Youngstown makes a bid for high-tech companies
While we remain convinced that the city of Youngstown would have benefited to a greater extent had it been approved for a federal empowerment zone designation -- $10 million a year for 10 years from Washington -- we do see good things happening as a result of the city's being one of a handful of "renewal communities" in the nation.
The administration of President George W. Bush came up with the economic revitalization initiative to replace the empowerment zone program launched by his predecessor, Bill Clinton. During the Clinton years, many large and small cities were selected to receive millions in federal dollars and other assistance.
However, even though the predominantly Democratic Mahoning Valley gave Clinton one of his largest margins of victories in both his runs for president -- in return, he promised to make this region his top priority -- the White House failed to pay attention to Youngstown and Warren with regard to the empowerment zone program.
Bush, on the other hand, made it clear during his campaign for president that he did not support give-away initiatives. Instead, he touted the benefits of a community being able to offer huge federal tax breaks tocompanies that locate in areas with high unemployment and above-average poverty rates.
Thus, Youngstown will soon launch a marketing campaign to lure companies already in the region and high-tech companies in California's Silicon Valley to the "renewal" area -- downtown Youngstown, a segment of the North Side along U.S. Route 422 and the Smoky Hollow neighborhood. The incentive package includes major tax credits, deductions and capital gains benefits.
Non-provincial approach
City government is to be commended for taking a non-provincial approach to preparing a federally mandated plan for how the program will work. Officials from Mahoning County government, Youngstown State University, the Youngstown Metropolitan Housing Authority and the regional office of the Ohio Department of Development are assisting the administration of Mayor George M. McKelvey. Such broad-based involvement helps break down the barriers that have long undermined this region's economic revitalization effort.
As for pursuing high-tech companies, the city should incorporate Gov. Bob Taft's "Third Frontier" technology initiative and the state's Technology Action program in its marketing campaign. Recently, the State Controlling Board approved more than $10 million in grants from the Technology Action Fund for cutting-edge projects being developed by private companies.
For example, AlphaMicron, Inc. in Portage County will receive $1,148,766 to support the commercialization of the Liquid Crystal Eyewear, a technology developed at the Center for Advance Liquid Crystalline Optical Materials. In Cuyahoga County, Copernicus Therapeutics Inc. will receive $1,085,164 to support the Pulmonary Gene Transfer: Aerosol Development Project.
The state received 150 applications for Technology Action money, but none from Mahoning, Trumbull or Columbiana counties. The need for the Mahoning Valley to attract high-technology companies is obvious.