi scored the highest on a point-score rating going from five for best to one for worst. The city was rated best in terms of population, economic activity, and transportation facilities, and rated low only on proximity to redevelopment areas. Victoria was rated second and Port Lavaca third. Justification of Corpus Christi as the first economic development center was further supported by the contention that its port facilities, existing industrial complex, and growth potential made it the only logical choice for designation. This reasoning was accepted by the Agency and Corpus Christi was designated in December 1966. Victoria was selected subsequently, and the joining of Victoria and Port Lavaca in a corridor arrangement was under consideration at the time of evaluation. 5-4 ROLE OF THE POSITIVE ACTION PROGRAM Preparation The Positive Action Program (PAP) of Corpus Christi was first prepared by the city manager's staff in early 196 8. The initial PAP was not approved by EDA and in May of that year the regional office requested additional information concerning the city's programs to assist the unemployed and underemployed. In August, a planner was hired for the Coastal Bend Economic Development District, and one of his first assignments was to reshape the PAP into a form acceptable to EDA. No special committee was organized by or within the city to develop the PAP and no official action was taken by the city council. While official city sanction is not required under EDA guidelines for developing PAP ' s , the absence of this support is indicative of the importance the city attaches to the program. Twenty-four organizations were identified as playing a role in carrying out the activities listed in the PAP. Programs Among the 24 organizations involved in the PAP programs, one was the Del Mar Technical Institute. An integral part of the Del Mar Community College in Corpus Christi, the technical institute offers vocational and technical training for large numbers of local citizens. In operation since 1957, the institute in 1970 had more than 1.5 million student-contact hours, and provided training and services to more than 11,00 persons through course work ranging from welding to dental hygiene. Because of increasing demands and space limitations, Del Mar has a waiting list of almost 400 people who desire training. The institution has training opportunities beyond vocational training, including an early discharge program with the nearby Naval Air Station, special courses for city employees, and remedial education for adults. In spite of the general economic downturn in the area, Del Mar has had little difficulty in placing its graduates. In addition, the ratio of minority students is roughly equal to the actual breakdown in Corpus Christi, i.e., 45 percent chicano, 50 percent white, and 5 percent black. 5-5 Obviously, Del Mar Institute is serving an important function in the community, and the field team concurred with local officials that its facilities and programs should be expanded. These programs, however, are not new activities growing out of the growth center commitment to insure that the surrounding areas benefit from its facilities; they are on-going efforts that antedate the PAP and are independent of the PAP. Further, the impact of these programs on residents of redevelopment areas is minimal. While the institute serves students from many areas outside of Corpus Christi, 90 percent of them come from within 50 -miles of the city. Another organization described in the Positive Action Program was the Community Development Corporation (CDC) . The CDC aims at involving local private businessmen in solving urban problems, especially lack of adequate housing. CDC assists other local non-profit groups by handling all technical and administrative matters, provides professional guidance, and makes available initial "seed" money at favorable interest rates. Since 1967, the corporation has loaned over $50,000 to non-profit sponsors of new and rehabilitated housing units for over 430 low-income families. This function is particularly important because no urban renewal program exists within the city of Corpus Christi, although local citizens groups have been trying to gain voter approval of this program for the past 12 years. While CDC has been criticized by some within the community for helping to reinforce the existing housing patterns of blacks and chicanos within a narrow corridor of the city, the organization has helped to create improved housing in a city that lacks aggressive leadership in this critical area. A lack of low- and middle-income housing units detracts from the city's ability to attract new industrial firms or retain firms that wish to expand. The housing problems were increased by the hurricane of August 1970, and more than 2,500 families are living in temporary trailer-homes provided by HUD. Primarily as a result of the hurricane damage, Corpus Christi is building 230 new units of public housing, the first new construction by the Corpus Christi Housing Authority since 1952. Once again, while there is no question concering the importance of the activities of the CDC, the field team found no link between these programs and the Positive Action Program. CDC staff members interviewed were not familiar with PAP objectives. The activities — like most 5-6 of the other programs in the PAP — would have occurred in the absence of the document and regardless of Corpus Christi's growth center designation. One new commitment to helping the target population in the redevelopment areas was included. The Padre Island Investment Corporation, in its project application to EDA for a water transmission line to Padre Island, had stated that the firm would advertise and extend preferential recruiting and hiring to the unemployed and underemployed of the redevelopment area counties. Reference was made to this commitment in the PAP. At the time of the field evaluation, almost two years after the PAP reference, no action alone these lines had been taken by the firm. As a result of discussions with the evaluators , the firm formally advised its contractors to seek "trainable unemployed and underemployed" from the four redevelopment area counties in the Coastal Bend district. Local Views of the Positive Action Program District staff members had expected preparation of the Positive Action Program to accomplish two things: (1) make community residents aware of district-wide problems, and (2) serve as an operational guide in Corpus Christi. At the time of the evaluation, however, staff members did not believe the PAP had been instrumental in establishing any stronger ties between the center and other district counties, nor did they find the PAP useful within the center. The city manager who submitted the PAP to EDA had difficulty recalling the program when first questioned and then indicated that at the time he considered it just another federal requirement. Representatives of all 24 organizations listed in the PAP were interviewed. As was the case with the staff of the Community Development Corporation, none were familiar with the Positive Action Program. Conclusions The field team concluded that Corpus Christi's Positive Action Program has been ineffective in furthering the growth center strategy. They concurred with the district staff that it has not made the community aware of district-wide problems . 5-7 Except for the one project-related commitment, there were no programs described in the PAP which would have had a direct or significant impact upon the surrounding redevelopment areas . Those few activities listed in the PAP which could have had an impact on the poor were parts of previously initiated programs that would have occurred anyway. Jobs and income benefits from existing EDA projects in the growth center have not had any impact on residents in RA counties. EDA has not done its part to insure that the Positive Action Program is effective. Although the original PAP was not approved because of insufficient informa- tion or center programs to benefit the unemployed and underemployed, EDA approved a document that contained only negligible commitments to redevelop- ment area residents. Moreover, the PAP that received EDA approval identified no new programs to benefit unemployed and underemployed residents of the center. ROLE OF DISTRICT STAFF AND BOARD Promotion of Growth Center Strategy Attitudes It was difficult to determine what the collective attitude of the district board is toward the growth center strategy, since the group meets infrequently. There was some indication that even if the board met more frequently no position would be taken on the strategy. A majority of the board members — including some of the executive committee — did not know whether they were still members. The board had no knowledge or understanding of the Positive Action Program and little awareness of the district itself as a program. Individually, board members from the outer areas look with disfavor on Corpus Christi as being unfairly competitive with their local businesses and too powerful an industrial and commercial magnet, that grabs off all promising industrial prospects. Those interviewed could not see how the center would assist them or the residents of their county. 5-8 District staff members , however, feel that investment in growth centers and specifically in Corpus Christi is the only approach that makes economic sense. They believe that many of the other counties are unwilling or financially unable to support economic development and view investment in such places as unproductive. However, staff members are beginning to realize that some degree of grantsmanship may be necessary to secure the support and active cooperation of the other counties. As a result, efforts are being initiated in this direction. The growth center has made attempts to assist some of the nearby communities. For example, the city industrial development official assisted in locating the Haggar plant in Robstown when the Corpus Christi Industrial Foundation refused to subsidize the Haggar firm with land and a building. He has also referred two prospects to the town of Alice in Jim Wells County, and he has actively participated in programs to train industry-seeking teams in the various counties. The city has entered into a contract with Alice to provide them with access to Corpus Christi' s water supply. Plans are to enter into a similar contract with Robstown, and offers have been made to other towns, including Beeville and Kingsville. All of this assistance is to communities within 10 to 40 miles of the center. Geography The district office is located in Corpus Christi, a location that appears to have an overpowering influence on the operation of the staff. The district has received almost $3.5 million in grants and loans. Only $250,000 of this amount has gone to localities other than Corpus Christi and Aransas Pass. The district staff spends 95 percent of its time in the growth center, despite the fact that there are several influential and capable staffs, such as the Regional Development Commission, City Industrial Development Commission, the Chamber of Commerce, and the Port Authority, in the city. These staffs overshadow the district staff both in numbers and capability. As a result, the district staff is seldom considered, let alone consulted, in their activities . Staff appearances in the redevelopment areas appeared to be few. More than once board members interviewed in the redevelopment areas stated they had never seen a staff member in their county. The location of the growth center, however, is not conducive to efficient servicing of the designated counties. 5-9 Relative Influence of Board Members The district board meets annually and the executive committee meets quarterly. There is no organized or system- atic means of keeping the members informed. Nor is it considered necessary. As a result, both their knowledge and influence is minimal. The only member who is consulted regularly is the executive committee chairman, who has held that post since the formation of the district organization. The district staff is funded by a grant of almost $40,000 from EDA, and cash and in-kind contributions of $12,000 from cities, counties, and interested concerns in the district. Over half of this latter total is contributed by the city of Corpus Christi and Nueces County and several semi-public and private groups in Corpus Christi. The four redevelopment counties contribute $500 each. Remaining funds come from other counties in the district for specific services from the district staff. Other counties who receive no services make no contributions. Again, this method of funding contributes to the inordinate staff attention to the growth center. Services of Staff and Board As indicated previously, the district staff has concentrated on helping the growth center obtain EDA loans and grants. They have been fairly successful in this regard. They see the need now to perform in a similar capacity for both the redevelopment and non-designated counties, and to expand this capacity over the full range of grantsmanship, including completing the necessary forms and applications required in the process. They plan to solicit a contribution of $500 from each of the non-designated counties in order to hire a staff member to do this job. The lack of service by the district board has already been noted; it exists on an individual member basis as well as collectively. There has been no attempt made to unify the members into a group that eventually would turn to considering the needs of the district as a whole. Nor does the district staff see this as a need. As a result, the field team found this district to be less of an organization than any other studied. 5-10 EDA PROJECT IMPACT Introduction At the time of evaluation, five EDA-assisted projects had been completed in Corpus Christi-Aransas Pass. These projects had resulted in 219 direct jobs attributable to EDA, and the jobs represented approximately $1.6 million in yearly salaries. Total investment by EDA amounted to $1,777,000; investment-per- job was calculated at $5,367. Table 5-1 gives further information on project impact. EDA investments for the completed projects were as follows : a $125,000 public works grant to the Southwest Research Institute for the procurement of scientific equipment for marine laboratories a $234,000 public works grant to the Nueces County Navigation District for construction of a deep sea oil terminal for loading super-tankers a $410,000 business development loan to the Sheraton Marina Inn, Inc., for construction of a hotel- motel facility to accommodate the tourist trade a $358,000 business development loan to Coastal Freezing, Inc., located in Aransas Pass, to enlarge the freezing and processing capacity of its shrimp plant; and a $60,000 technical assistance grant to the Coastal Bend Economic Development District for a study of the tourism-recreation potential of the district. Three other projects in the growth center had been approved but had not yet been completed. a $650,000 public works grant to the Nueces County Navigation District for construction of a water- oriented industrial park (Rincon Industrial Park) with related canals, bulkheads, streets, railroad, gas and water distribution lines. Expected to be completed in July 1972, this project had already resulted in jobs. 5-11 o o r^- •^r o o o cr> co ■^ 00 o >. fe En r^ r» <-i rH "* CO in <^> o O CTi r- CN 00 ^-i En CO- <-{ co- co- co- CO co- l-H < 1 H g * T3 ■P ■p ft O * CU C C co HO H O o P cO cO o CO EH O o CU * > > o D P H O o rH * CU O co co o >-\ rH <3< 3 2 — H o o £ CU CU 00 h *- T3 a o in O ti rt _ cu w oo VO U Ph K P oq v +J ■P W 3 CO £ < J Q_ * r» co • 1— 1 2 o o co CD o P DC 2 2 o o in CD o ^ X O H CO o * fe fe (0 o ^ ^ fe fe o\° CT> KD "5* & iH 3 < LD o o n CO rH o o CO ^D a 1 CO « 2 CO ■H o ^ rH rH rH rH m Q_ W H en «3< rH CO • o o r-i co u 1-^ 3 M o o r^ o M-l o o o\° LO o J- Eh CS3 fe fe in ^ o in in o *fc fe • X! o CO W o 00 CN rH in in co < o 2 LD in CN cy> QJ T-i Q_ in n u SL U fe co- co- co- co- u ^-1 tn CU •H Ol, l- Eh m U CO EC o o VD co p LU W U o o kD o cu c -J § « o o O * CD o P cu o E Cn P Q. D CO O W CO K in CM rH "* r-\ CU CO M CU < CO- co- co- CO- tr> > Q LU tP C | CO -H % U CO CO CO 1 U & XI XI xi e u M CU C C 8 C o 1 T3 U P a P P P CU -P D a) CU 1 CO T3 T) g e cO rH rH 2 U U CO X! X! -H X! rH TS 5h -H •H P p rH D O O u •H o a •H -H CO ■H IH C CU CO CO CO CO (0 C C H -P M r) CU U CU CO fL; CU CU CU CU co •H -H Eh p M -P -H -P +> a -P e Pi « > > ^ u (0 C -P P -p -P Sh T3 TS c C XI >1 P P D CU P-i (D (0 < fg <; o cu i >. o io ^1 T3 2 2 ^ O £ M CD < o o < XI «lj CO CU * * > H Q CD Q, Q P Q rH rH Q O pq « CU P * W CU H Hi O W W +J M4Jaa H hj >H CO 5-12 a $830,000 public works grant to the City of Corpus Christi to extend water lines to the Naval Air Station, the Army Helicopter Repair Depot, poverty areas of Flour Bluff, and Padre Island. This project was less than 50 percent complete. a $519,000 public works grant to the City of Aransas Pass for development of the harbor. No funds had been disbursed at the time of the visit. Projects 1. Southwest Research Institute The Ocean Science and Engineering Laboratories were established in Corpus Christi in 1967 as the marine-oriented arm of the larger firm, Southwest Research Institute of San Antonio, Texas. The company received an EDA public works grant of $125,000 which was used to purchase equipment. This equipment was used as part of the initial set-up of the plant. The director of the Corpus Christi operation stated that EDA's assistance permitted the hiring of three additional professional staff members. This project, however, was not funded for the purpose of increasing employment at the Ocean Science and Engineering Laboratories. Its goals were twofold. First, the studies conducted by the facility were expected to lead to increased employment for the entire district by identifying ways to exploit the area's marine and mineral resources. Secondly, improving the environmental facilities of the center, the facility was expected to accelerate its growth. At the time of the evaluation, the research facility had produced no studies linked to job creation. This circumstance was partially a result of damage inflicted by Hurricane Celia in August 19 70. However, the main reason for the absence of such studies was the facility's dependence on client funding. As a non-profit company, it is dependent on contracts from government and private business and on grants from such sources as the National Science Foundation. Only those subjects identified by clients can be investigated; the facility has no resources to other studies. Moreover, the evaluators judged that the project was not essential to accelerating Corpus Christi 's growth. Although it is the only firm of its type in the area, 5-13 it employed only nine persons and had no definite plans for future expansion at the time of evaluation. In addition, the facility's acceleration of the center's growth through research studies appeared to be only a remote possibility. Finally, the investment and capabilities represented by the laboratories were judged too limited to accelerate the growth of a city as large as Corpus Christi. Because the project was not funded for the purpose of increasing employment in the Laboratories, the three jobs attributed to EDA by the director were not included in the study's aggregate figures. However, data on the facility's nine employees were collected and are presented as further evidence of the lack of connection between employment in the growth center and residents of redevelopment areas. Of the nine employees, all completed the Growth Center Evaluation Employee Questionnaire. No jobs are occupied by present or former RA residents; no salaries are spent nor company purchases made in the RA counties. The jobs which were created did not benefit growth center unemployed and underemployed. All of the full-time positions are for highly skilled professionals and pay $8-15,000 a year. The part-time employees include three students who work as laboratory technicians and two housewives who are employed as secretaries. None of the employees were previously unemployed and looking for work, nor could any be classified as underemployed. Out-migration was not affected by the creation of these jobs. No. employee migrated to the growth center from an RA, and no employee indicated an intention to migrate to' a large urban center if his present job had not been available. The project improved no public services either for residents of the growth center or the redevelopment area. EDA investment per attributable job is $41,666. Yearly salary generated is $19,000. 2 . Deep Sea Oil Terminal The Nueces County Navigation District was the recipient of a $234,000 public works grant to construct a deep sea oil terminal for loading super-tankers. The dock was an integral part of the expansion of the Coastal States Petro- chemical Company, which is the prime user of the facility. Coastal States invested $30 to $40 million in the expansion of its facilities. 5-14 The company currently employs 305 people. Of these jobs, 150 are new since 1966, and EDA is credited with having made them possible. This company is part of the dominant economic group in the Corpus Christi area. Its employment is basically stable, but will be affected over time as the oil supplies are depleted. Of 150 questionnaires distributed to the new employees, 30 were returned. The following statistics were estimated on the basis of this 20 percent sample. Ten of the jobs went to former RA residents. These jobs generated a monthly income of approximately $5,200, with an average monthly salary increase of $152. The EDA investment-per-job for these employees was $23,400. Half of the jobs went to heads of households, but none went to members of poor households, persons formerly unemployed or underemployed, or to members of minority groups. All of these employees said they received training which resulted in advancement in terms of a higher salary or a more responsible position. Twenty-five of the 150 jobs went to residents of non-RA counties who were previously unemployed. Twenty of these recipients were from the growth center. These jobs generated a monthly income of approximately $15,600, with an average monthly salary of $624. The investment-per-job was $1,560. All of these jobs went to heads of households and four of these households were previously below the poverty level. None of the jobs went to minority groups members. All of these employees reported receiving training. All but three reported that the training had resulted in advancement. In terms of this project's impact on migration, 10 employees had moved from a redevelopment area to a growth center county within the last year. No employees reported that they would have migrated from the district to a large urban center if their present job had not been available. This project resulted in no indirect economic spillover nor in improved public services. 3. Sheraton Marina Inn, Inc A business development loan was granted to the Sheraton Marina Inn, Inc., in January 1967, for $410,000 of the $3,360,000 total investment. Although this is one of a number of new facilities catering to the growing tourist 5-15 industry in Corpus Christi, its stability is enhanced by its affiliation with the larger Sheraton hotel chain with which it holds a franchise. Employment is also year round, not being affected by any seasonal fluctuation in business. The owner of the hotel indicated that the EDA loan was a crucial element in the financing of the project. Had the money not been available, the hotel probably would have been built anyway at approximately one-third less than the present size. The owner estimated that without EDA's assistance, the hotel would have employed approximately 66 persons. Therefore, of the total employment of 109, EDA is credited with creating 43 jobs. These jobs include the full cross-section of hotel employees, including housekeepers, waiters, bell boys, desk clerks, and office staff. There is a monthly income of $13,600 generated by these jobs and tips associated with the jobs; thus yearly salary generated is $164,000. Only three of the jobs created went to former residents of redevelopment areas. Eighty-eight percent of all the jobs went to residents of the growth center. Of these growth center residents, 26 percent were previously unemployed. While the EDA investment-per- job is $9,534, the investment- per-job to the previously underemployed and unemployed persons and RA residents is $29,000. Of the 10 growth center residents who were previously unemployed, 8 were previously members of poor households, 9 are heads of households and 4 are members of minority groups. There has been an average salary increase of $116 per month. The hotel buys about 70 percent of its supplies ($17,290) locally in the growth center county. None of its purchases are made in the RA counties, nor do any of the employees spend their salaries there. There is no evidence to indicate that this project has had any effect on migration patterns in the district. There have been no improvements to public facilities in either the growth center or redevelopment areas as a result of this project. 5-16 4. Coastal Freezing, Inc. A business development loan of $358,000 was granted to Coastal Freezing, Inc., in November 1968, to enlarge the freezing and processing capacity of this shrimp plant. The plant is located in Aransas Pass where the dominant economic activities are related to the shrimping industry. Employment at the plant is seasonal with only a small year-round work force. The stability of this employer is dependent upon the conditions of the shrimping industry in the area. Its year- round activities, however, do represent a type of diversity in this industry. During its peak of employment Coastal Freezing employs 54 people, of which 14 are year-round workers. EDA is credited with creating these 14 year-round jobs, since the expansion with the EDA loan converted the plant to a year-round operation. The weekly payroll for the 14 jobs is approxi- mately $1,850. Thus yearly salary generated is approximately $95,000. EDA investment per job is $25,571. Of the 14 employees now working 13, or 93 percent, completed the EDA Growth Center Evaluation Employee Question- naire. All the employees live in the growth center area. None of the EDA-created jobs went to past or present residents of the redevelopment area counties. Of the growth center residents five were previously unemployed or underemployed. Three of the employees are members of households still below poverty level, and one household was raised above poverty level as a result of the EDA-generated employment. Eight of the employees are heads of households. Fifty percent of the jobs went to members of minority groups — three to blacks and four to Mexican- American. While one employee's income declined from his previous job, there was an average monthly salary increase of $5.00. Six of the employees received training, and three of these reported that their training had resulted in a higher salary or a more responsible position with the firm. There is no evidence to indicate that this project has had any impact on the redevelopment areas. There has also been no service impact on growth center or redevelopment area residents. 5-17 5 . Rincon Industrial Park The Nueces County Navigation District was the recipient of a $650,000 public works grant for the purpose of constructing a water industrial park. The project was approved in June 1967, and was expected to be completed in July 1971. At the time of the evaluation, one firm, the Benilite Corporation of America, had located in the park. The Benilite Corporation processes upgraded ilmenite, which is used to make titanium dioxide pigments for paint. The company represents a diversification of the economy, as it is the only firm of its kind in the area. This facility is a branch of the larger corporation, founded in 1969, whose executive offices are located in New York City. There are nine employees currently working at Benilite. Of the nine jobs, the EDA project is credited with creating eight and saving one. All nine employees completed the EDA Growth Center Evaluation Employee Questionnaire. None of the jobs at the Benilite Corporation have gone to residents of the redevelopment area counties. Eight of the employees live in the growth center and the ninth lives in a nearby community in the same county. One of the jobs is secretarial, and the rest are technical, generating a total income of approximately $8 4,000 a year. This amount is expected to increase as the plant reaches full operation. Analysis of the employee' questionnaires shows that seven of the nine are heads of households. Three are orientals and three, or 33 percent, were formerly unemployed. While the incomes of three of the employees declined, there was an average monthly salary increase for the work force of $25.00. Four of the employees received training and, of ' those four, two felt their training resulted in a higher salary or more responsible position with the firm. At the time of evaluation, Benilite was planning to expand its facilities and hoped to do so by the summer of 19 71. The expansion would result in the creation of 50 new jobs at an average of $10,000 per year. 5-1! This project has had no apparent impact on the redevelopment areas. Besides providing no jobs for redevelopment area residents, directly or indirectly, the project brings no money to the RA's through salaries spent or company purchases made. The project probably affected the migration of one employee. This employee indicated that if he had been unable to find employment in the Corpus Christi area he would have moved to Houston. This project has had no impact on services either to residents of the redevelopment areas or the growth center. The Director of Industrial Development and Port Planning of the Nueces County Navigation District is actively recruiting firms to locate in the Rincon Industrial Park. Three firms are expected to locate during the coming year, and discussions are underway with seven other prospects. Future Job Impact The Sheraton Marina Inn and Coastal Freezing, Inc. , are b©th planning expansions. The Sheraton Inn is planning to build within the year, and between 5 and 10 jobs are ex- pected to result from the expansion. By the discount guidelines used for this study, 1/ two jobs (25 percent of the expected jobs) can be credited to EDA. Coastal Freezing, Inc. , had reached a peak employment figure of 54 jobs after Hurricane Celia, but at the time of evaluation the firm employed 14 persons. While the firm planned to expand again to 54 employees, hiring had not yet begun. By the discount formula, 30 jobs (75 percent of the 40 expected jobs) can be credited. Thus, a total of 32 future jobs can be attributed to EDA, lowering the Agency's investment per job from $5,367 to $4,657. Benilite, the only firm presently located in the water industrial park, is also planning to increase employment. Use of the discount factor allows the attribution of 13 new jobs in connection with this expansion. The cost of the EDA project and Benilite 's future jobs were not incorporated in the future impact figure above. Since the park itself is still incomplete, it would be misleading to compare Benilite' s employment against total-project cost. T7 See Program Evaluation: The Economic Development Administration Growth Center Strategy, page A. 5. 5-19 STATUS OF ECONOMIC DEVELOPMENT PROCESS Introduction In both Corpus Christi and its neighbor, Aransas Pass, certain segments of the business community are interested in and working to accelerate the economic development process. However, these efforts have not resulted in significant success, and EDA's influence on local activities and attitudes has been minimal. Growth Center Government's Attitude Toward Development Projects As indicated in the section on the Positive Action Program, some city officials of Corpus Christi expressed the view that the PAP was little more than a formal requirement. Because of this, and for the reasons, it appeared to the evaluators that new activities designed to benefit RA residents would not be initiated in the near future. However, the city officials are obviously interested in promoting and expanding the city's economy and their interest has triggered both public and private activities, including organization of citizen planning groups, hospital and airport construction projects, and annexations. City officials recognize the need to diversify the city's economic base and hope to do so with labor-intensive companies that might reduce the high unemployment rates, especially those within the Mexican-American and black communities. The ability of the city government to actually accelerate or diversify Corpus Christi 's economy may be hampered by deepening ill feelings among the races, manifested very briefly in the fall of 19 70 in a civil disturbance and protest march. The city's response was to appoint a study committee, reconstitute and staff a human relations council, and ask for an investigation of grievances. The human relations council's report to the city fathers was returned to the council for further study and no subsequent action was taken. Extremely poor housing in some sections, coupled with de facto school segregation, also could detract from the city's ability to attract industrial prospects. The city manager feels that the lack of an upper-l^rel educational institution is the city's biggest problem. A citizen's committee is developing a course of action to meet this need. Virtually the only organization involved in vocational training is the Del Mar Technical Institute, funded in part by city taxing authority; Del Mar is badly crowded and unable to serve all those who seek training. 5-20 In the recent past, citizens have failed to pass bond issues for new public buildings and a controversy concerning a dam location has divided the community even more. Some suc- cess was realized, however, when public and private groups co- operated to attract two garment industries to the area. Corpus Christi citizens refused to subsidize one of the firms with land and buildings, but various Corpus organizations as- sisted the neighboring community of Robstown in its success- ful efforts to attract the firm (manufacturer of Haggar slacks) . Although Corpus citizens disagree about the propriety of sub- sidizing new firms, they did assist the other garment manufacturer, Levi Strauss. These new firms are labor intensive and represent a modest diversification of the city's employ- ment base, even though the Haggar plant is located outside the city limits. City government officials view EDA's financial assistance as a positive influence, but it is not considered a major stimulus of development activities in the growth cen- ter. The city government in Aransas Pass is working to develop services to support industry, and is involved in harbor develop- ment activities . Time and resources bar the government from engaging in an active industrial development program. However, city government officials work closely with the Chamber of Com- merce's industrial development committee and support the efforts of private industrial development groups. While EDA projects and activities have not led to a change in the local govern- ment's attitude toward development projects, one project has enabled the government to finance harbor development. Lending Policies of EDC Financial Institutions Two large banks dominate financial transactions within the Corpus Christi area, and in the past few years they have been hampered by the "tight money" situation, with little to lend for development purposes. In line with recent national trends, terms for development loan purposes have become more reasonable and the Corpus Christi banks expect to be able to lend more. At the time of the field visit, ratio of govern- ment bonds to loans was 1 to 5 . The head of the business development section of the city's largest bank was instrumental in organizing 12 other local financial institutions to raise funds for land and buildings at the new Levi Strauss site. This person also serves as an officer of the local Industrial Development Foundation chartered under state statute and is a member of the transporta- tion committee of the Regional Planning Commission, which has headquarters in Corpus Christi. 5-21 As an officer of the Industrial Development Foundation, this bank development officer has traveled with industry-seek- ing teams from the city. As a result of this experience, he believes that the lack of adequate housing for a large segment of the community population detracts from Corpus Christi's attractiveness as a site for new companies. His explanation for the lack of building activity in this obvious market area is threefold: (1) Funds are unavailable at reasonable rates. (2) No significant number of federally subsidized housing allocations are available. (3) Contractors are not interested in building $13,000- $15,000 homes on an individual or cluster basis. The one bank in Aransas Pass was founded approximately two years ago following the failure of its predecessor insti- tution. The position of bank officials is that they will con- duct business on the basis of what is good for the bank. This does not usually include high-risk loans. However, the bank did lend funds to the development group that supported the local businessman who received an EDA loan to enlarge the processing and freezing capability of his shrimp plant. Agency projects and activities have had little or no impact on the bank's lending policies. Attitude of Dominant Economic Croup Toward Community Develop- ment Until recently, the dominant economic interests in the city were the gas and oil interests, but their influence ap- pears to be waning. In addition, the sprawling King ranch just south and west of the city has long dominated the non- urban economy in south Texas and significant financial institu- tions in the city as well. As these large interests have participated less in matters affecting the city, the influence of newer economic groups such as real estate investors and developers has increased. In general, the field team gained the impression that interest groups of the past had not been particularly ag- gressive concerning economic development activities and that the newer interests are more involved in the city's economic future, as indicated by the bank consortium to attract Levi Strauss. Certain key members of the newer economic groups 5-22 are beginning to see the relationships between the many social and economic problems facing the city. They are also beginning to realize that the area's natural resources Coil and agricul- tural) are becoming depleted and the community has to find or develop other resources, such as tourism or recreation. Shrimpers and other fishermen are the dominant economic group in Aransas Pass. Most of these persons support develop- ment projects related to the fishing industry. Other develop- ment activities are received less enthusiastically, although there are exceptions. Cooperation of the Center's Community Organizations in De- velopment Efforts Most community organizations in Corpus Christi express concern about development, but in the main they are uninformed and take no part in development activities. Single-purpose organizations promoting particular positions on bond issues or urban renewal spring up from time to time and among their other effects often fragment the community over matters of general city-wide interests. It appears that the center government and the EDD staff have done little to stimulate or encourage broad-based, organized community activities regarding social and economic problems. Some personal contact is maintained by the district staff with key figures in the business and insurance sectors of the city's economy. Credit was given to the leadership pro- vided by the local Industrial Development Foundation in attract- ing and locating the Levi Strauss plant, which formally opened during the field visit. In Aransas Pass, business and fraternal organizations as well as service clubs are actively engaged in development proj- ects. The Chamber of Commerce, Junior Chamber of Commerce, Lions Club, and Rotary International all support projects designed to stimulate growth. For the most part, it is the younger members of these groups who play the leading roles in such efforts. EDA projects have encouraged these individuals by demonstrating that development activities can have concrete results . Effectiveness of EDC Planning Efforts The City of Corpus Christi has a full-time planning staff of five persons and a planning commission of lay citizens ap- 5-23 pointed by the city council. An Area Development Committee, a citizen's group, was active in the mid- fifties and sixties and developed and carried out segments of a comprehensive city plan. However, the committee is no longer active, primarily because of the advanced age of most of the members. The city planner was also serving as chairman of the A-9 5±/ review com- mittee, which operates under the HUD-sponsored Regional Planning Commission and not the Economic Development District, as is frequently the case. The city planner indicated that his office's relation- ship with the planning commission is good and that they are able to resolve both area-wide and city planning conflicts within this framework. He was unsure about his status as a member of the district board, but reported that he meets with the chairman to keep informed. Professional interaction between the city planning staff and the district staff concerning planning or project activity appears to be minimal and not regular, despite the fact that the district staff has been spending 95 percent of its time in the city since the hurricane of August 1970. Aransas Pass has a master plan for development, which covers land use, zoning, education, and other aspects of urban development. This plan, which was prepared during the last five years, is regarded as an effective instrument by local residents. The city is helped in its planning efforts by the Regional Planning Commission located in Corpus Christi. At the time of the evaluation, the city was beginning to implement plans for the development of tourism facilities on an island off the Texas coast. EDA activities have had limited impact on the effectiveness of the city's planning efforts. Effectiveness of Community Organizations for Economic Industrial Development An Area Development Committee was established in Corpus Christi in the early 1950' s to develop a master plan for the city's future development and growth. During the 19 50 's, the —Circular A-95 of the Office of Management and Budget established a system of regional clearinghouses which review applications for federal assistance, for their relationship to area-wide and local plans and programs. 5-24 efforts of this group resulted in the construction of the pre- sent causeway, relocation of railroad tracks, provisions for a long-range water supply, relocation and expansion of the air- port, and construction of a hospital. In the 1960 's, the com- mittee was never very active, although it did develop a 20- year plan for the city's growth and development. This plan has not been implemented, and the group has been torn into various factions over the location of a reservoir for the city. In October 19 68, banking and civic leaders drew up a charter for an industrial development group to be called the Corpus Christi Industrial Foundation. This group was activa- ted in March 1969, when Levi Strauss expressed interest in locating a plant in Corpus Christi. The foundation was suc- cessful in providing Levi Strauss with the benefits they re- quested as a prerequisite to location, and Levi's Corpus Christi plant currently employs 50 persons and plans to increase to between 300 to 500 employees during the next few years. Further efforts by the foundation have been hampered by the conservative attitude of Corpus Christi 's citizens and their reluctance to subsidize industry. EDA projects and activities in the Corpus Christi area appear to have had no impact on the activities of either the Area Development Committee or the Corpus Christi Industrial Foundation. The situation is somewhat different in Aransas Pass. The Passport Development Corporation was organized in the mid- sixties as a direct result of a local shrimper's efforts to obtain an EDA business loan. The group was established as a profit-making foundation. Its objective was to secure invest- ment capital to attract to the community non-competitive businesses requiring non-skilled and semi-skilled workers. The members of the Passport Development Corporation are primarily businessmen. No minority groups are represented. The Passport Development Corporation assisted the local businessman in obtaining an EDA loan by serving as a local investor group. However, no further projects have been initiated, and the group is presently inactive. Willingness of the Public to Pay for Development Projects Bond issues before the voters of Corpus Christi have faired very poorly in the past few years and there is little optimism that any will pass in the immediate future. Although issues for essentials such as schools do pass, some ill feeling exists to- 5-25 ward issues for "luxury" items such as convention centers. Part of this feeling is reflected in the division between the downtown business interests and members of low-income and minority groups who fail to see the benefit of convention centers to them. The citizens of Aransas Pass support those development projects that provide a return on their investment. They voted for urban renewal, approved funds for tourism facilities on an offshore island, and passed bond issues to finance an extension of the city's sea wall. However, the most recent school bond failed to pass. As is the case in many small towns, the capacity of Aransas Pass citizens to pay for such projects has almost been reached. EDA has had no influence on the publics 's attitude toward financing development projects. Interaction Between Center and Neighboring Redevelopment Areas Corpus Christi is a member of the Coastal Bend Economic Development District, which receives approximately 50 percent of its operating funds from Corpus' corporate structure. More- over, since the district's inception, a Corpus Christi insur- ance agent has served as chairman of the board. However, membership in the district has not strengthened Corpus Christi 's ties to the district redevelopment areas. The district staff has not emphasized the center's responsibilities to the re- development areas, and district board meetings have not led to increased communication between community leaders in Corpus and the RA counties. The latter circumstance is primarily a result of the infrequency of the meetings (four times a year) and the poor attendance, which is partially attributable to the inordinate distances board members must travel to attend meetings . Corpus Christi is also a member of the Coastal Bend Regional Planning Commission, another multi-county organiza- tion. However, only one RA county is a member of this group. A judge in Aransas Pass served as an officer of the Coastal Bend Economic Development District Board for several years, but his efforts in that capacity did not lead to in- creased interaction between Aransas Pass and the neighboring redevelopment areas. Since the judge's death, Aransas Pass has played no role in the activities of the district organiza- tion, and most citizens are not aware of its existence. Resi- dents of the growth center assert that they have nothing in common with the redevelopment areas, particularly with regard to the economic base. 5-26 Effectiveness in Using State and Other Federal Development Programs Opinion on this matter varied depending on the respondent's position in the community and his economic status. Urban renewal does not exist in Corpus Christi although other more limited use of HUD funds is taking place. The Community Action Pro- gram was organized very early, but its funding and activities have not increased significantly in recent years. EDA's grants have been for basic inf rastructural needs such as .water and sewers -- its business loans have created low-wage jobs. Within the more influential economic groups there exists a reserve concerning certain federal programs and their atten- dant requirements. In summary, in Corpus Christi there are a few state and other federal development programs operating locally, but they have had limited effect. Aransas Pass has made good use of state and federal govern- ment development programs. In addition to assistance from EDA, the city has obtained funds from HUD for urban renewal, the Federal Housing Administration for low-income housing, and other federal and state agencies for airport development, improve- ment of library facilities, and road construction. The town's city manager has been particularly successful in obtaining such projects for Aransas Pass. EDA projects have increased local interest in taking advantage of government development programs. Concern for Poor and Minority Group Members During the past five years, the number of programs designed to help Corpus Christi 's poor and minority-group population has increased considerably. In 1968, the city government established the position of Human Relations Administrator. In 1967, a group of bankers and businessmen organized the Community Develop- ment Corporation, a non-profit group involved in building houses for low-income residents of Corpus Christi. This organization works closely with local banks to obtain seed money for other agencies that, in turn, will build the housing units. To date, more than 1,000 units have been constructed or are under con- struction. Other improvements include increased lighting, bet- ter streets, and more playgrounds in areas occupied by poor persons and members of minority groups. 5-27 Although these and a number of federally-sponsored pro- grams are operated in Corpus Christi to aid poor persons and members of minority groups, only a bare minimum is being accomplished. In October 1970, a local newspaper published an article comparing 1960 poverty statistics with 1970 data obtained by Community Action Program staff members. ±/ The data, which was collected on residents of Corpus Christi 's poverty belt, revealed that the target neighborhoods are still marked by high unemployment, low or no incomes, substandard and crowded housing, limited education, little mobility, and increased ethnic isolation. Corpus Christi 's schools still do not meet federal requirements. EDA's projects and the activities of the district staff appear to have resulted in nothing more than token efforts to employ Mexican-Americans and blacks on the parts of firms receiving EDA assistance. In Aransas Pass, conditions are somewhat better. A num- ber of programs have been initiated to benefit poor persons, and these include public housing (Funds for 82 units were ap- proved early in 1971.), urban renewal, and low-income housing through the Federal Housing Administration's 235 program.-/ Moreover, the town's schools were integrated in the 1950 's, and racial problems have been minimal. EDA activities and projects have not yet resulted in any meaningful impact on the poor and minority group members. Concern for Residents of Redevelopment Areas Residents of the Corpus Christi-Aransas Pass growth cen- ter area are not concerned about the needs of persons who live in Goliad, Gonzales, Karnes, and Wilson Counties. They share —Anne Dodsen, "Poverty Picture 1970 Almost Same Image as 10 Years Ago," The Corpus Christi Caller-Times , October 11, 1970 2/ . — Title II, Section 235 of the National Housing Act established a mortgage insurance program to aid low-income families in becoming homeowners. Under this program HUD pays the difference between the payment required and 20 percent of the homeowner's monthly income. 5-28 the attitude held by the executive director of the Coastal Bend Economic Development District, who asks why emphasis should be placed on helping residents of redevelopment areas, when more unemployed and underemployed persons reside in Corpus Christi and other counties in the district. EDA projects and activities have not resulted in any change in attitude on the part of Corpus Christi and Aransas Pass citizens. However, one employer in Corpus Christi and one employer in Aransas Pass have attempted to recruit persons from redevelopment areas as a result of EDA projects. 5-29 CHAPTER VI FORT SMITH, ARKANSAS INTRODUCTION The Western Arkansas Economic Development District (WAEDD) was incorporated in August, 1966. It is composed of six designated counties, four being redevel- opment areas. These counties were first designated by the Area Redevelopment Administration and continued by EDA. Its first funding under EDA was in February, 1967, DESCRIPTION OF CENTER AND RA's Physical Location The district is located on the Oklahoma border in the central-western portion of Arkansas. Six neighboring counties in eastern Oklahoma combine with the district to form the major portion of a 13-county Office of Business Economics (OBE) area. The center of this area is Fort Smith, one of three Standard Metropolitan Statistical Areas (SMSA) in Arkansas. The town of Mena, located south of Fort Smith in Polk County, is the secondary EDC in the district. FIGURE 6-1 WESTERN ARKANSAS ECONOMIC DEVELOPMENT DISTRICT FT. SMITH- VAN BUREN MENA Evaluated EDC Other District EDC or RC Redevelopment Area 6-1 Population The following table gives 1960 and 1970 population figures for each county in the district. TABLt 6-1 COUNTY POPULATION 1960 , 1970 Crawford 21,318 25,677 Franklin 10,213 11,301 Logan 15,957 16,789 Polk (Secondary EDC) 11,981 13,297 Scott 7,297 8,207 Sebastian (Primary EDC) 66,685 79,237 133,451 154,508 EDC Background Data Fort Smith is the service center for the area, providing banking, hospital, and government services, as well as vocational and college education, entertain- ment and recreation, and media services. The three largest banks have combined assets of $180 million; the largest, with assets of $76 million, has 62 correspondent banks of which 34 are in nearby counties. Its loan-deposit ratio is 68 percent. There are two hospitals in Fort Smith and one in Van Buren, a town eight miles to the northeast. The three hospitals contain 700 beds and two clinics. With 100 doctors the area has one of the highest doctor-population ratios in the nation. It is estimated that the largest hospital in Fort Smith admits 45 percent of its patients from outside the city — 20 percent from Oklahoma alone. Fort Smith has several local offices of the federal government. It is also the headquarters for an eight- county Health Council, a four-county HUD metropolitan 6-2 agency, and the six-county EDD. State offices in Fort Smith include the Employment Security Office, the Highway Department, the Commerce Department, the Revenue Department, and the National Guard. The University of Arkansas, 60 miles away in Fayette- ville, is the educational center for the state, but Fort Smith is important locally. Its Westark Junior College has an enrollment of 1,500, of whom 450 are in the vocational-technical division. It is one of three community colleges in the state, but only 20 percent of its students are from outside Fort Smith. The 800-acre Ben Geren Park will greatly expand the recreational facilities of Fort Smith, already the recreation and entertainment center for the area. The city has a municipal auditorium, parks, movie theaters, and several good restaurants. People come long distances to Fort Smith for entertainment and recreation. The mayor of a small Oklahoma town, 30 miles away, noted that many people drive regularly to Fort Smith to attend theaters and dine. The Fort Smith newspaper, part of a national chain, is the third largest in the state and has a 14-county circulation. Most of the towns around Fort Smith publish only weekly papers. The six city radio stations cover a 50-mile broadcast radius, as does the Fort Smith television station. All the media carry announcements of job oppor- tunities in Fort Smith. Fort Smith is also the wholesale and retail trade center for an eight-county area, as defined by Rand- McNally. As much as two-thirds of Fort Smith's trade comes from outside the city. Economic Relationships Between EDC and Redevelopment Areas Fort Smith is the major area employment center. The Employment Security Division estimates that 35 to 50 percent of the work force of Fort Smith commutes within a 50-mile radius, particularly from Oklahoma. Several large Fort Smith employers supported the claim that commuters nearly double the city work force. Most long distance commuters utilize the east-west Interstate 40. 6-3 The largest single source of commuters is Van Buren in the adjacent redevelopment area of Crawford County. Both Sequoyah and LeFlore , redevelopment counties in Oklahoma, are very much oriented toward Fort Smith. They are sparsely populated, with few towns of more than 1,000. According to local officials in Sequoyah, the eastern half of the county is oriented toward Fort Smith and the western half toward Muskogee, the EDC for the Eastern Oklahoma EDD. Sequoyah's county seat, Sallisaw, is 20 miles from Fort Smith, and half the town's work force commutes to the Arkansas city. Sallisaw recently insti- tuted a two-hour parking limit in the downtown area to prevent car pool commuters to Fort Smith from leaving their cars all day. The Mayor of Sallisaw believes that the main advantage the city has for future development is its proximity to Fort Smith. He regards Sallisaw as a residential community for Fort Smith and expects his town to continue this form of growth. Other towns near Fort Smith apparently serve the same function as Sallisaw. LeFlore County, Oklahoma, is south of Sequoyah and adjacent to Fort Smith. Poteau is the largest town and, is, like Sallisaw, oriented toward Fort Smith. In the absence of any other large city nearby, the entire county is economically related to Fort Smith. Scott County is the most sparsely populated and poorest of the six district counties. It suffered an out-migration of 34 percent in the 19 50 's, and this rate remained high during the 1960 's. In addition, 66 percent of its families had 1960 incomes below $3,000. The largest town, Waldron, has a population of about 2,000. It is an hour's drive from Fort Smith, over a twisting two-lane U.S. highway. Waldron is 35 miles north of Mena, the district's secondary growth center, on the same highway. Most workers who commute from Waldron go to Fort Smith where more jobs are available. Waldron 's mayor and Chamber of Commerce estimate that less than half the work force of Waldron commutes. There are several local industries, the largest being Waldron Furniture Company. Employing 400, the company attracts workers from as far 6-4 away as 15 miles. It is interesting to note that Waldron Furniture relocated to Waldron from Fort Smith in 1953. One major reason for this move was to take advantage of the lower-paid labor supply. It is currently the highest paying employer in Waldron. The company purchases many of its supplies from wholesale firms in Fort Smith. The development potential of Scott County is limited by federal forest areas which cover some 65 percent of the county. There have been no EDA projects in the county because of its lack of local matching funds. The county is still paying off its share of an ARA project. POSITIVE ACTION PROGRAM (PAP) Fort Smith became one of the first EDC ' s to submit a PAP in May, 1968, only a little over one month after EDA issued tne PAP guidelines. Before the PAP was developed, EDA had obligated funds for two Fort Smith projects: the library and the water supply system. Four other projects were approved in conjunction with the PAP and its updates of October, 1968 and February, 1971 The PAP was written by the district staff. It was endorsed by the Community Action Agency -of Van Buren , the Neighborhood Youth Corps, the Employment Security Division, and the Welfare Department and was later adopted by the four-member positive action committee. The most important goal identified by the Fort Smith PAP is employment opportunities for the poor and unemployed residents of the redevelopment areas. The action programs set forth to achieve this goal are: to provide vocational training for the unemployed in the RA's by expansions at the public schools and junior college; to provide bus service for these students; to notify RA residents of job openings in Fort Smith through the news media; 6-5 to establish a Community Action Agency for Sebastian County. The Fort Smith PAP contained two other projects: additional low-cost housing in the city and an 800- acre recreation facility. Five of the projects have been initiated. The bus service is as yet unfinanced. To date these projects have produced varying results. Vocational Training The enrollment of Westark Junior College is expected to double after the completion of new facilities. This $1.5 million project is being financed by three sources: EDA-$765,000, the Ozarks Commission-$459 ,000 , and local sources-$276 ,000 . The largest private contributor, $25,000, was the Whirlpool Corporation. Local support was largely achieved, according to the college's acting president, through the emphasis placed on vocational training by the PAP and the PAP Committee. College officials and supporters of the project anticipate an increase in the number of students from outside Fort Smith. Currently, 90 percent of the student body is from Sebastian County. Twenty percent of the enrollment come from families with incomes below $5,000, while only 10 percent hold scholarships. Two major factors hinder the goal of increasing RA attendance at Westark. First, the basic financial support for the college is obtained through a general assessment of Sebastian County real estate at a rate of 3,1 mills. This yields about a quarter million dollars in annual revenue. Because of this tax, students from outside Sebastian pay twice the $140 tuition charged county residents. Second, the college has no rooming facilities, and few students can afford to rent quarters in Fort Smith, On the other hand, school officials and supporters hope to attract more students from outside the county with an expanded and upgraded curriculum. When financing is received a bus service will be initiated. It is likely the bus service will attract RA students. In Ozark, 40 miles east of Fort Smith, a state-supported vocational school buses students from as far away as 50 miles. The Fort Smith city bus system formerly offered transportation to a limited number of nearby RA's, but this company went bankrupt several years ago. 6-6 The public school system in Fort Smith has a new program in vocational-technical courses at the high school level. Last year 60 of 13,000 students attended these classes. That number is expected to double this fall. Redevelopment area residents, however, have no such programs in their schools. Job Notifications The PAP program to notify RA residents of job openings in Fort Smith through newspapers, television, and radio announcements continues . The announcements are made by the media as a public service. The media gets the information from the Employment Security Division and other sources. This public service had been provided for years prior to the PAP. However, the editor of the Southwest Times and the manager of KFPW radio, both members of the Positive Action Program Committee, state they have increased the publicity since they began serving on the committee. Community Action Agency Because of OEO policy Sebastian County was unable to establish an independent CAA. As the state had over a dozen existing agencies, Sebastian County was obliged to join an existing organization. Though OEO has not been popular in Fort Smith, city and county officials recently joined the CAA in Van Buren. Their change in attitude appears promising. Fort Smith currently has the Head Start and Neighborhood Youth Corps programs. Low-Cost Housing Fort Smith now has a total of 600 units of HUD- financed low-rent public housing, of which 280 units were built since the PAP was developed. The PAP Committee members indicate there was a need for this type of housing. They feel the project would have been undertaken even in the absence of the PAP. One member pointed out that there are still major housing needs in Fort Smith, particularly inexpensive homes for lower-income factory workers. Another member felt that the impetus to obtain the low-rent housing was 6-7 initiated by Fort Smith's leaders and that the PAP is just a manifestation of this attitude. The secondary EDC, Mena, has provided even more low-cost housing in proportion to Fort Smith's efforts. Recreation Park The proposed 800-acre park is now being developed on the grounds of a former Army base, Fort Chaffee. It is being financed with funds from the Bureau of Outdoor Recreation and the government of Sebastian County. This project is not the result of the PAP. PAP Summary There seems to be little sustained interest in Fort Smith's relationship with the district. The only project listed in PAP which reaches out to the RA's is the news media job notices. The vocational training program is available at Westark Junior College, but the bus service has not been funded, and the tuition rates are higher for out-of-county residents. Fort Smith's programs under the CAA and HUD are available only to local residents. The new park is convenient for local citizens, but remote to those in the RA's. To many in Fort Smith the PAP is considered to be a bureaucratic requirement, another paper to complete Most influential people in the city were unfamiliar with the PAP and its objectives. Its anonymity probably limits its effectiveness. The district apparently is uncertain as to how much importance EDA, Washington, D.C. , attaches to the document. Perhaps a program of education is needed, with the added requirements of periodic projects-to-goals evaluations by the district director. In any event, all but one of the projects stated in the PAP have been initiated. That one project, unfortunately, would likely be highly effective in reaching the RA's. Directly resulting from the PAP is the expansion at Westark, which it is reasonable to expect will provide long-range benefits to the district. All the other projects were planned or initiated before the PAP was written. 6-8 DISTRICT STAFF AND BOARD Location The district headquarters are in Fort Smith. The city is located in the northwestern part of Sebastian County. With the exception of Polk, all the counties in the district border on Sebastian. Composition The district board is composed of 39 members. Fifty-one percent are from the RA's, 36 percent from Sebastian County (Fort Smith) , and 13 percent from Polk County (Mena) . The RA's are over- represented on a per capita basis, since they comprise only 40 percent of the population. The 15-member executive committee is composed of 7 representatives from Fort Smith, 7 from the RA's, and one from Mena. The district's share for the financing of its operation is borne by Fort Smith (35 percent), Sebastian County (35 percent), and the RA's (30 percent). The district organization also supports 60 percent of the local share to match the HUD- funded Arkhoma Regional Planning Commission. Although Fort Smith and Sebastian County are the biggest contributors to the district operation, the RA's are given more than proportioned representation on the board. The district board serves as the executive board for the Health Planning and HUD planning grants. The RA board members benefit through having 51 percent of the representatives on the umbrella EDD board, which is more than they have on the other two subsidiary boards . District Organization's Relationship with RA's The RA board members have varying attitudes toward Fort Smith and the district organization. Logan County members seem to be on good terms with board members from Fort Smith, and they look to Fort Smith and the district organization for assistance. 6-9 One Scott County member is dissatisfied because his county has not received any EDA projects. Scott has not been able to raise matching project funds, however, and will not be able to do so until the county has paid off the bond issue for a previous ARA project. Another Scott County representative stated that the growth of Fort Smith had helped his county in the past and should continue to do so. He cited as an example the relocation of a furniture factory from Fort Smith to Waldron, the county seat, in 1953. This rs, however, a development predicated by the availability of low- cost labor and the proximity of wood supplies. According to an evaluation of the district by Robert R. Nathan Associates, Polk County was threatening to withdraw from the organization in 1969. The County Judge stated that he was withdraw- ing from WAEDD because Polk County is ineligi- ble for Title I or Title IV grants because of its low rate of unemployment. They have participated for two years and feel they have nothing to show for it. Because of their distance from the growth center, 87 miles, it is doubtful that they will benefit from any spin-off as the Fort Smith-Van Buren area progresses. An attempt is presently being made to have Mena in Polk County designated as a growth center, thereby making them eligi- ble for grants. The Executive Director hopes to keep Polk in WAEDD by convincing them of the value of participating in the organization's activities. Since that time , Mena has been designated as a secondary growth center and has remained in the district. District Staff Attitudes The staff of the district verbally subscribes to the growth center concept and regards Fort Smith as the center for most of the industrial growth. The staff believes that smaller business development will eventually spread into the RA's. The staff seems more concerned with the total development of the district and its 6-10 centers than with individual projects. All counties except Scott have received EDA projects, with almost half the total project funds going into Fort Smith. The staff regards water and sewer projects in Fort Smith as having had greater economic impact than similar projects in the RA's. They do believe, however, that RA projects support the development of the district and should continue to be funded. The staff travels regularly to all counties in the district. All RA's in district, plus several in Oklahoma, are within an hour's drive of Fort Smith. Mena, the secondary center, is about a two-hour drive from Fort Smith. Technical assistance is rendered by the staff to all the counties in the district. Scott County, which has had no EDA projects and only one ARA project, has been visited by the staff members in an effort to locate an industrial project there. Evaluation The district staff and board appear convinced of the value of the growth center concept. Past complaints by some members has brought action by the board. Though the two growth centers could effectively control the executive committee by weight of their number, there is no evidence that they have. It appears that the RA members are involved in making decisions and are not dominated by the growth center members. EDA PROJECTS IN FORT SMITH EDA has obligated $3.1 million for 6 projects in Fort Smith, compared with $3.2 million for 12 projects in the RA's. The first Fort Smith funds were approved in June, 1967, for construction of a "scientific library" at a cost to EDA of $627,000. When the library was constructed, space was set aside to house a computer terminal, which has never been provided. The terminal would cost little when viewed against the total project cost: $200 for initial installation and $200 per month rental. 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Ch CM CM P O 5-1 Cm Cm T3 Q) >i O H Cm C D .H >1 «d H C U >H CD cd •H CO g O -P - 5-1 O rd I«£ O to Xi W Sh K Pm C H a) O b T3 i CO O D P •H T3 T3 Xi P CO P P hM rd a (I) CD CD iH c •p C c >i CO •H U D 3 3 6 TS CD t S a! w U u X! -Q .Q CD •H T3 ■H u -H -H ■H ■H 5-i CO -rH CO CO (Q +J U 5-1 5-1 CD CD CO CD CD CO p U p -P -P P 13 Oh CD > > rO C -P -P P C Cm c C >1 CD ft a) < < < D U H H H -n u 1 | 1 Q <1 5-1 rt! u < < < t3 W Cm < < rd 5-1 Q CD O Q a c Q Q CD Cm w Cm w W w (d W W >H 8-14 The Panama City government has been alternately progressive and conservative during the last 20 years. It has just recently experienced a change of administration which one leading citizen termed "a giant step sideways." Progressive leadership in the 19 50's floated a $7.4 million bond issue for the construction of an auditorium, a city hall, and two city marinas. Accusations of mismanagement and misunderstandings convinced voters in 1960 to install a conservative mayor who ran on a ticket proclaiming he would "put the city in the black." The present newly- elected mayor carried every black ward in the city. He appears to be passive, however, on racial questions. It was suggested that he carried the black vote by indulging in the strong-arm tactics of old-style political machines. Panama City now has a city manager form of govern- ment. It appears to be operating efficiently. However, it contributes very little to developmental activities. City officials have generally favorable opinions about growth in the community. They seem proud of the efforts of the Chamber of Commerce and the Committee of 100, a local industrial development council. The political structure in Panama City, however, does not appear to be the genuine power structure. Several persons interviewed candidly agreed that a few local families control the banks and the community. State laws forbid branch banking, yet all four banks within the city limits are controlled by two families. A fifth bank outside the city is controlled by a third family. Active participation in the SBA loan program has been cited as an indication of the banks ' active partici- pation in development. This SBA participation, however, is heavily involved in motel development along Panama City Beach. This gives the banks a lever in community activities It was suggested that the banks, more than any other single entity, determine new development in the area. Real estate ownership represents another part of the power structure. Almost one-half of all the land in Bay County is owned by the St. Joe Paper Company, the International Paper Company, and an oil company. This land is protected from the normal tax rate by Florida's "green belt law." This law allows timber land to be taxed at an agricultural level. Much of the land owned by the three companies is waterfront property. 8-15 This land reputedly is being held for speculative purposes. Not only does this limit tax revenue for the city and county, but it hinders development. The PAP Committee has not yet become a force in the development process. Its membership is active and diversified. It seems promising that they will gain strength and influence in the future. They will have to become more aware, however, of their primary responsibility The Chamber of Commerce and its auxiliary Committee of 100 are the groups charged with industrial development. They have attracted some small industry including a plastic firm, a brush manufacturer, and two garment manufacturers. The chamber members are not satisfied with this progress, however, and have purchased a manage- ment investigation from the National Chamber of Commerce. No action has been taken yet on its recommendations. In the mid-1960' s, Panama City retained a consulting firm to design a land-use plan for the city. The sub- sequent plan has been followed closely. It has been a definite factor in development decision-making. Other than this, the district staff finds itself in the role of planning arm for the center and the county. The city-county planning commission has no staff. It has not instituted any zoning regulations for the area outside the city. A candidate for the county commission was recently defeated. He specifically espoused county zoning ordinances. The prospect of zoning is unpopular with some of the wealthier citizens. Many of them are involved in land development for personal gain. Community organizations are only moderately active. The Jaycees appear to be the most motivated group. They boast some of the more aggressive young business and professional men in town. Most of the churches appear concerned only with their own interests. One black church, the Macedonia Missionary Baptist Church, however, was instrumental in forming an independent housing authority. The group now manages 172 units of low-income housing. Bond issues have had fair success in Panama City. As already mentioned, four new facilities were financed through local bonds. The school bond issue was not as successful, but there were only two school bonds accepted 8-16 in the entire state during that time. The state has recently authorized the floating of county industrial bonds. It appears that Bay County will pursue this authorization. International Paper has requested $5 million of those bonds for the purpose of pollution control. Local citizens agree that Panama City has used federal and state funds effectively. Panama City Beach has received a HUD water and sewer project. The housing authority has applied to HUD for 300 more units of public housing. SBA appears to be active in the area. The FAA assisted with airport improvements. There are several special education programs sponsored by HEW. Federal facilities in the area include the Naval Research Labora- tory and Tyndall Air Force Base. Quite a few citizens, however, felt that the churches and community organizations were unaware, unconcerned, and uninvolved with the problems of the poor. This atti- tude extends to the problems of the surrounding counties. Leaders in the growth center and the RA's stated that the desegregation requirements associated with federal programs generally were unwelcome. Only after realizing the dire needs of the area, have the people come to accept the presence of federal programs. Panama City has been the scene of old political battles of jurisdiction and petty power struggles. Its satellite communities are fiercely clinging to their identities, many of which have never been very definite. A string of small towns along the beach were originally created by the state. The state recently dissolved them. They were no longer considered to be viable communities. They become obstacles to coordination and to efficient public service. They were all consolidated into one community, Panama City Beach. Springfield, adjacent to the new community, has retained its independence. Its voters refuse to approve property taxation, the chief source of municipal revenue in the state. As a result, 30 percent of its streets are unpaved. There is a strong contest of wills between Panama City Beach and Springfield. Fire departments refuse to cross boundaries. Cooperation is minimal. The presence of the district organization has had a calming effect on the area. They have managed to improve communications. There is still, however, a great deal to be accomplished within the center before all the oppos- ing forces can be brought together in an atmosphere of constructive cooperation. 8-17 CHAPTER IX PINE BLUFF, ARKANSAS INTRODUCTION The Southeastern Arkansas Economic Development District (SEAEDD) is composed of 10 counties, 6 of them designated redevelopment areas. The district is bounded by Mississippi on the east and Louisiana on the south. Pine Bluff, in Jefferson County, is the primary economic development center. Two other economic development centers, designated after Pine Bluff, are Sheridan, in Grant County, and Crossett-Hamburg, in Ashley County. The evaluation of EDA's growth center strategy began in Pine Bluff. Leaders of the three evaluation teams visited the center and the district and conducted a pilot test from February 15 to February 26, 1971. DESCRIPTION OF CENTER AND ASSOCIATED RA'S The Southeastern Arkansas Economic Development District was organized in April 1967, and funded in January 1968. Figure 9-1 is a map of the district. Chicot, Cleveland, FIGURE 9-1 SOUTHEASTERN ARKANSAS ECONOMIC DEVELOPMENT DISTRICT LITTLE ROCK-^ PINE BLUFF Key * A □ SHERIDAN Evaluated EDC Other District EDC or RC Non-District SMSA Redevelopment Area Growth Corridor 7 CROSSETT *7 HAMBURG 9-1 Drew, Desha and Lincoln counties were originally designated as redevelopment areas. In 19 70, Bradley County was designated on the basis of high unemployment. Thus there are now six redevelopment areas in the district. The 19 70 census gives the total population of the 10 counties as about 22 8,000. Only 20 towns within the district have a population of 1,000 or more. Blacks account for about 30 percent of the district population. Jefferson County, in which Pine Bluff is located, is the largest county in population. It contains about 85,000 residents and almost 45 percent of the black population of the district. Sixty-eight percent of the county's black population is located in Pine Bluff, the largest city in the district. Three of the non-designated counties — Grant, Jefferson, and Arkansas counties — form the northern tier of the district The other non-designated county, Ashley, is located in the extreme south-central portion of the district. These non-designated counties have 6 3 percent of the district's population. Fifty-nine percent of the district's black population lives in the non-designated counties. All of the non-designated counties, with the exception of Arkansas County, gained in population from 1960 to 1970. Together they gained 6,129 residents. About two-thirds of the increase was in Jefferson County. .Arkansas County lost eight persons. The designated counties lost approxi- mately 6,000 persons between 1960 and 1970. The largest loss occurred in Desha County and the smallest in Drew County. Pine Bluff, with a population of about 58,000, is located in the northern section of the district and is 40 miles from Little Rock, the state's capital. One of the oldest settlements in Arkansas, Pine Bluff has long been the transportation and commercial center of the southern part of Arkansas. The city provides many employ- ment opportunities for the contiguous counties. A telephone survey conducted by the district staff in late 1970 indicated that approximately 20 percent of the Pine Bluff working force commutes from outlying areas, with some individuals traveling 30 miles to work. Many of these commuters come from other non-designated counties, particularly Grant and Arkansas. 9-2 HISTORY OF CENTER'S DESIGNATION Pine Bluff was designated as an economic development center in January 1968. The designation was extended to Sheridan in adjoining Grant County in March 1969, forming a growth corridor. An additional growth center of Crossett-Hamburg in Ashley County was designated in August 1970. This designation was made to serve the southern counties, where Pine Bluff's effect, because of distance, has been minimal. Pine Bluff was designated because of its traditional economic ties to the southeastern counties where economic conditions were depressed, and because of its general history of comparative economic growth which had provided employment opportunities for surrounding rural areas. The Pine Bluff Standard Metropolitan Statistical Area (SMSA) is one of the most stagnant in the United States. It experienced a small absolute decline in employment between 1965 and 1967. In fact, during the period 1966 to 1967, all four non-redevelopment counties had an absolute decline in coveredl/ employment. The redevelopment areas, on the other hand, as a group experienced a 4.7 percent increase in covered employment during this period. The southern border of the district lies close to the Monroe, La., SMSA, which like Pine Bluff is experi- encing a very slow employment increase. The northern border lies close to Little Rock. The Little Rock-North Little Rock SMSA has been among the most rapidly growing areas, economically, during the past 20 years. Between 1962 and 1967, covered employment within Little Rock grew by 50 percent, from 62,000 to 91,000. The local payroll nearly doubled. The 1960-65 Social Security one percent sample indicated that Little Rock was a major attraction for migrants from both the Ozarks and Appalachia. During this period, 7,500 persons from these two areas found employment within the immediate Little Rock area. The same survey indicated that there were no migrants to Pine Bluff from either of these major poverty areas. The continued validity of these sample figures is indicated by the essentially constant rate of net out-migration 1/ Covered employment refers to employment that is subject to social security tax. 9-3 from Jefferson County during the 19 50's and the 19 60*s (approximately 10 percent) . Pine Bluff is more economically oriented toward Little Rock than southward. This is indicated by commuting patterns. Services provided by agencies such as OEO and the State Employment Security Division cover the three non-designated counties of Grant, Jefferson, and Arkansas and the redevelopment county of Lincoln. Their influence, therefore, has only limited spillover effects into northern parts of Cleveland and Desha Counties. For this reason, another growth center, Crossett, was considered necessary to service the southern counties, most of which are more than 9 minutes by automobile from Pine Bluff. ROLE OF POSITIVE ACTION PROGRAM Preparation The required Positive Action Program (PAP) was accepted by EDA in December 19 6 81./. The PAP was written by the assistant director of the Southeast Arkansas Economic Development District, on behalf of Pine Bluff. The PAP Committee, composed of 11 members representing various civic and private groups, admits to a minor role in preparing the document. The PAP was viewed by its author as a duplication of informational requirements previously met in the Overall Economic Development Program (OEDP) . In fact, much of the PAP was directly copied from the OEDP, with information updated where appropriate and available. The staff of SEAEDD commented upon the similarity between the PAP and the Economic Development Profiles submitted in conjunction with project applications. The assistant director of SEAEDD made the following observations concerning the PAP Committee. The committee exists only because of Agency requirements . Its role in preparation of the PAP was minimal because of time constraints. Its few meetings were perfunctory. 1/ The PAP has subsequently been updated, with few substantive changes. g_. In spite of the fact that the committee was chaired by Pine Bluff's mayor, the council of that city did not pass a concurring resolution of support, but rather tabled such action. While this support is not required by EDA, its absence is indicative of the significance the council attaches to the PAP. EDA guidelines for writing the PAP request that in Section IV, "Statement of the Center's Action Program," the growth center "outline steps that will be taken to improve the circumstances of the unemployed and under- employed from the PA's as well as the center's own disadvantaged citizens." Since an earlier section (III) is to contain descriptions of current programs , Section IV is aimed at additional activities the community will undertake to carry out its responsibilities as a growth center. However, most of the action programs listed in Pine Bluff's Section IV are ongoing programs that were started before the PAP; some even antedate growth center designation. The PAP programs are discussed in detail in the paragraphs that follow. PAP Action Program The provision of vocational and technical training is listed in the center's action program. There are two institutions within Pine Bluff which provide vocational and technical training. One is the Pine Bluff Vocational Technical School, which serves several of the redevelopment areas; the other is the Arkansas Agricultural, Mechanical and Normal College. The Pine Bluff Vocational Technical School trains practical nurses, mechanics, and machinists and teaches secretarial skills. It serves a need within the community and the area. However, the school was founded in 1955. It is an Arkansas demonstration program, the first vocational-technical school within the state. There are no EDA funds involved, nor any funds for which SEAEDD was responsible. The school has not introduced any new programs, curricula or procedures because of the PAP. Pupils come from redevelopment areas by bus, but they are representative of EDA's target population only in a geographic sense. The average student is a high school graduate, able to pay the tuition of $25 per semester. The director of the school is proud of the preparation which the students have had prior to enrollment. 9-5 The Arkansas Agricultural, Mechanical and Normal College (AM&N) is a coeducational state college founded in 1873. Its enrollment is overwhelmingly black. AM&N operates buses to several of the redevelopment areas. In one instance, the SEAEDD has helped in advertising a special course for black entrepreneurs from the Pine Bluff area. This course, while held at AM&N, was sponsored and conducted by the Arkansas Industrial Development Commission, a state body. SEAEDD, however, was not involved in the course's design or implementation, nor was the city of Pine Bluff, nor the PAP Committee. Thus this program is unrelated to the Positive Action Program. The PAP identifies the formation of a bi-racial council to study and recommend solutions to local minority problems. Formed by Pine Bluff's mayor, and responsible to him, the Mayor's Human Relations Commission is a functioning group. The impetus for this council was the racial riots in Pine Bluff precipitated by the assassination of Martin Luther King in 1968. Again, this activity is unrelated to the Positive Action Program and other EDA activities . Other programs outlined in the PAP include activities related to health, employment surveys, and provisions of day care centers. The PAP stresses the Jefferson County Hospital as a source of health care for the redevelopment areas. The hospital is a modern, fully equipped facility. Only the State University Hospital in Little Rock is better equipped. However, t interviews with county health officials and doctors practicing at the hospital indicated that the cost of treatment is prohibitive for persons with low income. The poor travel to Little Rock, where free services are available from the teaching hospital. This impression was strengthened through interviews with county and municipal officials in the nearby redevelopment areas of Cleveland and Desha Counties. The one exception to this is the role that the Jefferson County Hospital has as a demonstration program for tuberculosis treatment, servicing the entire state of Arkansas. Again, this is a state program and, therefore, shows nothing about what the center will do to improve the circumstances of the target population. The staff of the development district has begun a county -by -county survey of unemployment, which is gradually being extended throughout the district. The PAP indicates that this information is given to the State Employment 9-6 Security Division (ESD) , where a special program to match jobs to unemployed people is to be started. However, ESD employees are not aware of any such special matching program, beyond that already mandated by the state. Furthermore, the survey is a joint program with the Arkansas Industrial Development Corporation, financed not by the center alone but by the district at large. Thus this program — if it were in operation — would divulge nothing about the center ' s commitment to helping the target population. The Pine Bluff-Jefferson County Economic Opportunities Commission, Inc. , an OEO-funded community action agency, operates several community service centers and day care centers. It also provides emergency food and medical services for the poor. This program started before Pine Bluff was designated an economic development center. Its focus has been on Jefferson County. Only recently has the organization's scope broadened to include one redevelopment area, Lincoln County. Responsibility for this expansion was not attributable to Pine Bluff or to the PAP Committee. The local CAP director was not a member of the PAP Committee PAP Committee Discussion with the PAP Committee indicated that the intent of the PAP was not well understood by the members. Consequently, a strong "commitment" was not obtained. All of the Pine Bluff PAP Committee members were interviewed. None had an impressive knowledge of the PAP, but all recognized the need for the economic development and growth of the city and surrounding areas. All recog- nized the need to share some of the benefits of growth with the redevelopment areas. However, in most instances, the members did not know what the term "PAP" or Postive Action Program meant. More importantly, when the purpose of the PAP was explained, questioning showed that members had little knowledge of the specific steps which could or should be taken to achieve these goals. There were frank admissions that the primary concern of Pine Bluff was for its own residents. Residents of outlying areas were considered only as they might coincidentally contri- bute to the growth of Pine Bluff and Jefferson County. 9-7 Understanding of the PAP in Redevelopment Areas Knowledge of the growth center strategy was found to be equally deficient in the designated counties which should benefit from it. Again, there were very few instances where the term "Positive Action Program" was recognized. There were even fewer cases where there was some understanding about what it was supposed to accomplish. Generally it was regarded as a requirement for Pine Bluff to get EDA funds. Redevelopment area leaders do not resent this because Pine Bluff continues to provide support to their project applications. Summary In summary, as envisioned by EDA, the purpose of the PAP is to increase the benefits going to the underemployed and unemployed residents of the redevelopment areas and the growth center. If benefits accrue to these individuals, either directly or indirectly, the growth center strategy meets the Agency's purpose and objectives. Using this criterion, the Positive Action Program in Pine Bluff has not been successful. The PAP identified no new or significantly increased commitments on the part of Pine Bluff. Almost without exception, the activities that have impact upon the poor are parts of previously started programs. There are virtually no programs which have any immediate or direct impact upon the surrounding redevelopment areas. The impact of EDA through the PAP has been minimal . The PAP has no relationship to EDA projects in Pine Bluff. Neither PAP Committee members nor potential beneficiaries of the PAP in the redevelopment areas had a clear understanding of the Positive Action Program and its place in the Agency's growth center strategy. 9-8 ROLE OF DISTRICT STAFF AND BOARD Introduction In analyzing the role played by district staff and board members with respect to the growth center policy, the evaluation team emphasized these groups' efforts to insure that unemployed and underemployed RA residents benefitted from EDA growth center investments and center services. For example, staffs and boards were judged to be effectively implementing the growth center strategy if: they encouraged employers benefitting from EDA growth center investments to hire the target population; growth center board members advised and assisted RA board members in their efforts to stimulate development; and the staff explained the PAP ' s purpose to growth center residents responsible for preparing the document/ and provided assistance when necessary, District Staff In Pine Bluff, district organization staff members were very direct in their opposition to the PAP, believing that it was a "bureaucratic requirement" and a non-productive exercise. They believed its only purpose was to convince EDA that Pine Bluff was eligible for grants. The staff did not believe that the present PAP policy could foster the commitment desired by the Agency. They felt that EDA might be able to force the community to commit itself to Agency goals by providing the necessary financial incentives. The location of the district office in the growth center did not seem to have any effect on the staff's attitude toward the PAP and growth center strategy. Pine Bluff was simply considered a convenient place from which to serve the district. The staff did not seem to feel that they had any responsibility to promote a growth center strategy. They favored development in Pine Bluff and sought projects which would help development. However this activity was not at the expense of development in 9-9 other towns and counties. They had no sense of priorities in such instances. Their orientation, on the whole, was district-wide . District Board The district board is composed of 42 members, 10 of which come from the growth center. Unlike the separate PAP Committee, it meets regularly, so there is good communication among the members. Members 1 interests are primarily in their own counties and only secondarily in the district. This is one of the reasons why they have constantly advocated that all counties in the district should be eligible for the full range of EDA grants. As previously indicated, the growth center strategy has a low priority in their deliberations, though they gladly support applications filed by the EDC. One of the strongest board leaders comes from the redevelopment county of Desha. District Financing Pine Bluff and Jefferson County have made the largest financial contributions to the district, nearly $6,000 each. The next highest contribution ($2,900) is that of Ashley County, site of the recently designated secondary EDC in Crossett. The redevelopment counties contribute $1,900 each and the other two non-designated counties $1,000 each. This difference in funding does not seem to affect the distribution of projects, although Pine Bluff has received the most costly projects. Distribution appears to be on the basis of need and the ability to provide matching local financial support. Staff Services The district staff is effective. The director is competent and has hired and retained a group of dedicated and professional staff members. The staff works very closely with the board, both collectively and individually , The staff makes certain that the board is kept informed of all developments, and the staff remains apprised of the problems and thinking of board members. As a result, it is not surprising that the staff sees its role primarily as one of "grantsmanship. " The projects acquired for district counties and the favorable attitudes of board members indicate the staff's effectiveness in this area. 9-10 In carrying out its grantsmanship role, the district staff has had a number of successes, notably in Grant, Desha, Jefferson, and Drew counties. It should be re-emphasized, however, that the effort in Pine Bluff is not directed to the growth center strategy. Rather, it is following the district staff's plan of spreading the federal dollars as evenly as possible, consistent with the counties' financial capabilities. The staff has been successful in this effort. It has helped to further establish communication links among the board members. The members have begun to think in terms of the district as well as their own counties. However, the board's understanding of the growth center strategy is minimal. They are willing to support the center's applications for federal funds in the same way that they support applicatons from other counties. EDA PROJECT IMPACT There are two completed EDA public works projects in Pine Bluff: an industrial park located at the western edge of the city; and a port and industrial park facility located on the Arkansas River barge channel "slack- water" harbor to the east of the city. Both grants are at or below 50 percent of total cost. Table 9-2 summarizes the impact of these projects. Industrial Park The Jefferson Industrial Park is owned and administered by the Jefferson County Industrial Foundation, a non-profit, semi-public group. The industrial park was approved in April 1968 and completed in November 1969, at a total cost of $601,000. The EDA investment was $275,000. There are 500 commercial acres, of which 13 acres are occupied by three companies that purchased land. Land prices are negotiable depending upon the needs of the occupant as well as the estimated employment levels. However, the minimum price is $4,200 per acre. As shown in Table 9-1, there are three firms located in the park: The Pine Bluff Casket, Pepsi Cola Bottling, and Superior Forwarding Companies Only one of these, Superior Forwarding, moved to the park because of the EDA project. 9-11 TABLE 9-1 EMPLOYMENT AT INDUSTRIAL PARK Firm Number of Jobs Attributable to EDA? Pine Bluff Casket Pepsi Cola Bottling Superior Forwarding 30 14 11 No No Yes Superior Forwarding employs 11 people with an average salary of $9,634 (annual income generation of $105,976). The firm is stable and employment is year-round. For the industrial park, the EDA cost per direct job is about $25,000. None of the 11 jobs have been filled by present or former redevelopment area residents. Seven were taken by previously unemployed growth center residents. There have been no redevelopment area jobs related to the Superior Forwarding Company because of the nature of its business (service, distributor). Also, since most of the employees live in Jefferson County, only a minor part of employee income is spent in the redevelopment areas. The Pepsi Cola Bottling Company's facility is a distribution warehouse for the immediate Pine Bluff area. Bottling is done at the plant located at Monticello, in the redevelopment area county of Drew. Cases are shipped by truck to the Pine Bluff location. Prior to moving to the park, the company rented warehouse space in Pine Bluff, employing the same personnel. Because the facilities are designated to serve only Pine Bluff, and were located in the city prior to the EDA-sponsored industrial park, the 14 jobs are not attributable to EDA. The initial application to EDA for funding of the park lists Pine Bluff Casket Company as an expected bene- ficiary. Anticipated employment was 100 persons. The Casket Company is an old Pine Bluff firm established at 9-12 LL) CM I o o o o CO H CO CO o 00 o o «. V CO rH H ^ •. «. VD H "* H CM H CO -* 00 ■^r 3 CM M* CM En co fH rH O ■co- ■C0- <& Eh Q % g >h <; o o o o o En CM o o CM rH VO O o o o H o o CM 00 o o H <] >. ». ^ *k •> IT) V£> ^r V£> UD CJ H H O in O CO <: cd CM oo CM rH fe Eh •- v • ^ CO (N rH ^r H Eh D iO- H <^- ■00- « Q O 2 CM H « C< < CM O CD o o .-3 O o *£> H O r- r~- o o 1 o < O o • rH o o H ». *h CM *» «• tf rH ir> in ^D Eh O r^ CM O CO VD CM rH D to- Q 2 H A 'd cu ►d 1 >H u CO CO CO >i u « & Si -Q H U 0) o G -H ^ 0) 0) c o TS *-) l^> b ao CM CM 0) w •H 0) CO g >i o Eh -P -H n3 1 U -P tt 3 -P -P (D -P D CM co co CD 0) u M -H U rH 3 P T3 3 g -P -P e 6 a S O U u td X! X!-H jQ >i Q) C C -p -P rH O u -H O C •H -H CO -H H U H CD U > i D Q) CM CD rd < fg < D U Q 0) Cm Q Q Q C h rd 9-13 the turn of the century. It was forced to vacate its former premises in Pine Bluff when the state condemned the property for an interstate highway. The firm received compensation of $90,000 from the state. Prior to moving to the industrial park, the firm employed between 65 and 70 people, all from the Pine Bluff- Sheridan area. Immediately following relocation, the company suffered a strike. One result was withdrawal of order commitments. Lost contracts were equivalent to 100 working days at full employee strength. The firm did not recover business after the strike ended and was forced to cut employment to 30 persons. The owner of the Casket Company indicated that her position as a "bird-in-hand" applicant had helped persuade EDA to fund the park project. Because Pine Bluff Casket Company would have relocated within the Pine Bluff area in any event, the 30 jobs found at the plant could not be attributed to EDA. Port Facility EDA approval of the Jefferson Industrial Park was followed one month later by approval of a port facility and adjacent industrial park owned and operated by the Pine Bluff-Jefferson County Port Authority. The port is closely related to the Arkansas River Navigation Project, a $2.5 billion U.S. Army Corps of Engineers project designed to establish a nine-foot' barge channel on the Arkansas River. The channel extends from the river's confluence with the Mississippi River, above Greenville, Mississippi, to Tulsa, Oklahoma, a distance of about 350 miles. The project was started more than 10 years ago and is now completed. Pine Bluff is located at the only natural "slack-water" harbor on the system. The slack-water channel, which was formed when the river changed its course, is wide enough to provide a turning basin for multibarge rigs and pusher type tugboats. Since Pine Bluff was a natural place for a harbor, the city began to implement plans to build its own port in the early 1960 's. A $1.2 million bond issue was approved by the voters in 1965. After Pine Bluff's designation as an EDC, matching EDA funds of $1.2 million were granted. Although the basic project cost was $2.4 million, further supplemental funding of more than $800,000 9-14 was obtained by loans from the two major Pine Bluff banks. These loans were made at interest rates below the prime interest rate for the period. The EDA port project, completed in March 19 70, includes 372 acres of prepared industrial land. Most of this land was at flood level, and has been filled by dredging sand and gravel from the river. The entire site is split in half by a public road. There is direct water access from 50 percent of the acreage. The project includes fill and site preparation, a warehouse, dock With crane and railroad spur, and an access road to the dock. Last year, 28,000 tons of mixed cargo, mostly bulk material such as lumber, passed through the port. Fifty-five of the 372 acres are occupied. A number of public and private installations are associated with the Pine Bluff port facility, as shown in Table 9-3. However, employment at several of these is not attributable to EDA and only one redevelopment area resident has been hired. TABLE 9-3 EMPLOYMENT AT PORT FACILITY FIRM OR ORGANIZATION NUMBER OF JOBS ATTRIBUTABLE 1 TO EDA? Pine Bluff Warehouse Co. 11 Yes Pine Bluff Sand & Gravel 6 Yes Martin Terminals 5 Yes U.S. Coast Guard 19 No U.S. Army Corps of Engineers 27 No The United States Coast Guard has a major facility at the port, with 19 men and a boat stationed there. From Pine Bluff, the Coast Guard services navigation on the 9-15 Arkansas River from the Mississippi to north of Little Rock. Its location there, however, was dictated by the strategic location of Pine Bluff and the nature of its harbor, rather than by the EDA project. No other location was seriously considered. Therefore, the jobs cannot be attributed to the Agency. The resident office of the Army Corps of Engineers cannot be attributed to EDA's Pine Bluff port project. Unique locational advantages not related to the growth center strategy were involved. Furthermore, the Corps is legislatively precluded from the purchase of prepared land. Therefore, the Corps purchased unprepared land from the Pine Bluff Port Authority prior to EDA involvement. EDA- attributable jobs were found at two terminal companies and at the Pine Bluff Sand and Gravel Company. Pine Bluff Warehouse Company, the source of 11 attributable jobs, was the successful bidder on a contract to operate the public port facilities for the Port Authority. Because of lack of business, the company would have been forced to lay off seven workers at its major warehouse in Pine Bluff, located about one-half mile from the port. The increased business from the port facility, however, permitted Pine Bluff Warehouse not only to maintain its prior employment but also to add four persons to its work force. The Pine Bluff Sand and Gravel Company, under contract with the Corps of Engineers to assist in dredging the Arkansas, had added six employees to its general haulage section because of traffic through the EDA port facility. These six individuals operate a new $350,000 towboat purchased by the company because of port-generated traffic. One of these individuals lives in Dumas County, a redevelopment area, and commutes one hour each way to and from work. Martin Terminals is a bulk chemical shipper, initially established as a Dow Chemical Company subsidiary, but now wholly owned by a Pine Bluff resident. Storage tanks and portside pumping facilities have been erected on land purchased from the Port Authority. This installation is now being enlarged. Employment, including the headquarters staff of the company in Pine Bluff, totals five persons. The Strong Company was an indirect beneficiary of the port facility. This firm was started in 1959, just outside of Pine Bluff, as a general contracting firm. 9-16 From that beginning, the company began to specialize in hot-pour roofing and flooring. It was so successful in adapting existing machinery to these needs that it is now heavily involved as a manufacturer of roofing equip- ment as well. Most clients for contract work and equipment are in Louisiana and Mississippi. The Strong Company uses vermiculite as part of its roofing compound. Vermiculite is imported from South America. Prior to the river project, this material was shipped by rail from Louisiana. Since completion of the project, and the Pine Bluff port, the material has been shipped by barge at a considerable savings. The company is currently purchasing about 2,000 tons per year but expects requirements to increase to more than 5,000 tons within the next few years. The owner anticipates that between three and five workers will be added to his payroll within the next couple of years as a result of his better competitive position. Employee questionnaires and interviews with the employers indicate that one of the jobs attributable to EDA has gone to a redevelopment area resident. Six jobs have gone to unemployed residents of the economic develop- ment center itself. Neither project has improved public services within Pine Bluff or elsewhere. Roadways and water lines do not extend beyond the project sites. There is no evidence of significant purchases of goods and services by project beneficiaries from the redevelopment areas . To date, the only spillover effects of the projects are minor purchases of services such as electricity and gasoline by the individual firms. Undoubtedly, some part of the wages paid to employees of project beneficiaries is spent outside of Pine Bluff. It is to be expected, however, that most of this money will find its way to Little Rock, the area's major shopping center. Other Growth Center Projects In June 1969, the Sheridan extension of the Pine Bluff economic development center received EDA approval for a $381,000 project to improve and extend the town's water and sewer system. The main beneficiaries will be two firms now located within the Sheridan Industrial Park. 9-17 Construction of the project had begun when the field evaluation was made, but the facility was not to be tested before mid-1971. Final completion of connections to the system was to take even longer. Because of this, an extensive evaluation of Sheridan was not conducted. It is worth noting, however, that conclusions regarding the Pine Bluff Positive Action Program are equally applicable to Sheridan. Again, the Southeast Arkansas Economic Development District staff, and not Sheridan, was responsible for the PAP. The mayor of Sheridan was not familiar with the content or creation of the PAP, nor were other Sheridan community leaders. During the period of the evaluation, EDA announced approval of a $2.1 million grant to Pine Bluff for construction of a trade and convention center. Certain conditions in the area raised questions as to whether this project will have a significant economic impact on . Pine Bluff. These include the existence of alternative nearby tourist centers, and the lack of adequate trans- portation to Pine Bluff. Pine Bluff is within 45 miles of Hot Springs and Little Rock, both of which are economic development centers and recognized convention centers in the area. Hot Springs is a major national tourist attraction. Both are conveniently reached by air and ground transportation. The Pine Bluff franchise of two major nationwide motel chains are losing se'veral thousand dollars each month. Furthermore, Pine Bluff and Jefferson County, under local option, do not sell liquor-by-the-drink. Pine Bluff is not a headquarters' location for any major commercial or manufacturing establishment. Moreover, some community leaders expressed doubt that a bond issue to finance the local-share costs of the project would be passed by city voters^/. The major economic resources of Pine Bluff are the Arkansas River Project and the city's available labor force. Much of the city's future is linked to the port's 9-18 viability. These factors may dovetail with the considerable forest acreage found in surrounding redevelopment areas. Two major paper producers have located in the city, ob- taining raw material from within the district boundaries. It is anticipated that International Paper, at least, will soon start to ship its product either through the port, or establish its own docking facilities. As employment at these and other companies expands, it is reasonable to assume that some of the avai-lable jobs will be taken by present and former redevelopment area residents. However, the present employment patterns within the city of Pine Bluff give no reason to believe that these individuals will be significantly represented in the additional employment. The fact that Jefferson County's labor force exceeds the number of jobs available in the county_l/ also suggests that redevelopment area residents will not benefit significantly from the creation of additional jobs in the county. Such jobs will probably be taken primarily by county residents who were previously unemployed or commuted outside the county for work. Future Project Impact As discussed earlier, it is expected that between three and five workers will be added to the payroll at Strong Company within the next two years. By the discount formula, since hiring had not begun, three jobs can be added to those attributable to EDA. For the port facility, this brings the total EDA-attributed jobs to 25 and the investment per job to $48,240. Total EDA-attributed jobs for the Pine Bluff growth center increased to 36, and EDA investment per job decreased to $41,139. The Sheridan water and sewer project will affect two industrial parks already serving a number of firms, but no specific impact can be projected at this time. ECONOMIC DEVELOPMENT PROCESS Concern in Pine Bluff with economic development has changed considerably over the past decade. Evidence of this change ranges from the new city government complex, funded largely through HUD programs, to self-financed rebuilding of the downtown Simmons First National Bank. T7 Arkansas Employment Security Division, 1965 statistics for Pine Bluff-Jefferson County. 9-19 Private developers have taken advantage of HUD rent subsidy programs. About 460 units have been built; two more sets are in the planning stage. Prospects for extensive low-rent housing over the next five to ten years are considered good by local officials. The Office of Economic Opportunity (OEO) has funded day care centers, community centers, and a Head Start program, which have been active within Pine Bluff and Jefferson County. The major change factor in governmental involvement revolves around the person of the mayor, elected in 1965. In contrast to his predecessor, long in office, the new mayor succeeded in securing, in early 1971, a city housing authority. He has also been a major supporter of the local HUD agency. The two major local banks are also factors in the developing economic process. For example, they joined with the city and EDA in helping finance development of the Pine Bluff port, making $800,000 available to the port development authority at low interest rates. Both banks are presently maintaining a loan-to-deposit ratio of approximately 60 percent. Some guidance is being provided to economic develop- ment by the city's planning department. Although this agency is not new, it has come to have a more important role, and increased personnel, since the 19 65 mayoralty elections. The planning department maintains useful working relations with HUD programmers. Local planning efforts have resulted in significant new plans for public housing in Pine Bluff, as well as condemnation and redevelopment of part of the worst housing sections. There is, in bonding for the port and industrial park, some evidence of willingness to finance development projects. This is contradicted, however, by statements made by many local leaders predicting that Pine Bluff would not approve the necessary bonding issue to finance the proposed convention center. i/ Passage of increased school taxes was also considered to be in doubt. Although Pine Bluff acts as a major job market for many of the surrounding counties and is a service center for them as well, the center displays minimal concern for the residents of district redevelopment areas. This attitude is typified by the lack of a government resolution 1/ In November 19 71, +"he bond issue was passed and the convention center was approved. 9-20 supporting the Positive Action Program, noted in discussion of the PAP. City officials pointed out that Pine Bluff has many major problems itself, and little effort can be spared for other areas. Nor were they sure what actions the city could take to help surrounding towns and counties. The relationship of the general community to its minority population, the poor, and underemployed is mixed. While on the one hand, the mayor's Human Relations Commission is a functioning entity and public housing is open, with little apparent racial discrimination, on the other hand racial antagonism at times has been fairly strong. Riots and the burning of a local motel followed the assassination of Dr. Martin Luther King. During the field work, judicial rulings for school integration were being strongly resisted in the suburban areas. Still, representatives of the NAACP indicated that though tension is often high, matters have been improved under the mayor's leadership. EDA's influence upon the economic development process in Pine Bluff has been minimal. The Agency has served, along with other federal agencies, as a vehicle for funding. No change in attitudes, no part of the development process can be attributed to the Positive Action Program, the growth center policy, or EDC designation. Yet, through the services of the district staff, funded by a planning grant, EDA does make a contribution to development. The staff in Pine Bluff was found to be quite active in generating development projects and aiding in project applications (aimed at many agencies) . While this grants- manship role was not aligned to carrying out the growth center strategy, and while the staff was equally active in developing projects in the redevelopment areas, neverthe- less its facility in this matter and its contribution to development in the growth center cannot be overlooked. 9-21 CHAPTER X SWAINSBORO, GEORGIA INTRODUCTION Swainsboro was designated by EDA as a secondary growth center in November, 19 67. The town is located in Emanuel County, the southernmost county in the 13-county Central Savannah River Area Economic Development District. Swains- boro is 84 miles east of Macon, 104 miles west of Savannah, and 80 miles south of Augusta. Augusta is the primary EDC for the district. Physical Location Emanuel County is one of five non-RA counties in the district. It is bordered to the north and northeast by three of the district's RA counties. Three non-district RA counties border Emanuel to the south and southeast. Figure 10-1 is a map of the district. FIGURE 10-1 CENTRAL SAVANNAH RIVER AREA ECONOMIC DEVELOPMENT DISTRICT AUGUSTA SWAINSBORO □ Evaluated EDC Other District EDC or RC Redevelopment Area 10-1 Population All of the RA counties population during the 1960- population increased 2 . 1 pe Most of this increase was i population growth was 23.3 population is about 25 perc comprise nearly 35 percent Table 10-1 lists the 1960 a Emanuel County, the three c district, and Swainsboro. in the district declined in 70 period, but Emanuel County's rcent during the same period, n Swainsboro. Its ten-year percent. The town's black ent of the total. Blacks of the population of the county, nd 1970 population figures for ontiguous RA counties' of the TABLE 10-1 SELECTED DISTRICT POPULATION FIGURES County 1960 1970 Burke County (RA) 20,596 18,255 Emanuel County 17,815 18,189 Jefferson County (RA) 17,469 17,174 Jenkins County (RA) 9,148 8,332 Total 65,027 61,950 Swainsboro 5,943 7,325 Secondary EDC Background Data Swainsboro serves as a retail and commercial center for residents living within a 20-mile radius. Portions of the three district RA's lie within this area. The town's role beyond this radius is not clear. According to the 1967 County Business Patterns , Emanuel County provides 42 percent of the employment covered by social security in the four- county area. Employment covered by social security increased in Emanuel County by 60 percent between 1962 and 1967. The increase was only 19 percent in the other three counties. A parking lot survey of Swainsboro 's largest employers re- 10-2 vealed that 20 percent of the workers' cars were registered in RA counties. The results of another survey indicated that Swainsboro's workers did not commute more than 25 miles. HISTORY OF CENTER DESIGNATION Swainsboro was the first secondary growth center to be designated by EDA. In 1966, the Chamber of Commerce initiated the activity that led to Swainsboro's designation. Community leaders were called together, and a Growth Center Development Organization was created. Members of this organization prepared an Overall Economic Development Program (OEDP) . This document was submitted to EDA in September, 1966. Swainsboro's OEDP states that the community is a growth center and a hub of the ten surrounding counties. The document further says that Swainsboro "had been the focal point at which most of the growth of the area had been concentrated." Swainsboro is described as having the neces- sary leadership and resources to maintain and accelerate this growth within a 40-mile radius of the town. The OEDP shows confidence that the community can provide sufficient employment, banking, trade, and services for the area. The town's central location among three major growth centers was cited as another asset. Swainsboro's request for growth center designation was denied. Augusta was already the district's EDC. EDA policy, at that time, was to allow only one center per district. The town officials reapplied for designation with a revised OEDP in October, 1967. EDA policy modifications made secondary growth centers possible, and, on November 28, 1967, Swainsboro was so designated. POSITIVE ACTION PROGRAM The PAP requirement was instituted by EDA in March, 1968. At the time, Swainsboro was in the final stages of obtaining EDA approval for assistance in two local projects. Agency officials agreed to accept a letter from Swainsboro's mayor as a temporary substitute for the PAP. The letter included a statement pledging assistance for the unemployed and underemployed in Swainsboro and the nearby RA's. 10-3 In March, 1969, Swainsboro submitted a formal Positive Action Program. The document was written by a member of the Chamber of Commerce, who was assisted by various community residents. The document was approved by EDA. PAP Content The Swainsboro PAP begins with a statement on the town's comparatively high growth rate. This is followed by reference to a film prepared by the University of Georgia. The film depicts Swainsboro as a good example of industrial growth and progress. The remainder of the PAP is devoted to some discussion of local industrial development and an extensive analysis of the activities of various local committees. The document emphasizes industrial development activities in the Magic Mall Industrial Park and a "light" industrial park The PAP reveals the conviction of local officials that the unemployed of Swainsboro and nearby counties could benefit from industrial growth in the Swainsboro area. The Swainsboro Area Vocational-Technical School is cited in the PAP as a vital factor in providing training for residents of the surrounding area. The school presently has students from 22 counties enrolled in its programs. The manager of one local industry stated that the presence of the school was a deciding factor in his firm's decision to lo- cate in Swainsboro. The remainder of the Swainsboro PAP focuses on the activities of local committees. Committees mentioned in the document include industrial development, transportation, day care center, cultural improvement, park development, and PAP housing. Included in the PAP is a discussion of a Suburban Farm Project. Some attention is also given to Swainsboro 's role as a nucleus in a future "Super City." Swainsboro 's Positive Action Program concludes with descriptions of efforts to improve public services, coop- eration between whites and blacks, anri growth in local retail sales, bank deposits, and postal receipts. The majority of the programs described in the document are related to the development of Swainsboro and Emanuel County. None of the programs are directed toward residents of the redevelopment areas in the district. It is assumed 10-4 that the growth of Swainsboro will automatically benefit the RA residents. Local Commitment to PAP Goals Accompanying the PAP were six letters from local and state organizations discussing the development of Swains- boro and Emanuel County. Some of the letters outline pro- grams aimed at facilitating this development. Only one writer specifically stated support for the Positive Action Program. Most local residents are unaware of the PAP and its goals. Those directly involved with achieving growth center status for Swainsboro and a few members of the Chamber of Commerce appear to be the only local residents aware of the document. There is widespread recognition of the deve- lopment efforts of the Chamber of Commerce and the persons responsible for the preparation of the PAP. Progress Toward Achieving PAP Goals During the three years that have elapsed since Swains- boro ' s original PAP, the community has succeeded in accomp- lishing several of the goals outlined in the mayor's letter and the PAP document. The primary beneficiaries, however, have been those families in the middle and upper classes. PAP Programs The Swainsboro Positive Action Program describes seven- teen programs for the city and county area. These programs are: industrial development, city-county research, government cooperation, housing, beautif ication , cultural improvements, 10-5 vocational-technical education, location of a junior college, library facilities, transportation, park development and recreation, day care center facilities, Suburban Farm Project, tourism, retail sales and services, information on job opportunities, and assistance to the poor and minority group members. Industrial Development In terms of the goals of the growth center concept, the most successful program has been industrial development. A number of firms have moved to the community during the last three years. A parking lot survey revealed that 20 percent of employee cars at these firms had out-of -county registration. Employee surveys indicated that 30 percent of the new employees at firms assisted by EDA projects were formerly unemployed or underemployed. Housing The housing program was initiated some time before the town received growth center designation. Swainsboro's Housing Authority now cooperates with the PAP Committee. Both groups are encouraging the improvement of zoning and housing standards and the construction of 100 low- rent housing units in Swainsboro. They have succeeded in convincing the city government and the planning commission to study changes in the zoning regulations. The local government has passed a regulation prohibiting mobile homes except in trailer parks. 10-6 Application has been made to HUD for assistance in construction of low-rent housing units. The local Housing Authority has proposed a plan to the city for meeting HUD ' s requirement to prove open occupancy. Although the city government has not yet acted on this proposal, the Housing Authority has already acquired an option on the land and hired an architect to design the units. If this project succeeds, unemployed and low-income residents of Swainsboro will be the primary beneficiaries. Cultural Improvements The goals of this program are to organize a concert as- sociation and to establish a little theater group. Both these projects were initiated by a Chamber of Commerce committee in the mid-1960' s. The concert association has been organized. Three concerts are held each year. The subscription fees are ten dollars for adults and five dollars for children. There are no provisions for low-cost admission for the poor. Vocational-Technical Education The Swainsboro Area Vocational-Technical School was established in 1963. During the 1969-70 school year, 750 students attended night classes and 241 attended day classes Seventeen percent of the day students were district RA residents. However, almost 90 percent of these students were high school graduates. It appears that the target pop- ulation is receiving little benefit from the school. Almost 13 percent of the day students are blacks. No specific figures are available on the residence or racial composition of the school's night enrollment. The night sessions, however, are primarily involved in upgrading employees in their present jobs. This suggests that a significant number of the night students are underemployed. Transportation According to the Swainsboro PAP, there are two pro- jects in the transportation program. An omni-range navi- gational beacon was needed for the county airport. This was acquired at a cost of $30,000, two-thirds of which was granted by the state. 10-7 A second project is the circumferential road around Swainsboro. The right-of-way for almost half of this high- way has been acquired through donation. Suburban Farm Project Swainsboro was selected as the initial location for a Suburban Farm Project, a new program sponsored by the state. The project was designed to enable full-time workers to do specialized farming on their own land. The land has been purchased by the Chamber of Commerce , and two or three lots have been sold. No further development has taken place. Information on Job Opportunities The Swainsboro PAP pledges the cooperation of the local newspaper and radio station in advertising job opportunities in the growth center area. Similar services are provided by the State Department of Labor and the Employment Analysis Service of the Office of Economic Opportunity (0E0) . The news media have cooperated with the PAP proposal. PAP Evaluation Several programs mentioned in the Swainsboro PAP have been successful or appear to be reaching completion. All these programs were initiated before the PAP was written or by groups not connected with the document. The PAP did provide some impetus for the Chamber of Commerce to organize and revitalize local committees. However, leadership in the city government, the chamber, and the community de- serve the major credit for the achievements in the Swains- boro area. DISTRICT STAFF AND BOARD Location The district office is located in Augusta, the primary growth center. The location does not appear to have much effect on the operations of the staff. The staff yields to 10-8 requests from Augusta's political representatives , but this is to be expected in view of the size and influence of the city. However, the staff provides less service to Augusta than it provides for other areas in the district. The city has an adequate planning staff which provides the necessary local services. As a result, the district staff provides more services for the other towns and counties of the dis- trict than it does for Augusta. The staff's services for Swainsboro are not extensive. This is partly a result of the distance between the secondary center and the district office. Another cause for this lack of emphasis is the district staff's concern about not wanting to appear overly influenced by the growth centers. Composition The district board consists of 30 members. Fourteen are elected public officials, and 16 are employed in business, finance, labor, agriculture, education, and transportation. The present vice-chairman is one of four blacks serving on the board. Board members are chosen by county delegations. Each county has two representatives. Financing The district staff is financed by contributions from each county. This local share is based on a $.15 per capita levy. Since Richmond County has over half the population of the district, its contribution is considerably more than that of the other member counties. However, Richmond County representatives do not dominate the board or the staff. The district also receives a grant from the state, matching the contribution from the counties. In addition, the district has received grants from a number of federal agencies, including EDA, FHA, HUD, and the Department of Justice. Regardless of the source of funds, the staff's primary allegiance appears to be to the member counties. District Staff and Board Members' Attitudes Generally, the district board members are neutral in their attitude toward the growth center concept. They have supported bids by district counties to attain desig- nation as growth centers. The board members are currently 10-9 supporting such a bid by the city of Thomson in McDuffie County. The district board members are interested in maintain- ing an equitable distribution of federal projects among the district counties. The attitude of the board members is nearly the same with regard to equal treatment for all counties by the staff and other groups. Individual attitudes of the board members,' however, often reveal a selfish concern. Swainsboro is usually viewed as a competitor with other district towns. The representatives from these other areas would like to lo- cate industry in their communities. These members feel that Swainsboro has no more to offer than their localities They expressed an envy of Swainsboro' s superior bargaining position. They seemed to realize that the growth center was able to attract more industry because of its larger size, sounder economic status, and stronger financial ability. They did not, however, understand how the deve- lopment of Swainsboro could help their communities. This negative attitude is apparently shared by the redevelopment area residents. The average RA resident cannot understand how Swainsboro will help him. If jobs become available in Swainsboro, he considers it a fortun- ate circumstance rather than the result of a deliberate policy. Largely because of these attitudes, the district staff attempts to be completely equitable in distributing their services. They make every effort to render the same amount of attention and assistance to everyone. They attempt to insure that federal assistance is spread evenly among the district counties. Although the staff avoids showing preference for the growth centers, they are willing to do what is necessary to get centers designated. They must, of course, devote more time to the growth centers because of their size, influence, and financial power. District Staff and Board Services The district staff plays an active role in securing grants for district counties. The staff considers this to be their primary function. They are constantly seeking 10-10 sources of funds, assisting the counties to meet require- ments, counseling them in their applications for funds, and insuring that the counties can meet their share of project costs. The director states that his district has only two criteria for establishing project priorities. These are the availability of matching funds and the consistency of the project with the area plan. The staff claims that the district OEDP is a working plan subject to con- stant use. Both the staff and the board support this policy. Devising projects is, however, a local policy. The district staff assists in planning and preparing the pro- ject. The board assists the applicant in securing the project. The remaining efforts are dependent upon local initiative. To a large extent, the district staff is concerned with municipal functions such as zoning, sanitary land fill, and peace officer training. Primary emphasis is not placed on programs that have a direct and timely impact on unem- ployed RA residents. This is largely dictated by the public and commercial interests represented by the members of the board. EDA PROJECTS IN SWAINSBORO Three EDA-assisted projects were evaluated in Swains- boro. These projects were as follows: an $816,000 public works grant and loan for a 525-acre industrial park, including a four- lane expressway and related improvements; an $821,521 business development loan to a manu- facturing firm, Keller Stamping and Electric, which located in the industrial park; and a $194,000 supplemental public works grant for an extension of Swainsboro's water and sewer system. The Swainsboro PAP predicts that these projects will affect the RA's. No direct attempt, however, has been made to link new job opportunities in Swainsboro to unemployed and under- 10-11 employed RA residents. Table 10-2 describes the project impact in Swainsboro. Magic Mall Industrial Park The Magic Mall Industrial Park is owned and managed by the Emanuel County Development Authority, a public non- profit organization. The state granted the county the authority to levy a tax on certain property. The resultant funds are to be used for the general development of the park. This revenue provides approximately $15,000 per year. On April 26, 1968, EDA approved an $816,000 grant for the development of the Magic Mall Park. The project was completed in late 1969. At the time of the field evaluation, three companies had purchased 31 of the park's 525 acres. The land sells for $2,500 per acre. The three firms owning land have completed their plants and begun operations. Two of the companies, Wolron Carpet and Modern Industries, were attracted to the park largely because of its location. Modern Industries manufactures mobile homes. The third firm, Keller Stamping and Electric Company, received the added benefit of an EDA business loan. Another company, Allied Timber, was attracted to the Swainsboro area by the Magic Mall Industrial Park, but decided upon another site in the area. Fifty-two jobs can be attributed to EDA as a result of the Magic Mall project. The Keller firm's employees are also attributed to EDA, but the Keller project is analyzed separately below. Ten of the 52 jobs went to present or former RA residents. Detailed information was available for only two of the RA residents. These two jobs generate a total monthly income of $1,720. Both employees are heads of households. They were previously employed and able to provide adequately for their families. The average income increase for these two employees was $160 per month. Both said they received training. One stated that he received a promotion as a result of the training. Twelve of the 52 jobs went to growth center residents who were formerly unemployed or underemployed. These 12 jobs generate a total monthly income of $3,932. The average income increase for the formerly unemployed persons was $368 per month. The formerly underemployed persons in- creased their income by an average of $32 per month. 10-12 o rH t> CM CM rH i-» 00 CO O rH oo 00 ro rH rH a> i> 00 O CTi m n rH ^r •^ O J - >* 1 •» *■ - <: rH rH ■^ 00 CO H 00 00 in r^ o rH 00 in ^ oo ■o rH ■00- u> > * Z rd - >» >> W oo o ^r r— rd "* rH CM 00 rH Pi !2 2 IT) o> 00 rd -H >^r KD WWW O rH — - -P rd CM En 00 En - rd > IS H o OL O CO CO < CO ta O r^ U o rH o 00 O iH m C^ o O •— ■ Pi O ■H CM o in rH O rH 00 o <£> o W 2 u CTi m rH CM rH CM *t< o h- (J H M •. - ■» » » o j cu ai co rH ro CO in < H 2 Eh M3 CM >x> rH D_ « UJ -) o W ■c/> ■co- ■(/> U> Q'. Q_ < UJ M * * * m o — — ' m cm rH O cm r» U Q rH rH + id rH CO M3 O rH < 2 00 00 CM o CM O CM 00 00 S H {/> in rH rH rH ■ rH C o T3 >1 ■H CU rH CO -P ■H rH T3 TJ 1 t> tH T3 CO P P -P rd Cu to (U CU CU cu CU C T3 P G C C >i P 0. 3 c -p -P Pi p g rd CU c cu cu CU U CO -H O O 3 3 3 in >, CU T3 g e rd ■z o u -H J3 X < u •H O -P •H -H Cu CU rH •H CO CO CO O rd T3 H Pi -P rd >H 5H u >i Cb CO CU cu CU 1-3 CO CU Eh O p !H -P H P -P CO -p O g co CU Pi > X > P i rd D H cu Cm U M Q cu u a o Q -H a £ C (U Q CU a cu CU CU w Cm W CU w 4 H 1-3 CO w l"3 D D Cm W Cm W Cm >H O CO cu M rji •H MH CU ■p rd CD rd. C •H cu rH U c •H ■4-1 O c ti c rd >i > U co CO -P X rH U C CU -H rH J* rH 5-1 (U rd co c! o 3 T) rH CU O CO C rd H cq * * * 10-13 Incomes of six of the 12 growth center residents were raised above the poverty level as a result of their new jobs. None of them is a member of a minority group. Five received training. Two said this training resulted in advancement. No specific secondary jobs to RA residents could be traced, but there is an indirect economic spillover. Allied Timber purchases approximately $115,000 worth of timber per month. About 6 percent of this timber comes from Emanuel County. The remaining amount is primarily purchased in the RA counties of Burke, Jenkins, and Jefferson. Residents of the RA's who work for Allied Timber and Modern Industries spend approximately $1,460 per month in their local towns. Keller Stamping and Electric Company On June 27, 1968, EDA approved an $821,521 business loan to the Keller Company, which produces fans, screen doors, and lawn chair webbing. The total cost of the Keller project was $1,263,910. By March 1, 1970, the firm was in full operation with 256 employees. Most of their employees receive $.10 to $.15 above the federal minimum wage of $1.60 per hour. The majority of the jobs are low-skilled positions. Eighteen of the 256 employees are present or former RA residents. Eleven of the 18 RA residents were formerly below the poverty level, but only four of these were raised above that level as a result' of their new jobs. Fifteen of the RA residents were heads of households, and 15 were members of minority groups. Eleven of the 18 were unemployed, and four were underemployed. The average monthly salary for the formerly unemployed was $276. The average monthly increase for the formerly underemployed was $12. Eleven RA residents received training, and seven of these persons reported a resultant advancement in salary or position. Eighty-five of the 256 jobs at Keller were filled by growth center residents who were formerly unemployed or underemployed. These jobs generated a total monthly income of $21,420. The average monthly salary for the formerly unemployed was $2 80. The growth center residents who had been underemployed increased their monthly salary by an average of $14 8. The incomes of forty-eight of these 85 employees were raised above the poverty level as a result of their new jobs, and 18 remained below that level. Sixty- five of the 85 jobs were filled by heads of households. 10-14 Forty positions were filled by members of minority groups. Sixty-one of the growth center residents received training, and 15 of these reported a resultant advancement. No significant impact on RA residents could be traced as a result of the Keller project. Residents of the RA counties spend a total of approximately $2,700 in their home counties. There does not appear to be any improve- ment in public services, any secondary jobs for RA residents, or any indirect economic spillover. Water and Sewer A third project in Swainsboro was a public works supplemental grant of $194,000. The major portion of this project was financed by the Federal Water Quality Administra- tion (FWQA) . The total project cost was $1,050,000. This project, in combination with two other water and sewer grants provided by HUD, will provide a system that will ultimately service 35,000 homes and businesses. The public works project directly affected the Swainsboro Printing and Finishing Company. The firm was in danger of being shut down because it was violating water pollution regulations. The sewage treatment facilities made it possible for the company to comply with the pollution law. The firm employs 440 persons. Because EDA financed 18 percent of the sewage treatment plant's cost, the Agency can only be credited with saving 79 jobs. Swainsboro Printing and Finishing Company's manager would not allow the evaluation team to distribute question- naires to the firm's employees. The only data gathered concerning the characteristics of the work force was acquired through a parking lot survey. On the basis of that survey, it is estimated that four of the 79 jobs saved are held by residents of RA counties. Future Job Impact Wolron Carpet, Modern Industries, and Allied Timber were planning to expand at the time of the field evaluation. In each case, construction was complete, but hiring had not begun. According to the discount formula /!/ the three firms can be credited with a total of 54 future jobs. This would reduce the EDA investment per job in Swainsboro to $4,153. 1/ See Program Evaluation: The Economic Development Administration Growth Center Strategy, page A. 5. 10-15 ECONOMIC DEVELOPMENT PROCESS Swainsboro's leadership has a positive attitude toward economic development. The town's economic and social leaders favor growth and development, and they are actively engaged in projects which foster such progress. Local leaders have been engaged in development activities for many years. EDA's assistance gave the town a psychological lift and the impetus to accelerate the progress. The motivation for development and growth, however, was already present. Government For the past six years, Swainsboro's government has had a positive attitude toward development projects. This attitude is evidenced by efforts to attract industry and housing and by the recreational and public works projects. Local government officials have been substantially aided by EDA and the district staff. The government's aggressive and positive attitude toward development projects is largely a result of the interests of the governing officials and the town's leaders. Banks Swainsboro's banks are relatively positive in their lending policies regarding development projects. The three major banks have an average loan to deposit ratio of 70 percent. This high percentage supports the consensus of community leaders that local lending institutions make money available for development projects on a reasonable basis. Economic Leaders Swainsboro has no one dominant economic group. There appears to be a balance among industrial, agricultural, financial, commercial, and service-oriented interests. Leading members from each of these areas have been involved in economic developmental activities since the 1950 's. These leaders serve on various committees established by the town's Chamber of Commerce. They play active roles in planning and implementing development projects. Swainsboro's designation as a growth center and the subsequent project assistance by EDA and other federal 10-16 agencies has accelerated the efforts of the economic leadership. The local leaders have attained a more positive attitude toward federal programs. There is some impatience with the slowness of federal programs. Federal equal oppor- tunity requirements are not yet fully accepted. Community Organizations Swainsboro's business organizations, service clubs, and fraternal groups are interested in development projects and have supported the city government and private developers in their efforts to accelerate the community's growth. These organizations have participated in various efforts to improve the town's environment. In addition, they have provided financial support for development-oriented projects. They have been involved in these activities for more than ten years. Community leaders report that EDA activities have encouraged these organizations. Planning The Emanuel County Planning Commission has responsibility for planning efforts related to Swainsboro. The Central Savannah River Area Planning and Development Commission staff and the Swainsboro Chamber of Commerce are also involved in planning for Swainsboro. Six years ago new industry began to enter the Swainsboro area, and the necessity for planning increased considerably. Zoning problems were the primary concern. The district staff, the Chamber of Commerce, and several city officials are now working on a master zoning map. Some zoning regulations have been established. A circumferential highway is planned. The president of the Chamber of Commerce stated that the acute awareness of the need for planning resulted from working to obtain growth center status. Development There is no PAP Committee in Swainsboro. There are, however, several organizations in the town and county whose members are involved in development for the area. One of these is the Emanuel County Development Authority, which received funds for the Magic Mall project. EDA's assistance to this group has encouraged the other groups to plan development projects. 10-17 Public Support The progressiveness that characterizes the power struc- ture is not shared by the majority of the townspeople. The voters rejected a bond issue to build the Magic Mall Industrial Park with local funds. However, the voters do support such measures as water and sewer improvements and hospital bonds. District Board Involvement The most enthusiastic proponent of growth center status for Swainsboro is currently serving as president of the district board. He has assisted district and non-district RA's in seeking prospective industries. His efforts have been successful in several RA counties. He charges a fee for these services. The other two board members from Swainsboro are also active in the organization's activities. Public Attitudes Toward the Poor Growth center status has not made any discernible change in the attitudes of Swainsboro' s residents toward the local poor and members of minority groups. Several federal programs have been instituted in the town. The more militant black leaders state that the white power struc- ture in the town is trying to build two separate communities with the use of federal funds. The black leaders cite the black development project financed by FHA, the refusals to let blacks buy homes in white neighborhoods/ a proposed black-operated shopping center, and the lack of integration in swimming and park facilities. The white leaders respond by citing the black develop- ment project mentioned above, the county's voluntary inte- gration of schools, the food stamp program, and the Head Start program as positive examples of local concern for the poor and members of minority groups. Concern for RA Residents Before EDA began financing the district organization, Swainsboro 's leadership expressed little concern for residents of nearby counties. After becoming a part of the EDD, the attitudes changed. Swainsboro 's leaders studied the growth center concept and then built a case for the town's designa- tion as a center. They emphasized Swainsboro 's relationship 10-18 to nearby redevelopment areas. Those leaders familiar with the growth center concept continue to express this positive attitude. However, no programs have been initiated specifically to benefit the RA residents. Moreover, Swainsboro residents who are not familiar with EDA's concept of a growth center indicate a lack of concern for RA residents. In fact, the prevailing attitude is one of superiority because Swainsboro and Emanuel County have solved some problems and are becoming more prosperous. Federal Programs Before Swainsboro was designated by EDA as a growth center, there were two federal programs operating locally. The Head Start and Community Action Programs had already been initiated. Since attaining growth center status, Swainsboro has received a grant from the Department of Interior's Bureau of Outdoor Recreation for a local park. It has also received assistance from HUD and several EDA grants. In addition, local builders have taken advantage of the FHA's 235 program, which involves low-income housing ownership at lower costs. The town has also received a grant from the Federal Water Quality Administration. 10-19 CHAPTER XI TRI-CITIES, TENNESSEE-VIRGINIA INTRODUCTION The Tri-Cities area (Bristol, Johnson City, and Kingsport, Tennessee, and Bristol, Virginia) was designated by EDA on June 6, 1967, as the primary economic develop- ment center of the First Tennessee-Virginia Economic Development District. The boundary of the Tri-Cities growth center was extended in December, 1968 to include Elizabethton, a community 10 miles west of Johnson City in Carter County. Physical Location The district is composed of nine Tennessee and one in Virginia. Three counties, Greene, Hancock, and Johnson development areas. The growth center sport, and Bristol, are approximately form a small triangle in the center of though the mileage between the growth and the RA's is not excessive, mountai roads make travel extremely difficult, map of the district. counties, eight in of the Tennessee are designated re- cities, Bristol, King- 25 miles apart. They the district. Al- center communities nous terrain and poor Figure 11-1 is a FIGURE 11-1 FIRST TENNESSEE-VIRGINIA ECONOMIC DEVELOPMENT DISTRICT KINGSPORT BRISTOL ELIZABETHTON JOHNSON CITY □ Evaluated EDC Growth Corridor Other District EDC or RC Redevelopment Area 11-1 Population Table 11-1 lists the population of the areas of the district in 1960 and 1970. TABLE 11-1 CITY AND COUNTY POPULATION Counties Greene (RA) Hancock (RA) Johnson (RA) Unicoi Carter Hawkins Sullivan Washington, Tenn. Washington, Va. Total Growth Center Cities Bristol, Tenn. Johnson City Kingsport Bristol, Va. Total 1960 42,163 7,757 10,756 15,082 41,578 30,468 114,139 64,832 55,220 381,995 17,582 31,187 26,314 17,144 92,227 1970 47,630 6,719 11,569 15,254 42,575 33,726 127,329 73,924 55,692 414,418 20,064 33,770 31,938 14,857 100,629 11-2 EDC BACKGROUND DATA Distance, terrain, and poor roads practically isolate the redevelopment areas of the district from the growth centers. Economic ties between the growth centers and RA's are practically nonexistent. Hancock and Johnson Counties can be reached from the centers only after a long and dif- ficult drive. The 1965 unemployment figure for the RA's was 8.2 percent. The unemployment rate for the rest of the district was 3.7 percent. Hancock County is located in the northwestern corner of the district. It borders Hawkins County to the south. Hawkins County and rough terrain separate Hancock from Kingsport. Hancock's county seat, Sneedville, is a diffi- cult hour's drive from Kingsport. Sneedville 's insularity is compounded by the delay in completing the remaining five miles of State Highway 31. This road would provide more convenient access to U.S. 11. U.S. 11 leads to Kingsport. Because of limited federal funds, 31 's completion in the near future is doubtful. Sneedville maintains stronger ties with Morristown and Knoxville than with Kingsport. Ninety percent of those Sneedville residents who are employed commute to Morristown. Specialized medical services are obtained in Knoxville. Hancock's remoteness is the cause of another problem. The young and skilled are relocating. The county lost 13.4 percent of its population between 1960 and 1970. Sneedville, Hancock's most populous area, decreased from 3,086 to 3,012 during the same period. Most of the employment in Sneedville is involved with agriculture, small retail outlets, a tin mine (200 employees), and an electric motor company. The town annually stages a play describing the history of the Melungeon people. During the last two years audiences of between 8,000 and 10,000 people have attended. Sponsors are concerned, however, because local enthusiasm for the play is waning. There are no tourist facilities in the town or the county. The play, therefore, has very little impact on the local economy. A $62,000 EDA grant plus a $36,000 grant supplement provided water and sewer service and an access road for Sneedville 's industrial park. The park's sole resident is an electric motor company employing 4 5 people. This figure is far below expectations. The firm's lack of success 11-3 is largely the result of Japanese competition which has forced the firm to make adjustments in production and to redesign its major product line. EDA also disbursed a $72,000 grant and a $20,000 grant supplement for street improvements in Sneedville. The town borrowed its matching share of $15,000 from a Morristown bank. Another EDA grant of $105,000 and a $35,000 supple- ment, of which $97,000 has been disbursed, was appropriated in May, 19 68 for an extension to the Hancock County General Hospital. The hospital has only one doctor, and he is the only doctor in the county. The new extension enabled the hospital to add 30 new employees. There are now 32 beds with an occupancy rate of 90 percent. Before EDA's aid, there were only 18 beds. Operating tables and X-ray tables often doubled as beds during peak periods. The hospital is used by patients from Clairborne, Hawkins, and Grainger Counties in Tennessee, Lee and Scott Counties in Virginia,, and Middlesboro, Kentucky. Patients in need of more spe- cialized medical services are sent to Knoxville. Greene County is located south of Hawkins County and west of Washington County. Greene became eligible for EDA assistance because of chronic unemployment. It appears likely that the county soon will lose it's RA status. Un- employment has declined consistently from a high of 11.6 percent in 1964 to a low of 5.4 percent in 1969. The pop- ulation figures for the past decade show Greene County with a 13 percent increase. The county's largest town, Greeneville, had increased its population 16.7 percent over the same period. Unlike Hancock and Johnson Counties, Greene County is not isolated by mountains. There are good roads over which residents commute to Kingsport and Morristown. Wholesale supplies are purchased in Johnson City and Knoxville. Greene County is predominatly an agricultural area specializing in tobacco, dairy, and beef farming. A few manufacturing firms have located recently near Greeneville. The largest employer in the area is the Magnavox Corporation. It presently employs 3,500 people. EDA has played a part in attracting industry to Greene- ville. In June, 1962, a $10,000 grant and $1,000 grant for technical assistance was allocated for an access road to an industrial park in Greeneville- Five firms have located along the access road within the past two years. 11-4 The Franklin Furniture Company, which employs 200 people, had received considerable ARA financing in 1964 and 1965. In 1967, EDA assisted Franklin in an expansion of its pro- duction capacity. EDA extended a $16,000 loan and a working capital guarantee of $90,000. The company is currently repaying its loan and is developing plans for doubling its present capacity. EDA has been involved in two other redevelopment area projects. In May, 1970, $403,000 was obligated for the construction of a hospital in Mountain City, the county seat of Johnson County. At the time of the field evaluation, none of the funds had been disbursed. Johnson County also was given an EDA grant for water and sewer construction. The pipelines will serve an indust- rial park in Montana City. A fault in construction has delayed the final engineering acceptance. As a result, only $329,000 of the $626,000 has been disbursed. The con- tractor is working to correct the fault. New manufacturers locating in Mountain City have helped alleviate local unemployment. The new industry includes a shoe factory, a glove manufacturer, and a large Burlington Mills plant. The latter employs several hundred people. Johnson County, like Hancock County, has suffered from inadequate highways. Neighboring counties in North Carolina have been major tourist areas since the 1950' s. Several highways sponsored by the Appalachia Regional Com- mission are nearing completion in the county. A $15 mil- lion ski and golf complex near Mountain City will soon be developed. This year-round tourist facility combined with the highway improvements should provide substantial benefits for Johnson County. POSITIVE ACTION PROGRAM (PAP) The Tri-Cities PAP was written by the district organi- zation in March, 1968, one month before the MEDO guidelines' were received from EDA. The PAP was updated in August, 196 9. The supposed updated version, however, was essentially a dup- licate version of the originial. The majority of the document is devoted to the develop- ment of the Tri-Cities growth center. The authors emphasize 11-5 that the cost-benefit ratio of public investment is greater in the growth center than in the RA's and that the potential for growth in general is greater in the growth center. The specific steps affecting growth center spillover into the RA's are given minimal attention on the final page of the document. The PAP lists seven steps to alleviate RA problems: preferential recruiting and hiring of RA county residents; development of outreach programs to inform the unemployed and underemployed of theRA'9 about job opportunities; expansion of vocational-technical training op- portunities in the growth center which would be made available to target groups; expansion of educational, health, and other public facilities in the growth center so they can be made available to RA residents; development of "special programs" such as special education projects for the economically disadvantaged . efforts to increase low and moderate-income housing and public transit in the growth center and the RA's; and promotion of annexation or extension of city services such as water and sewer lines to out- lying residential areas. Preferential Recruiting and Hiring This very worthwile proposal has not been initiated. There appear to be two reasons. One difficulty has been that distance and inadequate roads severely curtail com- muting between the RA counties and the growth center. The most critical difficulty has been the unwillingness of industry to comply with the proposal. New industry within the growth center has hired local labor first. A new Westinghouse plant is not hiring anyone living outside of a thirty-mile radius of the plant. The only redevelopment 11-6 area lying within that radius is the extreme northwest section of Johnson County. Employee questionnaires re- ceived from another new firm, the Camac Corporation, reveal only one RA resident. Fifty-two employees returned question- naires. Outreach Programs Radio and television stations in the growth center broadcast job openings, descriptions, and contacts for a thirty-minute period each morning. This service is offered jointly by the media and the state employment office. No discernible impact has resulted. Once again the isolation of the RA's, especially Hancock and Johnson Counties, is a major cause for failure. There is a definite tendency, moreover, for the RA's to maintain closer economic relation- ships with Morristown, Knoxville, and northwestern North Carolina than with the Tri-Cities area. Vocational Training Redevelopment area residents have derived little bene- fit from the expansion of vocational training. The training school in Abingdon, Virginia, a state-financed junior col- lege, gives priority to Virginia residents. A new vocational school soon to be added to the Bristol, Virginia Senior High School will provide for 67 5 students. This school, however, will recruit only those who live within the school district. Vocational training is available in Elizabethton , Johnson City, and Kingsport, but no public transportation exists to or from the RA's. Very few RA residents attend these schools. Special Programs No special programs have been initiated as a result of the PAP. The Bristol, Virginia school system has recently received a federal grant for an accelerated reading pro- gram. Bristol, Tennessee has a day camp for mentally re- tarded children. The day camp serves only the two Bristols and Sullivan and Washington Counties. 11-7 Public Housing Low and moderate-income housing is available in each of the Tri-Cities. Johnson City has 500 public housing units. Bristol, Tennessee has 259 units. Bristol, Virginia has 431 units. Elizabethton has 200 units under construc- tion. Most of these projects were either completed or under construction when the PAP was written. The others were initiated independent of the PAP. Annexation An EDA grant of $440,000 will help Bristol, Tennessee service the recently annexed watershed south of the city. No direct impact can be visualized for the RA residents. It is possible that future developments resulting from the annexation will reach out to the RA's. PAP Evaluation There have been no significant benefits for RA resi- dents as a result of the district's PAP proposals. Pre- ferential recruiting and hiring has had no clearly discern- ible impact on the RA's. Most new firms are not complying with the proposal. Outreach programs to notify RA residents of job openings have had little impact. Vocational training has been expanded, but the lack of transportation has made it difficult for RA residents to attend. No special pro- grams have been made available to RA children. Public housing projects have been extensive in the Tri-Cities, but all of the housing units were constructed independent of the PAP. It is perhaps too early to evaluate the im- pact of the watershed project. To date, however, no tan- gible benefits to the RA's can be found. The district staff considered the PAP to be an admini- strative exercise. They completed the document in order to comply with EDA requirements. They then ignored the PAP. Local leaders were not even aware of the document. When the local leaders were informed of the purpose and scope of the PAP, they showed limited interest. They did, however, make three observations. First, local responsibilities precluded or severely constrained any 11-8 immediate interest in the other areas of the district. Second, the leaders felt that the PAP might be useful, but it might duplicate the efforts of local planning agencies. Third, the leaders felt that the district staff was the logical group to write the PAP because of the document's regional scope. As previously mentioned, the district staff did write the PAP, but the document was not known to local leaders. DISTRICT STAFF AND BOARD The district was first given funds by EDA in November, 1966. The district headquarters are located on the campus of Eastern Tennessee State University in Johnson City. Composition There are now more than twelve persons on the district's professional staff. The district board is composed of 40 members. They convene regularly and serve as a major forum for information exchange with local area leaders. The executive committee and the board have equal representation from the growth center, redevelopment areas, and the non- designated counties. Each of the three areas of the district receives equal treatment from the board and executive committee. District Staff and Board Involvement The district has received substantial aid from the Law Enforcement Assistance Administration (LEAA) , FHA, HUD, the Appalachian Regional Commission, and other federal agencies. The district also acts as an Office of Manage- ment and Budget (OMB) A-95 clearinghouse, an LEAA coordin- ator, and is involved with the Cooperative Area Manpower Planning System (CAMPS) program. In 1969, the district was one of ten organizations in the country given HUD funds to develop an innovative housing program. The staff's work has involved an assess- ment of the needs within the area and a preliminary evaluation of the relationships between technological changes in the building industry and those conditions peculiar to the Eastern Tennessee area. The staff has also worked with potential non-profit sponsors of public housing. 11-9 Staff personnel have sought to improve cooperation among towns and counties within the district. The staff is attempting to integrate the telephone systems of the major EDC towns, Johnson City, Kingsport, and Bristol. The three cities form a triangle with no more than 25 miles on a side. Calls from one city to another are long distance, and each has a separate telephone book. The staff has supported the concept of a regional arena-convention center. They had hoped that $500,000, which was used to modernize the Kingsport auditorium, could be used as starter funds for the center. Leaders in Kingsport, however, were concerned that their citizens would not accept a major expenditure for a project which might not even be located in their community. District Staff Attitudes The staff appear to have mixed reactions to the growth center concept. Generally, they believe that significant development in the district can only take place within the Tri-Cities area. Furthermore, they felt that geographic barriers preclude the RA's from becoming major beneficiaries of such growth. Consequently, they have attempted to help the RA's by providing whatever projects they could. Evaluation Members of the board and other officials in the district appear unanimous in their praise for the district staff. They are particularly impressed with the efficiency and success which the staff shows in securing grants and providing information to its county membership. It appears that the director and his employees are highly competent. This competency goes beyond simple "grantsmanship" to the providing of technical assistance and information to member governments. Citing the concept of the regional arena-convention center, several area leaders stated that the staff was moving ahead of the member communities in terms of regional commitment and foresight. 11-10 EDA PROJECTS IN TRI-CITIES EDA has obligated $9,910,000 for seven projects in the Tri-Cities area. Almost 37 percent of these funds were in the form of grants and loans. The remaining amounts were direct loans to private business concerns. Washington County Industrial Park In April, 1968, EDA approved two basic grants and one loan for the Washington County Industrial Park. The grants were both 50 percent funds for $504,000 and $143,000. The loan was for $504,000. The project involved the grading of sites, construction of a water and sewer system, access roads, and storm drainage facilities. The industrial park is on a 180-acre site outside the city limits of Bristol, Virginia. The park is near U.S. 11 and Interstate 81. The Norfolk and Western Railroad's main line is adjacent to the property. All utilities have been provided. Two major industries, Camac Corporation and Bristol Steel, have located in the park. A third firm, the Westinghouse Company of Buffalo, New York, is constructing a multi-million dollar plant one mile from the park. Westinghouse will con- nect with the water and sewer lines now serving the indust- rial park. Westinghouse considered 55 different locations in four states before deciding on its present location. The company needed 225 acres. They did not want to become an area's sole employer. They were looking for a diversi- fied economy. They were attracted to the Tri-Cities area because of its highly-skilled labor force and sophis- ticated transportation system. Their final site was chosen because water, sewer, and gas services could be extended easily from the industrial park. The Westinghouse plant will become fully operational in late 1971. It will manufacture copper and aluminum magnetic wire. It presently employs 50 or 60 people, but it will eventually have more than 300 employees. Future expansion is planned and would add 50 additional jobs. Bristol Steel Company is one of two major industries now located on the industrial park site. 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T3 M Q i c oj < OJ < oj oj c5 oj u Q -P OJ a b Q 1-3 CO QbH (dft a on Q 0< OS OJ o ft m pH w W w w W >H T3 OJ CO (0 X! OJ u m m u id 0^ rH fO •H M -P CO 3 Tl c H >1 -P C 3 u c . o CO ■p OJ Cn OJ c >1 •H rC rH CO Cu H3 E ^ OJ c m •H CO E CO rH X •H o m *n OJ rH X p P CO MH ■H o M pq p c m OJ 00 u rH OJ OJ rC Oj -P o T1 rH C fO C (d rH X U -p to b CO c CO J M OJ ( rH 1- 4-1 m c td r p rd OJ P tj rH C a OJ E o aj fO ( >i CO 1 o rH (0 r- a. c E c c w H * * * 11-12 Bristol Steel, an old industry in the area, had wanted to expand its facilities in the city. The lack of land, high prices, inadequate transportation, and sorely pressed water and sewer facilities in the city induced Bristol to build its expansion plant in the industrial park. Its new plant created 65 new jobs at the park site and 20 new positions at the city facilities. Project Evaluation The Washington County Industrial Park project produced 85 new jobs at Bristol Steel Company. These jobs can be attributed to the EDA project. The Westinghouse Company is using the water and sewer facilities of the project. It presently employes 50 to 60 people. It would be mis- leading to credit EDA with these new jobs, however. The company had decided to locate somewhere in the Tri-Cities area before EDA obligated funds. The subsequent installa- tion of water and sewer lines as part of EDA's project was responsible for attracting the firm to its present site. Camac Corporation In April, 1970, EDA made a $1,730,000 loan to the Camac Corporation for the construction of a $3.5 million plant in Washington County Industrial Park. The firm will soon be producing a colored, bulked, continuous fiber for use in commercial and industrial carpeting. Camac now employs 78 persons at the plant. It expects to increase employment to 170 by December of this year. The corporation has no definite plans for expansion. If its products succeed on the market, however, it hopes to treble employ- ment and capacity within the next five years. Project Evaluation The Camac Corporation will produce 170 jobs which can be attributed to EDA. Tri-Cities Industrial Park EDA obligated $1,885,000 for the Tri-Cities Industrial Park in May, 1968. The total project cost was $3,760,000. The park was completed last summer. The first firm to lo- 11-13 cate there will soon begin hiring personnel. The park is a joint undertaking of Johnson City and Elizabethton and the counties of Sullivan and Carter. Since the 800-acre park is located in Sullivan County, the county has contributed 50 percent of the local share of the project cost. Johnson City is providing 25 per- cent of the local share, and the city will provide the water supply from its new water plant. Carter County and Elizabethton are contributing equal portions of the re- maining 2 5 percent of the local share. They both expect to benefit from the employment opportunities generated by the park. The project involved site preparation, access roads, drainage, water treatment, and water supply. The park is centrally located among the Tri-Cities. It is near an airport and a vocational school. Moreover, the land was purchased at a reasonable price. The first industry to build in the park was the Amerace-Esna Company, a manufacturer of hand rubber products. The construction of the plant and installation of the machinery is in the final stages. The management, which arrived in late April, will begin accepting ap- plications at the end of May. a company official estimates that Amerace-Esna will employ 225 persons. Project Evaluation The cooperation of two counties and two cities in- volved in this project shows promise for the future economic development of the district. Industrial agents in Johnson City and Elizabethton indicate that there are numerous prospects considering location in the park. It is possible that low and moderate-priced homes will be developed there. The agents believe that the develop- ment of the park will proceed rapidly. Water and Sewer In June, 1970, EDA approved a grant of $440,000 for the construction of water and sewer lines to serve a large area. Bids for construction of the facilities were accepted in April. The project will serve the Tri-Cities Industrial Park, the two cities of Bristol, and the recently annexed watershed in Bristol, Tennessee. 11-14 Jarl Aluminum Extrusions/ Inc . In January, 1969, EDA approved a $4,550,000 million business loan to Jarl Aluminum Extrusions, Inc. The Jarl factory is now located in an industrial park financed by the city of Elizabethton. The park is a few miles south of the city. Construction of the 335,000 square foot building has been completed, and most of the machinery has been installed. The plant has been able to produce extrusions since July, 1969, but the Jarl firm will not be able to fill large production orders until all the machinery has been installed. The company now employs 2 9 persons. Production will begin on a large scale within the next few months. Jarl aluminum then expects to employ 300 persons. Five of the present workers are residents of redevelopment areas. The other 24 reside in growth center counties. Twenty of those employed by Jarl are laborers. All of the laborers have low educational levels, but they are being trained to pre- pare them for more skilled and higher paying jobs when full production begins. Their median wage now is $88 weekly. In addition to the business loan, an EDA-financed sewer line serving the industrial park has been a benefit to Jarl Aluminum. The Jarl firm needs a substantial water supply to cool the ingots after they are cast. Some extrusions also require cooling. The water is being recycled and re-cooled in order to reduce total water and sewer use. The loan and water facilities were necessary for Jarl Aluminum, but they were not the only factors con- sidered in choosing a location. The local labor supply and the site's proximity to market areas were also major considerations. Jarl felt it was necessary for the plant to be located near basic hardware and mill suppliers. The Tri-Cities area offered these services. The firm's management stated that they would buy as many materials as possible locally. Raw materials and heavy machinery are not available in the district. All office supplies, furniture, and general mill materials have been purchased from local sources. Architectural and construction services were also obtained locally. There is a possibility that a company manufacturing dies for Jarl's extrusions will build a plant in the area in order to be near a large customer. 11-15 Project Evaluation Jarl Aluminum has created 30 new jobs which can be attributed to EDA. It is estimated that this work force includes 31 RA residents. Five of the firm's present employees are residents of RA's. There is a possibility that one of Jarl ' s suppliers will build a plant in the Tri-Cities area. Jarl has purchased many supplies and services locally. Water , Sewer, and Pumping Facilities In March, 1970, EDA approved a $154,000 grant to Elizabethton for the construction of sewer lines and pumping stations to serve two industrial parks. One of these parks is the site of Jarl Aluminum Extrusions, Inc., the firm mentioned above. Four other firms are located in this park. The project there is 90 percent complete. The sewer leader lines have not been finished to the other companies. They are still using septic tanks. Hanley Structures, Astro-Tech, Appalachian Gasket, and Davis Engineering are the other firms in the park. Their total employment is 111. Banley Structures is the only one of these firms planning to expand. They anticipate doubling their present work force of 75 persons. Water is not used for production purposes by any of these companies. The EDA-financed sewer system also serves another industrial park located east of Elizabethton. It is a 325-acre site developed by Carter County. Nearly half the park is occupied or under option. Three firms now operating at the park have a total of 250 employees. Two of the manufacturers, Iodent Chemical and Levi Strauss, moved to the park after the completion of the EDA pro- ject. Iodent Chemical uses 60,000 gallons of water per month. The sewer system was an essential factor in its decision to locate in the park. Iodent makes shampoo, mouthwash, and toothpaste. It uses water for composition of the products and washing the tanks after production. Iodent is a recent tenant at the park, and it expects to triple production, water use, and employees within the next few months. Sixty percent of Iodent 's 35 employees are women. Most of the workers live within a ten-mile radius of Elizabethton. 11-16 Iodent buys all its packaging from the Tri-State Container Corporation in Elizabethton. Most of its office supplies are obtained from local firms. Twenty- five percent of its machinery is purchased locally. A supplier of plastic bottles for Iodent is expected to build a plant nearby when the chemical firm reaches full production The Levi Strauss Corporation manufactures sportswear. It presently has 100 employees, most of whom are women. The majority of the jobs are at the minimum wage level. Production has just begun. Employees are receiving on- the-job training. The management expects to increase production and employment within the year. Long-range expansion plans call for 1,500 employees. Almost all the present employees are from the Tri-Cities. The Levi Strauss Corporation moved into an old plant abandoned by Troy Electronics. The electronics firm had gone bankrupt. The Levi Corporation had already intended to locate in the area. The EDA project became an added feature. The third firm operating in Carter County's industrial park is the Great Lakes Research Corporation. It is using the EDA-financed sewer line, but it has been in operation since 1963. It uses water to cool furnances used for heating carbon. Great Lakes has been dumping the waste water in the Watagua River, but the new sewer line carries the firm's waste to the treatment plant. Insufficient water supplies, prior to EDA's project, resulted in five burned-out furnace components costing the company $10,000. The water and sewer additions have been a great help to the corporation. It would be misleading, however, to attribute Great Lake's work force of 121 to the EDA project. Great Lakes is a scientific research corporation. Its employees receive a median wage of $12,000. This makes the firm the highest paying employer in Elizabethton. Twenty-five percent of its employees come from outside the district. Most of the other employees are from the Tri-Cities. Fifteen workers are from nearby rural areas. The decision to locate in Elizabethton was made by the research division of the New York office. They chose the area largely because of the pleasant surroundings and life style. The $1 million industrial bond issue passed by Elizabethton was also a major factor. 11-17 Basic chemicals and supplies are purchased locally by Great Lakes. It spends about $250,000 per year on these items. A number of machine shops and metal supply companies in the growth center are also used by the corporation. Its raw material needs are supplied by firms outside the district. Great Lakes plans to produce a high-performance fiber. If the fiber gains market acceptance, the resulting expansion could provide 100 new jobs. Project Evaluation The EDA- financed water and sewer facilities now serve two industrial parks near Elizabethton. Jarl Aluminum gained necessary water and sewer facilities in the city- owned park. Thirty-five new jobs were created at Iodent Chemical's plant in the county-developed park. The re- sulting jobs can be attributed to EDA. The project also included laying pipelines for a future low-income housing development. This project will provide future benefits for the community. Future Job Impact Two firms served by EDA-supported projects anticipate an employment increase within the near future. Iodent Chemical expects an expansion of 70 employees. Iodent utilizes the new sewer system in the Elizabethton area. Following the discounting guidelines ,1/ the EDA project can be credited with 52 jobs. This future impact lowers the EDA investment per job on the Elizabethton project to $11,814. A second firm, Amerace-Esna Co. , has begun construction of a plant in the Piney Flats Industrial Park near Bristol. EDA's investment in the park's development was $2,325,000. This figure was not included in the Agency's costs for Tri-Cities because the project did not meet disbursal or completion criteria. Officials at Amerace-Esna estimate a work force of 225 upon completion of the plant. As hiring has not yet begun, the employment total can be discounted at a 50 percent risk factor. iy The resultant total of 113 jobs represents an EDA investment per job at the Piney Flats Industrial Park of $20,575. 1/ See Program Evaluation; The Economic Development Administration Growth Center Strategy , page A. 5. 11-18 The total investment per job figure for the Tri-Cities amounts to $13,125. This calculation is based on all pre- sent and discounted future jobs in the district. ECONOMIC DEVELOPMENT PROCESS Introduction Bristol's economy is dominated by manufacturing. It ranks second to Kingsport in total production and distri- bution. Kingsport and Bristol are both in Sullivan County, one of the four leading manufacturing counties in Tennessee. Retail trade and services are comparable in Kingsport, Bristol, and Johnson City. Johnson City, however, has ex- perienced substantial commercial growth in recent years. They have a higher proportion of service and commercial industries than the other cities. They have not, however, experienced as much industrial and manufacturing growth as Kingsport. Elizabethton is primarily an industrial town. It has depended on Johnson City for almost all services and trade. Elizabethton has been dominated by a few large manufacturers, but it is beginning to develop a more ad- vanced, diversified economy. Bristol Government Bristol, Tennessee has a mayor-commission governing body. It consists of a mayor, Commissioner of Finance and Taxation, and Commissioner of Streets and Public Buildings. Bristol, Virginia has a council-manager form of government. The council has five members, one of whom is the mayor. The city manager is selected by the council. Cooperation between the two governments is good. They both contributed funds toward the construction of the Tri- Cities Airport and the Washington County Industrial Park. They share one library and one hospital. Fire and police departments assist and cover for one another. Both cities sponsor a joint planning commission. 11-19 Services Bristol offers a number of social services. The Bristol Memorial Hospital is a 269-bed facility with labo- ratory, surgical, and clinical units. Medical specialists are divided cooperatively among the major cities of the area. Bristol is the cardiovascular center. Kingsport handles neuro-surgery . Tumor specialists are based in Johnson City. There are a total of 55 doctors in Bristol. Two vocational training facilities are located in or near Bristol. The Bristol-Sullivan Technical School offers courses in industrial electronics, tool design, electricity, and building trades. Current enrollment is about 1,150 students. The school primarily serves Bristol and Sullivan County. However, a number of Virginia students attend the school. The school's director said he advertises infre- quently. He could recall only two Johnson County residents having attended the school. Transportation is provided for Sullivan County residents. The Washington County Technical School in Abingdon/ Virginia offers trade, technical, and business courses for high school students and adults. Day-time instruction is received by 331 students from the county's high schools. Evening classes are attended by 195 unemployed or under- employed adults. The adults are participating in post- employment, Manpower Development and Training Act (MDTA) programs. Admission policies are preferential toward Washington County residents. Construction of a vocational-technical addition to the Bristol, Virginia Senior High School will begin on July 2. Vocational training will be offered to 275 high school students during the day and 400 adults in the evening. Admission will be limited to school district residents. No transportation will be provided for evening classes. Planning and Development The joint Bristol, Tennessee-Virginia Industrial Commission was founded in 1965. The group up-dated planning and zoning. It applied for federal assistance. Shortly after its designation as part of the development district, the commission applied to EDA for funds. It is generally felt that constructive cooperation between the Bristols began when the district was designated. 11-20 Bristol has welcomed seven new industries to the area during the past four years. Companies like Westinghouse, Electrolux, Reynolds Metal, and Camac have diversified the industry of the area. Problems have accompanied the in- dustrial growth, however. The leadership of both Bristols fear that their com- munities are becoming microcosms of "inner cities." The middle class has been moving to the suburbs. The cities are now mostly populated by the lower class. The most serious result to Bristol has been a decrease in tax reve- nue. Moreover, the state is now taking a larger share of the sales tax. The Tennessee government of Bristol has recently an- nexed an area which doubles the city's size. Bristol, Virginia has not been able to do this. They hold the deed to Washington County Industrial Park. The city was responsible for the park's development. However, it receives no tax revenue from the firms in the park. Bristol, Virginia's downtown retail trade has suffered a large decrease in sales. A four-lane expressway is being constructed to afford better access to the downtown area. Old buildings have been demolished. Plans are being discussed to create a mall on the main street of the city. Downtown merchants, however, faced with shopping competi- tion, are reluctant to incur further expenses. Only one firm, a bank, has located on the newly-cleared land. Banks There are five banks in the Bristols. Only one of the banks, Washington Trust, is chartered. They have two branches located outside the city. Washington Trust's assets total $40 million. The deposit-to-loan ratio averages 72 percent. A bank officer claims "that no one east of Knoxville and west of Roanoke is more committed to local development." Federal Programs Ten percent of Bristol, Virginia's population lives in low-income or public housing. Bristol, Tennessee has had no low-income housing until recently. They are pre- sently building two 59-unit high-rise apartment buildings 11-21 for the elderly. Bristol, Virginia built 50 housing units for the elderly two years ago. Fifty more will soon be constructed. The city has 4 00 FHA low-income houses and 96 units of HUD housing. Many more units of low and moderate- income housing are needed. A four-year study of modular construction has been initiated. Johnson City Government Johnson City has the city manager-city commission form of government. There are five city commissioners. The city's government has a history of being progressive. It has promoted development far more than the county governing body. A recent reapportionment of the county court, however, has given more representation to Johnson City. It is ex- pected that this factor will increase county activity in development. Services Johnson City has three hospitals with a total of 500 beds and 125 physicians. A 1,838-bed Veterans Administration hospital is also located in the city. One of the city hospitals specializes in eye disorders. It has ten staff surgeons. The medical facilities are utilized by residents of the entire Tri-Cities area, and some people come from nearby North Carolina counties. East Tennessee State University is located in Johnson City. Its enrollment exceeds 9,000 students. It employs 530 faculty members and 900 staff and service personnel. Its annual payroll of $8 million is the largest in the city. Two other colleges, Milligan and Steed, are located near the city. They enroll a total of 1,000 students. Two vo- cational schools in the area accomodate 855 students. Community Organizations There are a variety of business and social clubs in Johnson City. Their activities are mainly social and charitable. The Chamber of Commerce was involved with industrial development until five years ago. The Johnson City Area Industrial Commission took over these activities 11-22 The commission is financed by the city, the county, and the Johnson City Power Board. The commission's county industrial agent is well-qualified. The agent and commission have induced several industries to locate in the area. Leadership Attitudes Johnson City's economic leadership is diversified. They can be found in a variety of businesses and professions. Few people were willing to generalize on the attitudes of the economic leaders. Of those leaders who were interviewed, most showed concern for the welfare of the poor in the sur- rounding rural areas. The representatives on the district board were acutely aware of the needs of redevelopment area residents. All agreed that mountains and poor roads isolated the residents of Hancock County. They felt that if small industry would locate in that county, it would help alleviate many of the problems. Johnson City leaders felt they could help the RA's to the south and east of the city. They included the North Carolina RA's of Avery, Yancey, and Madison in their assessment. At present, commuting and sales patterns suggest a strong affinity between these areas and Johnson City. Planning and Development Johnson City has a full time city planner and a city planning commission. They have carried out conventional land-use studies and zoning analyses for the city. The recommended land-use program was recently adopted. Most persons interviewed felt that city planning has been ef- fective. A county planning commission has been established, but it is too early to evaluate its work. The city had developed rapidly during the last five years. A $6 million mall has been completed. It will accomodate 35 stores. Nine million dollars has been raised by revenue bonds for water and sewer improvements. Revenue bonds in the amount of six million dollars were issued to locate Pharmaseal and the Northern Electric Company in the area. Both companies repay principal and pay interest monthly on the bonds. A three million-dollar bond for a school complex and auditorium has been approved. The 11-23 city recently completed payment on a one million-dollar bond which was used to build the municipal building. Banks The banks in the city take an active role in develop- ment. The three largest banks have total assets of $140 million. Their loan-to-deposit ratio is about 50 percent The banks actively compete through advertising and better services. Two of the major banks have a record of sub- stantial participation with industrial and developmental loans. Federal Programs Johnson City has utilized a substantial number of federal programs. They have had an Urban Renewal project; HUD water and sewer financing, and OEO programs. The Appalachian Regional Commission investment has been substantial. Kingsport Government Kingsport has the mayor-city council form of government, A city manager is responsible for day-to-day operations. The mayor is a strong supporter of the district. Services Kingsport will soon complete a $2.5 million university center on a 100-acre campus. The center, now operating in temporary quarters, enrolls 1,200 college students. Day and night classes are held. The Dobyns-Bennett High School has just been completed at a cost of six million dollars. The school has 2,000 students. The building houses a complete educational tele- vision facility. The school is fully carpeted and air- conditioned. It contains a 25-meter swimming pool and a 5,000-seat gymnasium. 11-24 Leadership Attitudes Tennessee-Eastman, a subsidiary of Eastman Kodak, is Kingsport's largest employer. Many of their employees have attained high educational levels. This has resulted in its staff being extremely active in community affairs. The company has made substantial contribution to social and civic causes in Kingsport. For example, it raised $225,000 for an environmental education center. Planning and Development Eric Hill Associates and Harlan Bartholomew, planning consultants, have conducted studies for Kingsport. They estimated that Kingsport's population will increase to 110,000 by 1990. They recommended a capitial investment development schedule involving $10 million in phased ex- penditures between 1969 and 1975. By the end of 1970, fifty percent of that goal had been met. An additional one million dollars in capital improvements has been completed. Half this amount was for the renovation of the city's Civic Auditorium. Kingsport has purchased and improved the 1,300-acre Bays Mountain Park, a nature area. Two thousand additional acres are being acquired for city recreation facilities. The city employs a full-time naturalist for the Bays Mountain Park. The park is used for botany and zoology classes by the Kingsport University Center and is used by the University of Tennessee. The city has installed waste treatment facilities. It has also added water treatment plants with a total capacity of 12 million gallons. This capacity is only half of the present peak usage. Banks Kingsport has five financial institutions within the city limits. Loan-to-deposit ratios of the banks average 60 percent. 11-25 Federal Programs Kingsport presently has about 400 units of public housing This housing is situated in three different sections of the city. The sections are de_ facto segregated. The local OEO-supported community action agency is located in one of these neighborhoods. OEO programs have little support from the local power structure. The Kingsport OEO office also serves Hawkins County and Bristol, Tennessee. Kingsport has declined participation in most federal programs. They have not approached EDA for aid. Their contact with HUD has been minimal. This attitude toward federal aid appears to be changing, however. Kingsport has been able to support its own develop- ment programs through local taxes and bond issues. Its population, employment, and income growth rates exceed those of the area, the state, and the nation. Elizabethton Leadership Attitudes Elizabethton ' s influence on the surrounding areas has been minimal, largely because of its isolation. A few people commute from Carter and Washington Counties and from Avery County, North Carolina. Local leaders believe that more commuters will be attracted when present road improvements are completed. The industrial agent and the Chamber of Commerce have a positive attitute toward development. They have achieved some success in recent years. Planning and Development The city's political and business leaders feel that Elizabethton is beginning to make progress. The dominant industrial interests are giving way to a more diversified economy. A service sector has developed in the city. Two new shopping centers are being built. The community's first motel is being constructed. Elizabethton has adopted a regional approach to deve- lopment. The city and county combined for 25 percent of the local share for a nearby industrial park. Both the city and the county are in a favorable financial position. Their general obligation bonds have an A rating. 11-26 Banks The private financial institutions in Elizabethton have limited funds. The total assets of the two largest banks is $38 million. The banks have a high loan-to- deposit ratio, but there is little risk-capital provided locally. The city is generally dependent upon the banks in Johnson City. Federal Programs Elizabethton has received several federal programs. There are 2,355 HUD-subsidized mortages. A water and sewer system was financed by HUD. The town has utilized urban renewal projects. It has an 0E0 Operation Mainstream Program, There is a shortage of housing for moderate-income workers. 11-27 CHAPTER XII GOLDSBORO, NORTH CAROLINA INTRODUCTION Goldsboro is one of three growth centers in the Neuse River Economic Development District of North Carolina. Designated a growth center on June 3, 1969, at the same time the development district was officially recognized, the city had a 1970 population of 26 / 810--a seven percent decline from 1960. The population of Wayne County, however, in which Goldsboro is situated, has increased four percent since 1960 to 85,408. The Neuse River District, which is shown in Figure 12-1, is in the central coastal plain region of the state and runs westward from the Atlantic Ocean about 125 miles. It is formed by nine counties, five of which are redevelopment areas At the request of personnel within the Office of Management and Budget, Goldsboro was added to the basic sample group as a representative of those economic devel- opment centers that had submitted Positive Action Programs (PAPs) but had received no EDA project funds. A brief field visit was made on May 3 and 4, 19 71, to evaluate the effect of the Positive Action Program on the residents of nearby redevelopment areas and on the growth center. FIGURE 12-1 NEUSE RIVER ECONOMIC DEVELOPMENT DISTRICT NEW BERN GOLDSBORO KINSTON Evaluated EDC Other District EDC or RC Redevelopment Area 12-1 EFFECTIVENESS OF THE POSITIVE ACTION PROGRAM (PAP) Background and Status A small party of Goldsboro and Wayne County officials made a visit to the EDA regional office in Huntington, W. Va. , in December, 1969, shortly after instructions about the PAP requirements were received. They did so in order to minimize local confusion about the program itself and to be certain they were 'complying with federal requirements for growth center participants. The time and expense involved was apparently worthwhile because the PAP developed by the Goldsboro PAP Committee was quickly accepted by the EDA regional office and sent to Washington. The PAP Committee was a broad-based group of 2 3 community leaders, many of whom were already involved in other community development programs. Led by the manager of the local Chamber of Commerce, who also wrote the final document, the committee held several meetings to divide responsibilities, assemble a draft document, and approve the final copy. The completed PAP was reviewed by the Goldsboro Area Chamber of Commerce, the Office of the Mayor, and the Wayne County Commissioners All passed resolutions of support. The PAP was forwarded to Washington in April 19 70. Thirteen months later when the field visit was made, the PAP Committee had not yet heard whether EDA Washington had approved or disapproved its program outline. The case was a communications mixup between EDA Washington and the regional office. And further, as a result of national economic conditions , Goldsboro had lost the potential 1500-job project that had stimulated its interest in writing the PAP in the first place. Never- theless, various community groups had taken measures toward achieving the PAP goals in the interim. Progress Toward Achieving PAP Goals The PAP committee had listed the following as actions the community would take to carry out its responsibilities as a growth center: The Human Relations Committee of the Chamber of Commerce would develop a pilot job program involving local industry and the hard-core unemployed. 12-2 Wayne Community College would expand its physical plant and training programs to reach more unemployed, especially those in the redevelopment areas. The PAP Committee would conduct an informal program to change attitudes of business firms within the city toward unskilled but trainable members of the labor force. Goldsboro's renewal program would continue to aim for better housing and, in particular, would aid a local private group offering new homes through HUD's low-income housing program. The Wayne County Industrial Development Commission would continue to work for the expansion of existing industry and the creation of new job opportunities for all persons, including those in nearby redevelop- ment areas. Other programs described in the PAP reflected ongoing efforts; for example, the State Employment Security Commission would continue to seek job and training opportunities for redevelopment area hard-core unemployed and underemployed. At the time of the field visit, all items in the program outline had received attention; action had begun on all items that called for specific efforts, and in two instances (expansion of the community college and organization of a private corporation to build 160 housing units) the projects had been completed. However, of the seven commitments in the program, only one could be considered a new activity that would not have taken place in the absence of the PAP, namely, the job-training program involving the hard-core unemployed and local industry. The job training program was originally intended to be a pilot project "...to assist hard-core unemployed and physically handicapped citizens to gain entrance level aptitudes, underwritten by local industry ..." This proposal received considerable staff attention and effort from its sponsor, the Chamber of Commerce, but 12-3 the chamber later found the pilot project too difficult to establish with local resources and subsequently applied to the Department of Labor's Jobs' 70 Program for assistance. If this help is provided — and the chamber is confident — a consulting firm that specializes in training will work with the initial group of trainees, and the chamber will administer the project in cooperation with a consortium of four local business firms. While the initial number of trainees is modest (38) , the chamber hopes that early successes will encourage more firms to participate and thereby increase the number of companies and total number of training and job opportunities . Those interviewed at the chamber reported that the chamber undertook this program because it felt an obligation to promote opportunity for all citizens in Goldsboro and the experience gained thus far in developing cooperation among local companies had already been very instructive to them. Because of tradition, many of the local retail merchants were reluctant to participate in this type of training program. Accordingly, the chamber concentrated on larger industries in the county, which offered a larger pool of potential job opportunities, No data exist concerning the places of residence of potential trainees in this program. Therefore, no comment on possible benefit to RA residents could be made. With respect to other programs listed in the PAP, Wayne Community College's commitment to increase its instruction space had been completed, thereby providing additional facilities for more students, including those from nearby redevelopment areas. While this expansion was planned and accomplished as part of the college's overall needs and not as a result of the PAP, it will nevertheless benefit residents of redevelopment areas who are qualified and financially able to attend the school. Of the more than 3,000 students (full-time, night, adult education, etc.) attending the school at the date of the field visit, only 36 trainees were in the two courses being offered in connection with the Manpower Development Training Act. School officials gave two reasons for this: a general slowdown in jobs that require pre-MDTA type training, and complex and unreasonable administrative requirements associated with the federal program. Another aspect of the complex- ities of job development had been impressed upon school officials recently when an early group of MDTA trainees 12-4 had successfully completed their course work at the school, had received job offers about 70 miles away, and had been unwilling to leave the Goldsboro area to accept them. The college is a valuable asset in terms of making the whole community more attractive to companies that are considering building or expanding in this section of North Carolina. The college is also inter- ested in developing courses or training programs that will complement the needs of new industries that might move into the area as a result of the work of another county program, the Wayne County Industrial Develop- ment Authority. Already the college has been developing training programs built around the needs of existing local industry, for example, a program to train people to become mental health aides at nearby state-owned Cherry Hospital. High school diplomas are not a prerequisite in many of the courses offered by the college and no added fees are charged to students or trainees who live outside Wayne County. Over -all, the percent of minority population within the school is only slightly less than the percent of minority population in the country as a whole. The urban renewal program within the City of Goldsboro is also mentioned in the action section of the PAP, and the tasks and programs listed are important to the overall development of adequate housing for city residents. (It is also true that these activities would have taken place irrespective of EDA involvement in the community.) Reference was made in the PAP to developing a privately sponsored non-profit corporation to construct 160 units of housing under Section 2 36 of the Housing Act (low- and moderate-income housing) . While the organization has been created and the Board of the Urban Renewal Agency did pass a resolution of support for the organization as part of an FHA "local-support" requirement, the role of the renewal agency has been one of support and cooperation rather than that of "organizer," At present adequate housing for low- and middle-income families is still lacking, but in the past two years considerable progress has been made in reducing this problem. 12-5 Another community commitment tested in the PAP was the work of the Wayne County Industrial Development Commission. The commission is controlled by an indepen- dent board of directors appointed by the county commis- sioners and is headed by a full-time executive director. In the recent past, three or four new companies have located in the county, but the general national economic downturn has limited the commission's ability to make significant improvements in employment opportunities. Considerable effort was made by the director and others to help locate a large pharmaceutical plant within the Goldsboro area, but the company decided not to expand its operation because of rising costs and uncertain national market conditions. This was the project that had provided the initial momentum to the PAP. With respect to the more elusive aim of the PAP committee to conduct an informal program to change attitudes of business firms toward unskilled but train- able members of the labor force, the field team felt inroads were being made in this area. (Comments about subtle changes along these lines follow.) Growth Center Activities and Attitudes Directly Resulting From PAP Effect on the PAP Committee Those members of the PAP Committee interviewed, and in particular the PAP ' s author, felt that preparing the PAP had been a good exercise because it brought together many people who were working for community development and enabled them to find out what others were doing. On the other hand, current interest in reviving or continuing the committee as an on-going local action group is minimal, an attitude which can be attributed, in part, to EDA's inattention concerning the PAP and to the lack of any current project activity. Effect on Growth Center and Redevelopment Area Residents As stated earlier, little in the PAP represented new action; even that which can be attributed directly to the PAP has not yet resulted in direct benefits for growth center or redevelopment area residents. 12-6 Yet certain subtle over-all benefits to growth center residents have accrued as a result of Goldsboro's desig- nation as a growth center and as a result of the con- comitant requirement for a PAP. First, there appears to be evolving among the city and county leaders a greater awareness of the problems and hardships facing their unemployed and minority citizens. The new job training program for the hard-core unemployed (which is virtually an interchangeable phrase for minority group members in this part of the country) is a limited response by a small segment of the total community, but the manager of the Chamber of Commerce stated that this type of program would not have been possible even a few years ago. Second, there is evidence of greater communication and cooperation among public officials, minority group community organizations, and local business interests. An example is the new city-subsidized bus system that will service minority commuters and give them greater access to downtown shopping and job opportunities. The local Community Action Program, WAGES, and the Chamber of Commerce have joined together to institute this important new service. The feasibility test for bus service market potential was financed by private funds, raised locally. While important to progress in Goldsboro, neither of these subtle changes is of direct benefit to the redevelopment areas. 12-7 CHAPTER XIII PERSONS INTERVIEWED ADA, ARDMORE, AND DURANT President, District Executive Committee Deputy to Executive Director of the District District Board Member District Staff Member Three PAP Committee Members Director, Ardmore Development Authority- Assistant City Manager, Ardmore City Manager, Ardmore Supervisor, Human Relations and Job Placement Center Director, Ada Housing Authority Director of Public Works, Ada Mayor, Ada Water Superintendent, Durant City Manager, Durant Vice-Mayor, Durant Building Inspector Director of Finance City Official Official of State Employment Security Service Two Officials of Oklahoma State University Extension Service Supervisor, State Public Welfare County Commissioners Manager, Oklahoma Employment Service Administrator of Nursing Home Two Managers, Chamber of Commerce Member, Chamber of Commerce Two Editors, Durant Newspaper President, Southeastern State College District Director, Indian Nation Foundation Postmaster President, Television Company Research Agronomist, Philanthropic Organization Business Manager, Philanthropic Organization Director, Vocational-Technical Center Manager, Chamber of Commerce Members, Educational Council, Chamber of Commerce Principal of Seminary Three General Managers, Local Industries Manager, Local Industry Four Local Residents BANGOR-BREWER City Manager, Brewer — Member, PAP Committee City Manager, Bangor — Member, PAP Committee--Member , District Board of Directors 13-1 Executive Secretary, Greater Bangor Chamber of Commerce — Member , PAP Committee Executive Director, 0E0 for Penobscot — Member, PAP Committee Director, Operation Mainstream — Member, PAP Committee Chairman, Maine State Federal Labor Council — Member, PAP Committee Manager, Great Northern Paper Company — Vice Chairman, District Board of Directors Investment Broker, Bangor — Member, Industrial Development Committee of District — Member, District Board of Directors Livestock Auctioneer, Piscataquis City — President, District Board of Directors Manager, Employment Security District — Member, PAP Committee Executive Director, Penobscot Valley Regional Planning Commission — Member, PAP Committee Executive Director, Bangor Housing Authority — Member, PAP Committee Manager, Washington County (RA) Office, District Office in Washington County Businessman, Machias — Member, OEDP Committee Retired General Council, House Public Affairs Committee, U.S. Congress — Member, District Board of Directors in Hancock County (RA) Executive Director, Eastern Maine Development District Deputy Director, Eastern Maine Development District Chairman, Brewer State Council Town Manager, Machias City Clerk, Machias Superintendent of Schools, Machias City Manager, Rockland, Knox County (RA) Area Labor Market Analyst ,, Bangor Office, Bangor Employment Security Commission Agricultural Extension Agency, Penobscot County Extension Agent, Cooperative Extension Service, USDA, Washington County Executive Director, Hancock County Opportunity Council Deputy Director, Hancock County Opportunity Council Executive Director, Waldo (RA) CAP Agency Director, Eastern Maine Technical-Vocational Institute News Director, Radio and Television Station, Bangor Conservationist, U.S. Department of Agriculture, University of Maine at Orono Lawyer, Bangor — Former Chairman, Bangor City Council Director, Maine Technical Assistance Program, University of Maine at Orono Director, Merrill Bank, Bangor Two Vice-Presidents, Merrill Bank, Bangor Director, Inter-City Ministry President, United Low Income Organization Secretary-Treasurer, The Mobile Ministry 13-2 Businessman, Machias President, Chairman of Commerce, Lincoln Area of Penobscot County Member, Lincoln Development Association Treasurer, Lincoln Trust Company Three Businessmen, Bangor Lawyer and Manager, Pine Tree Legal Services, Bangor Lawyer, Pine Tree Legal Services, Bangor Director, Central Labor Council, Bangor Former Governor, Penobscot Indians President, Eastern Fine Paper Company President, Chapman Precision Products Incorporated Management, Bangor International Airport Director of Public Relations, Georgia Pacific Paper Mill, Washington County Director of Operations, Lincoln Pulp and Paper Company, Lincoln County President, Wayne and Grey Lumber Company, Orington Division Manager, Bangor and Aroostock Railroad Director of Personnel Relations, General Electric Company, Bangor Manager, Quins Freight Company, Bangor Manager, Maine Central Railroad, Bangor Manager, McDonald's Express Company, Bangor Director, Sanborne's Trucking Company, Bangor Local Residents BOWLING GREEN Executive Director, Economic Development District Economic Planner, Economic Development District Economic Development Representative, EDA, Western Kentucky Secretary-Treasurer, Board of Directors, Economic Development District Human Resources Coordinator, Economic Development District Mayor, Brownsville, Edmundson County (RA) Member, Original PAP Committee County Clerk, Scottsville, Allen County (RA) — Member, Executive Commission, Economic Development District Member, Executive Council, Economic Development District Director, Public Service Careers Program, Staff Member, Economic Development District Member, Executive Council, Economic Development District Project Manager, EDA Project, Barren River Northside Water District, Bowling Green Member, Mayor's Committee on Human Rights, Bowling Green — Member, American Civil Liberties Union City Manager, Bowling Green 13-3 Professor of Accounting, Western Kentucky University — Member, City Council of Bowling Green Mayor, Bowling Green Member, Board of Commissioners, Bowling Green City Council Mayor, Morgantown, Butler RA — Member, Board of Directors, Economic Development District Mayor, Scottsville, Allan County (RA) Director, Kentucky Employment Service, Bowling Green Director, City-County Planning Commission, Bowling Green Executive Director, CAP Agency, Bowling Green Executive Director, Model City's Program, Bowling Green President, Chairman of Commerce, Bowling Green Director, Vocational-Technical School, Bowling Green Assistant Director, Vocational-Technical School, Bowling Green Editor, Newspaper, Bowling Green News Commentator, Television and Radio Station, Bowling Green Dean, College of Commerce, Western Kentucky University, Bowling Green Librarian, Regional Economic Library, Western Kentucky University, Bowling Green Director, Bowling Green Development Housing Corporation Director, Glasgow Chamber of Commerce, Barren County Personnel Director, Chrysler-Airtemp Plant, Bowling Green Director, Public Relations, Firestone Textiles Company, Bowling Green Manager, Lavile-Navile Supply Company, Bowling Green Director, Public Relations, Chrysler-Airtemp, Dayton, Ohio Local Residents CORPUS CHRISTI Executive Director, Economic Development District Planner, Economic Development District Research Analyst, Economic Development District Chairman of the Board, Economic Development District — President, Borden Insurance Company Vice-President, Electric Company — Member, Economic Development District Board District Director, Texas Employment Commission — Member, CAMPS Committee — Member, Economic Development District Board Executive Committee President, Labor Council—Member, Economic Development District Board Executive Committee Member, Economic Development District Board Human Relations Administrator, Corpus Christi Director, Public Utilities, Corpus Christi Mayor, Aransas Pass City Manager, Corpus Christi Director, Corpus Christi Department of Urban Development Executive Director, Corpus Christi Housing Authority 13-4 State Day Care Licensing Agent Director, Industrial Development and Planning, Neuees County Navigation District — Member, Economic Development District Board Manager, Corpus Christi Chamber of Commerce Manager, Corpus Christi Convention Bureau Reporter, Corpus Christi Newspaper Director of Facilities Planning, U.S. Naval Air Station Civilian Personnel Director, U.S. Naval Air Station Civilian Personnel Director, Army Repair and Maintenance Depot Executive Vice-President, Corpus Christi Tourist Bureau Director, CAP Agency Administrator, Human Relations Commission Former Executive Director, Economic Development District Executive Director, Community Development Corporation of Corpus Christi Chairman, Aransas Pass Chamber of Commerce Industrial Development Committee Economic Development Representative for Coastal Bend Area Former Economic Development Representative for Coastal Bend Area Minister and member of Housing Authority Director, Jobs for Progress Inc. Member, Regional Planning Commission Committee, Industrial Foundation — Employee, Corpus Christi Bank Director, State Bank — Officer of Padre Island Investment Corporation Assistant Dean, Vocational and Adult Education, Del Mar Technical Institute Board Member, Pioneer Development Corporation, Aransas Pass — Member of Coastal Bend Regional Planning Commission Director, Aransas Pass Urban Renewal Program Postmaster, Karnes City, Karnes County (RA) President, Red Ewald Inc., Karnes City Director, Operation SER (Service-Employment-Redevelopment) Director, United Community Campaign Assistant Executive Director, Coastal Bend Regional Planning Commission Former Director, Joint Action and Community Service Programs Plant Manager, Coastal States Petrochemical Company Director, Corpus Christi Branch of Southwest Research Institute President and Owner, Coastal Freezing Inc. Vice-President and General Manager, Benilite Corporation of America Manager, Sheraton Marina Owner, Sheraton Marina Chairman of the Board and Former President, Padre Island Investment Corporation Vice-President, Chapman Construction Company 13-5 FORT SMITH Priest and Economic Development District Board Member, Paris, Arkansas Five Members, Economic Development District Board Director, Economic Development District Four Economic Development District Staff Members Director of Job Development, Van Buren Community Action Agency City Clerk, Paris Director, Fort Smith Day Care Center Director of Public Works, Fort Smith Director of Planning, Fort Smith City Managerj Fort Smith Mayor, Van Buren Member, Library Board of Directors, Fort Smith Librarian, Fort Smith Library Mayor, Sallisaw, Oklahoma Mayor, Poteau, Oklahoma Mayor, Waldron, Arkansas County Judge, Sebastian County Director of Secondary Education, Sebastian County County Judge, Crawford County Reporter, Southwest Times Record Manager, Fort Smith Chamber of Commerce Manager, Chamber of Commerce, Van Buren Director, Chamber of Commerce, Mena Doctor and Board Director, Comprehensive Health Planning, Fort Smith Two Fort Smith Bankers One Mena Banker Fort Smith Lawyer Two Hospital Administrators Two Westark Junior College Administrators Manager, Fort Smith Radio Station, and Mayor, Fort Smith Director, Chamber of Commerce, Waldron Vice-President, Hickory Springs Manufacturing Company, Fort Smith Director of Engineering, Ward Furniture, Fort Smith Purchasing Agent, Ward Furniture, Fort Smith Assistant Treasurer, Baldor Electric Company, Fort Smith Three Officials, Whirlpool Corporation , Fort Smith Owner, Waldron Furniture, Waldron NATCHEZ Retired General, Farmer, Member of Economic Development District Board 13-6 Pour Other Board Members of Economic Development District Executive Director, Economic Development District Board Member, Natchez Chamber of Commerce Two Members, City Housing Authority Lawyer/Consultant to Housing Authority Mayor of Fayette Mayoral Assistant, Fayette Mayor of Natchez Mayor, Port Gibson Adams County Welfare Administrator Chancery Clerk, Franklin County Chancery Clerk, Wilkinson County Board of Supervisors, Claiborne County Chancery , Clerk, Lawrence County Director, Natchez Vocational-Technical Education Program Head, Vocational-Technical School Two Consultants for Technical Assistant Airport-Port Study Director, Port Authority Director, Natchez Community Action Agency Director, Employment Security Division Two Jefferson-Davis Hospital Administrators Executive Vice-President, Natchez-Adams County, Chamber of Commerce Editor, Natchez Newspaper Reporter, Natchez Newspaper Vice-President, Britton and Koontz Bank Vice-President, City Bank and Trust Company Director of Personnel, St. Regis Paper Company Two Business Leaders; Chevrolet, Pepsi Cola Manager, Armstrong Tire Company General Manager, Armstrong Tire Two Partners, Ricks Lumber Manager, Ricks Lumber Realtor, Natchez Official, Mississippi Power and Light Company PANAMA CITY Executive Director, Northwest Florida Economic Development District Economist, Staff Member, Northwest Florida Economic Development District Chairman, Walton County OEDP Committee — Board Member of the Northwest Florida Economic Development District — Director, Chamber of Commerce of Walton County (RA) Lawyer, Panama City — Chairman, PAP Committee Lawyer, Panama City — Member, PAP Committee Economic Development Representative, State of Florida 13-7 Economic Development District Board Member, Franklin County (RA) PAP Committee Member, Officer, Naval Research Station, Panama City Base Civil Engineer, Tyndall Air Force Base — Member, PAP Committee Director, Panama City Port Authority Mayor, Panama City City Manager, Panama City Director, Macedonia Housing Authority, Panama City Director, Panama City Housing Authority City Engineer, Appalachicola, Franklin County (RA) Mayor, Springfield Director, Florida Employment Service, Panama City Office Director, Panama City Office, Florida Rural Development Program Manager, Panama City-Bay County Airport and Industrial District Industrial Development Officer, Bonifay, Holmes County (RA) Project Officer, Florida State Department of Commerce Executive Director, Northwest Florida Law Enforcement Council Director, Vocational-Technical Education, Bay County Board of Public Instruction Director, Bay County Welfare Department Member, Franklin County School Board (RA) County Commissioner, Bay County President, Bay National Bank and Trust Company Chairman, Committee of 100, Panama City Manager, Resort Hotel, Panama City Dean of Students, Gulf Coast Junior College Placement Officer, Gulf Coast Junior College Chairman, Board of Directors, Community Action Agency—Director of Special Education for Panama City Editor, Weekly Newspaper — Past President Economic Development District, Holmes County Staff Member, Community Action Agency, Holmes County Executive Director, Panama City Chamber of Commerce Publisher, Panama City Newspaper Editor, Panama City Newspaper News Director, Radio Station — Former City and County Commissioner-- Chairman Bay County Planning Commission Director, Florida National Bank, Port St. Joe, Gulf County Real Estate Agent, Panama City Chairman, Republican Committee of Bay County Member, Board of Directors, Junior Chamber of Commerce Director, Fillette Green and Company (Steamship Agent) , Panama City Manager, Sherman and Sons, Inc., (Tugboat Company and Shipyard) Traffic Manager, Ryan Stevedoring Company and Southern Steamship Agency Office Director, Crosby Aeromarine Company (Fiberglas Boat Manufacturing), Panama City Sales Director, Atlantic and Saint Andrews Bay Railway Company 13-8 Owner and Manager, Pate Stevedoring Company, Pensacola, Florida Manager, Cove Contractors, Inc., Panama City Manager, M.R.N.R. Trucking Company, Panama City Owner, Howard Hall Truck Line, Panama City Manager, Mercury Motor Express, Inc., Pensacola, Florida Manager, Alabama Highway Express Company, Panama City, Florida Manager, Creel Truck Line, Dothan, Alabama Former Director, Panama City Port Authority Longshoreman, Panama City, Florida U.S. Customs Officer, Panama City Pilot, Saint Andrews Bay Pilots Association, Panama City PINE BLUFF Director, Economic Development District Four Staff Members, Economic Development District Economic Development Representative, Little Rock President, Economic Development District Six Members, Economic Development District Board Mayor, Pine Bluff Mayor, Sheridan Director of Planning, Pine Bluff City Engineer, Pine Bluff Mayor, Dumas Mayor, Star County Judge, Cleveland County County Welfare Director, Jefferson County Member, Pine Bluff Port Authority Editor, Weekly Newspaper, Rison Head, Local NAACP , Pine Bluff Pine Bluff Attorney President, National Bank of Commerce, Pine Bluff Executive Secretary, Jefferson Industrial Foundation Director, Pines Vocational-Technical School, Pine Bluff Union Representative, Pine Bluff Mortician, Pine Bluff Mortician, Rison Vice-President, Brotherhood of Railway Carmen, Pine Bluff Director, Community Action Agency, Pine Bluff Director, Pine Bluff Urban Renewal Agency Office Manager, Employment Security Division, Pine Bluff Manager, Pine Bluff Chamber of Commerce Realtor-Developer, Pine Bluff Two Pine Bluff Ministers Head, Corps of Engineers, Pine Bluff Commander, Coast Guard Station, Pine Bluff Postmaster, Star Director, Arkansas Industrial Development Commission Two Administrative Assistants, AM&N College 13-9 Partner, Pine Bluff Sand and Gravel Company Owner, Strong Company, Pine Bluff Owner, Pine Bluff Casket Company Manager, Pine Bluff Casket Company Manager, Pepsi-Cola Bottling Company, Pine Bluff Manager, Superior Freight Forwarding, Pine Bluff Owner, Martin Terminals, Pine Bluff Manager, Pine Bluff Warehouse Company Manager, Burlington Mills Plant, Monticello Weyerhauser Company, Personnel Director, Pine Bluff SWAINSBORO Chairman, CSRA Planning & Development Commission-Representative from Emanuel County — President, Southern Industrial Projects Service, Inc. Vice-Chairman, CSRA Planning and Development Commission — Representative from Richmond County CSRA Board Member from Jenkins County (RA) — Former Mayor, Miller CSRA Board Member from Jenkins County (RA) — Councilman, Miller Executive Director, CSRA Planning and Development Commission Senior Regional Program Developer, CSRA Planning and Development Commission Director of Regional Development, CSRA Planning and Development Commission CSRA Board Member from Jefferson County (RA) CSRA Board Member from Emanuel County — Pastor of Rehobia Baptist Church (Minority Group Representative) Former Chairman, CSRA Planning and Development Commission — Representative from Jefferson County (RA) Former CSRA Board Member, Jenkins County (RA) County Commissioner and President Emeritus, Board of Directors, Central Bank County Extension Agent County Extension Agent's Assistant Director, Emanuel County Department of Family and Children Service Clerk, for County Commission, Burke County (RA) Chamber of Commerce Employee and PAP Author Community Action Program (CAP)-»Director and Pastor of Holy Trinity Catholic Church Chairman, Chamber of Commerce Cultural Improvements Committee Chairman, Chamber of Commerce City-County Building Committee — Attorney Chairman, Chamber of Commerce Government Cooperation Committee Chairman, Emanuel County Beautification Development Authority President, Dekle-Gibson Insurance Agency Editor and Publisher, Swainsboro Forest-Blade Director, Swainsboro Church of the Nazarene Day Care Center 13-10 President, Chamber of Commerce and Central Bank Chairman , Chamber of Commerce Park Development and Recreation Committee Principal, Swainsboro High School Member, Library Board, Chamber of Commerce Library Committee Pastor, First United Methodist Church Teacher, Wadley Jr. High School — Former Director of Summer Headstart Programs in Swainsboro (Minority Group Representative) Director, Swainsboro Area Vocational-Technical School — Swainsboro Merchant — Former School Board Member Chairman, Chamber of Commerce Tourism Committee Chairman, Chamber of Commerce Retail Sales Committee — Merchant Chairman, Chamber of Commerce Transportation Committee — Druggist President, Anne B. Hardin Realty Company, Burke County (RA) Director, Industrial Development for Georgia Electrical Cooperatives Chairman, City Housing Authority and Chairman of Board, Citizens Bank of Swainsboro Employment Security Representative Manager, Low-Income Housing Development Pastor, Wadley Baptist Church, Jefferson County (RA) Pastor, First Methodist Church, Miller (Jenkins County — RA) Mayor, Swainsboro (Insurance Agent, Realtor, Land Developer, Builder, Director of Spivey State Bank) City Clerk, Swainsboro Secretary to Mayor, Midville (Burke County — RA) City Clerk, Midville Plant Manager, Keller Stamping, Inc. General Manager, Allied Timber of Swainsboro, Inc. President, Welron Carpets, Inc. General Manager, Modern Industries Manager, Diamond Brothers Furniture Owner-Manager, Swains Knitwear Bookkeeper-Secretary, Swains Knitwear Manager, Swainsboro Printing and Finishing Company Manager, Twin City Manufacturing Company Swainsboro Postmaster Manager, Swainsboro Office, Georgia Power Company Librarian, Swainsboro Public Library Secretary, Waynesboro Methodist Church, Burke County (RA) Local Residents TRI CITIES Director, Economic Development District Assistant Director, Economic Development District Economist, Member, Economic Development District Director of Housing, Member, Economic Development District 13-11 Mayor, Bristol, Virginia City Manager, Bristol Virginia City Manager, Bristol, Tennessee Manager, Bristol, Tennessee Employment Security Division Director of Instruction, Bristol, Virginia Mayor, Greenville, Tennessee Recorder, Greenville, Tennessee Mayor-Druggist, Sneedville, Tennessee Mayor, Kingsport City Planner, Kingsport Assistant to the Planner, Kingsport Member, Kingsport Board of Education Manager, Mountain City, Tennessee Employment Security Division Mayor, Mountain City Mayor, Elizabethton Two City Planners, Elizabethton City Manager, Johnson City City Planner, Johnson City Manager, Virginia State Employment Service, Bristol, Virginia Manager, Kingsport, Tennessee, Employment Security Division County Judge and Banker, Sneedville, Tennessee Assessor of Property, Johnson County, Tennessee Member, Johnson County^ Tennessee Board of Supervisors County Industrial Agent, Washington County County Industrial Agent, Carter County Two County Commissioners, Washington County Industrial Commissioner, Bristol, Tennessee-Virginia Industrial Commission Vice-President, Washington Trust Bank, Bristol, Virginia Executive Vice-President, Chamber of Commerce, Bristol, Virginia-Tennessee Doctor, Hancock County--Director , Sneedville Board of Education, Tennessee Managing Editor, Newspaper/ Bristol Director, Bristol Virginia-Tennessee Planning Commission Community Action Agency Director, Kingsport Two Staff Members, Kingsport, Community Action Agency Realtor, Mountain City President, Chamber of Commerce, Johnson City Director, Chamber of Commerce, Kingsport Two Bank Executives, Johnson City Community Action Agency, Washington County Director, Greenville Chamber of Commerce President, Camac Corporation Plant Manager, Camac Corporation Director of Personnel, Bristol Steel General Manager, Westinghouse Corporation, Bristol, Virginia Personnel Recruiter, Westinghouse Corporation, Bristol, Virginia Director of Training, Westinghouse Corporation, Bristol, Virginia 13-12 Manager, Jarl Aluminum, Elizabethton Manager, Hanley Structures, Elizabethton Manager, Iodent, Elizabethton Manager, Levi Strauss, Elizabethton Business Director, Great Lakes Research Corporation, Court Representative from Elizabethton — Elizabethton County- Office Manager, Iodent, Elizabethton GOLDS BO RO Chairman PAP Committee City Manager Director of Redevelopment Agency Director of Wayne County Industrial Development Commission Manager, Chamber of Commerce, Goldsboro CAMPS Committee member Community Action Program Training Director Dean of Community College 13-13 CHAPTER XIV GUIDE FOR POSITIVE ACTION PROGRAMS OF CENTERS OF DESIGNATED ECONOMIC DEVELOPMENT DISTRICTS EDA's Manual of Economic Development Orders, in its "Order on Economic Development Center Strategy" (1-2 8 (Revised) 3-11-68) , states that Growth Center project proposals will be considered by EDA only if the Center, in cooperation with the District organization, drafts a "Positive Action Program detailing the steps the Center is willing to take to insure that the unemployed and under- employed from Redevelopment Areas benefit from the Center's Growth." (Section 3.0 5.) OUTLINE In the preparation of this required Positive Action Program (PAP) , the following outline should be used as a guide : I. Economic Relationships between Growth Center and Redevelopment Areas Identify Redevelopment Areas of the District which are likely to be affected by improved job opportunities in the Center. Cite existing ties, including commuting patterns, local migration trends, transportation networks, retail trade patterns, the geographical areas normally served by public facilities in the Center, etc. This information should be accompanied by statistics whenever possible. II . Identification of Economically Distressed Groups of the District Which segments of the District population bear the primary burden of poverty? Cite numbers of economically distressed persons by locale, noting pockets of poverty within Center as well as in Redevelopment Areas. Classify, by ethnic group and skill levels, and indicate if there is significant unemployment due to automation or changing national or regional demand. III . Current Center Programs for Economically Distressed Give a resume of services and opportunities available in the Center to members of the group identified above in II, noting especially the programs which can benefit the 14-1 unemployed and underemployed of the Redevelopment Areas. List available programs, whether public or private, such as vocational training and public housing, OEO-related activities, and any special efforts aimed at making job opportunities known to the disadvantaged citizens. Give statistics wherever possible. IV. Statement of the Center's Action Program In support of the center's project application, a specific statement must be prepared by the community outlining what additional steps will be taken to improve the circum- stances of the unemployed and underemployed from the Redevelopment Areas as well as the Center's own disadvantaged citizens. This part of the report should list what the community proposes to do and how it plans to achieve these goals. List of goals should be accompanied by plans for their implementation. Examples of goals include: (1) Preferential recruiting and hiring for new job opportunities resulting from the proposed project among citi- zens of the nearby Redevelopment Areas. (2) Specific means of informing the unemployed and underemployed of the Redevelopment Areas about possible job openings and training opportunities. (3) Provisions for the creation or expansion of vocational training opportunities in center which would be made available to the target groups. It is often necessary to make special arrangements for public transportation to the school. (4) Expansion of availability of educational, health and other public facilities in the center for the intended beneficiaries of the EDA. (5) Where the burden of poverty falls most heavily on a minority group, provisions for special programs and opportunities for this segment of the population. Such proposals might include new opportunities for municipal employment or special educational programs aimed at the particular needs of this group. (6) Arrangements for increased public services for the economically disadvantaged both within the center and from the Redevelopment Areas. Such proposals might include 14-2 a statement of interest on the part of the city to develop or expand housing, etc. , to facilitate migration to the center. Of particular importance is provision for increased public transportation into nearby Redevelopment Areas to make it possible for the poor to commute to the Center for jobs, training/ and services. (7) Another possible action is the annexation or extension of city services to those outlying residential areas which are often the first stop of the poor migrating from the RA's to the Center. V. Provisions for Implementing the Proposed Action Program Specify how the Center leadership proposes to implement its action program. Cite who will endeavor to carry out the program and when these efforts will get underway. In some instances, districts have established PAP ' s committees as a part of the district's structure. These committees include the Mayor as well as the formal or informal leadership of the growth center. The advantage of a formal committee is that a group committed to the program can continue to work toward implementing the program, Districts are to report on PAP progress quarterly (under their planning assistance grant) . These quarterly reports are sent to the Area Office and then to Washington before quarterly payments are made. Attachments As evidence that this proposed program bears the support of the community and the District, the Positive Action Program should be accompanied by: (1) A brief outline of how the PAP was prepared. (2) A resolution of the government of the center endorsing the PAP. (3) A letter from the District commenting on the project application and its relation to the District's OEDP as well as the Center's PAP. The letter should include the minutes of the District's Board Meeting at which these matters were discussed. (4) Where appropriate, additional letters from community organizations (governmental and non-governmental) , labor unions and other groups indicating what roles they will play in the implementation of the PAP. 14-3 PENN STATE UNIVERSITY LIBRARipc Hllllillllll ADD00712fl e JQm