YOUNGSTOWN City seeks federal renewal zone

Youngstown may again be competing with large cities for federal help.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- The red brick streets of the lower North Side say a lot about the neighborhood.
Like the old bricks, the aging community west of Youngstown State University and St. Elizabeth Health Center is struggling to stay together.
Its poverty rate was 63 percent, unemployment was 45 percent and 82 percent of households were considered low income, according to the 1990 census.
That's why the city is targeting the North Side area, downtown and the Smoky Hollow neighborhood for a federal renewal community zone.
New and existing businesses in those spots would get big federal tax breaks if Youngstown is named one of 28 such communities nationwide early next year.
Combined, the three areas -- census tracts -- make up the city's worst economic profile. The areas had a 65 percent poverty rate, 45 percent unemployment and 89 percent of households considered low income in 1990. The government is using that census to decide which cities get the renewal zones.
Changed course: There is no shortage of poor city neighborhoods. Originally, the city figured it would include in its request most of the 13 census tracts that qualify.
After looking at other cities' profiles, however, they changed course.
Originally, it was thought the new program was for small cities. There had been an outcry about another major federal program, empowerment zones. Only big cities got those top economic development awards, which provided $100 million in aid.
A loophole, however, will let many cities -- including New York and Boston -- apply for renewal community status, city officials say. For example, it appears such cities can pick a single census tract, as long as the population qualifies, and apply.
That means Youngstown must pit its poorest areas against other cities to get picked.
Strongest case: Bringing in even slightly less poor city areas, such as other spots on the lower North Side or the lower South Side, would dilute the extreme numbers. Youngstown can make a strong case only by limiting its application to the absolute worst tracts, said Jay Williams, director of the city community development agency.
"They create the most competitive scenario," he said.
Downsizing the potential renewal area was a concern to a few community, government and business leaders who are helping guide the application. They said all the activity will be concentrated in too small an area.
"We're going to be piled on top of each other," said Jim Converse of Common Wealth Inc., a nonprofit housing agency.
Researchers tried to find ways to include more tracts. They couldn't without hurting Youngstown's position, said Karl Seidman of Mount Auburn Associates, the consulting company the city hired to develop the application.
"They were low enough [numbers] to make an impact," he said.
The program could be expanded if the city is lucky enough to become a renewal community, officials said. Youngstown would ask the federal government to expand the boundaries to a few other nearby neighborhoods if that happens. Indications are that the government might, they said.
Also, the city will ask that the developing Ohio Works Industrial Park be included. The old U.S. Steel site along the Mahoning River has no residents so it can't be in the application.
Selected tracts include downtown and YSU, which is a nice feature, Williams said. Those places are precisely where the city wants business to grow.
The terrorist attacks have pushed back deadlines about a month. Renewal community applications now must be ready by Nov. 2. The government will make its picks known in January or February.
rgsmith@vindy.com