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HEADLINES The Mill Posted: June 25, 2007

Rebuilding the Sawmill

My Back Yard Posted: July 29, 2006
My Back Yard

Has Waterfalls

View From Behind the Waterfall

And Cliffs

And Wind Carved Sandstone

And Streams

And Streams

And Overhangs

Photos From Kentucky Posted: July 29, 2006
I nearly walked on this fawn. It never moved a bit while I was
taking the picture.

There is a restaurant in Lexington Kentucky, Alfalfa; this
was their 20th anniversary photo shoot.

The North Fork of the Kentucky River

Also on the North Fork, in Jackson Kentucky

Two of my favorite people to ever grace the earth, Gertrude and Dan

Gertrude's Store

Alfalfa's 20th

Some Old Photos Posted: July 28, 2006
These are some photos taken in California and Colorado.

Deer in Upper Bidwell Park, Chico CA
Deer in Bidwell Park

Sunset in Paradise CA
Paradise, CA

Hummingbird, Marble CO

Sunrise, upper Bidwell Park, Chico CA

Chemistry 202, Chico CA

House Bill 1 Poster Campaign 2000 Posted: July 24, 2006
There have been many efforts to pass a bottle bill in the state of Kentucky-generally the National Bottling industry sends a horde of lobbyists to defeat the effort. These are some of the posters I made for a Gallery presentation in the Capitol Annex Tunnel. It turns out that one cannot name the particular bill in presentations like mine, so I had to remove many of the posters immediately.

Wendell Berry want to pass a Bottle Bill

Wendell Berry: Poet, Farmer. Ray Gillespie: Bottle Industry Lobbyist

Letter re: Trapp, 2002 Posted: July 23, 2006
To the Editor:

I am writing to criticize the state's decision to permit burning up to 4000 tons/day of East Coast trash for power in Clark County. It doesn't make sense for Kentucky to import garbage to replace coal.

The Federal Department of Energy (DOE), Senator McConnel and Governor Patton have promoted the Trapp 'Integrated Gasification Combined Cycle' (IGCC) plant as a unique demonstration of clean coal technologies, but IGCC plants already exist in the US and around the world.

The significant Clean Coal Technology research on offer at Trapp is the garbage. How toxic is the slag, the exhaust gases, and the water used to cool & clean the garbage vapors and slag? Those of us upwind and downstream are going to find out where all those toxics go the hard way, for 20+ years.

State law KRS 224 says that if more than 15% of a plant's fuel comes from garbage it's a waste-to-energy plant that needs a local permit. The Trapp facility will use between 50% and 80% garbage. The state should wait for a local permit from Clark County before issuing the state permit for the waste-to-energy facility.

Governor Patton should read KRS 224.010(20) and see that the Trapp facility is a waste-to-energy plant that requires a local permit from Clark County. He should read the writing on the wall: imported trash is a weak plank in anyone's political platform. It will not help the Governor in his future pursuits.

Will Herrick

Library of documents related to IGCC type Power Plants Posted: July 23, 2006
In 2002 and 2003, the East Kentucky Power Co-op engaged with Kentucky Pioneer to design and construct a garbage fueled power plant in Trapp Kentucky.

They failed to do their homework or heed the reasoned voices that counseled them to not import waste to Kentucky for fuel. There was a lawsuit. It wasn't a fair fight-they only had a huge revenue stream, vast legal and engineering resources, and the past president of the Kentucky Coal Association...we had Tom FitzGerald from the Kentucky Resources Council ( KRC website ). Ultimately the Kentucky Public Service Commission required them to negotiate a permit with Clark County for the solid waste facility. Instead, they threw in the towel.

The files here are a short introduction to the library, a listing of the files in the library, and the Entire Library in a zip file. You'll want a fast internet connection to get the zip file.

Click here to see the Trapp files. Click on the 00README.html file for more info. You can download the zip file from there.

Technology and Activism Posted: July 23, 2006
I gave a talk at a conference organized by the Kentucky Progressive Alliance in the summer of 2005. It covered a lot of work I'd done over a couple of decades applying technology to activist issues. Click here to read the text.

Comments on UST Contaminated Soil Landfarm Permit Request Posted: July 23, 2006

Comments on UST Contaminated Soil Landfarm Permit Request, Lee County, KY

My name is Will Herrick. I have resided in Lee County for more than 25 years. I wish to encourage the Commonwealth of Kentucky to deny the pending application # 065-00004 LP1NW1.

I have three reasons to challenge the landfarm permit:

It is clear that the site design fails to meet the design goals,
The Public, Lee County and the Commonwealth of Kentucky are at risk from fugitive contaminants escaping from this site, and
I have a compelling personal experience, that being the protracted and painful death of my mother from aplastic anemia. This disease is well associated with exposure to Benzene (and other solvents), a common component of the blended fuels being brought into Lee County under this permit. I have a deep and abiding respect for the hazards of the contamination under review here.

The long-term risk to Lee County and to the state is genuine. At a minimum the permit needs to extend the bonding requirement to cover the continuing oversight, cleanup, and closure costs that come with siting the facility, else these costs will fall to the county and state taxpayers. Failing that, the hazardous compounds will enter the air and water unabated.

Without design improvements controlling the field source emmisions of hazardous airborne chemicals, of contaminated dust, and of chemical contact, the operating staff will be at risk for chronic exposure to known hazards that their managers have already declared to be of no concern to them (Facility Impact Report P3, Sections a, b, c & d: "There will be no increased risk of accidents associated with Soil Tech activities", "Measures have been taken to prevent any water run off from soils..." {tarps}, "No adverse effects are expected to land or water...gasoline quickly evaporates into the atmosphere", "We do not expect any adverse effects on human health" and "Generally one will be exposed to more fumes from filling an automobile" {Why are those signs posted at gas stations around the nation warning that fuel fumes are carcinogenic and to be avoided?}).

The applicants frequently cite the presence of other oil wells in the region. They imply the excuse that the area is already inundated with whatever has come from these other wells and cannot be impacted by yet another contamination source. This argument is false- blended gasoline has many compounds not found in crude petroleum, to wit: lead, MTBE, etc, and the constituents common to the two are found in entirely different concentrations. Lastly, two wrongs do not make a right. Adding new burdens to the most heavily contaminated yet important stretch of waterway in the Commonwealth, the Kentucky River, cannot be construed as meaningless or below regulatory concern.

The design needs repair to control hazardous airborne contaminants. The Division of Air Quality should require a permit application for the Volatile Organic Compound emissions. The design as submitted is actually a primitive 40,000 square foot (0.9 acre) air-stripper promoting evaporation and atmospheric transport over hydrocarbon metabolism (see Treatment Process Information, P1, Section 2: "Soils transported to the site will be remidated [sic] by aeration [sic]" and Application to Process Solid Waste, P1, paragraph B, section 4, "Soils are easily remediated with exposure to open air." and Facility Impact Report P3 Section 3, Subsections c & d: "Since gasoline quickly evaporates into the atmosphere" and "Gasoline contaminated soils are quickly remediated after they have been exposed to open air").

Hydrologic protections offered by the proposed design are simply absent. The only clear language on offer is not even part of the permit application, but a non-binding ancillary document, the "Fact Sheet" where it is stated that "in the event water must be removed, the company has a permitted disposal facility available to accept liquid from the containment cells". The Facility Impact Report, Section 2b, is entirely disengenuous: "Due to the fact that we are working only with solid waste, and this waste being placed in impermeable concrete cells, there will be no impact on any groundwater reserves in the area." Please refer to the prior citation, "Soils are easily remediated with exposure to open air"- the operators intend to expose these soils to wind and sun, while expecting that none of the evaporated compounds or airborne dust will ever leave the site and re-enter the hydrologic cycle? The proposed scheme for placing tarpaulins in the event of rain is a hoax (Facility Impact Report, P2, Section 3b: "If necessary cells can be covered with covered with [sic] tarping or plastic."). Without a 24-hour monitor, no-one will rise to the 3 am downpour, much less cover the entire 0.9 acre site before some runoff leaves the site and more floods the bottom of the containments cells. The subsequent anaerobic conditions will have a major impact on the microbial populations and their ability to oxidize hydrocarbons.

The only service this site offers is a benefit to the owners of the contaminated soil. According to the application, none of the principles have any experience operating such a facility.

There are adequate facilities in the Commonwealth that have better engineering, oversight, and bonding to provide the service being offered by the applicants. It is in everyone's interest to not lower is standards for contaminated soil remediation and invite the proliferation of undercapitalized, ill managed, understaffed facilities.

I have included below a very brief survey of the available literature to document my arguments. Neither inclusive nor detailed, these tip-of-the-iceberg citations give authoritative published support to my position:

that the design submitted in the permit application is a recipe for air and water contamination;

that a significant fraction of the contaminants ostensibly intended for bio-remediation by metabolic processes within bacteria will in fact escape untreated into the air and waters of the Commonwealth,
that the air and water born effluents from this site are a public health risk; and
that the operations staff are immersed in a field source of hazardous dust, vapor, and fluid.

The Permit by Rule historically given to landfarms by DNREP has been based on remediation of organic waste as a fertilizer amendment to deep healthy soils. The permit being sought here in fact seeks to evaporate significant fractions of the volatile contaminants, has no impact on soil fertility, and fails to show the required technical expertise to effectively manage bio-remediation. The husbanding of soil microbia is not trivial. The estimates and timeframes listed in the permit application demonstrate an optimistic ignorance of microbial growth kinetics, rates of remediation, and the likelyhood of metal toxicity impacting microbial populations.

The below are sample references on the hazards of blended fuels with an emphasis on Aplastic Anemias and Benzene. I have narrowed the focus for examples only- I could offer similar documentation on Lead, MTBE, Toluene and expect the Commonwealth to consider all known hazardous compounds found in the waste stream under permit.

Report to the Occupational Disease Panel (Industrial Disease Standards Panel) on Occupational Exposure to Benzene and Leukaemia: Jennifer Penney,September 1995 [http://www.canoshweb.org/odp/html/rp7.htm]

Selected quotes on Benzene Exposures:

"Because of its anti-knock properties, benzene-containing substances are added to gasoline as a replacement for alkyl lead compounds. Gasoline contains from less than one to five percent

of benzene by volume." (International Agency for Research on Cancer. Benzene. IARC Monographs on the Evaluation of Carcinogenic Risk of Chemicals to Humans Vol. 29,Lyon France 1982)

IARC identifies the following major contributors to benzene emissions into air: (1) gasoline production, storage, transport, vending and combustion...(International Agency for Research on Cancer. Benzene. IARC Monographs on the Evaluation of Carcinogenic Risk of Chemicals to Humans Vol. 29, Lyon France 1982)

...

Because of the high volatility of benzene, inhalation is the most important route of exposure. Almost 50 percent of inhaled benzene is absorbed. (Landrigan and Nicholson, 1992) NIOSH estimates that

approximately 1% of benzene is absorbed from skin contact. However dermal absorption is enhanced and may approach 5% when skin is cracked, blistered or abraded as in rubber workers engaged in tire building. (Occupational Safety and Health Administration (OSHA). Final Rule on Occupational Exposure to Benzene. Fed Regist 1987;52:34460-34578)

...

Benzene is sometimes found in drinking water, primarily as a result of gasoline spills, or seepage from underground gasoline tanks. (Akland GG. Exposure of the general population to gasoline. Environ Health Persp Suppl 1993;101:27-32)

National Emission Standards for Hazardous Air Pollutants: Off-Site Waste and Recovery Operations; Final Rule

[Federal Register: July 1, 1996 (Volume 61, Number 127)] [Rules and Regulations] [Page 34139-34200]

SUMMARY: This action promulgates National Emission Standards for Hazardous Air Pollutants (NESHAP) under the authority of Section 112 of the Clean Air Act for off-site waste and recovery operations that emit hazardous air pollutants (HAP). The NESHAP applies to specific types of facilities that are determined to be major sources of HAP emissions and receive certain wastes, used oil, and used solvents from off-site locations for storage, treatment, recovery, or disposal at the facility. The rule requires use of maximum achievable control technology (MACT) to reduce HAP emissions from tanks, surface impoundments, containers, oil-water separators, individual drain systems and other material conveyance systems, process vents, and equipment leaks.

...

From the section II. Basis and Purpose, subcategory A. Purpose of Regulation:

Following is a summary of the potential health and environmental effects associated with exposures, at some level, to the emitted pollutants that would be reduced by this NESHAP. The range of potential human health effects associated with exposure to organic HAP include cancer, aplastic anemia, pulmonary (lung) structural changes, dyspnea (difficulty in breathing), upper respiratory tract irritation with cough, conjunctivitis, and neurotoxic effects (e.g., visual blurring, tremors,delirium, unconsciousness, coma, convulsions).

Environmental Health Perspectives, Volume 104, Supplement 6, December 1996

Clinical Features of Hematopoietic Malignancies and Related Disorders among Benzene-exposed Workers in China

Martha S. Linet,1 Song-Nian Yin,2 Lois B. Travis,1Chin-Yang Li,3 Zhi-Nan Zhang,4 De-Gao Li,4 Nathaniel Rothman,1 Gui-Lan Li,2 Wong-Ho Chow,1 Jennifer Donaldson,1 Mustafa

Dosemeci,1 Sholom Wacholder,1 William J. Blot,1 Richard B. Hayes,1 and The Benzene Study Group*

From the Discussion section of this article:

Fatal aplastic anemia was first reported among benzene-exposed workers nearly 100 years ago (72), while leukemia was initially linked with benzene exposure in 1928 (73)... Case-control studies have also linked benzene exposure (primarily occupational) with leukemia (10,78,79). These clinical series, case-control studies, and two important cohort investigations (18,19,80) were considered to provide sufficient evidence to link benzene with leukemia, particularly AML, in humans (2). Subsequent cohort investigations of benzene-exposed workers within chemical manufacturing, petroleum refinery, or other industries in the United States, the United Kingdom, Italy, and China have confirmed the benzene-leukemia association (Table 3) (81,82). Although acute myeloid leukemia, not otherwise characterized, has been the type of malignancy most consistently associated with benzene exposure, other unusual variants of acute myeloid leukemia, particularly erythroleukemia and to a lesser extent acute myelomonocytic leukemia, appear to occur disproportionately in some studies of benzene-related leukemia (15,83-85). While chronic myeloid leukemia has been mentioned in clinical reports (86,87), the only previous cohort investigation in which this

leukemia type was noted was the first cohort study by Yin et al. in China (6).

Aplastic Anemia in a Petrochemical Factory Worker

Young Mann Baak, Byoung Yong Ahn, Hwang Shin Chang, Ji Hong Kim, Kyoung Ah Kim, and Young Lim. Environ Health Perspect 107:851-853 (1999). Department of Industrial Medicine, St. Mary's Hospital, The Catholic University of Korea, Seoul, Korea

Abstract

A petrochemical worker with aplastic anemia was referred to our hospital. He worked in a petroleum resin-producing factory and had been exposed to low-level benzene while packaging the powder resin and pouring lime into a deactivation tank. According to the yearly environmental survey of the working area, the airborne benzene level was approximately 0.28 ppm. Exposure to benzene, a common chemical used widely in industry, may progressively lead to pancytopenia, aplastic anemia, and leukemia. The hematotoxicity of benzene is related to the amount and duration of exposure. Most risk predictions for benzene exposures have been based on rubber workers who were exposed to high concentrations. In the petroleum industry, the concentration of benzene is relatively low, and there are disputes over the toxicity of low-level benzene because of a lack of evidence. In this paper we report the case of aplastic anemia induced by low-level benzene exposure.

EPA might tighten regulations on gas additive that fouls water

Published Friday, February 25, 2000, in the Lexington Herald-Leader

ASSOCIATED PRESS, LOUISVILLE

The Environmental Protection Agency might tighten controls over an additive that produces cleaner gasoline but is fouling water in many states, including Kentucky.

Four state legislators already have expressed their concern by pressing for a General Assembly resolution supporting an MTBE ban in Kentucky. The lawmakers acted as the EPA notified the federal Office of Management and Budget that it wants public comment on a proposal to regulate MTBE under the Toxic Substances Control Act. Tighter regulation could lead to phasing out the additive, which has been turning up in groundwater, lakes and rivers from California to Maine.

The resolution by state Sen. Dan Seum, R-Louisville, and his colleagues urges the state Natural Resources and Environmental Protection Cabinet to develop drinking-water standards for MTBE and to increase testing for the chemical. Kentucky environmental officials have found no current or imminent threat to water supplies.

BP OIL -- GASOLINE BP REGULAR UNLEADED (RFG W-MTBE)

MATERIAL SAFETY DATA SHEET

NSN: 9130013884080

Manufacturer's CAGE: 0NDT1

Part No. Indicator: A

Part Number/Trade Name: GASOLINE BP REGULAR UNLEADED (RFG W/MTBE)

===========================================================================

General Information

===========================================================================

Item Name: GASOLINE/BLENDED; MOTOR FUEL

Company's Name: BP OIL CO

Company's Street: 200 PUBLIC SQ

Company's City: CLEVELAND

Company's State: OH

Company's Country: US

Company's Zip Code: 44114-2375

Company's Emerg Ph #: 216-586-4219/800-321-8642

Company's Info Ph #: 216-586-4219/800-321-8642

Record No. For Safety Entry: 001

Tot Safety Entries This Stk#: 001

Status: SE

Date MSDS Prepared: 08JUN94

Safety Data Review Date: 01MAR96

Preparer's Company: BP OIL CO

Preparer's St Or P. O. Box: 200 PUBLIC SQ

Preparer's City: CLEVELAND

Preparer's State: OH

Preparer's Zip Code: 44114-2375

MSDS Serial Number: BYPGP

===========================================================================

Ingredients/Identity Information

===========================================================================

Proprietary: NO

Ingredient: METHYL TERT BUTYL ETHER (MTBE), 2-METHOXY-2-METHYL PROPANE,

T-BUTYLMETHYL ETHER *96-1*

Ingredient Sequence Number: 01

Percent: 15

NIOSH (RTECS) Number: KN5250000

CAS Number: 1634-04-4

-------------------------------------

Proprietary: NO

Ingredient: XYLENE, DIMETHYLBENZENE, XYLOL (IARC - GROUP 3) *95-4*

Ingredient Sequence Number: 02

Percent: 9

NIOSH (RTECS) Number: ZE2100000

CAS Number: 1330-20-7

OSHA PEL: 100 PPM

ACGIH TLV: 100 PPM, SKIN

Other Recommended Limit: 100 PPM

-------------------------------------

Proprietary: NO

Ingredient: TOLUENE (IARC CARC- GROUP 3) *95-4*

Ingredient Sequence Number: 03

Percent: 6

NIOSH (RTECS) Number: XS5250000

CAS Number: 108-88-3

OSHA PEL: 100 PPM

ACGIH TLV: 100 PPM

Other Recommended Limit: 375 MG/CUM

-------------------------------------

Proprietary: NO

Ingredient: 1,2,4-TRIMETHYLBENZENE *95-4*

Ingredient Sequence Number: 04

Percent: 3

NIOSH (RTECS) Number: DC3325000

CAS Number: 95-63-6

ACGIH TLV: 25 PPM

-------------------------------------

Proprietary: NO

Ingredient: BENZENE (SUSPECTED HUMAN CARC BY ACGIH, IARC, ANIMAL

CARCINOGEN BY IARC, CARCINOGEN BY NTP - IARC GROUP 1) *95-4*

Ingredient Sequence Number: 05

Percent: 2

NIOSH (RTECS) Number: CY1400000

CAS Number: 71-43-2

ACGIH TLV: 0.3 MG/CUM (A2) IC

Other Recommended Limit: 16 MG/CUM

-------------------------------------

Proprietary: NO

Ingredient: ETHYL BENZENE *95-4*

Ingredient Sequence Number: 06

Percent: 2

NIOSH (RTECS) Number: DA0700000

CAS Number: 100-41-4

OSHA PEL: 435 MG/CUM

ACGIH TLV: 434 MG/CUM

Other Recommended Limit: 100 PPM

-------------------------------------

Proprietary: NO

Ingredient: CYCLOHEXANE

Ingredient Sequence Number: 07

Percent: 1

NIOSH (RTECS) Number: GU6300000

CAS Number: 110-82-7

OSHA PEL: 1050 MG/CUM

ACGIH TLV: 1030 MG/CUM

Other Recommended Limit: 300 PPM

-------------------------------------

Proprietary: NO

Ingredient: GASOLINE

Ingredient Sequence Number: 08

Percent: 85-86

NIOSH (RTECS) Number: LX3300000

CAS Number: 8006-61-9

ACGIH TLV: 890 MG/CUM

Other Recommended Limit: 300 PPM

===========================================================================

Physical/Chemical Characteristics

===========================================================================

Appearance And Odor: CLEAR LIQUID W/A STRONG HYDROCARBON ODOR

Boiling Point: 80-440F

Vapor Pressure (MM Hg/70 F): 760

Vapor Density (Air=1): 1.2

Specific Gravity: 0.72-0.74

Evaporation Rate And Ref: (WATER = 1): >1

Solubility In Water: NEGLIGIBLE

Percent Volatiles By Volume: 100

===========================================================================

Fire and Explosion Hazard Data

===========================================================================

Flash Point: -35F

Flash Point Method: TCC

Lower Explosive Limit: 1.4

Upper Explosive Limit: 7.6

Extinguishing Media: DRY CHEMICAL, ALCOHOL FOAM, CLASS B EXTINGUISHERS,

CO2.

Special Fire Fighting Proc: WATER MAY BE INEFFECTIVE, USE TO COOL FIRE

EXPOSED CONTAINERS. FIREFIGHTERS MUST WEAR MSHA/NIOSH APPROVED POSITIVE

PRESSURE SCBA W/FULL FACE MASK/CLOTHING.

Unusual Fire And Expl Hazrds: VAPORS MAY FORM FLAMMABLE/EXPLOSIVE

MIXTURES

W/AIR. VAPOR/GAS MAY SPREAD TO DISTANT IGNITION SOURCES & FLASHBACK.

CONTAINERS MAY EXPLODE IN HEAT OF FIRE.

===========================================================================

Reactivity Data

===========================================================================

Stability: YES

Cond To Avoid (Stability): HEAT, SOURCES OF IGNITION

Materials To Avoid: STRONG OXIDIZERS & ALKALI METALS, STRONG

ACIDS/BASES.

Hazardous Decomp Products: CO, CO2, HYDROCARBONS

Hazardous Poly Occur: NO

===========================================================================

Health Hazard Data

===========================================================================

Route Of Entry - Inhalation: YES

Route Of Entry - Skin: NO

Route Of Entry - Ingestion: YES

Health Haz Acute And Chronic: INGESTION: HARMFUL/FATAL. ASPIRATION

HAZARD,

CAN ENTER LUNGS & CAUSE PNEUMONITIS/DAMAGE. IRRITATION, HARMFUL CNS

EFFECTS, RESPIRATORY ARREST, DEATH. INHALATION: RESPIRATORY TRACT

IRRITATION, CNS EFFECTS, IRREGULAR HEAT RHYTHMS. SKIN: IRRITATION,

BURNS.

EYES: IRRITATION, CONJUNCTIVITIS.

Carcinogenicity - NTP: YES

Carcinogenicity - IARC: YES

Carcinogenicity - OSHA: NO

Explanation Carcinogenicity: SEE INGREDIENTS.

Signs/Symptoms Of Overexp: IRRITATION, GI DISTURBANCES, NAUSEA,

VOMITING,

DIARRHEA, EXCITATION, EUPHORIA, HEADACHE, DIZZINESS, DROWSINESS, BLURRED

VISION, FATIGUE, TREMORS, CONVULSIONS, LOSS OF CONSCIOUSNESS, COMA,

DEFATTING, REDNESS, ITCHING, CRACKING OF SKIN, BURNS, SWOLLEN &

DISCOLORED

TISSUE, PAIN, LACRIMATION, INFLAMMATION.

Med Cond Aggravated By Exp: PRE-EXISTING EYE, SKIN & RESPIRATORY

DISORDERS.

Emergency/First Aid Proc: INGESTION: DON'T INDUCE VOMITING. ASPIRATION

HAZARD. SKIN: WASH W/SOAP & WATER. INJECTIONS NEED SERIOUS MEDICAL

ATTENTION. EYES: FLUSH W/WATER FOR 15 MINS. INHALATION: REMOVE TO FRESH

AIR. GIVE OXYGEN/CPR AS NEEDED. NOTE TO PHYSICIAN: ACUTE CHEMICAL

PNEUMONITIS CAN RAPIDLY PROGRESS TO RESPIRATORY FAILURE. FOR SKIN

INJECTION

CONSIDER DEBRIDEMENT TO MINIMIZE NECROSIS & TISSUE LOSS. (SEE SUPP)

===========================================================================

Precautions for Safe Handling and Use

===========================================================================

Steps If Matl Released/Spill: SHUT OFF IGNITION SOURCES. STOP LEAK

SAFELY.

WATER SPRAY MAY REDUCE VAPOR IN CLOSED SPACES. SMALL: TAKE UP

W/SAND/OTHER

NONCOMBUSTIBLE ABSORBENT MATERIAL & PLACE INTO CONTAINERS FOR LATER

DISPOSAL. LARGE: DIKE FAR AHEAD OF LIQUID FOR LATER DISPOSAL.

Waste Disposal Method: THE TRANSPORTATION, STORAGE, TREATMENT & DISPOSAL

OF THIS WASTE IAW/FEDERAL, STATE & LOCAL REGULATIONS. FLAMMABLE LIQUID

UN1203.

Precautions-Handling/Storing: STORE GASOLINE ONLY IN APPROVED, CLEARLY

LABELED CONTAINERS. NEVER STORE IN GLASS/UNAPPROVED PLASTIC CONTAINERS.

STORE IN TIGHTLY CLOSED CONTAINERS.

Other Precautions: STORE IN A COOL, DRY ISOLATED, WELL VENTILATED AREA

AWAY FROM HEAT. GROUND LINES & EQUIPMENT USED DURING TRANSFER TO REDUCE

STATIC SPARK, FIRE/EXPLOSION. KEEP OUT OF REACH OF CHILDREN. DON'T

SIPHON

PRODUCT BY MOUTH. (SEE SUPP)

===========================================================================

Control Measures

===========================================================================

Respiratory Protection: USE NIOSH APPROVED RESPIRATORY PROTECTION SHOULD

BE WORN. RESPIRATORY PROTECTION MAY BE NEEDED FOR NON-ROUTINE/EMERGENCY

SITUATIONS.

Ventilation: VENTILATION & OTHER FORMS OF CONTROLS ARE PREFERRED FOR

CONTROLLING CHEMICAL EXPOSURES.

Protective Gloves: IMPERVIOUS

Eye Protection: SAFETY GLASSES/CHEMICAL GOGGLES

Other Protective Equipment: PROTECTIVE CLOTHING.

Work Hygienic Practices: REMOVE/LAUNDER CONTAMINATED CLOTHING BEFORE

REUSE. WASH HANDS BEFORE EATING, DRINKING, SMOKING/USING TOILET

FACILITIES.

Suppl. Safety & Health Data: USE GOOD PERSONAL HYGIENE PRACTICES. SHOWER

AFTER WORK USING SOAP & WATER. FIRST AID: OBTAIN MEDICAL ATTENTION IN

ALL

CASES. PREC: DON'T USE FOR CLEANING, PRESSURE APPLIANCE FUEL. EMPTY

CONTAINERS MAY CONTAIN TOXIC, FLAMMABLE/COMBUSTIBLE/EXPLOSIVE RESIDUE/

VAPORS. DON'T CUT/GRIND/DRILL/WELD, REUSE/DISPOSE CONTAINERS.

===========================================================================

Transportation Data

===========================================================================

Disposal Data

===========================================================================

Label Data

===========================================================================

Label Required: YES

Label Status: G

Common Name: GASOLINE BP REGULAR UNLEADED (RFG W/MTBE)

Special Hazard Precautions: INGESTION: HARMFUL/FATAL. ASPIRATION HAZARD,

CAN ENTER LUNGS & CAUSE PNEUMONITIS/DAMAGE. IRRITATION, HARMFUL CNS

EFFECTS, RESPIRATORY ARREST, DEATH. INHALATION: RESPIRATORY TRACT

IRRITATION, CNS EFFECTS, IRREGULAR HEAT RHYTHMS. SKIN: IRRITATION,

BURNS.

EYES: IRRITATION, CONJUNCTIVITIS. IRRITATION, GI DISTURBANCES, NAUSEA,

VOMITING, DIARRHEA, EXCITATION, EUPHORIA, HEADACHE, DIZZINESS,

DROWSINESS,

BLURRED VISION, FATIGUE, TREMORS, CONVULSIONS, LOSS OF CONSCIOUSNESS,

COMA,

DEFATTING, REDNESS, ITCHING, CRACKING OF SKIN, BURNS, SWOLLEN &

DISCOLORED

TISSUE, PAIN, LACRIMATION, INFLAMMATION.

Label Name: BP OIL CO

Label Street: 200 PUBLIC SQ

Label City: CLEVELAND

Label State: OH

Label Zip Code: 44114-2375

Label Country: US

Label Emergency Number: 216-586-4219/800-321-8642

Trus-Joist MacMillan Air Quality Permit Hearing (mid '90s)

Posted: July 23, 2006

An explicit written assumption of risk in the use of MDI and either a medical and financial safety net for the workplace injured, or much tighter regulation and oversight.

Adequate review of exposure to MDI and other hazardous volatiles in the PL300 workplace. Trus-Jois MacMillan has changed from their original Minnesota PL300 plant ventilation design.

Oversight of the respirator technologies used day to day in the PL300 plant. Carbon filter systems, as those reportedly used in Minnesota, do not remove MDI vapor.

Design changes to eliminate the fire hazard proven at the Deerwood PL300 plant, where flammable Aspen strand and MDI were allowed to accumulated in unsafe quantities.

Fire and safety service equipment, training and funding for fighting very large hazardous fires emitting Hydrogen Cyanide and other toxic gases. Hydrogen Cyanide is more commonly used in gas chambers to kill convicts.

A safety review of the fire hazard and history of the PL300 plant.

Consideration of the design changes conceived by the Minnesota Pollution Control Agency (MPCA) to introduce burning strands from the wood dryer back into the burner fuel feed stream, not the short strand waste pile. The Deerwood PL300 plant has a design where wood in the dryers occaisionaly catches fire and the burning strands are dumped and then later transferred to the short strand waste pile. Any residual fire in these strands could ignite the waste pile. The Deerwood strand pile did catch fire and it took three fire departments to control the blaze.

Air quality inspections randomized around six month intervals.

Independent environmental monitoring and reporting.

Explicit Air Quality permits for and acknowledgment that MDI coated wood is commonly incinerated in the PL300 boiler/dryer system. Trus-Jois MacMillian's Minnesota Air Quality permit indirectly lets them burn MDI coated wood wastes and the large quantities of MDI residue that collects inside the wood coating tanks. I would like to have this decision reviewed here in Kentucky and specifically permitted or disallowed because of the production of Hydrogen Cyanide and other toxins in the combustion of MDI, and the risk that presents to the public, to firemen, and to the environment.

My Friend Walter

Posted: July 23, 2006

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Click Here

Local Treasures

Posted: July 22, 2006

WAIT & the Medwaste Incinerator

Posted: July 22, 2006

Photo Fun

Posted: July 21, 2006

Mostly Monoliths

Posted: July 21, 2006

Critturs

Posted: July 21, 2006

Fungi

Posted: July 21, 2006

Assorted Docs on Child Services in Florida

Posted: January 1, 2006

Click Here

HUD's Renewal Community Program (This is Not an official HUD site)

Posted: January 1, 2006

here

Tax Advantages and Issues in Renewal Communities

Posted: January 1, 2006

http://www.appal.org/rc_tax/

HUD's CoRA-the Committee of Responsible Authority

Posted: January 1, 2006

http://www.appal.org/rc_cora/

The Eastern Kentucky Renewal Community: Breathitt, Owsley, Wolfe, & Lee Counties

Posted: January 1, 2006

http://www.appal.org/rc_bowl/

Renaissence Communities, Main Street Programs and Renewal Communities

Posted: January 1, 2006

here:

Unfinished Bylaws of the BOWL RC

Posted: May 30, 2002

BY-LAWS

OF THE

EASTERN KENTUCKY RENEWAL COMMUNITY

ARTICLE I

LEAD ENTITY

Section 1.1 The Coordinating Responsible Authority (CoRA) will serve as the lead entity for the EKRC.

Section 1.2 The Booneville/Owsley County Industrial Authority, a 501(c)3 non-profit organization, will serve as the administrative entity for the Eastern Kentucky Renewal Community (EKRC) and the official office of the EKRC will be located at the offices of the Owsley County Action Team in Booneville, Owsley County, Kentucky for the first six month or until the CoRA has an opportunity to become a 501 © 3.

ARTICLE II

RESPONSIBILITIES

Section 2.1: Purpose The primary purpose of the EKRC is to advance economic prosperity by encouraging job development and retention, assisting individuals to gain employment, succeed in their jobs, and become economically self-sufficient. Further, the EKRC will be engaged in scientific, literary, educational and charitable activities relating to the promotion, development, establishment, and expansion of industries, businesses, and employment in and for the people of the EKRC and to assist other organizations with efforts which are not in conflict with the EKRC Course of Action.

Section 2.2: Responsibility The Coordinating Responsible Authority (CoRA) shall have overall responsibility for making sure that the State and local commitments made at the time of the application are carried out. The CoRA will develop and administer policies, procedures, and activities to implement and maximize the Federal, State, and local benefits made available in the RC. The CoRA functions as the central point of contact for the RC.

Section 2.3: TIUP The CoRA will develop a Tax Incentive Utilization Plan (TIUP) to develop and expand businesses in the RC through available Federal, State, and local incentives. Further, the CoRA will ensure that the preliminary and final TIUPs are developed with the participation of RC residents and community organizations.

Section 2.4: Fund Raising The administrative entity will have the responsibility to secure administrative funds for CoRA activities, including the marketing of the tax incentives. Take out

Section 2.5: Modifications to Course of Action The CoRA alone will have the authority to submit requests to HUD to modify State and local commitments made at the time of the application and the TIUPs and will provide evidence that the proposed modifications are necessary or desirable.

Section 2.6: Reporting to HUD The CoRA and the State or local governments within the EKRC will submit periodic reports and provide additional information, such as TIUPs, as required by HUD.

ARTICLE III

LIMITATIONS

Section 3.1 No part of any funds received on behalf of the EKRC shall be for the benefit of, or be distributable to its directors, officers or other private persons, except that the CoRA shall be authorized and empowered to approve reasonable payments for services rendered.

Section 3.2 No part of the activities of the CoRA shall be the carrying on of propaganda or otherwise attempting to influence legislation and the CoRA shall not participate or intervene in (including the publishing or distribution of statements) any political campaign on behalf of any candidate for public office.

Section 3.3 In the event of dissolution of the CoRA, the CoRA shall, after paying or making provisions for payment of all of the liabilities of the CoRA, dispose of all assets of the EKRC exclusively for the purposes of the CoRA in such a manner, or to such organization or organizations organized and operated exclusively for charitable, educational, religious, or scientific purposes relating to economic development as shall at the time qualifying as an exempt organization or organizations under Section 501 (c) (3) of the Internal Revenue Code of 1954 (or the corresponding provision of any future U.S. Internal Revenue Law), as the CoRA shall determine.

ARTICLE IV

BOARD OF DIRECTORS

Section 4.1 The CoRA will manage the affairs of the EKRC and serve as the Board of Directors.

Section 4.2: CoRA

Section 4.2.1: Number There shall be a total of thirteen (13) individuals serving as a representative of the CoRA.

Section 4.2.2: Method of Selecting CoRA Three representatives will be appointed to serve on the CoRA from each county represented in the EKRC. These appointments will be made in the following manner: each city mayor appoints one person, each county judge executive appoints one person, and each city mayor and county judge executive will appoint one person together. The state will appoint one representative.

Section 4.2.3: Quorum In order to encourage participation by CoRA representatives, a quorum shall represent a minimum of two from each county for a total of 8 present the number of appointed CoRA representatives in attendance at any given meeting. A further look at this has caused some of us to think that a total of 8 and leave off the minimum of two from each county is a better solution. Otherwise, all members from three counties could be present and not have a quorum to conduct business.

Section 4.2.4: Term of appointed CoRA representatives on the CoRA CoRA representatives shall be appointed for staggered terms with one being replaced each year from each countyevery three years. CoRA appointees are eligible to serve successive terms on the CoRA.

Section 4.3: Annual Meetings The CoRA shall host an annual meeting to be held during the calendar year at such time and place as the CoRA designates in the notice of such meeting.

Section 4.4: Regular Meetings Regular meetings of the CoRA will occur monthly at such times and places as it shall designate from time to time. . Omit~~The CoRA meetings will strictly follow the agenda and any other discussions brought up will be tabled until the end of the meeting.~~ If time does not permit open discussion at the end of meeting, the issue will be placed on the agenda for the next meeting.

Section 4.5: Special Meetings A special meeting of the CoRA may be called any time by 2 CoRA members with 48 hour noticethe Chairman, Vice Chairman, or by any six (6) CoRA representatives. The persons calling the meeting shall in the notice thereof, state the time, date, place, and purpose of the meeting.

Section 4.6: Notice of Meetings Notice of regular meetings will be given to each CoRA representative at least one week prior to the meeting. Notice of special meetings of the CoRA are required to be given at least 72 hours prior thereto either by personal contact by the person calling the meeting with each CoRA representative, by mail to each CoRA representative, or by telephone facsimile transmission to each CoRA representative. The public shall be notified of all regular, special, and annual CoRA meetings seven days in advance.

Section 4.7: Proxy Voting At any CoRA meeting, designated CoRA representatives in attendance are allowed to vote. Proxy voting will not be allowed.

Section 4.8: Public Attendance at Meetings The public will be notified of each meeting of the CoRA through advertisement in each local county newspaper. The public will be allowed to attend meetings of the CoRA, however, they will sit apart from the CoRA, will not receive any handouts given to the CoRA during the meeting, will not enter into the discussions of the CoRA, and will be allowed to speak for two minutes each at the end of the meeting during the Open and Public Comments section of the agenda.

Section 4.9: Policies and Procedures The CoRA shall develop and maintain policies and procedures as needed. Such policies and procedures shall be approved by a majority vote of the CoRA and will take effect immediately upon acceptance. A policy may be changed by a vote of the majority of the CoRA.

Section 4.10: Vacancies The vacancy of a representative on the CoRA occurs (1) when a representative resigns, or (2) when a representative is removed from office.

Section 4.11: Resignation A CoRA representative may resign at any time by written notice delivered to the CoRA, its Chairman, or to the Vice Chairman or Secretary of the EKRC. A resignation is effective when the notice is delivered unless the notice specifies a future date. The pending vacancy may be filled before the effective date, but the successor shall not take office until the effective date.

Section 4.12: Removal One or more CoRA representatives may be removed, with or without cause, by the affirmative vote of two thirds of the CoRA representatives then in office present and voting at a meeting of the CoRA. No representative may be removed unless a written notice of such meeting, stating that the purpose of the meeting is to vote upon the removal of one or more representatives named in the notice, is delivered to all CoRA representatives then in office at least one week prior to the date of any such meeting.

The CoRA may declare vacant the office of a representative if he or she is declared of unsound mind by the order of a court or is convicted of a felony, has committed a serious violation of the conflict of interest policy, or if within sixty (60) days after notice of his or her selection, does not accept such office either in writing or by attending a meeting of the CoRA, and fulfill each other requirements as the by-laws may specify. If a CoRA representative misses three consecutive meetings without advance notice of good cause, the representative’s seat shall be declared vacant.

Section 4.13: CoRA Partners There shall be recruited a multitude of partners, both local, regional, state, and national, who are very important to the EKRC. All CoRA partners will be welcome to attend meetings participate in discussions, and support and contribute to the establishment and implementation of the EKRC. CoRA partners shall not have voting rights.

ARTICLE V

INDIVIDUAL COUNTY STEERING COMMITTEES

Section 5.1: County Steering Committees Individual County Steering Committees shall be established, each of which shall consist of not less than nineteen (19) members, one of whom shall be a representative on the CoRA. The County Steering Committees may not act on behalf of the CoRA or the EKRC or bind the CoRA to any action. The CoRA secretary shall be notified of the time, date, and place of each meeting of a County Steering Committee and any CoRA representative and any CoRA officers may attend and participate in any meeting.

Section 5.2: County Steering Committee Structure Each County Steering Committee will be broadly representative of the community. Each County CoRA representative will publically advertise the formation of the committee in their county and will get volunteers from at least nineteen individuals to serve from the following sectors: business, non-profit, school (faculty), county government, city government, public safety, youth high school, youth middle school, youth elementary school, healthcare, human services, elderly, agricultural, ministerial, adult education, recreation and tourism, arts, business development, low-income parents.

Section 5.3: Meetings County Steering Committees will meet at least quarterly to work on projects in their county related to the Course of Action.

ARTICLE VI

CoRA OFFICERS

Section 6.1: Officers The EKRC CoRA shall have the following officers: Chairman, Vice Chairman, Secretary, and Treasurer.

Section 6.2: Term The initial officers shall be elected by the CoRA. Thereafter, the officers shall be elected annually by the CoRA at their annual meeting. Vacancies may be filled at any meeting of the CoRA. No officer shall serve more than two consecutive terms. Each officer shall remain in office until his or her successor is elected and qualified, subject to earlier termination by removal or resignation.

Section 6.3: Chairman The Chairman shall be the principal officer of the CoRA and shall supervise all of the business and affairs of the EKRC. The Chairman shall preside at all meetings of the CoRA. He or she shall have all such powers as may reasonably be construed as belonging to the Chairman of the CoRA. The Chairman shall be diligent in ensuring that the meeting focuses on the agenda and the business at hand and shall ensure that discussions not pertaining to the agenda be tabled until the open comments section or included on the agenda of the next meeting.

Section 6.4: Vice Chairman The Vice Chairman shall perform the duties of the Chairman in the absence of the Chairman or in the event of the Chairman’s inability or refusal to act.

Section 6.5: Secretary The Secretary shall keep detailed minutes and records of the meetings of the CoRA and shall see that all notices are given in accordance with these by-laws or as provided by law, keep a list of all CoRA representatives and their mailing addresses. The Secretary shall collect, at each CoRA meeting, written individual county reports and will keep the benchmark reports up to date and will provide this information monthly to the Administrative Entity. The Secretary shall perform other duties incidental to the office of Secretary and such other duties as may be assigned by the Chairman or the CoRA representatives.

Section 6.6: Treasurer The Treasurer shall have the responsibility for working with the administrative entity and reporting on all financial matters relating to the CoRA.

Section 6.8: Removal Any officer or agent of the EKRC may be removed by an affirmative vote of not less than two-thirds of the CoRA representatives in attendance at any given meeting, provided that such removal be without prejudice to any contract rights of the person so removed. Appointment of an agent of the EKRC shall not create any contract rights, right to compensation, or reimbursement, unless otherwise provided by CoRA action.

ARTICLE VII

CONTRACTS, CHECKS, DEPOSITS, AND FUNDS

Section 7.1: Administrative Entity The Booneville/Owsley County Industrial Authority and its staff shall serve as the Administrative Entity of the EKRC and all funds received will be deposited in a new account specifically for the EKRC.

Section 7.2: Checks, Drafts, Etc. All checks, drafts, and other orders for payment of money, notes, or other evidences of indebtedness issued in the name of the EKRC shall be signed by such officer or officers, agent or agents of the EKRC and in such a manner as shall from time to time be determined by resolution of the CoRA. In the absence of such determination by the CoRA, such instruments shall be signed by the Treasurer and countersigned by the Administrative Entity of the CoRA.

Section 7.3: Designation of Depositories All funds of the EKRC shall be deposited from time to time to the credit of the EKRC in a bank account managed by the Booneville/Owsley County Industrial Authority and in a bank that is guaranteed by the Federal Deposit Insurance Corporation or other such guarantee programs of the federal government. All funds must be deposited in a bank within the EKRC.

Section 7.4: Gifts The CoRA may accept on behalf of the EKRC any contributions, gifts (or proceeds thereof), bequests or devises for the general purposes or for any special purpose of the EKRC. Acceptable gifts shall conform to the objectives and purposes of the EKRC and be accepted according to appropriate policy and legal requirements.

Section 7.5: Grants The CoRA shall seek and accept grants and gifts from public and private sources on a federal, state, and local level which will finance programs in furtherance of the goals and purposes of the CoRA.

Section 7.6: Financial Assistance to Others The CoRA will seek funds to administer the programs and responsibilities outlined in the Course of Action that will be regionally effective. Individual counties will have the responsibility of seeking funds to implement programs within their own counties. The CoRA will not serve as a conduit of funds outside of CoRA responsibilities.

ARTICLE VIII

CONFLICT OF INTEREST

Section 8.1: Statement of General Policy The CoRA recognizes that both real and apparent conflict of interest or dualities of interest (hereinafter referred to as “conflicts”) may unintentionally occur in the course of conducting the EKRC’s daily affairs. A conflict as used in these by-laws refers only to personal, proprietary interests of the persons covered by this policy and their immediate families and not philosophical or professional differences of opinion. Conflicts occur because the many persons associated with the EKRC should be expected to have, and do in fact generally have multiple interests and affiliations and various positions of responsibility within the community. Sometimes a person will owe identical duties to two (2) or more organizations conducting similar activities.

Conflicts are undesirable because they potentially or apparently place the interest of others ahead of the EKRC’s obligations to its purposes and to the public interest. Conflicts are also undesirable because they often reflect adversely upon the persons involved and upon the institutions with which they are affiliated, regardless of the actual facts or motivations of the parties. The long range best interests of the EKRC, however, do not require the termination of all association with persons who may have real or apparent conflicts if a prescribed and effective method can render such conflicts harmless to all concerned. Therefore, the EKRC’s affirmative policy shall be to require that all actual or apparent conflicts be disclosed promptly, publicly, and fully to the CoRA and to prohibit specified involvement in the affairs of the EKRC by persons having such conflicts. Failure to disclose may result in removal from the Board.

Section 8.2: Coverage This coverage shall apply to all representatives of the CoRA and all officers or agents of the EKRC, including independent contractors providing services or materials. The EKRC’s Administrative Entity shall have the affirmative obligation to publicize periodically this policy to all such parties.

Section 8.3: Disclosure of All Conflicts All persons to whom this policy applies shall disclose all real and apparent conflicts, which they discover or have brought to their attention in connection with the EKRC activities. “Disclosure” as used in these by-laws shall mean providing promptly to the appropriate person a description of the facts comprising the real and apparent conflict.

Section 8.4: Proscribed Activity by Persons Having Conflicts When an individual CoRA representative, officer or agent believes that he/she or a member of his/her immediate family might have or does have a real or apparent conflict, he/she must, in addition to disclosing same, abstain from making motions, voting, executing agreements, or taking any other similar direct action on behalf of the EKRC where the conflict might pertain, but shall not be precluded from debate or other similar involvement on behalf of the EKRC. When any person requests in writing, or upon its own initiative, the CoRA at any time may establish further guidelines consistent with the interests of the EKRC for the resolution of any real or apparent conflict.

KRADD Historic Trends and Geographic Patterns: UKAC

Posted: May 27, 2002

Historic Trends and Geographic Patterns


By Timothy Collins, Ronald D Eller, and Glen Edward Taul
Maps by Eugene McCann and Stephen Hanna
With assistance from Sarah Dewees, Theresa Rajack, and Boyd Shearer

This study was developed by the University of Kentucky Appalachian Center under a contract with the Kentucky River Area Development District, with major funding from the Ford Foundation.

TABLE OF CONTENTS
# PART I
# KRADD: A Distinct Region Within The Cumberland Plateau 1
# Introduction 1
# Early Development Patterns 1
# Industrialization, 1861-1920 4
# The Great Depression and Beyond 6
# PART II
# INTRODUCTION 11
# DEMOGRAPHICS 11
# POPULATION CHANGES 11
# POPULATION BY AGE GROUP 12
# GEOGRAPHY OF POPULATION DISTRIBUTION 15
# EMPLOYMENT 16
# BUSINESS ESTABLISHMENTS 17
# TOTAL EMPLOYMENT 18
# MINING EMPLOYMENT 19
# MANUFACTURING EMPLOYMENT 20
# GOVERNMENT EMPLOYMENT 20
# SERVICE JOBS 21
# LABOR FORCE CHARACTERISTICS 22
# UNEMPLOYMENT RATES 22
# LABOR FORCE PARTICIPATION 23
# WORK FORCE COMMUTING PATTERNS 23
# WAGES AND INCOME 24
# AVERAGE EARNINGS FOR JOBS 24
# AVERAGE PLACEMENT WAGES 25
# PER-CAPITA INCOME 25
# PER-CAPITA TRANSFER PAYMENTS 26
# TOTAL PERSONAL INCOME 27
# PERSONS WITHOUT WAGES 28
# PERSONS WITH SELF INCOME 29
# POVERTY 30
# POVERTY RATES 30
# CHILDREN UNDER 18 IN POVERTY 31
# PERSONS RECEIVING PUBLIC ASSISTANCE 33
# EDUCATION 34
# HIGH-SCHOOL GRADUATES 34
# ASSOCIATE DEGREES 35
# OVERALL RANKING AND CONCLUSIONS 36
# GROWTH CENTER DEVELOPMENT 36
# DEMOGRAPHICS 36
# EMPLOYMENT 36
# LABOR FORCE CHARACTERISTICS 36
# WAGES AND INCOME 38
# POVERTY 38
# EDUCATION 38
# PART III
# SELECTED COMMUNITY ORGANIZATIONS SERVING KRADD 39

2000 Census Reports for the BOWL RC

Posted: May 25, 2002

These tables present basic population counts, education levels, and business facts for Breathitt, Owsley, Wolfe and Lee Couties.

People and Business QuickFacts Wolfe County, Kentucky

Private nonfarm establishments, 1999 75
Private nonfarm employment definition and source info Private nonfarm employment, 1999 623
Children below poverty, percent, 1997 model-based estimate 46.4%

People and Business QuickFacts Lee County, Kentucky

College graduates, persons 25 years and over, 1990 268
Private nonfarm establishments, 1999 111
Private nonfarm employment, 1999 1,906
Children below poverty, percent, 1997 model-based estimate 47.0%

People and Business QuickFacts Breathitt County, Kentucky

College graduates, persons 25 years and over, 1990 809
Private nonfarm establishments, 1999 236
Private nonfarm employment, 1999 2,322
Children below poverty, percent, 1997 model-based estimate 44.9%

People and Business QuickFacts Owsley County, Kentucky

College graduates, persons 25 years and over, 1990 312
Private nonfarm establishments, 1999 44
Private nonfarm employment, 1999 269

Children below poverty, percent, 1997 model-based estimate 50.0%

Linda Schakel's RC Tax Incentives Seminar: May 14th, 2002 Posted: May 16, 2002

RC Tax Incentives Seminar: May 14th, 2002

This is most of a two hour seminar on RC tax incentives. The speaker is Linda Schakel, a leading authority on RC taxation. The seminar was directed to accountants and business people, but was attended by a broad range of residents from the Eastern Kentucky (BOWL) RC. It was sponsored by the University of Kentucky Cooperative Extension Service (with many partners).

Download Part 1 first (about 5 minutes on a modem line), and then pull down the rest while you listen. Click on the "Part #" to download. Part 1, Part 2, Part 3, Part 4, Part 5, Part 6, Part 7

The meeting sound files are low fidelity MP3's.

The files are sized to download quickly and to fit on a floppy diskette. You can bring down the first file in less than 5 minutes. While listening to the first part of the meeting, you can download the remaining files.

Use any MP3 player to listen to the meeting files. Common players are the Windows (c) Media Player, FreeAmp, Xmms, and any of the standalone players like the Rio.

Please forgive the sound quality, and the occaisional pops, warbles and dropouts-MP3's are a "lossey" compression technology and many compromises are made to make the files this small.

Copyrighted Material Posted: May 16, 2002
This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: www4.law.cornell.edu If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner

BOWL Renewal Community Application Narrative Posted: May 15, 2002
NB: You may download this document in
RTF,
DOC, or
PDF formats.

BREATHITT, LEE, OWSLEY, AND WOLFE COUNTIES

RENEWAL COMMUNITIES APPLICATION

SECTION

1. Notice of Intent to Apply

2. Identification of Nominated Area

3. Certification to Economic Condition Requirements

4. Course of Action

Signed Cooperative
Commitment

Goals and Actions

Recognition of Past
Efforts

Timeline

Performance
Measures and Evaluation

5. Local Crime Index Certification

6. Certification of Economic Growth Promotional Requirements

7. Public Notice Certification

8. Attachments:

Attachment 1: Kentucky Title IV-A State TANF Plan

Attachment 2: Jefferson Hotel Skills Center

Attachment 3: Fund for Excellence

Attachment 4: Regional Childcare Service Agents

Attachment 5: Pine Ridge Regional Industrial Park

Attachment 6: Panbown Lake Industrial Park

Attachment 7: Lee County Industrial Park

Attachment 8: Lone Oak Industrial Park

Attachment 9: East Central Kentucky Workforce Report

Attachment 10: Owsley County KREDA Proposal to Governor Paul
Patton

Attachment 11: Kentucky Business Incentives.

Attachment 12: Local County LGEDF Spreadsheets.

Attachment 13: Renewal Communities Project Surveys

Attachment 14: Champion Communities Benchmark System Report.

COURSE OF ACTION

COOPERATIVE COMMITMENT TO THE RENEWAL COMMUNITIES COURSE OF ACTION

PARTNERSHIPS AND AGREEMENTS

Located in the beautiful mountains of eastern Kentucky, and in the heart
of Appalachia, Breathitt, Lee, Owsley, and Wolfe Counties, important
regional organizations, as well as the Commonwealth of Kentucky have
been working hard to improve the economic condition of our distressed,
isolated communities. We are working to prepare our area for growth despite
the difficult obstacles we face as a result of the geographic isolation,
generational poverty, dependence on assistance, low educational levels
that have caused a lack of motivation in our people, a poor transportation
system, and, most importantly, a lack of jobs.

However grim the circumstances may seem statistically, our communities
are blessed with a population of good people who do the best they can
to enjoy life with limited resources. For the most part, our people
are happy with their quality of life and find the slow pace of community
life peaceful and enjoyable. They have gotten used to having time to visit
and talk with their neighbors. When bad things happen, our people are
there to provide support and help where they can. On the other hand,
our people want to work. In fact, many people want to have a job so badly
that they drive long distances to get to work.

Most importantly, our people have learned from their mistakes. Individuals
with little income manage their money better than most. And they
know more about what kind of community they need than most. Individuals
in our communities have committed to growth. Not only community growth,
but personal growth as well. They want an opportunity to learn and work.
They take pride in providing for their families. Our people are proud
of their mountain heritage and, due to years of struggle, have gained
a variety of experiences and skills that qualify them to assure the success
of a Renewal Community designation.

This area, from the beginning of this process, made a sincere commitment
to form a cooperative partnership in order to bring our communities
into the 21st Century. When asked, Where are you from?, one person
who moved to Owsley County within the last three years fondly replies,
Im from the 1950's. The small town way of life, like years ago, means
a lot to people. Everyone knows most everyone, and if anything happens,
everyone knows. Children are raised with less of a focus on material
lifestyles and more on the quality of lifestyle. Families are important.
They stick together in the toughest of circumstances. Although the small
town way of life is important, our people welcome job opportunities
and look forward to taking care of themselves. Many realize that with
the loss of agriculture income from tobacco farming, their livelihood
depends on available jobs.

Recognizing the benefits of the Renewal Communities designation, there
are a great number of individuals waiting on an opportunity to be involved.
Individual community members are excited about the possibility of
locally available jobs. The leaders of these counties have proven their
involvement and commitment by their work during this process and in
the past. This group is committed to the implementation of the benefits
of this designation and have committed to participate in the program
throughout the entire designation.

The partners described below, whose commitment is evidenced by their signature,
have a history of partnership and programs in the designated area. Some
of them have experience in working with currently designated Empowerment
Zones, Enterprise Communities, and Champion Communities. (Both Breathitt
and Owsley Counties are recognized Champion Communities.)

It is the desire of these partners that the public have input into every
aspect of this designation and its implementation. We have committed
to settle for nothing less. Every person counts and their input is
considered valuable. Not only does this give the public the assurance that
they are going to be included in the process, it also shows a deep respect
for individual people, not just the community.

During the past few years, we have been involved in a broad range of activities
that not only help to prepare our communities to attract business and
create jobs, but also to create an atmosphere where individuals can
gain self confidence and become self-sufficient, hard working people who
are able to care for themselves. These activities could not have been
accomplished had it not been for the active involvement and support
of numerous local, regional, state, and national partners who have
not only encouraged our participation, but also has supported our participation
through personal involvement.

The following list briefly describes the main partners in the Breathitt,
Lee, Owsley, and Wolfe Counties Renewal Communities initiative.

The Commonwealth of Kentucky
(http://www.state.ky.us)

The Commonwealth of Kentucky is dedicated to improving the quality of life
and the standard of living for all of its citizens. In the last five
years, Kentucky has made tremendous progress in a number of areas. We
have diversified the economy, invested in transportation and communications
infrastructure, improved healthcare delivery, extended education reform,
and increased the number of visitors to our state through aggressive
tourism programs.

Recognizing that Appalachian Kentucky is not advancing at the same
rate as the rest of the Commonwealth, the Governor has made a commitment
to assist our area of the state to become more economically sound.
Through the Cabinet for Economic Development, the Cabinet for Families
and Children, the Workforce Development Cabinet, the Transportation Cabinet,
the Cabinet for Health Services, and other divisions, Kentucky provides
our communities with staff and resources to assist us in becoming
more self-sustaining. Kentucky does not only encourage economic growth,
but personal growth as well.

Kentucky Cabinet for Economic Development (http://www.edc.state.ky.us)

The Kentucky Cabinet for Economic Development is responsible for creating
new jobs and new investment in the state. Programs administered by
the Cabinet are designed to support and promote economic development
within the state primarily through attracting new industries to the state,
assisting in the development of existing industries, and assisting communities
in preparing for economic development opportunities.

The Cabinet consists of the Office of the Secretary, the Office of the
Commissioner for the New Economy, the Department for Coal County Development,
the Department for Business Development, the Department of Financial
Incentives, the Department of Community Development, and the Department
of Administration and Support.

Through the regional office in Prestonsburg, the Cabinet for Economic Development
is familiar with area businesses, communities, and local leaders in economic
development. Their specialists offer assistance to Kentucky businesses
through existing and expanding business programs and site and infrastructure
development programs, including access to technical advice for communities
utilizing their single and multi-county coal severance funds. They also
work with local communities by assisting with the marketing of county
and regional industrial parks and speculative buildings.

Kentucky offers some of the most innovative tax incentives and business
development programs in the nation to new and existing businesses.
These programs are designed to help existing businesses in the state
grow and prosper and encourage new firms to join Kentuckys business population.
Low business costs, a wide range of tax and financial incentives, and
licensing and marketing assistance programs are just a few of the innovative
programs available to encourage business investments and expansion
in Kentucky.

Kentucky Cabinet for Families and Children (http://cfc.state.ky.us)

The Cabinet for Families and Children provides human services for the citizens
of Kentucky. The Cabinets services include protection for vulnerable
children and adults, child abuse investigations, foster care, adoptions,
child support collections, cash assistance, food stamps, disability
determinations, and more.

The Kentucky Transitional Assistance Program (K-TAP) is administered through
the Cabinet for Families and Children and provides financial and medical
assistance to needy dependent children in Kentucky and the parents,
or relatives, with whom the children are living. This program offers
temporary cash assistance to families in order to assist families in finding
jobs or getting training that leads to a job.

The K-TAP mission is to provide families with the tools to become self-sufficient
while ensuring children are protected and valued. Their goals are to
move their clients into full-time, unsubsidized employment, help their
clients retain jobs and, when necessary, obtain re-employment, assist
families to become self-sufficient, involving clients in work activities
in order for them to become self-sufficient before their five year
limit expires, and to ensure that children live in a safe, secure environment.

Their approach is to develop partnerships with other state agencies, local
governments, community based organizations and employers to provide linkages
for Kentucky Works participants for services to reduce barriers to
employment, to integrate services, to develop multiple strategies recognizing
the varying strengths and needs of clients and communities, to encourage
communities to develop broad based collaborations for local plans for
welfare reform and regionalized economic development strategies, and
to maximize all state and local resources. They also provide information
and support to participants enabling them to recognize their own strengths,
value work, formulate goals, choose options, and meet new expectations.
They integrate the new mission into service delivery through training
for case managers and communication with service providers.

The Kentucky Cabinet for Families and Children (CFC) is responsible for
the TANF block grant. TANF is administered by the Department for Community
Based Services (DCBS) within the CFC. DCBS offices are located in every
county. Case managers work in partnership with families to support
their efforts toward self-sufficiency. Coordinators serve as program consultants
in Kentucky Works policy and act as facilitators/resource persons with
other agencies.

The East Kentucky Corporation (http://www.eastkentucky.com)

The East Kentucky Corporation, created in 1990, is dedicated to increasing
sustainable employment opportunities within eastern Kentucky by marketing
the region as a good place to live and locate a business, increasing
attention to knowledge-based industries and workers, partnering with
other organizations with similar goals, helping existing businesses,
and promoting an entrepreneurial climate.

The East Kentucky Corporation owns and operates a small revolving loan
fund for assisting in financing eligible entrepreneurial businesses
at both their start-up state and their first expansion stage. In as
much as possible, the East Kentucky Corporation seeks to partner with local
commercial lenders, as well as other non-profit and public agency small
business lenders.

Kentucky River Area Development District

The Kentucky River Area Development District is a quasi governmental agency
working with city and county governments in the KRADD area to improve
the quality of life for our citizens. KRADD was officially organized
on May 13, 1968, the third of the fifteen Area Development Districts
formed in Kentucky as non-profit planning and development organizations.
KRADD serves as a representative of local units of government and
citizens throughout the area and as a communication network for cities,
counties, states, and federal governments. KRADD also serves as a center
for information and data pertaining to the Kentucky River Area. KRADD
has helped to provide a forum where Mayors, County Judge Executives,
legislators, and citizen lenders can discuss problems and projects
of mutual concern in order to improve the quality of life in our mountain
region.

KRADD serves all of the counties located within the designated zone through
physical resources including economic development, a revolving loan fund,
mapping and Geographic Information System services, public administration,
transportation planning, community resource planning and coordination
of the state PRIDE program, and human resources such as nutrition planning,
support services, the Senior Community Service Employment Program, home
care, long-term care ombudsman program, family caregivers program, community
collaboration for children, and rental assistance.

Middle Kentucky Area Development Council

The Middle Kentucky River Area Development Council integrates their services
with existing services within the community to provide a holistic approach
to services that strengthen families, address barriers to success,
and support economic growth in Breathitt, Lee, Owsley, and Wolfe Counties.
Beyond providing services to individuals, Middle Kentucky is dedicated
to the improvement of business, the availability of jobs, improved local
community government, and local services, working with these agencies
both as customers and collaboration partners in these endeavors.

Middle Kentucky programs include Workforce Investment Act programs aimed
at providing assistance with locating employment and training; Head
Start, serving children between the ages of 3 and 5 years old; LIHEAP,
a federally funded program that offers energy assistance to low-income
individuals and families through subsidy and crisis; TOPS Job Club,
a welfare-to-work initiative operated by the Eastern Kentucky Concentrated
Employment Service on site at Middle Kentucky to provide assistance
with career planning, job readiness, and life skills to aid clients in
becoming self-sufficient; Middle Kentucky Transportation, providing transportation
alternatives to places of employment, educational facilities, medical
facilities and other areas; an educational program conducted during
the fall just prior to college starting which helps low-income clients
with tuition and books; a weatherization program which assists low-income
families and those with disabilities with insulation against winter
weather through applying techniques to conserve energy and to help
utility costs become affordable; and a Title III-C Nutrition program providing
meals throughout the four county area.

Mountain Association for Community Economic Development (http://www.maced.org)

The Mountain Association for Economic Development has a history of successful
work in the designated area. The Owsley County Action Team, now an independent
non-profit organization, was part of MACEDs Sustainable Communities
Program for five years. MACEDs Business Development program complements
resources locally-owned businesses need to prosper in todays business
environment. MACED loan customers are typically unable to obtain sufficient
financing from conventional sources, but share MACEDs commitment to
building sustainable and vibrant local economies. This is best demonstrated
when a company creates jobs from within the community, and shows a
willingness to pay livable wages, build employee skills, and provide
benefits such as health insurance and retirement plans.

MACED offers below-market rates and innovative financing options by packaging
loans with both public and private sources. They have contributed to
the growth, financial stability, and long-term success of many area
businesses. The staff is experienced in helping companies reach their goals
by providing assistance with business planning, financial statements,
and assessing and meeting their capital needs.

Southern Kentucky Economic Development Corporation (http://www.southernkentucky.com)

The Southern Kentucky Economic Development Corporation is a private, non-profit
organization whose mission is to create jobs in a 27-county service area
in southern Kentucky. The organization creates job opportunities by
providing business and industry leaders access to capital and by attracting
new business to the region. They accomplish this mission by providing direct
loans, small business technical assistance, and by offering community/economic
development services to local communities. SKEDC is certified by the
U.S. Department of the Treasury as a Community Development Financial
Institution and has invested $5.1 million in 31 industries established
or expanding operations in southern Kentucky. Through SKEDC programs,
more than 1,600 new jobs have been created in the region.

SKEDC financed a 25,920 square foot speculative industrial building in
Owsley Countys Lone Oak Industrial Park through its Industrial Building
Loan Fund. This building is one of two speculative buildings funded
through the loan program. A second building is located in Jackson County.
The Industrial Building Loan Fund is made possible through a grant from
the Economic Development Administration. Through the program, SKEDC
provides funding to local communities to erect speculative buildings.
The building project must involve a minimum investment of $250,000.
Loans may only be made to purchase land and erect industrial buildings.

There are a number of other local organizations who provide services to
individuals in need and to raise the self esteem and motivation in individuals
so they can become successful, self-supporting people. There are also
many organizations dedicated to the economic growth of this area. The goals
and actions listed in this document identifies some of the major partners
who are committed to helping people become economically self-sufficient
and succeed in their jobs. In addition to many other organizations too
numerous to mention, we have established partnerships with federal agencies
including HHS, HUD, USDA, EDA, EPA, ARC, Department of Energy, Department
of Commerce, and many private foundations including the Mary Reynolds
Babcock Foundation, the Christian Appalachian Project, the Environmental
Support Center, the Southern Baptist Corporation, the Waitt Family
Foundation and many local partners including Image Entry, Farmers State
Bank, Peoples Rural Telephone Cooperative, Farm Bureau Insurance, Middlefork
Insurance, Breathitt, Lee, Owsley, and Wolfe County Fiscal Courts,
the Cities of Beattyville, Booneville, Campton, and Jackson, and many
other local sources. And, as the years go by, many new partnerships will
be created, not only with providers of services, including business,
but the individuals who represent our successes.

Signed Cooperative Commitment

The following signatures represent our overall commitment to take full
advantage of all benefits relating to a Renewal Community designation.
Most importantly, they represent our commitment to the individuals
in our community for whom these benefits are intended.

Representing the Commonwealth of Kentucky: Paul Patton Governor

Representing the Kentucky Cabinet for Economic Development:

Representing the Prestonsburg Regional Office of the Kentucky Economic Development:

Representing Breathitt County: Robert E. Cornett, County Judge Executive

Representing Lee County: L. C. Reese, County Judge Executive

County Judge Executive Representing Owsley County: Jimmie Herald, County
Judge Executive

Representing Wolfe County: Darrell Bumgardner, County Judge Executive

Representing the City of Beattyville: (Lee County) Charles Beach, III

Representing the City of Booneville: (Owsley County) Charles Long
Mayor Mayor

Representing the City of Campton: (Wolfe County) Richard Jett Mayor

Representing the City of Jackson: (Breathitt County) Michael Miller
Mayor

Representing the East Kentucky Corporation: Tom Jones Executive
Director

Representing the Kentucky River Area Development District:

Representing the Middle Kentucky Area Development Council:
Darrell Shouse Executive Director

Representing the Mountain Association for Community Economic Development:
Tom McRae President

Representing the Southern Kentucky Economic Development Corporation:
Greg Jones Executive Director

GOALS AND ACTIONS

Our goals and actions represent the following four of the six criteria
outlined in the Renewal Communities Application Guide:

An increase in the level and efficiency of local services within
the Renewal Community, such as services for residents funded through
the Federal Temporary Assistance for Needy Families program and related
Federal programs including, for example, job support services, child
care and after school care for children of working residents, employment
training, transportation services, and other services that help residents
become economically self sufficient.

Crime reduction strategies, such as crime prevention, including the
provision of crime prevention services by non-governmental entities.

Involvement in economic development activities by private entities,
organizations, neighborhood organizations, and community groups, particularly
those in the Renewal Community, including a commitment from such private
entities to provide jobs and job training for, and technical, financial,
or other assistance to, employers, employees, and residents from the
Renewal Community.

The gift or sale at below fair market value of surplus real property
held by state or local governments, such as land, homes, and commercial
or industrial structures in the Renewal Communities to neighborhood
organizations, community development corporations, or private companies.

The following identifies our proposed actions that meet the required
goals.

Goal 1: To increase the level and efficiency
of local services within the Renewal Community, such as services for
residents funded through the Federal Temporary Assistance for Needy
Families program and related Federal programs including, for example,
job support services, child care and after school care for children of
working residents, employment training, transportation services, and
other services that help residents become economically self-sufficient.

Actions:

Provide tools to assist families in become self-sustaining.

Create opportunities to earn a family wage.

Focus on individual needs and regional distinctions.

Partner with families and the community as a whole.

Provide opportunities for education and work experience.

Enlist the aid of other state agencies, local government and the
private sector to expand work opportunities.

Provide access to entrepreneurial training and small business development
programs for individuals and businesses in the zone.

Provide locally available access to basic and specific job skills
training.

mprove access to safe, affordable childcare for working individuals
throughout the zone.

Encourage the use of available transportation opportunities and market
this information to individuals who live within the zone.

Provide assistance to farmers to take advantage of financial and
technical resources available.

Expand and improve the availability of housing, including low-income,
assisted living, and emergency housing services throughout the zone.

Create housing opportunities for individuals interested in renting
or purchasing a home.

Improve communication between communities and schools and create
more opportunities for involvement and input.

Improve the school drop-out rate throughout the zone.

Utilize the 21st Century Community Learning Center throughout the
zone and offer access to individuals of all ages during and after school.

Improve and expand educational opportunities for adults and young
people who have dropped out of school throughout the zone.

Enhance, improve, and expand the public libraries throughout the
zone in order to offer a larger selection of materials and to improve
public access.

Improve the publics availability to technology and technological
resources and learning opportunities throughout the zone.

To improve accessibility to after-hours and emergency healthcare
facilities for all individuals throughout the zone.

Social Services and Assistance

The State of Kentucky has many programs that aid families to become self-sufficient.
Most notably is the Kentucky Transitional Assistance Program (K-TAP),
administered through the Cabinet for Families and Children. K-TAP
provides financial and medical assistance to needy dependent children
in Kentucky and the parents, or relatives, with whom the children are
living. This program offers temporary cash assistance to families in
order to assist families in finding jobs or getting training that
leads to a job. (See Attachment 1: Kentucky Title IV-A State TANF Plan,
July 2001.)

The K-TAP mission is to provide families with the tools to become self-sufficient
while ensuring children are protected and valued. Their goals are
to move their clients into full-time, unsubsidized employment, help
their clients retain jobs and, when necessary, obtain re-employment, assist
families to become self-sufficient, involving clients in work activities
in order for them to become self-sufficient before their five year
limit expires, and to ensure that children live in a safe, secure
environment.

Their approach is to develop partnerships with other state agencies, local
governments, community based organizations and employers to provide
linkages for Kentucky Works participants for services to reduce barriers
to employment, to integrate services, to develop multiple strategies recognizing
the varying strengths and needs of clients and communities, to encourage
communities to develop broad based collaborations for local plans
for welfare reform and regionalized economic development strategies,
and to maximize all state and local resources. They also provide information
and support to participants enabling them to recognize their own strengths,
value work, formulate goals, choose options, and meet new expectations.
They integrate the new mission into service delivery through training
for case managers and communication with service providers.

The Kentucky Cabinet for Families and Children (CFC) is responsible
for the TANF block grant. TANF is administered by the Department for
Community Based Services (DCBS) within the CFC. DCBS offices are located
in every county. Case managers work in partnership with families to
support their efforts toward self-sufficiency. Coordinators serve as program
consultants in Kentucky Works policy and act as facilitators/resource
persons with other agencies.

Local CFC office staff are dedicated to making sure that all clients
receive adequate information on available assistance and other opportunities
for personal growth. The workers are caring and professional and work
hard to make sure their clients understand their benefits and any time
limits they may be facing. They especially encourage clients to take
advantage of any educational and job preparedness and training programs
to prepare these individuals for work. They make many home visits to
stay in touch with those who do not keep regular appointments or find it
difficult to travel to the office. Additionally, the CFC is involved
actively in community programs and organizations and are more than
willing to assist in any projects that can benefit those they serve.

Middle Kentucky Area Development Council (MKADC) provides a weatherization
program (which served 32 homes during the last year) which provides
cost effective energy conserving home improvements to low-income families
and those with disabilities. The program focuses on insulating against
winter weather through applying techniques to conserve energy and to
help utility costs remain affordable. With current funding, they plan
to serve 45-50 homes. Additionally, they provide the Low-Income Heat
and Energy Assistance Program (LIHEAP) which offers energy assistance
to low-income individuals and families through two components: subsidy
and crisis. Subsidy provides a one-time payment for heating costs. The
crisis component serves clients who have received disconnect notices
and will be without heat within five days. Payment amount for both
components are determined by the family size, income, and primary source
of heat used in the home, and is paid directly to the vendors. Last
year, 4,943 individuals were served through the subsidy component and
2,864 were served through the crisis component. They work through local
Community Action Agencies to gather applications for these programs.

Family and Youth Service Centers, located at each elementary and high school
in every county, work with children and families on parenting skills,
parent/child activities, and referrals to other organizations for services
or assistance.

The Caring Place, while also providing job training and support services,
offers assistance with family management skills, access to agricultural
assistance, home food processing and training, access to the food
pantry, budgeting, counseling, access to domestic violence shelters, legal
aid, disaster assistance, clothing assistance, prevention programs,
health education classes, access to drug and alcohol counseling, school
supplies, and tutoring.

Kentucky Community Care provides mental health and drug and alcohol
abuse counseling.

Education and Work Experience

We will continue working with state agencies such as the Cabinet for Economic
Development, the Department for Employment Services (DES) and the Workforce
Development Cabinet to take advantage of training opportunities offered
to assist individuals to prepare for work. These agencies have been
the backbone of training opportunities in the State of Kentucky and have
a history of important involvement throughout the state with organizations
trying to improve the lives of their people. One example of state
involvement is to provide incentives for businesses to hire individuals
and provide the necessary training by providing matching grants for
training programs.

The State of Kentucky, through the Cabinet for Families and Children, created
an independent corporation within the Cabinet for Economic Development,
called the Bluegrass State Skills Corporation (BSSC), providing grants
for customized skills training of workers for new, expanding, and existing
businesses and industries in Kentucky. Matching grants are awarded for portions
of an employers eligible costs for training Kentucky residents in job
skills ranging from entry level to advanced, including retraining, occupational
upgrading, and skills upgrading of existing employees. The BSSC works
with other employment and job training resources, and financial incentive
agencies to design a training program customized to meet the specific needs
of a company. Approved training can be provided by an educational institution,
training consultants, or by the companys own trainers. BSSC funds
can be used for curriculum development, instructor fees, instructional
materials, and the purchase of training equipment (under capacity building
programs).

BSSC can also help to cover a portion of the travel costs for the employees
of new, expanding, and existing Kentucky industries that must be sent
outside of Kentucky or the United States for training as company instructors.
The instructors must return to the company and train other employees on
similar equipment, processes, and procedures. BSSC can reimburse the
company partially for the instructor/trainers out-of-state travel and
lodging expenses. BSSC also provides existing companies the ability to
claim state income tax credits for 50% of their approved costs for occupational
and skills upgrade training costs. The credits are limited to $500
per employee and cannot exceed $100,000 per company per biennium. Training
may be provided by company employees, educational institutions, or
training consultants. Priority will be given to high performance companies
as determined by the BSSC, and total investment credits are limited
to $2,500,000 per year.

The Kentucky Workforce Development Cabinet (http://www.kycwd.org), through
the Department of Employment Services (DES) provides assistance to Kentucky
employers in the areas of employee services. The DES provides recruitment,
screening, and referral services. These services are provided at no
cost to either employers or employees. Through its local offices located
across the state, the Department performs screening of potential employees
for the individual employers selection criteria, assesses job applicants
work experience, education, and training, refers only qualified applicants
to the employer for potential interviews, assists with the initial documentation
of foreign workers, and certifies qualified job applicants whose employment
will qualify the employer for federal and state tax incentives. Recruitment
and placement services have been so successful that many employers
now accept job applications only through the DES.

The Office of Development and Industry Relations within the Workforce Development
Cabinet coordinates the Cabinet and its agencies business and industry
training activities. This office acts as a one-stop-broker for both
local and statewide needs. Industry-specific, customized training,
screening, and assessing are offered by agencies within the Workforce Development
Cabinet.

The Kentucky Community and Technical College System (http://www.kctcs.net)
provides access to educational programs at more than 100 extended sites,
centers, and campuses located across the Commonwealth. The 29 communities
and technical colleges in the KCTCS offer various human resource services
that can impact employee performance levels. The KCTCS may offer assistance
in the hiring and selection process utilized by Kentuckys new, existing,
and expanding businesses. The Work Profiling System is a structured
job analysis utilized by the community colleges to provide companies
with accurate information regarding task analysis, staff selection, employee
development, competency identification, and training needs assessment.
This system has been invaluable to Kentucky businesses in the development
of customized employee recruitment and screening processes that may
include industry-specific application screening, behavioral and ability
assessments, and structured interviewing. Each college has a business
and industry liaison available to analyze the individual needs of business
and industry and to propose ways to meet those needs. In addition,
the KCTCS Mobile Training Unit moves around the state delivering on-the-site
training in CNC, PLC, and CADD/AutoCADD. Distance learning classes, teleconferences,
and satellite feeds are part of the services offered by the colleges.
Locally, Hazard Community College provides these services through the
Lees College Campus in Jackson (Breathitt County), and by videoconference
through CenterNet and KTLN sites.

It is a goal of the Department for Technical Education and the Cabinet
for Workforce Development to create a collaborative relationship with
local school districts to enhance growth in Kentuckys educational community.
The Kentucky Department for Technical Educations state operated system
of Kentucky TECH schools provides quality technical education through
52 secondary schools known as Area Technology Centers. The primary purpose
of area technology centers is to serve high school students by enhancing
and expanding student career options that lead to continuation of education
at the postsecondary level and/or successful employment upon graduation
from high school. Students receive instruction in sound academic principles,
theory, laboratory and clinical experiences to ensure they can compete
successfully in todays changing workplace. The area technology centers
serving the designated area are located within Lee and Breathitt Counties.

The Kentucky Department for Adult Education and Literacy (http://www.state.ky.us/agencies/wforce/dael)
is a network of local instructional programs funded throughout the
state that are designed to assist adults in acquiring knowledge and developing
the potential to achieve their goals in the workplace, at home, and
in society. Their programs include adult education which offers basic
education skills to adults in their roles as learners, workers, family
members, and citizens to enable them to develop coping skills for living
and wage earning, and to better their self-concepts. The GED classes
provide adults with the skills necessary to pass the high school equivalency
exam. The Family Literacy program is an intense on-going program which
provides educational opportunities for family members to learn together.
Finally, the SKILL program provides customized workplace essential skills
classes to business and industry which enhance worker skills enabling
them to cope with their occupations and increase wage earning potential.
Adult education centers are located in each county located within the
designated zone.

The State has also created the Kentucky Virtual Library (1998), the Kentucky
Virtual University(1999), and the Kentucky Virtual Adult Education (2001)
websites available on-line. These services offer instant access to
information as well as educational opportunities. These sites offer
one-stop access to affordable college credit courses and professional development
programs as well as access to literacy information, curriculum, resources,
and services in an easy-to-use and motivational format. (http://www.kyvu.org;
http://www.kyvae.org; http://www.kyvl.org)

Locally, There are a number of available opportunities related to
job skills, job preparedness, and job placement. All compliment and
enhance, rather than duplicate services in order to offer more diverse
training programs to a broader group of people.

The Owsley County Action Team implemented a Steps-to-Success Welfare-to-Work
training program with WTW funds through the Eastern Kentucky Concentrated
Employment Program. This program was designed well, however, qualifying
restrictions kept many from attending. This program allowed us to serve
only the hard-to-serve group of individuals who have received KTAP for
more than two and a half years. This group of individuals are the hardest
to motivate. There were over 50 individuals who wanted to take the training,
however, because they only received food stamps and a medical card,
or, if they were underemployed or temporarily unemployed, were married,
or part of the working poor, they did not qualify and were not allowed to
be served.

The community has expressed a need for training programs available to anyone
who wants to receive training and who is in financial need of assistance
in getting that training. Therefore, the Owsley County Action Team has
plans to re-implement the Steps to Success training program, create
a curriculum related to the use of computer technology in a work environment,
utilize the PowerUp computer lab that will be installed soon, and CenterNet,
and will seek funding that will allow them to broaden the qualifying
guidelines so that more individuals who need training can get training.

Regarding the use of technology, the Owsley County Action Team is becoming
an important technical resource in that they have expanded the availability
and public interest in and use of computers and video conferencing capabilities.
Recently, the Action Team partnered with the Center for Rural Development
to implement CenterNet, a video-conferencing, distance learning, and
public Internet service. This provides a large and small video conferencing
unit, furniture, four public access computers, and Internet access
through a T1 line. Additionally, the soon-to-beinstalled PowerUp
computer lab and Vista worker will coordinate computer and technology
programs only adding to the availability of training utilizing technology.

CenterNet is also located in Breathitt County at the Lees College Campus
of Hazard Community College. This system will be moved to the Jefferson
Hotel Skills Center as soon as renovations are complete. CenterNet is
in the process of being installed in Lee and Wolfe Counties as well. We
plan to promote and utilize CenterNet to provide unique job skills training
opportunities by video conference. Through the Center for Rural Development,
we can offer many types of training to local individuals without them
having to leave the county to receive that training. Individual counties
partnered with the Center to assist with funding the maintenance costs
over a five year period. CenterNet is currently in the process of being
installed in Lee County in downtown Beattyville in the former Congleton
Brothers store. The People Encouraging People (PEP) Coalition will manage
the operation of the site and the facility. The site in Wolfe County
will be located on Highway 15 in Campton in the Kentucky River Community
Care Centers outpatient facility.

Additionally, we will work with the Jackson County Vocational School and
their entrepreneurial training program and other regional vocational,
and community college and university programs to increase the participation
in their programs by adults and young people who have dropped out of
school. The programs in Jackson County were created as a result of a Round
I Empowerment Zone designation.

The Caring Place in Lee County works to assist current K-TAP recipients
in developing essential life skills needed to obtain a job. They maintain
a supportive environment, while linking participants with potential
employers. Their goal is to assist K-TAP recipients in the transition from
receiving benefits to entering the workforce. They offer mentoring services
to all active clients where they receive support, encouragement, resources,
job training, and positive motivation toward self-sufficiency. During
the 2000-2001 fiscal year, there were 85 individuals enrolled in job
readiness activities, 41 completed the program and 76 secured paid employment

The Caring Place receives referrals from the Cabinet for Families and Children.
After an initial assessment, the participant is placed in job readiness
activities that are based on individual needs. Some of the services
provided by partnering agencies are basic academic skills, employment skills,
occupational skills, agricultural assistance, home food processing and
training, food pantry, budgeting, counseling, domestic violence shelter,
legal aid, disaster assistance, clothing assistance, community education
and prevention programs, CNA classes, health education classes, nutrition
programs, environmental services, drug and alcohol counseling, crisis
counseling, school supplies, and tutoring for adult education participants.

The Caring Place also works with several employers in order to secure paid
employment for their participants. CBS Personnel in Winchester, Kentucky
sends staff to the Caring Place every six weeks to take applications.
They also provide workshops to participants on how to prepare for a job
interview. CBS Personnel offers staffing services, rather than temporary
services, for several companies in eastern Kentucky.

The Owsley County Action Team, during the Steps to Success Welfare-to-Work
Training Program, worked with the local Cabinet for Families and Children
on the possibilities of receiving funding from the Cabinet to provide
instructors for job skills training activities. It was explained that unless
we become a component of the Cabinet officially, they could not work
with us on funding these types of programs. However, we do have the
support of our local Cabinet for Families and Children in working with
state officials to make Owsley County Action Team a component in order to
provide training. The Owsley County Action Team is considering becoming
an eligible training provider, depending on funding availability and
resources.

There are a number of individuals interested in learning about computers
that are eligible for, or receiving K-TAP. The Action Team recently
partnered with The Caring Place in Lee County to provide basic instruction
in Windows 95 and Microsoft Word to 15 individuals.

The Owsley County Action Team is also working with Image Entry, a local
data entry company, to provide their specific job skills training through
Action Place. When Image Entry located in Owsley County, they provided
the Owsley County High School a server, a classroom telephone, and
software needed to train students in data entry work. However, the majority
of students who complete the class and go to Image Entry for a job
cannot pass the data entry test and most cannot use a keyboard for
simple typing tasks. Because these classes are offered through the school
system during normal school hours, adults cannot take advantage of that
training.

Therefore, we have proposed to work with Image Entry to provide this training
at the computer lab facilities at Action Place. This would free up quite
a bit of space at Image Entry for them to hire additional employees.
Additionally, there would be more qualified applicants to deal with and
adults would be able to receive training. Image Entry will provide the
software necessary to provide the training and will train Action Team
staff in order to prepare them for instructing the classes. However,
funding will need to be secured for a staff person to provide that training.

Additionally, the Booneville/Owsley County Industrial Authority is
considering the incorporation of a computer program where 50 computers
could be made available to individuals who work from home. Referrals
would come from Image Entry in Owsley County to provide computers to
employees who have worked in their plant for more than one year so that
they can work for the company from home. This will allow more jobs to
be created within the plant, while giving some employees an opportunity
to work while at home.

The designated zone will work together to create a Job Skills Training
Resource Directory listing all available training and job support opportunities
within the zone, region and state. This resource directory will assist
individuals in identifying appropriate training opportunities that fit their
needs as well as assisting case workers to help individuals understand
their options.. This directory will be printed and made available to
the public through action teams, local training providers and other
organizations.

Action teams and industrial authorities will work together with the adult
education and social service providers to increase the number of adults
enrolled in GED and adult literacy training programs. This will be accomplished
through creative marketing and through the Job Skills Training Resource
Directory. We will work through the Cabinet for Families and Children
to further encourage recipients to take advantage of opportunities available
while they are receiving benefits.

We believe that by focusing a large portion of our attention on the youth
sector, we can break the cycle of poverty and instill the belief in our
children that welfare is not the answer to becoming and remaining self-supporting.
By teaching job preparedness and skills training, including a focus on
work ethic, we hope to help young people understand the need for responsibility
and commitment when thinking about work.

In order to create a strong work ethic among our youth, we will work with
county boards of education in order to improve student access to advanced
placement courses and to increase the number of students enrolling in
vocational courses. In Owsley County, during community meetings and
through surveys, individuals, including students, complained that there
were not enough students signing up for these kinds of classes, which
keeps the few that do sign up from being able to attend. Students in
Owsley County are transported by bus to the Lee County Area Vocational
Center for these types of classes If possible, we would like to work
with the area vocational schools to provide instructors who can travel
to the counties that do not have area or county vocational school
to provide these types of classes to students who are interested.

The designated area will work with local and regional community colleges
and universities to provide job preparedness and skills training by
video conference through CenterNet to all school children and adults.
Currently, three Hazard Community College students are taking Economics
201 by video-conference at the Owsley County Action Teams CenterNet facilities.
They are working with Hazard Community College and other universities
to provide more classes for individuals who are interested in lessening
their travel time to school.

The Jefferson Hotel Skills Center in Jackson, Kentucky (Breathitt County)
has received funding for major renovations. They have planned to include
space for training workshop opportunities. Additionally, the CenterNet
facilities will be moved from the Lees College Campus of Hazard Community
College, a temporary location, to the Jefferson Hotel Skills Center when
renovations are complete. For the Breathitt County Action Team, this
center means attractive, accessible office space. Currently, the Action
Team office is located above the public library in downtown Jackson.
Handicapped accessibility is a problem, and space is limited. This new
facility will give the Breathitt County Action Team the exposure it
needs to begin providing the services and programs it has planned, as
well as having direct access to CenterNet facilities that will be utilized
in the implementation of many activities outlined in their strategic plan.
(See Attachment 2: Jefferson Hotel Skills Center.)

Many programs are available locally aimed at youth prevention and career
preparation. For example, in Owsley County, the Fund For Excellence
program will celebrate the graduation of its first class this year.
This will be the largest graduating class in the history of Owsley County
High School and many like to think that this is a direct result of the
Fund for Excellence and other after school and extracurricular programs.
The Fund was started in 1994 with the first 7th grade class entering
the program in 1995. The program is designed to raise expectations on the
part of parents, students, and the community through disseminating information
concerning opportunities, creating an entrepreneurial spirit in our
young people, and providing incentives for high school graduation
and post-secondary education. (See Attachment 3: Fund for Excellence.)

The board members of the first class worked extensively with students and
parents on activities designed to build a nest egg for investment. They
started with a $1,000 grant from the Brushy Forks Teamwork for Tomorrow
program and used these funds to host a Spring Horse Show, which profited
a little over $4,000, and from later projects such as selling chances on
donated Appalachian handmade quilts and other programs. They will graduate
this year with approximately $17,000 which they will divide among the
students. The Fund For Excellence also has three $10,000 endowments
from the Baker Family, the Turner Family, and the Gabbard Family, all from
Owsley County. Interest on these endowments provides three annual scholarships
to Owsley County High School graduating seniors. The amounts vary based
on interest earned. There is also a $5,000 endowment from the Annual
Earl Glenn Jackson BEEK Award to provide an award to a high school student
who has contributed most to the environment.

In 2000, the Fund for Excellence received $50,000 from the Appalachian
Regional Commission to create and operate a Fund for Excellence Youth-run
Business. It has been decided this will be an office supply store which
will also local handmade crafts and other items. Although plans are to
open the store by the beginning of the next school year, however, planned
renovations at Action Place will cause a delay.

This project, although very successful, has been hampered by lack of staff.
All activities have been accomplished by volunteers with no coordination.
The evidence of this graduating class accomplishments justifies the
need to provide staff to coordinate the Fund for Excellence program
so that more successful students graduate from high school.

Additionally, each school system offers the Extended School Services Program
(ESS) to assist failing students to make up work and improve their grades.

Childcare

Concerning childcare, statistics show that the highest poverty levels among
children were in the under five year old group. Compare that with the
percent of children under 18 in general and the percentage is much lower.
After discussing this with other parents and childcare providers, it was
determined that it is cheaper for a mother to stay at home rather than
work during the first five years due to childcare expenses, transportation,
and other experiences, such as health problems in children under 5,
that require more time than after a child starts kindergarten.

Many parents want their children to stay in a daycare center environment
with activities provided that enrich their childrens learning experiences.
We will work with local State Certified Childcare Providers to examine
ways in which we can expand the childcare services already offered.

In an effort to efficiently serve as many children as possible and
to support welfare reform efforts, the State of Kentucky, through the
Cabinet for Families and Children, provides a variety of childcare assistance
programs. Federal and state funds pay for child care assistance. The main
fund source is the Child Care and Development Fund. Other federal funds
include TANF and Welfare-to-Work.

In order to administer assistance statewide, the Cabinet has contracted
with five regional service agents. These agents determine eligibility,
match clients to available child care resources, help families find
quality child care, process assistance payments, and address unmet child
care needs. The Eastern Kentucky Childcare Coalition is the agent who
serves Breathitt, Lee, Owsley, and Wolfe counties. (See Attachment
4: Regional Service Agents for Childcare.)

There are a number of children being served through the childcare program
in this area. Currently, there are 88 certified childcare providers
with approximately 271 children being served. To be eligible, child
care must be needed for parents to work or to be in a K-TAP or Welfare-to-Work
program; to protect a child from abuse, neglect or removal from the home;
for a teen parent to attend high school; or for education or vocational
training. Eligible children must be under the age of 13, or under the
age of 18 if physically or mentally incapable of caring for him or herself,
or under the age of 18 and under court supervision.

Child care providers must be licensed, certified, or enrolled unless they
are a qualifying relative . Parents or persons living in the same household
as a child needing care cannot be paid for caring for that child. Relatives
must meet the same minimum requirements as enrolled providers. Families
who are discontinued from K-TAP due to employment are eligible for childcare
assistance for 12 months from the date they leave K-TAP, as long as
their income does not exceed 85% of the state median income scale
and they remain employed. The percent then decreases according to
income level. The maximum income eligibility is 165% of the federal
poverty guideline. Because these childcare programs stress family
responsibility, except for protective service cases and families with
a monthly income below $900, all families will pay for part of their
childcare expenses. Childcare assistance is not granted when free
programs are available and accessible.

The Middle Kentucky Area Development Council is the primary coordinator
for the Head Start program in the designated zone. Approximately 408
children are served between the ages of three and five. In Owsley
County the Head Start program also offers infant care and home-based services.
Should a designation be received, and a need for childcare increases
due to an increase in jobs, Middle Kentucky is prepared to secure funding
in order to expand the Head Start program so that more children and
families can be served.

Through Vision 2000, the Mountain Tots Early Childhood Development Center
in Breathitt County plans to purchase property and build adequate facilities
as well as expand the program to provide services 24 hours per day.
The center currently rents their facility and is limited to 49 slots. This
childcare center is primarily funded through the Community Collaboration
for Children grant awarded bi-annually by the Kentucky Cabinet for
Families and Children. The expense for expansion of this facility includes
construction, equipment, and the purchase of property and is estimated to
cost $350,000. This program has been, initially, a subsidiary program
under Vision 2000 and is currently in the process of establishing itself
as a separate entity by applying for non-profit status.

Breathitt County also plans so research the feasibility of a sick room
inside a child care center or located adjacent to the center in a much
smaller facility attached. Often times, individuals have problems with
productivity on the job when children are sick. If a place was available
for childcare for children who are not so sick that they require medical
attention, but dont feel well enough to be around other children, parents
would have a much better opportunity to improve productivity on the
job and rest assured that their children, although feeling under the weather,
are being well taken care of in a caring, safe environment. If this project
is found to be feasible, we will work with local childcare providers
to implement these services throughout the zone.

In addition to childcare, a much needed service in this area is adult child
care. Many families are caring for elderly relatives in their homes.
These individuals often require as much, or more care than children.
The only facilities currently available to assist with adult daycare is
the Geri Young Home in Lee County. Their hours are 8:00 - 5:00 and they
serve 31 individuals. They are licensed to serve 34 individuals and
provide healthcare professionals to assist in their care. Should a designation
occur, there will be a need for more services of this nature throughout
the zone. We will work together to create programs similar to the Geri
Young Home in other counties within the designated area.

Recently, representatives from Breathitt, Lee, Owsley, and Wolfe Counties
got together to form a regional Vision 2000 organization. One of the
main topics discussed as a goal was child and adult daycare. We will
identify ways we can improve and expand the availability of quality child
and adult daycare centers in order to assist families in keeping jobs
and increasing productivity on the job.

Transportation

Transportation is one of the main challenges facing people making the transition
from welfare to work. There is a mismatch between where most entry-level
and service sector jobs are located and where most welfare recipients
live. Many entry-level jobs require evening or weekend hours, and many
parents going to work also need transportation in order to access child
care, which further complicates their commute to work Having a car can
make a tremendous difference. Information from the Urban Institutes
National Survey of American Families show that twice as many welfare
recipients with cars were working than those without cars. Many welfare
recipients do not have cars.

In addition to on-going state road projects, Kentucky has taken a comprehensive
approach to providing coordinated transportation to the needy. Four
Cabinet offices Families and Children, Health Services, Workforce Development,
and Transportation combined transportation resources to develop a
new coordinated transportation system for all their participants. Empower
Kentucky provides transportation services to individuals through 16
regional providers. In this designated area, we are served by the LKLP
Community Action Council, through the Daniel Boone Transit Authority
and the Middle Kentucky Area Development Council Transportation System.
Although this transportation system is used mainly for medical purposes,
K-TAP recipients also take advantage of these services in order to
attend training programs and travel to work.

If a designation is made, business opportunities and the number of jobs
available will increase along with the need for transportation services.
With that in mind, we are committed to analyzing information on where
welfare recipients live, locations of the jobs for which welfare recipients
are qualified, location of training centers and family and child care
centers, and available transportation resources. With this information,
we will identify strategies to increase the availability of resources
available to individuals to keep them employed. Middle Kentucky is ready
to expand into other areas if needed.

Currently, the K-TAP program provides transportation assistance to individuals
who secure paid employment. These services are available for up to
12 months after beginning work. An adult taking part in KWP may get
help with childcare, transportation, and other items needed to work, or
needed for a work or training activity. A family may also get help with
things needed in order to keep working including uniforms, clothing,
or tools needed for the job; car license and registration fees, insurance,
tires, brakes, and other car repairs; and expenses for moving to a new
home needed to get or keep a job.

A transportation brochure will be made available throughout the zone in
order to make the public aware of all transportation opportunities and
benefits currently available. Additionally, they will work to recruit
or create a public transportation program for general transportation needs
among individual community members. Many counties have Park and Ride lots
available. A great number of individuals living within the zone have
to travel for up to 2 hours to reach their work place. We will encourage
the use of these park and ride stations for carpooling and for taking
advantage of other transportation options. We hope that by marketing
the stations and other options, individuals might be encouraged to seek
employment, even if they do have to go out of town to find a job.

Communication

Although many individuals, including welfare recipients, have been provided
an array of benefits for many years, most still do not understand or
know much about other programs available to assist them in becoming
self-sustaining. Clearly, this is not a result of a lack of communication
between clients and caseworkers. Our Cabinet for Families and Children
offices have caring staff who try to inform individuals about all programs
available. However, there is a need to make sure individuals know more
about available benefits in order to continue moving people from welfare
to work.

We plan to work with the Cabinet for Families and Children to create a
unique, interesting publication that explains in detail all the programs
available that can in any way assist an individual in becoming a self-supporting
and self-sustaining.

Agricultural Assistance

Farming in eastern Kentucky, particularly tobacco farming, provides many
families with annual income. In the recent years, this area has worked
hard to educate our farmers about issues relating to the decrease in
demand for tobacco, and most importantly, the tobacco settlement funds
that have been allocated to states, and then to counties, for use in alternative
crop programs, healthcare and tobacco education and prevention. In
Kentucky, and particularly eastern Kentucky, tobacco has provided the
majority of income to area farmers. These farmers are feeling the effects
of tobacco legislation. For too long, small tobacco farmers have had to
work very hard to earn the money needed to simply survive.

Farmers have many manual labor and machine skills that can benefit them
in the workplace. Additionally, they are usually people who are proficient
at handling the financial and technical aspects of being in business.
Many of these farmers represent an untapped human resource as far as
the labor market goes. With the tobacco settlements and the lesser demand
for tobacco, many farmers have quit farming and have begun to seek paid
employment elsewhere.

We will work with the local extension offices, state officials, and state
universities to provide technical assistance to farmers and to research
alternative crops targeted toward small family farms. There is money
available through the tobacco settlement fund to assist local farmers in
changing their crops or creating businesses that employ farmers. They
simply need help understanding the process of accessing that money
and the knowledge and assistance to create a business plan. Currently,
Owsley County has $396,272 in the local share of Phase I Tobacco Settlement
Funds that Owsley County residents can apply for to implement these
kinds of projects. One application round was completed, however, so
far no projects have been approved because the plans have only impacted
family members. Breathitt County currently has $198,605 available, Lee
County has $126,088 available, and Wolfe County has $340,746 available.

Additionally, there is a state share which organizations and other entities
can apply for to implement other agricultural, medical, or prevention-related
programs. We will tap that source for medical equipment that is compatible
with the CenterNet video conferencing system to provide access to specialty
medical care while not having to travel so far to get there.

We intend to create and conduct workshops targeting farmers to provide
information on alternative crops, agricultural research and access to
technical assistance from the University of Kentucky and other research
institutions, and other topics of interest in helping farmers become more
selfsustaining. We will also assist farmers in writing applications for
the county shares of the tobacco settlement money and will provide
them access to technical resources that are available to assist them
in the implementation of quality agricultural ventures. We will work with
the Small Business Development Center from Morehead University to provide
workshops to individuals on how to start their own business.

Additionally, the Action Team will create a marketing program aimed at
recruiting farmers who have ideas for projects to participate in these
workshops as well as other programs offered through other organizations
such as the county extension offices, soil and water conservation district
offices, and the University of Kentucky.

Farmers will be encouraged to research alternative agricultural activities.
Representative Marie Rader is working hard to promote the research
of and farming of wine grapes. In recent years, several wineries have
become operational in eastern Kentucky and north Tennessee and Virginia.
Prior to prohibition, it is said that Kentucky was a prime producer of
wine grapes in this country. This is being considered as a way of moving
tobacco farmers into alternative crops that are in demand.

Domestic Abuse

Domestic abuse, as is common among many small, rural communities, is a
quite problem for our area. While discussing health issues with doctors
and nurse practitioners in Owsley County, they noted that most official
statistics show low levels of domestic abuse, however, they seem to treat
a lot of cases. Additionally, when shelter is needed in a domestic abuse
situation, individuals are usually referred to shelters outside of the
area, (1) because we do not have one available locally, and (2) because
sometimes it is necessary to keep their location a secret. Additionally,
when emergency crisis happen, such as fire, individuals often times have
no where to go.

The Cabinet for Families and Children offers a Relocation Assistance Program
available to adult KTAP recipients who need to escape from a domestic
violence situation. The number of times families can utilize Relocation
Assistance in order to escape domestic violence situations is not limited.
A family may get up to $900 in a one-time Relocation Assistance payment
for verified moving costs.

Within the designated zone, the LKLP Safe House is available in Hazard,
Kentucky (Perry County) offering a 24-hour crisis line for immediate
help, temporary lodging for 30 days at no cost, a safe environment for
abused women and their dependent children, information and referrals to
legal options, financial aid, housing, and medical services. GED and self-improvement
classes are available to residents and former residents. Court advocacy
and counseling by Certified Domestic Abuse Violence Counselors is
available including hospital advocacy and support groups for nonresidents.
Other shelters available include Saras Place in Elliott County and the
Resurrection House in Lee County. Additionally, the Cumberland Mountain
Outreach assists individuals associated with domestic abuse through
the donation of clothing and temporary emergency shelter.

We see a need for an emergency/domestic abuse shelter within the zone not
only to provide area individuals a safe haven, but provide shelter for
other counties so that victims location can remain a secret. The
local churches are also active and willing to help in domestic abuse situations.
Through food pantries and other services, the faith-based organizations
assist individuals with necessities and spiritual guidance.

Housing

Lack of decent, adequate housing is a problem for many individuals. Low-income
apartments are known to remain at capacity with waiting lists used to
handle the large number of requests. Rental property is difficult to
locate. Should a designation be made, we will develop a plan to identify
the most efficient and cost effective manner in which to approach the
creation and expansion of housing, including low-income housing facilities
throughout the zone. Available housing in general is a problem within
the entire zone. Although statistics show several houses vacant, many
of these homes are in terrible disrepair and are not considered safe. Some
of the homes belong to families who, culturally, like to keep their property
within the family. We will recruit real estate companies to build and
operate apartments and other housing facilities available to everyone,
including low-income individuals. We will work with regional, state, and
federal sources to identify ways to improve the availability of low-income
housing in the designated zone through the possible creation of a regional
housing authority.

The USDA Rural Housing Service provides local staff to assist individuals
in accessing the lowincome housing loan and grant programs available.
According to local RUS staff, they are not getting enough applications
from Owsley and some surrounding counties for these programs. They
are encouraging organizations and other service providers to provide information
and referrals for services to low-income individuals involved in their
programs.

The Christian Appalachian Projects is involved in several housing projects
including grants and loans for constructing new housing and a program
that recruits volunteers to the area to assist individuals with housing
improvements such as aluminum siding, insulation, and roof repair.

In Lee County the Lee County Housing authority coordinates the low-income
housing apartment program. The Beattyville Affordable Housing Authority
has built and sold over 20 homes. Additionally, the Habitat for Humanity
organization is active throughout the zone.

We will create a marketing piece aimed at individual community members
outlining all the benefits of the RC designation and what it means to
them. Included in the publication will be a list of all available
resources and services available throughout the zone and how they can
access these benefits.

Public Access to Technology

In order to be successful in what is currently termed as the new economy,
individuals must develop computer skills. This area has been involved
in bridging the digital divide through the use of public computer programs
aimed at improving skills through casual use by the public. All public
libraries have public computers available with Internet access. Many
individuals utilize these computers for completing homework, research,
or communication through e-mail.

Additionally, The Mountain Association for Community Economic Development
(MACED), with funds from the U.S. Department of Commerce TOP program,
implemented the Choosing to Learn program which provided three public
access computers and three laptops for use in a laptop lending program
in four eastern Kentucky counties including Owsley and Breathitt. Although
the laptop lending program is successful, the expenses relating to public
computer dial-up access in country stores was hurtful. Over 1,000
individuals have checked out a laptop to do a variety of tasks.

Due to the success of the laptop lending program, we will work to increase
the number of laptops available through the lending program. Both the
Owsley County and Breathitt County Action Teams have served as the
lending agents and the computers have been checked out hundreds of
times by individuals needing to complete college or high school work, Internet
research, work done at home, or for just plain fun. Based on laptop
lending experience, we see a need for 20 additional laptops in the
lending program. This would add an additional five computers to the Owsley
and Breathitt County area and five to start a lending program in Lee
and Wolfe.

The most difficult obstacle that this area faces in regard to implementing
technology programs is staffing. All organizations within the zone
find staff funding the most difficult to obtain. For this reason, we
propose to place four Vista workers within the zone to assist with the
coordination of programs such as PowerUp, laptop lending, and especially
distance learning through CenterNet.

Healthcare

All community residents expressed a need for after-hours and weekend, non-emergency
healthcare availability. Currently, many residents must travel more than
45 minutes to reach an emergency room after hours. We will work with
local healthcare providers to work out an arrangement to solve this
issue. It has been suggested by the community that healthcare providers
rotate their services after hours.

The counties will work together to create a resource directory listing
all healthcare providers in the area and what their specialities are.
At the same time, industrial development organizations and chambers
of commerce will work to recruit specialty physicians to the area. The
Breathitt County Action Team will work with the Kentucky River Medical
Center to expand the number of beds available.

Since the inception of CenterNet at the Owsley County Action Team facilities,
staff has been working with the Center for Rural Development to expand
the uses of the technology. A nurse practitioner and a doctor serving
Owsley County are interested in utilizing the CenterNet equipment
to conduct medical appointments between themselves, local patients, and
specialists in areas such as the University of Kentucky Medical Center
in Lexington. However, we need additional equipment in order to provide
this service.

A recent article in Readers Digest states that more of the tobacco
settlement funds need to be spent on healthcare related programs as
it was intended. We intent to apply through the state for funds to expand
the equipment needed in order to provide these medical services to the
community at all CenterNet facilities within the zone.

We will also utilize the programs and technical assistance and advice offered
through the partnership between HUD and HHS on the EZ/EC/RC programs.

Handicapped accessibility is a critical issue in our area. For instance,
in Owsley County, the courthouse doors open to the outside, and the
wheelchair ramp is at such an incline that one resident cannot get
his wheelchair up that hill unless he is in his motorized chair. Until
recently, there were no handicapped accessible restrooms anywhere in
Booneville. For this reason, the action team, with funds received from
the Steele Reese Foundation, will renovate the library bathroom to make
it handicapped accessible and open to the public. Organizations throughout
the zone will work toward making handicapped accessibility a priority
and work to eliminate these obstacles.

In addition to all of these programs, the state, regional organizations,
and each city and county within the designated area have on-going programs
to enhance, improve, and expand the availability of basic local services
such as water and sewer service, fire protection, emergency medical services,
and police protection as well as improving transportation through bridge
and road improvements and expansions.

Goal 2: Increase crime reduction strategies,
such as crime prevention, including the provision of crime prevention
services by non-governmental entities.

Actions:

Continue the implementation of 911 services throughout the zone in
order to provide a quicker response time.

Increase the use of technology and computers to more efficiently
monitor and report incidences of crime.

Increase the number of crime prevention programs offered throughout
the zone.

Increase the number of police and deputies throughout the zone.

Improve communication between the public and all law enforcement
agencies.

Increase the number of convictions for crime.

Increase the number of alcohol and drug programs available throughout
the zone.

Enhance and improve the number of recreational activities for
people of all ages throughout the zone as a prevention strategy.

Continue the on-going economic development efforts within the
zone in order to create jobs as a crime prevention strategy.

Owsley County does not have 911/Dispatch service but is committed to the
implementation of this service within two years.

In Breathitt County, 911/Dispatch service was established in 1995 and is
funded through a $1.35 telephone tax per telephone customer per month.
They have a 911 Coordinator who works on addressing and mapping with
Geographic Information Systems (GIS) software. The coordinator is currently
in the process of doing a GPS survey for more accurate location assistance.
State Police Post #13 in Hazard, Kentucky (Perry County) does the dispatching
for the county. The Southeast Regional 911 Board was established including
county judges, mayors, and 911 coordinators in four counties (Breathitt,
Leslie, Knott and Letcher). A portion of the telephone tax goes to this
board to pay the State Police for dispatching service and to fund equipment.

Lee County has a basic 911 dispatch service. It was established in 1990
and is funded by a small telephone tax. They have four dispatchers and
two county dispatchers and two part-time dispatchers. They have a 911
Coordinator.

Wolfe Countys 911/Dispatching service has been established for approximately
eight years. It is funded through a 3% telephone tax and the Wolfe
County Fiscal Court funds the dispatch staff positions of which there
are four. They use Caller ID and all information is taken manually over
the telephone.

All areas are dedicated to the improvement and enhancement of 911/Dispatch
service in order to more effectively prevent crime and lessen the amount
of response time.

In each county there is a Sheriffs Department and a local city police department.
These agencies are primarily responsible for the crime reduction and
prevention activities. The Kentucky State Police Post in Richmond serves
this area with uniformed troopers. Each county has a county attorney
who represents the county on criminal cases.

In 1998, the City of Booneville received funding through the COPS Universal
Hiring Program to create the Booneville Police Department. Currently,
there are two police officers working within the city limits. The City
of Booneville has since begun paying their salary. Additionally, the City
has applied for computer equipment from the Center for Rural Development,
special overtime pay during Labor Day weekend from the State of Kentucky,
and overtime pay that comes down in March of every year from the state.

The Beattyville Police Department has received grants from the Kentucky
Justice Cabinet to increase the number of radar detectors and cameras
in vehicles.

We will work to increase the number of full-time, uniformed police officers
throughout the zone by working with local fiscal courts and state and
federal funding sources to secure funding for salaries and benefits.
Often, trained law enforcement officers are hired in this area, but due
to increased pay elsewhere, they leave, causing the expense of training
and hiring new officers. We will also work to increase the amount of
pay and benefits for qualified, trained, full-time police officers.

We will increase the use of computers and technology to more effectively
track, monitor, and report the incidence of crime. We will begin working
to implement telecommunications services that will allow each law enforcement
agency to connect to the National Crime Information Center (NCIC) to
gain quicker access to information regarding suspect individuals and their
crime records.

A local county district judge was interviewed during the process to get
his view of crime prevention efforts and what needs to occur to make
improvements. He stated that in order to make an adequate judgment relating
to a case, he must rely on information received from county and Commonwealth
attorneys. Often times, in his view, county and state attorneys do not
accept certain complaints and many times the acceptance is based on
who a person knows. We asked him what his thoughts were on how to
change this practice. He stated that it all boils down to personal responsibility.
Every individual and victim has a right and responsibility to see that
justice is served. If it is not, they should contact the state Attorney
Generals office or the Grand Jury to report any instances of misconduct
on the part of enforcement officials taking complaints.

We will work with local board of education, local law enforcement agencies,
local alcohol and drug abuse counseling services, and the Kentucky
State Police to implement the DARE program throughout area schools and
to provide other appropriate crime, alcohol and drug prevention programs.
We will also work with these agencies to improve communication between
the public and law enforcement organizations.

We believe that if families and children had more recreational opportunities,
there would be a lesser number of crime incidences and alcohol and
drug use. Currently, recreational opportunities are severely limited,
however, we are committed to enhancing, expanding, and improving these services
as a deterrent to crime.

The lack of jobs and income is another reason why crimes are committed.
We are dedicated to the economic growth and creation of jobs and the
improvement of services which will assist individuals in becoming more
self-supporting therefore reducing the chances of a person committing a
crime.

Goal 3: Increase the economic development
activities by private entities, organizations, neighborhood organizations,
and community groups, particularly those in the Renewal Community, including
a commitment from such private entities to provide jobs and job training
for, and technical, financial, or other assistance to, employers,
employees, and residents from the Renewal Community.

Actions:

Employ adequate, full-time economic development staff throughout
the designated zone.

Continue to make improvements in the local county and regional
industrial parks within the zone.

Continue to improve and expand the availability of basic services
such as water, sewer, natural gas, and telecommunications.

Work with landowners to acquire additional property for business
recruitment.

Create a dynamic marketing package to promote the zone and available
incentives to potential business.

Work with the Southern Kentucky Economic Development Corporation,
the East Kentucky Corporation, and the State of Kentucky to market
speculative buildings located throughout the zone.

Continue the speculative building program by building a speculative
building every time one is sold.

Create a local existing business program in order to provide
assistance and services to business already located in the zone.

Provide access to entrepreneurial training and small business
development programs for individuals and businesses in the zone.

Provide locally available access to basic and specific job skills
training.

Provide assistance to farmers to take advantage of financial
and technical resources available.

Assess and develop tourism resources and opportunities throughout
the zone.

Work with local, regional, state, and federal funding and financing
sources to assist business with available financing options.

In Owsley County, the City of Booneville recently received a grant
from the USDA Rural Business Enterprise Program to hire a full-time
director of the Booneville/Owsley County Industrial Authority. Although
the Authority has been in existence for quite some time, they have never
had the funds to hire staff, thus all administrative work was done voluntarily
by members of the Authority.

The Kentucky Cabinet for Economic Development, the East Kentucky Corporation,
the Kentucky River Area Development District, and the Southern Kentucky
Economic Development Corporation has been instrumental by providing
assistance with acquiring and marketing our industrial parks and speculative
buildings. They also bring prospects to visit our communities when they
have an idea that our park and buildings would suit their needs. The Southern
Kentucky Economic Development Corporation went a step further by adding
expertise and advise during the process of interviewing and hiring
a director in Owsley County. However, all have agreed that it is a relief
to have a person on staff, full-time, to work hard toward the economic
development of our county.

Each county is committed to creating funding avenues to hire and maintain
full-time economic development staff. Our counties are distressed
county with very little business, therefore, our budget does not allow
funds to help staff the industrial authorities. However, both county and
city governments are actively involved in the efforts of the industrial
authorities.

Each county industrial authority and the Pine Ridge Regional Industrial
Authority will continue working to install necessary infrastructure
to the county and regional industrial parks including roads and water
and sewer systems. The Booneville/Owsley County Industrial Authority is
planning to extend natural gas lines and extend fiber optics accessibility
to the park.

The designated area will create a website for business recruitment purposes
as well as marketing tourism related opportunities and the zone in general.
If designated, we will especially highlight the incentive programs available
in designated RC communities. We will work extensively with the Department
for Housing and Urban Development and the Department for Health and Human
Services to access resources and technical assistance available to appropriately
market the incentives. Additionally, we will seek training opportunities
to provide local staff with a good understanding of the incentives
associated with the RC designation so that we can adequately promote
our areas and attract businesses.

The Booneville/Owsley County Industrial Authority will create the website
and has purchased HomeSite software and Adobe Acrobat in order to
create the site, including PDF files for easy downloading of information.

The Booneville/Owsley County Industrial Authority will link to and maintain
updated information on all regional and state economic development
websites and publications to make sure that information on the designated
zone is accurate and professionally presented. The Kentucky Cabinet
for Economic Development, the Southern Economic Development Corporation,
the East Kentucky Corporation, and the Kentucky River Area Development
District have been instrumental by assisting us in the promotion of
our areas for economic development by encouraging counties to help them
keep the information up to date.

Each county in the designated zone is part of the Pine Ridge Regional Industrial
Authority. This Authority is made up of a board of directors who are
appointed by five county judges to oversee a regional industrial park
located in Wolfe County (within the designated zone). Representatives
regularly attend these meetings to encourage the promotion of the region
as a whole, not just the regional industrial park in Wolfe County.

The Governor has been involved in the marketing efforts of the regional
business parks located throughout eastern Kentucky. A marketing video
has recently been created as well as a beautiful printed publication
entitled Eastern Kentucky: The New Appalachia, featuring all regional
industrial parks in eastern Kentucky.

The 120 acre Pine Ridge Regional Industrial Park is located one mile west
of the Campton city limits in Wolfe County. The Mountain Parkway interchange
is south of the site via KY 1653 and KY 3039. The Mountain Parkway is
a four-lane highway that leads to the I-64 interchange 41 miles northwest
of site. The Bluegrass Airport in Lexington, Kentucky is 70 miles northwest
of the site. Water and sewer service are provided by the City of Campton
Water and Sewage Company both with 6-inch force main line. Natural
gas is available through the Jefferson Gas Transmission Company with
a 4-inch line 2,800 feet from the site. Electricity is provided by the
Licking Valley Rural Electric Coop. Pine Ridge is already home to the
Kentucky Steel Truss Company. The labor market area contains the Wood
Utilization Center, as well as Hazard Community and Technical College,
Alice Lloyd College, Eastern Kentucky University, and Morehead University.
(See Attachment 5: Pine Ridge Regional Industrial Park.)

Industrial parks are also located in each of the other three counties
located within the zone. The 46.9 acre Panbowl Lake Industrial Park
is located within the northern city limits of Jackson in Breathitt
County. It is zoned industrial and is approximately 1.2 miles from KY15
southwest of the site via Lakeside Drive. The Mountain Parkway is located
22 miles north of the site via KY 15. The nearest commercial airport
is the Bluegrass Airport in Lexington, located approximately 90 miles
from the site. Water and sewer service is provided by the Jackson Municipal
Sewer Company with 6-inch and 12-inch water lines serving the site
and 8-inch gravity sewer line located 500 feet northwest of the site
along Lakeside Drive. Natural gas is provided by the Public Gas Company
with a 4-inch line northwest of the site along the southeast side of
Lakeside Drive. Electricity is provided by American Electric Power.
Breathitt County has a 40,500 square foot speculative industrial building
located in the industrial park built in 1998. (See Attachment 6: Panbowl
Lake Industrial Park.)

The Lee County Fiscal Court owns the 27.6 acre industrial park located
in Beattyville. The site is located two miles southwest of the southern
city limits of Beattyville. The site is adjacent to KY 11 which provides
access to the Mountain Parkway 22 miles from the site. The nearest commercial
airport is the Bluegrass Airport in Lexington some 82 miles away. Water
is provided by the Southside Water Association with a 6-inch line along
KY 11 adjacent to the site. Sewer service is provided by the Beattyville
Wastewater Treatment Service with an 8-inch gravity line and a 6-inch
force main. Natural Gas is provided by the Delta Natural Gas Company with
a 4-inch line on the south side of the highway. Electricity is provided
by Jackson Energy Cooperative. (See Attachment 7: Lee County Industrial
Park.)

The 77.6 acre Lone Oak Industrial Park is located 1.5 miles south of the
City of Booneville in Owsley County on KY 11 South. The nearest commercial
airport is the Bluegrass Airport in Lexington approximately 95 miles
away. Water and sewer services are provided by the City of Booneville
Water and Sewer District with a 6-inch water line and an 8-inch gravity
line serving the site. Natural gas is currently not available, however,
plans are to seek funding to extend a gas line located approximately
seven miles away to the park. Electricity is provided by Jackson Energy
Cooperative. The Booneville/Owsley County Industrial Authority will also
seek funding to provide fiber optics services to the park. (See Attachment
8: Lone Oak Industrial Park.)

The Lone Oak Industrial Park boasts two speculative industrial buildings
available for sale or lease. The Owsley County Speculative Building
is a 25,920 square foot facility built in 2000 with funds from EDA,
the Local Government Economic Development Fund, and the Southern Kentucky
Economic Development Corporation. The Lone Oak Industrial Building is
a 10,000 square foot building built in 2000 funded through a grant from
the Appalachian Regional Commission. In Wolfe County, a 26,500 square
foot building is available which formerly housed the Celestica Corporation.

The area as a whole, will host an annual Recruit the Recruiters day in
which all regional, state, and federal officials who assist this area
with economic development activities can come, see improvements made,
and become updated on projects and activities that promote economic
development. The designated zone as a whole will participate in the
Performance Measurement System and will utilize this information as
a marketing tool to be used in the recruitment of business. The more
businesses see is happening in a community, the greater their desire
will be to locate there. This area has experience in working with these
types of measurement systems. The Breathitt and Owsley County Action
Teams are designated Champion Communities by USDA and have participated
in the Community Development Benchmarking System used by rural EZ/EC
designees and Champion Communities to report progress. Additionally,
Owsley and Breathitt Counties were designated Livable Communities during
the last year of the Clinton/Gore Administration.

The entire zone will utilize CenterNet for use in the recruitment of business
and working with state and federal officials.

A marketing piece is planned specifically relating to the RC tax incentives
available to business. This will be created utilizing technical resources
from HUD, HHS and USDA to creatively design a marketing strategy that
suits our area.

We will conduct a targeted business/industry analysis in order to assist
us in identifying what types of businesses would compliment our area.
We will utilize the University of Kentucky, the University of Louisville,
the Kentucky River Area Development District, the Cabinet for Economic
Development, the Department for Employment Services and others to obtain
information already available on regional or state targeted business
analysis. We will need help with this study for the zone if a designation
is received because we will need to appropriately recruit the kinds of
businesses that will fit well with our culture and create jobs that
are complimentary to our peoples skills.

Immediately upon designation, we will work with the Kentucky Cabinet for
Economic Development, the Southern Kentucky Economic Development Corporation,
the East Kentucky Corporation, the Kentucky River Area Development District,
USDA and HUD to assist businesses already located in these areas to
take advantage of available incentives as soon as the designation
is made.

We will create an Existing Industry Organization whose primary purpose
is to meet together with businesses quarterly to discuss issues and
needs and to update them on programs and resources available for business
and employees. Additionally, we will create and distribute a quarterly
newsletter to existing businesses identifying resources and providing
up-to-date information on local, regional, state, and federal workforce
training opportunities. We will establish an Existing Business of the
Year award. The local, regional, and state economic development staff will
assist in the selection of the recipient annually based on a set of criteria
related to their business activities and involvement in the community.

We will work with the Morehead State University Small Business Development
Center, Lees College Campus of Hazard Community College, area vocational
and technical centers, and others to provide businesses and staff with
training and technical assistance and information as well as entrepreneurial
development workshops to individuals interested in starting their own
business.

Breathitt and Owsley County Action Teams worked with the Mountain Association
for Community Economic Development to implement a Business Incubator
Feasibility Study to determine whether or not a business incubator
would be successful in our area. This project was funded by a grant from
the Appalachian Regional Commission. This project is nearing completion.

The Owsley County Action Team, in cooperation with the Breathitt County
Action Team, conducted a Labor Market Survey throughout four counties.
This recently completed survey provides us with an idea of what skills
are needed by employers in this area, what skills are currently available,
and what kinds of training we need to provide in order to get more individuals
skilled in jobs already available locally and regionally. This survey
was funded by a USDA Rural Business Opportunity Grant. (See Attachment
9: East Central Kentucky Workforce Report.)

We will work with the Cabinet for Economic Development to utilize and market
the states business finance and tax incentive programs currently available.
The Kentucky Industrial Development Act (KIDA) is available to qualified
companies creating at least 15 new full-time jobs and investing at least
$100,000 in approved projects. If they qualify, they may receive state
income tax credits up to 100 percent of annual debt service costs for
up to ten years on land, buildings, site development, building fixtures,
and equipment used in the project, or the company may collect a job assessment
fee of three percent of the gross wages of each employee whose job is
created by the approved project and who is subject to Kentucky income
taxes.

The Kentucky Rural Economic Development Act (KREDA) is available to business
in counties whose average annual unemployment rate has exceeded the
state average annual unemployment rate in the five proceeding calendar
years or counties whose unemployment rate is 200% of the statewide
unemployment rate for the preceding year. Larger tax credits are available
for new and expanding manufacturing projects that create at least
15 new first time jobs in Kentucky counties. The project investment
must be at least $100,000. Companies with projects approved under KREDA
may potentially receive state income tax credits and job assessment fees
for up to 100 percent of annual debt service costs for up to 15 years
on land, building, site development, building fixtures, and equipment
used in the project.

Owsley County is the only county within the designated zone that does not
have KREDA status due to a low unemployment rate. However, we have submitted
a proposal to Governor Paul Patton and State Senator Robert Stivers
to change KREDA status in officially recognized distressed counties
(there are seven counties in Kentucky listed by the U.S. General Accounting
Office as distressed counties) based on research indicating that the
real unemployment rate, including those discouraged workers who have
not been looking for a job within the last four weeks to be counted,
is much higher. They have confirmed their commitment to work with us to
solve this issue. (See Attachment 10: KREDA Proposal - Owsley County.)

The state offers many other programs including the Kentucky Jobs Development
Act, the Kentucky Economic Opportunity Zone Act, the Kentucky Industrial
Revitalization Act, and other income tax credits. Kentucky also offers
several financial incentive programs including the Kentucky Economic
Development Finance Authority, the Knowledge Based Economy Program, the
Research, Innovation, and Technology Businesses Program, the Commonwealth
Small Business Development Corporation, the Community Development Block
Grant Program, the Linked Deposit Program, the Tax Increment Financing
Program, and Industrial Revenue Bonds.

Kentucky also offers the Bluegrass State Skills Corporation, and the Kentucky
Investment Fund Act. They offer economic development programs such as
the Local Government Economic Development Fund and a Regional Industrial
Park Program, a Utility Incentive Rate Program, a Job Recruitment, Placement,
and Training Program, the Kentucky Community and Technical College System,
the Kentucky Information Highway, Industrial Location Assistance Program,
and the Kentucky Tourism Development Act.

Kentucky is also proud to offer the Kentucky Enterprise Zone Program, created
in 1982, in an effort to bring new development to or to renew development
to targeted, economically depressed areas. State and local tax incentives
are offered to businesses located or locating in such zones, and some
regulations are eased to make development in the area more attractive.
A zone remains in effect for 20 years after the date of the designation.
(See Attachment 11: Kentucky Enterprise Zone Tax Incentive Program.)

In addition to state funding and financing sources, there are several regional
sources including the Mountain Association for Community Economic Development,
the Appalachian Investment Corporation, District Development Funds,
the East Kentucky Corporation, Human/Economic Appalachian Development
Community Loan Fund, Mountain Economic Development Fund, and the
Southern Kentucky Economic Development Corporation.

Local county governments can take advantage of the LGEDF Coal Severance
Fund for economic development projects to promote the attraction of
business.

All areas in the zone have been concentrating on ways to improve the amount
of tourism. This is an ideal way to stir some extra economic benefits
while working to create business and jobs.

All areas have a unique history and culture and have places in their
communities that could serve as possible tourist attractions. If educational
and interesting attractions were created, some tourists will steer
themselves off the beaten path to take a look. With recent tragic events
in our country, tourists are likely to look toward small towns for vacation
sites.

All communities within the zone are committed to participation in the State
Department of Travel and the Southern and Eastern Kentucky Tourism Association.
These are state and regional tourism organizations where funding can
be obtained to create or enhance tourist attractions and events. We
will all identify several projects within our communities, create marketing
packages to promote them, and work to quickly get them implemented
so that we can prepare to increase economic opportunities through an
increase in tourism activity by next summer.

Goal 4: Offer as a gift, or sell at below fair market
value, surplus real property held by state or local governments, such
as land, homes, and commercial or industrial structures in the Renewal
Communities to neighborhood organizations, community development corporations,
or private companies.

Actions:

Continue working with neighborhood and community development
groups to improve and enhance the use of county and city-owned property
to better serve the community.

Work with state, county, and city governments to analyze property
holdings and determine uses for any surplus property available.

We will work together to create an innovative incentive plan
using industrial property and buildings to attract business and create
jobs.

Our counties have a history of contributing land to neighborhood organizations,
community development corporations, and private companies. We boast
several community parks throughout the zone offering recreational activities
to our people. Community organizations throughout the zone utilize
county or city owned property and buildings to provide their services.

For example, in Owsley County, the Booneville/Owsley County Industrial
Authority sold property, below fair market value, to the Southfork
Retirement Center, an assisted living facility located adjacent to
the nursing home. Additionally, in order to attract the first business
into the park, the Authority, as an incentive, provided land to the Image
Entry company at no cost.

We will work with state, county, and city governments to analyze property
holdings and determine uses for any surplus property available. Based
on the results from the analysis, we will work to implement programs
to utilize any surplus property in a manner that will be the most beneficial
for the governments involved.

County, regional, and state economic development organizations will work
together to create a unique, innovative incentive plan utilizing industrial
property and speculative buildings, to encourage business and create
jobs.

RECOGNITION OF PAST EFFORTS

The Commonwealth of Kentucky, many regional organizations, and the cities
and counties within the designated area have been working hard to improve
the conditions of our counties and to provide individuals with the
necessary means to become self-sufficient. Again, there are many programs,
too numerous to mention, that have been completed or are on-going that
contribute to our growth. The following list provides a few examples.

In the past few years, Kentucky has implemented many beneficial programs
that assist communities and individuals to become self-sufficient.
In 1996, Kentucky unveiled a new welfare reform plan, entitled the
Kentucky Transitional Assistance Program (K-TAP), and reformed the Workers
Compensation System.

K-TAP offers incentives to employers who will train and hire welfare recipients
and provide affordable child care. The plan also offers subsidized employment
opportunities for qualified participants as a way to encourage a transition
to economic independence. State government works with local communities
to place people in workfare jobs or community service. These opportunities
will provide valuable experience to the participants and satisfy new federal
work requirements as well.

One of the most innovative aspects of the K-TAP plan is a diversion program,
called Family Alternatives. Under this program, participants found to
need only temporary assistance will be able to obtain benefits just
long enough to avert a crisis, reducing the danger of dependence and allowing
the state to spend its limited welfare funds on families facing more
long-term difficulties.

Kentucky will attempt to place participants deemed work ready in
unsubsidized employment within six months. Because Kentucky recognizes
the value of education, participants previously enrolled in post-secondary
education through the states Job Opportunities and Basic Skills (JOBS)
program will be allowed to continue that education for up to 12 months.
After that, they may continue only if they are engages in at least
20 hours per week of work activity. Up to six weeks of job search will
be counted as work-related activity.

Kentucky approved a historic piece of legislation that made dramatic reforms
in the Kentucky Workers Compensation System. Under the new legislation,
the workers compensation system became less adversarial and more of
an administrative system. Workers Compensation awards are based on
medical evidence determined by the professional staff of one of the states
two medical schools. The occupational disability will be determined by
objective criteria that will leave little doubt about what is due the
injured worker. The new law cuts workers compensation costs to noncoal
industries by 11 percent and will reduce the cost to the coal industry
by an estimated 22 percent. Workers will save about $30 million in
unnecessary medical and legal bills, but will still be able to go to
their own doctors and hire lawyers, if they choose to do so.

In 1997, the Office of Coal County Development was created to assist coal
producing counties to diversify their economies beyond coal. The new
office is attached to the Secretarys Office in the Kentucky Cabinet
for Economic Development, and oversees the Local Government Economic
Development Program (LGEDP).

Coal producing counties first started receiving a share of coal severance
tax receipts in 1992 to help them diversity their local economies beyond
coal. At that time, the Local Government Economic Development Fund
(LGEDF) was created to provide grants of coal severance tax revenues to
make counties attractive to new manufacturing and service industries,
as well as to help existing businesses expand. Each coal producing
county is allotted a portion of the LGEDF money for use exclusively
in that county, and a portion is set aside for multi-county or regional
projects. Each county within the designated zone has utilized LGEDF grants
to create industrial park and construct infrastructure. A portion of
this money is set aside for business training incentives. Each county
used a portion of their LGEDF funds to form the Pine Ridge Regional Industrial
Authority and purchase the industrial park located in the City of Campton
in Wolfe County within the zone. (See Attachment 12: Individual County
LGEDF Spreadsheets.)

The state also restructured the Department for Local Government to make
it more accessible and to lessen the red tape. Support services will
increase technology to eliminate much of the paperwork now required.
Local officials will be able to use the Internet to file grant and loan
applications.

Also during 1997, the state lowered vehicle property taxes. The Kentucky
Revenue Cabinet began using the trade-in value of cars and trucks for
assessing property taxes, effective January 1, 1998.

The state hired the first Chief Information Officer for the state. The
EMPOWER Kentucky initiative identified a need for a strategic approach
to the planning and implementation of technology throughout state
government. This new officer directs and implements the Strategic Information
Technology Plan to insure coordination of the states technology efforts.

In 1998, Kentucky became the first state to create its own commission under
the recommendations of the National Commission on Small Farms. The commission
will comprise a group of farmers from every corner of Kentucky representing
all sectors of the agricultural economy. They will examine the issues
confronting Kentuckys family farms and make recommendations to the
Governor, the legislature, and the Kentucky Congressional delegation on
policies and programs for the future of Kentuckys family farms.

Kentucky also formed a task force to analyze Kentuckys adult education
system. The Task Force on Adult Education is made up of six members
appointed by the Senate, six appointed by the House of Representatives,
and six by the governor. The governor chairs the task force. They develop
recommendations and an implementation plan for raising the literacy
level and educational attainment of Kentuckys adults who have not graduated
from high school or who have poor literacy skills.

Senate Bill 21 was passed, enabling high school students who maintain at
least a 2.5 grade point average to earn state scholarship money to Kentucky
institutions of postsecondary education. This is an added incentive
for young people to pursue their education, and the grants help them devote
those four years of college to learning. House Bill 469 guarantees that
teachers will get an automatic cost of living adjustment in their wages
to account for inflation. It is not a raise. Kentucky is ensuring that
teachers will maintain their purchasing power or will not take a pay cut.
Finally, the Kentucky Childrens Health Insurance Program (K-CHIP), Senate
Bill 128, was passed which provides $13 million in state funds to secure
$50 million in federal aid for children of the working poor to access
health benefit coverage. House Bill 142 was passed giving the courts and
social workers broader abilities to intervene in abusive homes. Under
the old law, emergency removal of a child from a family required proof
of imminent danger. Now the system can also act to protect the child
when there is evidence of repeated physical injury or emotional harm, and
in situations where the child is in immediate danger because the parent
has failed to act. The law also sets new grounds for termination of
parental rights and expedites the procedures for terminating those rights
by setting time limits for court action.

Kentucky was the first in the nation when, in 1998, they linked all victim
advocates by computer. The new system, called V-Net, created a computer
network to link every victim advocate in Kentucky, including advocates
in prosecutors offices, rape crisis centers, spouse abuse shelters and
child protection agencies. Through this network advocates are able, for
the first, time to directly access Kentuckys victim notification system
to locate where a dangerous offender is incarcerated or to register
a victim to be notified. V-net also provides critically needed support
to advocates by giving them immediate access to information with which
they can assist victims information like where the nearest protective
shelter is locates; how Kentucky law can protect a child; where a forensic
rape exam can be conducted; and much more.

In 1999, Kentucky became one of the first states to offer an Internet service
specifically designed to assist our business entrepreneurs. The One-Stop
Business Licensing Program is designed to greatly simplify the maze
of regulatory red tape all new business owners experience. It allows
entrepreneurs to go on-line to determine which of over 600 state licenses
or permits are needed for their particular business. The service immediately
identifies the specific state licenses required for each of over 1,800
business types.

The Cabinet for Workforce Development established an Education Pays Scholarship
for customers of the cabinets wide range of employment and training programs
and services. To be eligible, applicants must be a customer of at least
one of the cabinets services, which includes adult education, vocational
rehabilitation programs, unemployment insurance, job search, the Job Training
Partnership Act, or secondary technical education, among others. Applicants
must also be Kentucky residents and provide proof of enrollment in
a postsecondary educational institution.

The Kentucky Resource Directory, the first of its kind in the country,
is online and just a click of the mouse away. The directory is an
Internet database of some forty-five thousand services available
in the state, at the federal, state, local, and private level. Whether
you are looking for a job or looking for a summer camp for kids, residents
can locate the information online. This Empower Kentucky initiative
is designed to bring together people and resources in the most efficient
way. Kentuckys website is the only one in the country that offers private
as well as public agency information from an estimated fourteen-thousand
providers. Individuals can find phone numbers, detailed maps, even
photographs of the buildings where the service is located. The information
was first compiled by the Kentucky Council of Area Development Districts,
beginning in 1997, and Kentuckys Cabinets for Families and Children,
Health Services, Workforce Development, Department of Information
Systems, and Jefferson Countys Community Resource Network compiled
additional electronic data.

Kentuckys food stamp program switched from paper to debit cards to reduce
fraud, save time, and reduce the stigma of using food stamps. The pilot
project started in Anderson, Woodford, Fayette, Franklin, and Shelby
counties. The program was then implemented throughout the state. The
cabinet will save up to a million dollars per year in reduced postage
and administrative costs previously spent on sending stamps every month.
Fraud is reduced because the specially coded cards will not allow
users to buy non-food items or get change to spend on ineligible items.
And, theft will be less appealing because the cards require the use of
a personal identification number.

Kentucky high school students can go online with Internet access to advanced
courses in foreign languages, math, and science. The Kentucky Virtual
High School is the first project of its kind in the world. The Virtual
High School gives students everywhere in the state the opportunity to take
challenging advanced courses not available at their local high school.

The KVHS has two corporate partnerships. One with Class.com, Inc., to use
secondary courses developed by the Division of Continuing Studies at
the University of Nebraska with a $17 million Star Schools Grant from
the U.S. Department of Education. The other partnership is with eCollege.com,
which creates Internet education solutions, to bring online education to
the classroom and to the distance-learning student. The state has also
implemented the Kentucky Virtual Library and the Kentucky Virtual Adult
Education System.

In 2000, House Bill 706 was passed creating a multi-faceted program to
provide for the education and healthy development of Kentuckys youngest
citizens. The KIDS NOW initiative is a historic first step toward the
responsibility we have to helping families and communities make sure that
each and every child reaches their full potential in the first few year
of life.

The Kentucky Innovations Commission was created by the enactment of House
Bill 572 and will be the primary advisor to state policymakers on issues
related to Kentuckys competitiveness in the new economy. The New Economy
Initiative proposes several steps over the biennium to further develop
the knowledge-based Kentucky. In order to be a player in the fast-moving,
global, hightech economy of the 21st century, we will have to improve
the way we educate our people, train our workers, and grow our businesses.

Kentucky Access was created to offer attractive savings and health insurance
choices for individuals with high-cost medical conditions. The program
has already created a business environment where two insurers have returned
to Kentucky, offering competitive choices for the entire individual
market of over 100,000 farm families, self-employed, and working Kentuckians
who must buy their own health insurance coverage.

This year has been a productive year in the State of Kentucky. In an effort
to attack the proliferation of Kentuckys newest drug of choice, an Oxycontin
Task Force was created to combat the use and contain the spreading abuse
of the prescription drug. Now more popular than marijuana and cocain,
the illegal use of Oxycontin, particularly in eastern Kentucky, has reached
nearly epidemic proportions. In eastern Kentucky alone, more than 30
people have died in the last year. In addition to the physical danger
of the drug, its cost, popularity, and addictive nature has caused a drastic
increase in property crime, home invasion, assault, and robberies by
addicts attempting to supply their habit.

The Governor signed an Executive Order creating the Certified Clean County
Program. The state will provide existing resources as an incentive to
help counties clean up their illegal dumps and adopt a mandatory solid
waste collection service to keep their county clean and dump free. Under
the program, the state will reimburse eligible counties for 75% of the
direct expense of cleaning up illegal dumps.

The Natural Resources and Environmental Protection Cabinet will provide
assistance to participating counties in identifying illegal dumps and
estimating the cost of cleaning them up. The Cabinet will also provide
staff to monitor and assist in the clean up effort and inspect and re-certify
the county as dump free on an annual basis. Once all dumps are cleaned
up, the county will be designated a Certified Clean County and the state
will pay for, install, and maintain a Certified Clean County sign
at each entrance to the county. These counties will also gain extra points
when applying for grants and get priority for funds from the Division
of Conservation State Cost Share Program and the Waste Tire Trust Fund.
To be eligible, counties must mandate a curbside solid waste collection
service requiring all residents and businesses to use the service and pay
for it.

Citing the need to maintain and maximize Kentuckys low-cost energy advantage,
an Executive Order was signed creating the Kentucky State Energy Policy
Advisory Board to develop a coordinated statewide energy policy. The
Board will study energy markets throughout the country and internationally
and devise a strategy for maximizing Kentuckys low-cost advantages in
supplying affordable and reliable power. The Board will also coordinate
energy related programs throughout the state and recommend to the Governor
and General Assembly programs and strategies to improve energy related
efforts.

Governor Patton announced the creation, by Executive Order, of a bipartisan,
35-member Smart Growth Task Force to study growth and development issues
in the Commonwealth. This task force will study how a more strategic
approach to growth management can enhance Kentuckys future, working
to elevate smart growth as a public policy issue statewide and conducting
a thorough review of Kentucky statutes, regulations, and programs that
relate to growth. They will also identify possible incentives to assist
our local governments in instituting model smart growth principles
within their government operations, as well as looking at the smart growth
planning of other states. The task force will issue a report next year
that will be used to set a framework for the incorporation of smart
growth principles within state and local government.

In August, the Governor released the names and star ratings for 77 childcare
programs that voluntarily participated in a pilot project for Kentuckys
new quality rating system for childcare programs. The rating system,
called STARS for KIDS NOW, is part of Kentuckys early childhood initiative
signed into law last year to help ensure positive outcomes for Kentuckys
young children. These childcare programs were rated for adherence to a
four-tier set of standards that are based on what research shows to
be good practices for children. Lower staff to child ratios, greater levels
of staff education and training, increased opportunities for family involvement,
and age-appropriate curriculum planning are all part of the rating
criteria. Childcare providers in two of the counties in the identified
RC zone earned the first STAR award this year. In Breathitt County, the
Montessori House for Children and Miller II and Miller III earned the
award on levels two and three. In Owsley County, the Owsley County
Early Childhood/Head Start earned the award.

In addition to the many state projects, the local cities and counties throughout
the identified zone have been working hard to prepare our area for growth.
To be brief, we completed program surveys on projects implemented during
the last eight years to meet the outlined goals.

Breathitt County currently has three bridges that are being funded by the
State of Kentucky. Two are presently under contract to be built and one
is in the design stage. Many county roads have been re-built in an
effort to make them easier to maintain.

Breathitt county, this year, established its own water district board in
an effort to expand water services throughout the county. Twenty projects
have been identified under the plan presently submitted to the state
through the Breathitt County Long Range Water Supply Plan. The first project
proposed is the Highland Turner line, which is now under design by the
districts engineers.

Breathitt County is also working through the Transportation Safety
Committee of the Kentucky River Area Development District to devise
a plan to be submitted to the Kentucky Department of Transportation
for the improvement and upgrading of the road system in Breathitt County.

The Jefferson Hotel Skills Center has been funded and is in the process
of major renovation work at the old hotel. The county utilized many
funding sources, including the LGEDF coal severance funds, to finance
the creation of this center.

In an effort to clean up streams and rivers in the county, Breathitt has
begun working with the Corps of Engineers in what is known locally as
the Hardshell Caney Sewer Project which is an effort to find a solution
to small communities who do not have access to city sewer systems and
do not have a working septic system.

Breathitt County purchased 32 acres of property to create the Pan Bowl
Lake Industrial Park and finished construction on a 40,000 square foot
speculative industrial building in its recently developed industrial
park. They are members of the Pine Ridge Regional Industrial Authority
and the Coal Fields Regional Industrial Authority in an effort to attract
business.

The City of Jackson extended sewer service along Kentucky Highway 15 to
allow for industry expansion and to serve the Kentucky Community Care
complex. They also funded an entire water system to replace the Highland
Avenue Water Tank which had been torn down approximately seven years
ago. They added a new tank to serve the Kings Ridge area of town due to
low water pressure. They also replaced all the valves at the Quicksand
Tank. To ensure water quality, the City of Jackson conducted a water
quality analysis for 183 residents. They also implemented a water treatment
plan project in March of this year that, upon completion, will provide water
and sewer service to 2,200 customers.

The City of Jackson will soon start a renovation project at City Hall including
a new town hall meeting room. In April, they also implemented a Kentucky
Renaissance program to completely renovate the downtown area.

The Lee County Industrial Park was created in 1998 consisting of the development
of 28.6 acres located on state Highway 11 approximately three miles south
of Beattyville. The major elements of the project included site clearing
and grading and the construction of 11,040 linear feet of 8" water
main, 10,800 linear feet of 8" gravity sewer lines, 4,500 linear feet of
6" force main, and four sewage pump stations. In 2000, the Beattyville
Water Storage Tank was built to store 300,000 gallons of water. Lee
County has also been in the process of a major sewer expansion.

Additionally, the City of Beattyville Police Department and the Lee County
Sheriffs Department have received COPS grants within the last year to
add one full-time deputy position, radar and cameras in city police
cars, and a grant from the Center for Rural Development to improve technology
use in the Sheriffs Department by providing laptop computers to each deputy
and other technology equipment.

In 1995, the Owsley County Fiscal Court and the Booneville/Owsley County
Industrial Authority purchased 91.829 acres of industrial property.
These funds included site acquisition, site appraisal, and site development.
In 2000, they developed a master plan for the park, constructed additional
access roads, and built signage for the park. Also in 2000, funding
was secured to install infrastructure in the park including a 300,000
gallon elevated water tank, 3,800 feet of 8" water main, and a pump
station for the additional acres.

An additional 229.5 acres of land was purchased by the Booneville/Owsley
County Industrial authority to create an emergency/alternative water
supply for the Owsley County area. They are researching the feasibility
of creating a golf course on that property in order to attract tourism.

In 2000, the Southern Kentucky Economic Development Corporation, with funds
from EDA, assisted Owsley County by building a 25,000 speculative industrial
building in the industrial park. SKEDC assists the Authority with marketing
the building. Another 10,000 square foot industrial building was built
with ARC funds and LGEDF funds.

Other projects in Owsley County and the City of Booneville that have been
completed or are ongoing include water line extension, the construction
of a wastewater treatment facility, sewer extension, and water tanks
and lines in two locations. The City of Booneville created the City of
Booneville Police Department including two officers, 2 bullet proof vests,
a police car video system, and police weapons. They also received a
grant to purchase a fire truck for the Booneville Volunteer Fire Department.
The County also received a grant to purchase an ambulance for Allens Ambulance
Service.

As a result of Owsley Countys participation as a Champion Community and
a Livable Community, a grant was received from USDA to hire a full-time
economic developer. They also received an ARC Flex-E grant for technical
strategic planning.

Owsley County has also submitted its twenty-year water and sewer implementation
plan to the state and is in the process of a sewer extension project
which will include the industrial park.

Breathitt, Lee, Owsley, and Wolfe Counties are members of the Pine Ridge
Regional Industrial Authority. In 2000, each county utilized a portion
of their LGEDF funds to purchase a 125 acre regional business park.
This project included the extension of water and sewer service to the park
and site development. Fifteen acres was donated to the regional industrial
authority by the Wolfe County Industrial Authority. Kentucky Steel
Truss has located in the park and created approximately 25 jobs. This
is the only industrial park within the designated zone that is located
adjacent to a four-laned highway, the Mountain Parkway, which provides
access to I-64 leading to I-75 in Lexington.

Copies of the project surveys are attached along with state press releases
describing state programs implemented in the last few years. All counties
and the State of Kentucky have plans for other projects. All counties
will be working to implement their twenty year water and sewer plans and
many county and state roads have been upgraded or are in the planning
process of renovations. (See Attachment 13: Renewal Communities Project
Surveys.)

Additionally, the state and each county within the zone have on-going projects
and programs aimed at the economic improvement of the state and our communities
including the LGEDF Coal Severance program, state financial , tax,
and training incentive programs, childcare, K-TAP, KCHIP, adult education
programs, social service programs, and many more.

We are all dedicated to continuing our efforts to build economically viable,
self-sufficient communities that provide services needed by individuals
to assist them in becoming self-supporting. As one city mayor stated,
We have planned, and planned, and planned! Now is the time to start
doing. If an RC designation was awarded to us, we are confident and prepared
to take full advantage of all the benefits and to make sure that our
people take advantage of all the opportunities that become available
to become and remain employed.

Timeline

TIMELINE

PERFORMANCE MEASURES AND EVALUATION

PERFORMANCE MEASURES
AND EVALUATION

As with any successful program, we are committed to making sure that
every individual has an opportunity to benefit from the RC designation.
With that in mind, we have set performance measures to work toward in
order to evaluate our progress and to provide information to the public
concerning the numbers of people being served and the kinds of services
they are receiving. We will not only use this as an evaluation method,
but as a motivational method to encourage others to take advantage of
the opportunities.

The following tables describe our performance measures for each goal and
action.

Goal 1: To increase the level and efficiency of
local services within the Renewal Community, such as services for residents
funded through the Federal Temporary Assistance for Needy Families
program and related Federal programs including, for example, job support
services, child care and after school care for children of working residents,
employment training, transportation services, and other services that
help residents become economically self-sufficient.

Performance Measures:

One hundred individuals will complete the Steps to Success Welfare-to-Work
Training Program offered through the Owsley County Action Team.

One low-income individual will benefit from a Vista position at the
Owsley County Action Team coordinating computer lab and CenterNet programs.

One hundred individuals will benefit from workshops sponsored
through the Owsley County Action Team technology center.

Twenty-five different training programs will be offered by video
conference through the use of CenterNet.

Twenty individuals will utilize computers for home-based work in
the data entry profession.

Fifteen regularly scheduled community college or university courses
will be offered by video conference throughout the zone utilizing CenterNet.

Ten different training opportunities will be hosted at the Jefferson
Hotel Skills Center after renovations are complete.

One staff person will be hired to coordinate the Fund for Excellence
Program in Owsley County.

Participation by students in the Fund for Excellence will increase
by 20%.

The number of students graduating from high school will increase
by 20%.

One Job Skills Training Resource Directory will be created. C
Enrollment in childcare will increase by 15%.

Quarterly Agricultural Diversification Workshops will be conducted
throughout the zone.

One hundred farmers and other individuals will complete Agricultural
Diversification Workshops. C Housing opportunities will increase
by 25%.

Five hundred individuals will utilize the laptop lending program
for skill training.

Ten medical clinics will become involved in after-hours and weekend
non-emergency medical care programs.

Five hundred individuals will benefit from the availability of after-hours
and weekend nonemergency medical care.

All CenterNet facilities throughout the zone will acquire medical
equipment for use in specialty medical appointments by video-conference.

Fifty individuals will benefit from medical appointments by video
conference.

Water and sewer services will be expanded to serve 20% more people
every two years.

Five new fire departments will be created throughout the zone.

Goal 2:

Increase crime reduction strategies, such as crime prevention, including
the provision of crime prevention services by non-governmental entities.
Performance Measures:

Emergency 911/Dispatch will become available throughout Owsley County
and will be expanded and improved in Breathitt, Lee, and Wolfe counties.
Twelve full-time, uniformed police officer positions will become available
throughout the zone.

Each police department throughout the zone will utilize state-of-the-art
technology, including the NCIC system.

Ten arrests will occur due to the availability of information through
the NCIC system.

The DARE program will be incorporated in every school within the
zone.

Twenty new recreational programs will be created throughout the zone.

Goal 3:

Increase the economic development activities by private entities, organizations,
neighborhood organizations, and community groups, particularly those
in the Renewal Community, including a commitment from such private entities
to provide jobs and job training for, and technical, financial, or other
assistance to, employers, employees, and residents from the Renewal
Community.

Performance Measures:

At least three full-time economic developer positions will remain
funded throughout the zone.

A website will be created for business recruitment.

Fifty companies will seek further contact based on information received
from the website.

Twenty-five new businesses will be attracted to the zone.

One thousand jobs will be created.

Two speculative industrial buildings will be sold or leased.

Three speculative industrial buildings will be constructed.

Annual Recruit the Recruiters days will be held within the zone.

CenterNet will be used twenty-five times for business recruitment
purposes.

Five businesses already located throughout the zone will take advantage
of incentives immediately.

Quarterly entrepreneurial and small business training programs will
be provided throughout the zone.

Two hundred individuals will attend entrepreneurial and small business
training programs throughout the zone.

KREDA status will be re-instated in distressed counties in Kentucky,
including Owsley County.

Ten new tourism related opportunities will be created.

Tourism will cause an increase of 10% in county and city budgets.

Goal 4:

Offer as a gift, or sell at below fair market value, surplus real property
held by state or local governments, such as land, homes, and commercial
or industrial structures in the Renewal Communities to neighborhood
organizations, community development corporations, or private companies.

Performance Measures:

Ten pieces of industrial property will be sold at below fair market
value based on criteria set by the industrial authorities according
to the amount invested and the number of jobs created.

Five site preparation grants will be awarded as a local incentive.

All of the main participants in the implementation of the strategic plan
have experience with problems and obstacles that occur in the implementation
of any project. What is important is that they learn from their mistakes
and find solutions to make things better. We are dedicated to identifying
all problems, outlining the lessons learned from the problem, and using
that list to make changes that alleviate those problems and enhance the
strategic plan. We are also dedicated to making the public aware of
the successes that will occur as a motivational method of involving even
more people.

We will conduct a quarterly survey among organizations involved in the
work to identify any problems and obstacles. This survey will include
a section to list the lessons learned in overcoming these problems.
This list will be used to create a lessons learned publication that other
groups and areas outside the zone could utilize to keep themselves from
going through the same mistakes. This will also be used in the evaluation
of our programs.

These survey results, and the input received by the public, will be used
to make revisions to the implementation methods and procedures. If changes
need to occur, we will outline the method of change and the procedures
to be taken to make that change occur.

Although the CoRA will be making recommendations for change in the implementation
methods and procedures, before these changes are finalized, they will
be brought before the public through local newspapers and public service
announcements on local radio and television stations for a period of
two weeks. After two weeks, if no negative comments on the change were received
by the public, the changes will be implemented.

It is the desire of all of us that the public have input into every aspect
of this designation and its implementation. We have committed to settle
for nothing less. Every person counts and their input is considered
valuable. Not only does this give the public the assurance that they are
going to be included in the process, it also shows a deep respect for
individual people, not just the "community."

We will create and approve a spreadsheet for use in tracking performance
measure progress. Each organization involved in the implementation
of any projects related to the designation will appoint one staff person
to complete the spreadsheet listing any progress and successes. Additionally,
these organizations will provide information on any outside funding
received that is not directly related to the designation.

This information will be gathered by the CoRA. They will compile this information
and provide a complete update for input into the Performance Measurement
System.

Semi-annually, we will conduct public meetings to review progress in order
to get the communities 59 idea of how we are doing and whether or
not we need to change focus. As projects are on-going, monthly we will
publish press releases documenting the progress and how many individuals
are being served.

Owsley and Breathitt Counties, as Champion Communities, have utilized the
USDA Community Development Benchmark Management System for the past two
years as part of the requirements for this designation. We have experience
in tracking performance through a variety of projects implemented during
the course of this designation. Additionally, required quarterly reports
to private foundations have been completed on a number of projects in
the past. (See Attachment 14: Breathitt and Owsley County Champion Community
Benchmark System Report.)

The CoRA will be the ultimate responsible party for making revisions to
the implementation methods and procedures. If changes need to occur,
the CoRA will outline the method of change and the procedures to be
taken to make that change occur. Before these changes are finalized, they
will be brought before the public through local newspapers and public
service announcements on local radio and television stations for a period
of two weeks. After two weeks, if no negative comments on the change
were received by the public, the changes will be implemented.

If the specified change requires a more immediate response, the CoRA will
either make the emergency decision or will publish these events outlining
the need to provide responses more quickly.

Throughout this process, the most obvious issue identified was that individuals
want to know what is happening in their communities. This historical
lack of information is what has caused the serious negative perception
and image problems associated with rural areas. As committed as we were
in involving our entire communities in the planning process, we are as
committed to making sure that from now on, our people are aware of what
leaders are doing to improve their quality of life and economic opportunities
and what benefits are available to them.

Throughout this process we stressed that if a persons needs are not being
met, we want them to come and ask us why. They have a right to know why
they are not being served.

Immediately, we will create a visually appealing document which will be
presented to the fiscal courts and city councils and published or inserted
in every area newspaper so that community individuals have an opportunity
to learn about the benefits of the RC designation.

We will utilize available technology to create a website featuring detailed
and comprehensive information on services available. Technology has become
an important part of our rural communities. In order to bridge the
digital divide that exists in our communities, public computer programs
have been implemented which provide our people with access to the Internet
and electronic communication. We will enhance these programs and expand
the availability of public computer technology so that more individuals
have access to information.

We will encourage residents with e-mail addresses to provide this information
in order to be included in a community listserv which will provide
information and updates on services, training 60 and job opportunities,
and workshops currently available.

For those who do not have access to computers, monthly updates will be
published in all area newspapers and disseminated through agencies such
as the Cabinet for Families and Children and other non-profit groups
offering services to community individuals.

Annually, we will host a large public meeting to evaluate progress during
the year.

Renewal Community and Empowerment Zone ApplicantsHHS Administration for Children and Families Posted: May 14, 2002
HHS Administration for Children and Families

Renewal Community and Empowerment Zone Applicants

The U.S. Department of Health and Human Services is pleased to offer support and assistance to localities for adding a human services and welfare-to-work perspective to their Empowerment Zone (EZ) or Renewal Community (RC) applications.

The EZ and RC programs are good opportunities for collaborative work involving economic development agencies and human services organizations, particularly agencies that administer the federal Temporary Assistance for Needy Families (TANF) program. We encourage local leaders to use the EZ and RC planning process to reach out to human services agencies, work with them to create strategies for enhancing services for needy residents, and incorporate those strategies into their EZ strategic plans and RC course of action documents

Renewal Community Information Sheet: City of Rochester Posted: May 12, 2002

Renewal Community Information Sheet

By focusing on marshaling the support and commitments of key players in State and local governments and emphasizing forming alliances with businesses and local community-based organizations, the Renewal Community Initiative offers Federal tax breaks and provides a framework for State and local governments to offer incentives and other benefits. The initiative does not provide Federal funds.

By encouraging job development and retention, the RC initiative helps residents gain employment, succeed in their jobs, and become economically self-sufficient. The increase in business activity that results from these actions will provide economic growth and benefits to the RC and the surrounding community. The RC initiative creates a structure that fosters partnerships. Federal, State and local governments, community organizations, and businesses all play a role.

State and local governments have developed and committed to and will now implement a Course of Action that becomes the framework of the local RC initiative.

RC Tax Incentives Chart from the City of Memphis Posted: May 12, 2002
A table of incentives, credits, and forbearances offered in Renewal Communities.

IRS RC Publications: 954, 8844, 4562 & Related Tax Incentives (City of Minneapolis) Posted: May 10, 2002

Tax Incentive Guide : Tax Incentive Guide for Businesses in the Renewal Communities, Empowerment Zones and Enterprise Communities

IRS Publication 954: Tax Incentives for Empowerment Zones and Other Distressed Communities.

IRS Form 8844: Empowerment Zone Employment Credit

IRS Form 4562 for Addtional Expensing

Empowerment Zone Related Tax Incentives (City of Minneapolis, MN)

Tucson Empowerment Zones Posted: May 10, 2002

Tucson Empowerment Zones

The Empowerment Zone is a collaborative effort between the City of Tucson, Pima County and the City of South Tucson. Working together to address the issues of Downtown and the inner-city.

The Lackawanna Empire Zone (LEZ) is a Renewal Community Posted: May 10, 2002
The Lackawanna Empire Zone (LEZ) offers tax incentives, abatements, credits and benefits for businesses that expand into or start-up in a designated area in the First Ward of the City of Lackawanna in order to create jobs and advance or spur community growth and investment. Lackawanna, an inland ocean port located along the shores of Lake Erie, and bordering the City of Buffalo to the south offers utility rate discounts, duty-free foreign trade zone, customized and subsidized job training programs, access to attractive financing programs, quality infrastructure/fiber optics, and rail access all within ten minutes from Interstate Highway 90 and the International Peace Bridge connecting the United States and Canada

Rules and Regulations: Designation of Round III Urban Empowerment Zones and Renewal Communities Posted: May 10, 2002
Rules and Regulations: Designation of Round III Urban Empowerment Zones and Renewal Communities Page 2 35850 Federal Register / Vol. 66, No. 131 / Monday, July 9, 2001 / Rules and Regulations DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 24 CFR Parts 598 and 599 [Docket No. FR4663I01] RIN 2506AC09 Designation of Round III Urban Empowerment Zones and Renewal Communities

AGENCY : Office of the Assistant Secretary for Community Planning and Development, HUD. ACTION : Interim rule. SUMMARY : This interim rule governs the designation of Round III Urban Empowerment Zones (EZs) and Renewal Communities (RCs) nominated by States and local governments. The designation of an area as an EZ or an RC provides special Federal income tax treatment as an incentive for businesses to locate within the area. This rule lays the foundation for designations to be made on the basis of applications submitted in response to the Notice Inviting Applications published elsewhere in this issue of the Federal Register .

CMPDD designated as CoRA Posted: May 10, 2002
The Central Mississippi Planning and Development District (CMPDD) has been designated as the Coordinating Responsible Authority (CoRA) for the RC area. The purpose of the CoRA is to implement and maximize the federal, state and local benefits made available in the Mississippi Renewal Community Area. CMPDD will be developing the tax incentives utilization plan to develop and expand businesses in the Renewal Community through available federal state and local incentives. The state, working through MDA and the CoRA will ensure that the tax incentive utilization plan is developed with participation of the Renewal Community residents and community organizations. One of the CoRA's main responsibilities will be to notify businesses, as early as possible, of the benefits they will garner by taking advantage of these available valuable incentives.

MILWAUKEE'S RENEWAL COMMUNITY Where Opportunities Abound Posted: May 10, 2002
MILWAUKEE'S RENEWAL COMMUNITY Where Opportunities Abound

COURSE OF ACTION EXECUTIVE SUMMARY City of Milwaukee Renewal Community Application Page 1 Executive Summary Page 2 SIGNATURES AND LETTERS OF SUPPORT As the nominating government entities and representatives of community organizations, business associations, and partners in economic development, we recognize the importance of having tools available to us as we strive to revitalize Milwaukee's neighborhoods. The tools offered through the Renewal Community program would be a critical component to spur economic development in Milwaukee's most distressed communities. We sign to demonstrate our commitment to this Course of Action, which outlines our collective past and future economic development strategies and efforts.

Renewal Community and Round III Empowerment Zone Technical Assistance Workshops Posted: May 10, 2002
This is an HTML version of a HUD Powerpoint Presentation from 2001 (I think).

Renewal Community Workshop Presenters:

Linda Schakel,
John Haines, and
Phil Graham

202–708–6339

www.hud.gov/offices/cpd/ezec

Renewal Community
and Round III
Empowerment Zone
Technical Assistance Workshops

Day One:

Renewal Communities

Day Two:

Round III Empowerment Zones

“Of course, I’m applying for a Round III Empowerment Zone.”

Round I E-Zones & Enterprise Communities

Funding:

6 Urban EZs received $100,000 million each

65 ECs received $3 million each

Round II Empowerment Zones

Funding:

15 EZs received $11 million each

Round III Empowerment Zones

7 Urban and 2 Rural EZs : $22 billion in Tax Incentives will be available to business located in the designated areas.

“Don’t bother me I’m working on my Renewal Community Application.”

3 ELIGIBILITY REQUIREMENTS

CERTS

ACTION

Renewal Community Competition

Three Key Elements

“I’m worried that I won’t get a chance to compete.”

Renewal Community Workshop Presenters

Linda Schakel

John Haines

Phil Graham

202–708–6339

www.hud.gov/offices/cpd/ezec

Tax Benefits for Businesses and TIUPs

Renewal Community

Application Workshop

Why apply to be a Renewal Community

Geographic and Economic Condition Requirements

Course of Action

Certification Forms

Overview

Be able to identify two benefits of the RC program

Understand the eligibility criteria to select an appropriate area to nominate

Objectives

Significant Federal Tax Incentives

Easy Application Process

Course of Action vs. Strategic Plan

CoRA vs. Governance Structure

TIUP after Designation vs. TIUP in Strategic Plan

Selection is Objective

100 percent Statistics

Why Apply to be an RC?

Nominating Governments

Each State and local government

Local are “general purpose political subdivisions”

Reservation governing body is both state
and local

Preparing Your Application

Who Nominates an RC

Preparing Your Application

Geographic and Economic Condition Requirements

Boundary Map

“Continuous boundary”

Required boundary layers

Census tracts

States

Counties or parishes -- partial is okay

Cities and towns -- partial is okay

Townships (?)

Boundaries change--nominators are responsible

Preparing Your Application

Geographic and Economic Condition Requirements

Maps are available through the U.S. Census Bureau at 301–457–4100 or through State Data Centers. Check www.census.gov/sdc/www/ for a list of State Data Centers

Please update pages A-3 and A-9 of the RC Application Guide

Preparing Your Application

Geographic and Economic Condition Requirements

Any of the nominating jurisdictions

Has a population of 50,000 or greater and

Is located within a Metropolitan Area (MA)

Urban Nominated Areas

Preparing Your Application

Geographic and Economic Condition Requirements

Rural Area Jurisdiction(s)

Population less than 50,000 or

Outside a Metropolitan Area (MA) or

Determined by HUD/Commerce

Preparing Your Application

Geographic and Economic Condition Requirements

Population of Nominated Area

Use the Census Tract Data Form

Not more than 200,000

At least 4,000 for Urban

At least 1,000 for Rural

Not required within Indian reservation

Preparing Your Application

Geographic and Economic Condition Requirements

Poverty, Unemployment, and Income

Use the Census Tract Data Form

Different for Urban and Rural

On-Line is an option

Criteria Thresholds (1990 Census)

20% Poverty

9.4% Unemployment

70% Low income (Urban only)

Preparing Your Application

Geographic and Economic Condition Requirements

An Applicant Must Demonstrate

“pervasive poverty, unemployment, and
general distress”

Narrative, tables or charts, or combination

Preparing Your Application

Geographic and Economic Condition Requirements

Unemployment Indicators

“… not less than the national average rate” or

“especially severe economic conditions … that have brought about significant job dislocation”

Preparing Your Application

Geographic and Economic Condition Requirements

General Distress Indicators

Income

Welfare

Tax base

Crime

Health data

Education data

Homelessness, housing

Infrastructure

Preparing Your Application

Geographic and Economic Condition Requirements

Course of Action Requirements

Reduce Tax Burdens

Improve Local Services

Reduce Crime

Involve Community Partners

Gift of Real Property

Reduce government requirements

Preparing Your Application

Potential Actions To Reduce Government Requirements in Renewal Communities

Density Bonuses

One-stop Permits

Variance/Exception Policies

Voluntary Environmental Compliance Program

Preparing Your Application

Course of Action

Written document

Signed by:

State and local governments or

Reservation governing body

Committing to measurable goals and actions

Including timetable with steps and dates

Describing how performance will be evaluated

Preparing Your Application

Course of Action Key Partners

Faith-based Organizations

Residents

Businesses

Local Nonprofits

Schools and Universities

Preparing Your Application

Four Certification Forms

Certification Forms 1, 3, and 4 are mandatory

Certification Form 2 is optional--for bonus points

Responsible official must sign each form

Preparing Your Application

Certification Form 1:
Economic Condition Requirements

Poverty, Unemployment, and Income

Pervasive poverty, unemployment, and
general distress

“Responsible official” for each nominating government must sign

Preparing Your Application

Definition of Responsible Official

“an official or employee authorized to act on behalf of the government for that purpose”

Preparing Your Application

Certification Form 3:
Economic Growth Promotion Requirements

Repeal or reduce--

Licensing for occupations

Zoning for home-based businesses

Permits for street vendors

Restrictions on schools or child care

Restrictions on jitneys, cable television, or trash haulers

Narrow exception--health and safety

Preparing Your Application

Certification Form 4:
Public Notice

Notice of, and opportunity to participate in,
the application development process

Examples:

Newspapers or other media

Public meetings

Soliciting comments

Preparing Your Application

Certification Form 2 (optional):
Local Crime Index Certification

Use for one, two or four bonus points

1999 police agency data for the nominated area

All nominating governments must sign

Preparing Your Application

Basic Application Requirements

Submission deadline: October 12, 2001, 5 p.m. eastern time

Package should include one original and two copies No faxes

Certain materials may be submitted online

Submitting Your Application

Application Checklist

Map of nominated area

Nomination forms

Course of Action

Four certifications (including one optional certification)

Economic distress narrative

Submitting Your Application

RC/Round III EZ On-line Application System

www.ezrc.hud.gov

Submit Census Tract Data form

Submit Geographic/Population/Economic Condition Requirements form

Assists users in choosing tracts

Automatically calculates rates

Unemployment

Low-income

Illustrates 20-percent poverty tracts

Allows users to print out certification forms

Submitting Your Application

RC Application Threshold Requirements

Nominated area meets all eligibility requirements

Submission of Course of Action

Submission of required certifications

How HUD Makes Selections

Ranking Rural Applicants

Poverty

Unemployment

How HUD Makes Selections

Ranking Urban Applicants

Poverty

Unemployment

Income

How HUD Makes Selections

Incidence of Crime Bonus Points

LCI = Local Crime Index

Four points: LCI is less than 4,266.8

Two points: LCI is at least 4,266.8, not more than 4,693.48

One point: LCI is more than 4,693.48, less than 5,334

How HUD Makes Selections

Bonus Points

Incidence of crime in area

One to four points

Census tracts in General Accounting Office Report

One point

How

HUD Makes Selections

Selection Preferences

Existing Empowerment Zones and Enterprise Communities receive the first 20 designations

At least 12 Rural nominations will be selected

How HUD Makes Selections

Five-Step Designation Process

Convene

Verify

Develop

Submit

Implement

Partnering For Community Renewal

State/Local Participants

Community-based organizations

Responsible officials

Contact persons

Partnering For Community Renewal

Coordinating Responsible Authority (CoRA) Responsibilities

Functions as Central POC

Carries out Commitments

Develop and Administers Procedures

Assist in Developing the TIUP

Submit Periodic Reports

Partnering For Community Renewal

Additional Materials

Interim Rule

Notice Inviting Applications

Tax Incentive Guide for Businesses in the
Renewal Communities, Empowerment Zones,
and Enterprise Communities

Renewal Communities: Urban and Rural
Application Guide

For copies, call 800–998–9999 or visit

www.hud.gov/offices/cpd/ezec

Partnering For Community Renewal

Questions and Answers

Renewal Community
and Round III
Empowerment Zone
Technical Assistance Workshops

Official Louisiana Renewal Community Information Posted: May 10, 2002
Official Louisiana Renewal Community Information - Site information on the Renewal Communities of North, Central, Ouachita Urban and New Orleans/Jefferson Urban.

Renewal Community Employment Credit.

An Excellant Site! Good contacts, well presented links & text.

HUD's RC's Key Principles Posted: May 10, 2002
The RC/EZ/EC Initiative is designed to afford communities real opportunities for growth and revitalization. The framework for the Initiative is embodied in four key principles:

1. Strategic Vision for Change
2. Community-based Partnerships
3. Economic Opportunity

4. Sustainable Community Development.

Each Renewal Community has a Coordinating Responsible Authority (CoRA) in lieu of a governance board. The CoRA, which may be an entity, organization, person or persons, is authorized by the government(s) that nominates the RC for designation. The CoRA functions as the RC's central point of contact and takes on the responsibility and authority to carry out the program as detailed in the course of action and certifications of commitment. The CoRA is also responsible for promoting RC benefits and making required reports to HUD.

OUACHITA PARISH RECEIVES U.S. HUD URBAN RENEWAL COMMUNITY DESIGNATION: Posted: May 10, 2002
OUACHITA PARISH RECEIVES U.S. HUD URBAN RENEWAL COMMUNITY DESIGNATION:

Ouachita Parish was notified at the end of January that they have been designated one of 40 Renewal Communities nationwide. These renewal communities share in approximately $17 Billion worth of incentives to businesses located inside the perimeters of the Renewal Communities and who employ individuals living within the boundaries. HUD, as part of the Community Renewal Tax Relief Act of 2000 authorized the establishment of 40 renewal communities across the country. The State of Louisiana received 4 of the 40, with Ouachita Parish receiving one of 12 Urban Renewal Communities nationwide

Searching for information on Appal.org. Posted: May 10, 2002

HOWTO: Searching for information on Appal.org.

  
Introduction  
Browser Basics  
Using Find to Search Headlines  
Using Find to Search Postings  
Using Google to search Appal.org

Introduction
Searches on Appal.org tend to be a two step process, where the first search happens at the website, and the second happens in your browser. The web site will send you selected postings, groups of postings, or all headlines. Use your browsers text search tool (usually "Find in This Page" in the browser's EDIT menu) to find keywords in the served pages.
Browser Basics
Your browser will search within a page of HTML for a given keyword. Usually this is the CTRL-F key pair, but it may be a different key command in your case. You may need to poke around the Edit Menu for the Find command. It is usually referred to as "Find in this page".

Use the Find command to search for a key word in the current page. Two particular uses demonstrate the general use: Finding a key word in the headline list, and finding a key word in the search results returned by the Search All Postings button. Together , these two search techniques let you quickly ferret out key words in the Appal.org postings.
Using Find to Search Headlines
Most pages on Appal.org have a "BROWSE HEADLINES AND POSTINGS" button at the bottom of the page. You can also get this page from the Search option in the Main Menu. Hit the Browse button and ALL the headlines for all postings on Appal.org will be listed chronologically. You can browse the headlines to find postings that interest you. Use the Find command (CTRL-F) to search the headlines. When you find one of interest, clicking on it's headline will display the posted article.
Using Find to Search Postings
Most pages on Appal.org have a "SEARCH ALL POSTINGS" button at the bottom of the page. You can also get this page from the Search option in the Main Menu. Enter your keywords and hit the Search key. ALL postings that contain that word will be displayed in one page. Use care when you compose your keywords, or you will get a lot of document back. After you have used the Search button to return all the postings that contain your keyword, use the Find command (CTRL-F) to search the page for your keywords.
Using Google to search Appal.org
The Search option in the Main Menu offers you a link to Google, a pre-eminant web search engine. Eventually, popular links tend to get listed on Google, and some Appal.org pages may be listed there. Google allows for very sophisticated searching. The breadth and depth of a Google search is impressive, and if you are not already familiar wih the search engine, you might take a moment to look at Google now.

BOWL RC Designation Announcements, Early HUD Announcenments and Original Statutes Creating RC's Posted: May 10, 2002

HUD ANNOUNCES EASTERN KENTUCKY COUNTIES SELECTED AS A RENEWAL COMMUNITY - ELIGIBLE FOR $17 BILLION IN TAX INCENTIVES
HUD No. 02-013EKY Contact: John Milchick, Jr. (502)582-5816 For Release Tuesday January 22, 2002

LOUISVILLE, KY - The Department of Housing and Urban Development today announced that four counties in eastern Kentucky will be designated a "Renewal Community," eligible to share in an estimated $17 billion in tax incentives to stimulate job growth, promote economic development and create affordable housing. The 2000 Community Renewal Tax Relief Act established the Renewal Community Initiative that will encourage public-private collaboration to generate economic development in 40 distressed communities around the nation.
President Clinton's New Markets Initiative: Revitalizing America's Underserved Communities December 14, 2000
Today, President Clinton is pleased to announce the passage of the historic new bipartisan New Markets and Community Renewal initiative.

INCREASE IN THE PRIVATE ACTIVITY BOND CAP: The legislation increases the state private activity bond cap from $50 per resident to $75 per resident, phased in from 2001 to 2002. Private activity bonds allow states and municipalities to encourage economic growth in communities through the issuing of lower cost tax exempt bonds.
HUD Notice Inviting Applications: Designation of Forty Renewal Communities
FOR FURTHER INFORMATION: For technical questions, contact John Haines, Renewal Community Initiative, Office of Community Planning and Development, Department of Housing and Urban Development, 451 Seventh Street, SW, Room 7130, Washington, DC 20410, (202) 708-6339. Hearing- or speech-impaired individuals may call (800) 877-8339 (the Federal Information Relay Service-TTY). HUD prefers to receive technical questions by email to john_haines@hud.gov or by facsimile (FAX) to (202) 401-7615 or (202) 708-3363, since email or FAX enables the questions and answers to be communicated as rapidly as possible in writing.
US CODE COLLECTION Notes on Sec. 1400E. Pub. L. 106-554, Sec. 1(a)(7) (title I, Sec. 101(c)), Dec. 21, 2000, 114 Stat. 2763, 2763A-599, provided that: ''Not later than January 31 of 2004, 2007, and 2010, the Comptroller General of the United States shall, pursuant to an audit of the renewal community program... report to Congress on such program and its effect on poverty, unemployment, and economic growth within the designated renewal communities, empowerment zones, and enterprise communities.'
ADVISORY COUNCIL ON COMMUNITY RENEWAL 'There is established an advisory council to be known as the 'Advisory Council on Community Renewal' (in this part referred to as the 'Advisory Council'). ''SEC. 153. DUTIES OF ADVISORY COUNCIL.
H.R.815 Title: To amend the Internal Revenue Code of 1986 to provide for the designation of renewal communities, to provide tax incentives relating to such communities, and for other purposes. Sponsor: Rep Watts, J. C., Jr.(introduced 2/24/1999) Related Bills: S.463 Latest Major Action: 3/18/1999 Referred to House subcommittee
S.463 Title: To amend the Internal Revenue Code of 1986 to provide for the designation of renewal communities, to provide tax incentives relating to such communities, and for other purposes. Sponsor: Sen Abraham, Spencer(introduced 2/24/1999) Related Bills: H.R.815 Latest Major Action: 2/24/1999 Referred to House subcommittee

RC Links to supporting agencies and institiutions Posted: May 9, 2002

Kentucky Enterprise Zone Program: Ky Cabinet for Economic Development Phyllis Bruning, Director Email Phyllis Bruning

UK Rural Studies Program conduct research into the economic opportunities and problems of rural areas.

Links to useful sites for local government leaders.

A gateway to statistics from over 100 U.S. Federal agencies. The Mapstats link here is really good

Federal list of current funding opportunities Posted: May 9, 2002
Notices of Funding Availability- A Federal list of current funding opportunities

Testimony to the House Committee on Small Business 105th Congress 105th Congress on HR3865: The American Community Renewal Act Posted: May 9, 2002
Testimony to the House Committee on Small Business 105th Congress 105th Congress on HR3865: The American Community Renewal Act

Avis C. Vidal co-principal investigator of the evaluation of the Empowerment Zone and Enterprise Community program.

Principal Research Associate The Urban Institute Washington, D.C.

May 19, 1998 ...Second, the bill makes no provision for managing Renewal Communities-and good, entrepreneurial management costs money. This would not be a problem for Renewal Communities that are also Empowerment Zones, because they have Title XX funds (or local matching funds) to support the management entities they already have in place. It would be a problem for newly-designated zones, and for Renewal Communities that are also Enterprise Communities, since many will have no federal funding to support their zone management entities after the current fiscal year.

What, then, accounts for the limited number of successful zones pointed to by Erickson and Friedman and others? The weight of the available evidence indicates that "successful" zones have two characteristics:

Successful zones are good places to do business. Although the zones designated under state programs include residential areas that are experiencing some level of distress (most commonly measured in terms of high unemployment, high poverty rates, and low median income), they also include areas with genuine development potential, including a labor pool with good basic skills.

Successful zones are actively managed by individuals with entrepreneurial skills-people who (a) reach out to business owners in the zone to keep them informed about the benefits available to them and provide them with tax forms and specific information about exactly how to take advantage of the benefits; (b) market the zone and its advantages to firms outside the zone that seek new locations; and (c) represent zone businesses in seeking improvements, such as new infrastructure, to the zone.

Focus on Partnerships Posted: May 9, 2002
Focus on Partnerships.

The RC Initiative focuses on creating meaningful and productive partnerships, which HUD will fully support through technical assistance and capacity-building activities. Technical assistance available to RCs will include easy access to available Federal resources and programs, a network for reaching out to the business community, and help in implementing courses of action. Building Lasting Alliances. The RC Initiative looks at ways to gain support and commitment from State and local governments to compose and refine a course of action that substantively addresses regulatory barriers, tax relief, and improvement of local services in the nominated areas. EZ Designation Increases Business EZs prove that even seemingly insurmountable obstacles faced by a distressed community can be overcome through public and private partnerships. The successes of EZs can be tangibly measured in $4 billion in new private-sector investments in community development, in improved bond ratings, and in increased numbers of decent and affordable housing structures. Seven New Zones. Urban communities will have the opportunity to compete for seven additional designations available in Round III. Currently, there are 23 designated urban EZs representing an elite group of communities renowned and nationally recognized for their successes in urban revitalization. More Tax Credits. One of the major benefits offered to Round III EZ designees is a generous multimillion-dollar tax package that will include the EZ wage credit and the Work Opportunity Tax Credit. Federal Bonus Points. Other benefits include special preferences and consideration in obtaining funding through other Federal competitions, with many offering bonus points to EZs. Technical Assistance. As a designated EZ, awardees receive funding and program information through HUD's Office of Empowerment Zones and Enterprise Communities. Round III EZ designees will have a network of experienced and knowledgeable Round I and Round II EZ communities to draw from for guidance and experience.

Notice Inviting Applications, Filed 8-6-01: Designation of Forty Renewal Communities Posted: May 9, 2002
Notice Inviting Applications: Designation of Forty Renewal Communities Filed 8-6-01

------------------------------------------------------------------------ Directive Number: FR-4663-N-02 ------------------------------------------------------------------------ Click Here to Dowmload PDF File ------------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4663-N-02]

Notice Inviting Applications: Designation of Forty Renewal Communities

AGENCY: Office of the Assistant Secretary for Community Planning and Development, HUD.

ACTION: Notice inviting applications.

SUMMARY: The Community Renewal Tax Relief Act of 2000 (CRTR Act) authorizes HUD to designate up to 40 Renewal Communities within which special tax incentives would be available. This Notice invites applications for designation of nominated areas as Renewal Communities (RCs) in accordance with the designation process described in this Notice.

APPLICATION DUE DATE: To be eligible, a complete application (one original and 2 copies) must be received no later than October 12, 2001. See below for specific procedures applicable to the type of delivery used (e.g., mailed, express mail, overnight delivery). No facsimile (FAX) applications will be accepted for consideration by HUD. Delivered Applications. Complete applications (one original and two copies) must be received no later than 5:00 PM eastern time, on October 12, 2001. Up until 5:00 PM on the deadline date, completed applications will be accepted at the address and room number specified below. Mailed Applications. Applications will be considered timely if postmarked on or before October 12, 2001. Applications Sent by Overnight Delivery. Overnight delivery items will be considered filed on time if received on or before October 12, 2001. Electronic Submission of Application Information. Information submitted electronically using the RC/EZ On-line Application System must be submitted not later than 5 PM, Eastern Time on October 12, 2001. This is done by hitting the ``Submit'' button at the appropriate location in the software. The system will not be available after the deadline.

ADDRESSES: Address for submitting applications. All paper application materials (one original and two copies) must be submitted to: Department of Housing and Urban Development, Office of Community Planning and Development, c/o Processing and Control Unit, Room 7255, 451 Seventh Street, SW, Washington, DC 20410. Some information may also be submitted electronically, as provided elsewhere in this notice. For Application and Other Materials. For a copy of all RC publications, including the Application Guide, Nomination Forms, and the interim rule (24 CFR part 599, published July 9, 2001, 66 FR 35850), please call the Community Connections Information Clearinghouse at (800) 998-9999. The RC publications are also available from HUD's web site at: http://www.hud.gov/offices/cpd/ezec. Requests for application materials should be made immediately to allow sufficient time for application preparation. Hearing- or speech-impaired persons should use the Federal Information Relay Service telephone number, (800) 877-8339, to obtain application materials. The Renewal Community publications consist of: (1) This Notice Inviting Applications; (2) The Renewal Communities Interim Rule (24 CFR part 599, published July 9, 2001, 66 FR 35850); (3) Renewal Communities Application Guide, 2001 (RC Application Guide); and (4) Tax Incentive Guide for Businesses in the Renewal Communities, Empowerment Zones, and Enterprise Communities.

FOR FURTHER INFORMATION: For technical questions, contact John Haines, Renewal Community Initiative, Office of Community Planning and Development, Department of Housing and Urban Development, 451 Seventh Street, SW, Room 7130, Washington, DC 20410, (202) 708-6339. Hearing- or speech-impaired individuals may call (800) 877-8339 (the Federal Information Relay Service-TTY). HUD prefers to receive technical questions by email to john_haines@hud.gov or by facsimile (FAX) to (202) 401-7615 or (202) 708-3363, since email or FAX enables the questions and answers to be communicated as rapidly as possible in writing.

Cooperation Among the Nominating Governments and Community Organizations Posted: May 9, 2002
C. Cooperation Among the Nominating Governments and Community Organizations

Every application for RC designation must contain a course of action describing the commitment to cooperation in the nominated area by the nominating governments and community organizations that meets the requirements of this section II.C. listed immediately below.

C. Cooperation Among the Nominating Governments and Community Organizations

1. Commitment to a course of action. A course of action is a written document, signed by the nominated area's State and local governments, or in the case of a nominated area located within an Indian reservation, the reservation governing body, and community-based organizations which commits each signatory to undertake and achieve measurable goals and actions within the nominated area upon its designation as a Renewal Community.

2. Community-based organizations. For purposes of the course of action, ``community-based organizations'' includes for-profit and non- profit private entities, businesses and business organizations, neighborhood organizations, and community groups. Community-based organizations are not required to be located in the nominated area as long as they commit to achieving the goals of the course of action in the Renewal Community.

3. Timetable. The course of action must include a timetable that identifies the significant steps and target dates for implementing the goals and actions.

4. Performance measures. The course of action must include a description of how the performance of the course of action will be measured and evaluated.

5. Required goals and actions. The course of action must include at least four of the following:

a. A reduction of tax rates or fees applying within the Renewal Community;

[[Page 41435]]

b. An increase in the level of efficiency of local services within the Renewal Community, such as services for residents funded through the Federal Temporary Assistance for Needy Families program and related Federal programs including, for example, job support services, child care and after school care for children of working residents, employment training, transportation services and other services that help residents become economically self-sufficient;

c. Crime reduction strategies, such as crime prevention, including the provision of crime prevention services by nongovernmental entities;

d. Actions to reduce, remove, simplify, or streamline governmental requirements applying within the Renewal Community, such as:

i. Density bonus. Permission to develop or redevelop real property at a higher density level than otherwise permitted under the zoning ordinance, e.g., increased height or increased number of residential or business units;

ii. Incentive zoning. Providing a density bonus or other real property-related incentive for the development, redevelopment, or preservation of a parcel in the designated area;

iii. Comprehensive or one-stop permit. Streamlining construction or other development permitting processes, rather than requiring multiple applications for multiple permits, e.g., for demolition, site preparation, and construction, the developer or redeveloper submits asingle application that is circulated for the necessary reviews by the various planning, engineering, and other departments in the county or municipality;

iv. Variance and exception policies. Counties or municipalities may pass ordinances that permit variances to or exceptions from certain zoning or other land use limitations. Examples include a reduced building set-back requirement or a reduced requirement for the provision of parking. The policy may be limited to a particular geographic area.

v. Voluntary environmental compliance program. A shared or limited environmental liability program, with limited liability from certain legal or administrative action in exchange for undertaking an approved program of environmental investigation, hazard control, and on-going risk reduction activities. Typically, the liability limitation is for future environmental cleanup (and not against lawsuit for damages). Risk of cleanup may be shared by the developer or property owner and the government;

e. Involvement in economic development activities by private entities, organizations, neighborhood organizations, and community groups, particularly those in the Renewal Community, including a commitment from such private entities to provide jobs and job training for, and technical, financial, or other assistance to, employers, employees, and residents from the Renewal Community;

f. The gift or sale at below fair market value of surplus real property held by State or local governments, such as land, homes, and commercial or industrial structures in the Renewal Community to neighborhood organizations, community development corporations, or private companies.

6. Recognition of past efforts. The course of action is not limited to future goals and actions. Past efforts within the previous eight years, either completed or on-going, of the nominating State or local governments in reducing the various burdens borne by employers and employees in the nominated area by undertaking any of the goals or actions listed in section II.C.5., above, of this notice may be used to meet the course of action requirement. If past efforts are used, the course of action must identify which of the required goals and actions listed in section II.C.5. they address; the timetable for their continued implementation, if on-going; the community-based organizations involved, if any; and an evaluation of their performance and the performance measures used.

Summary of Community Renewal and New Markets Act of 2000 (S. 3152) Posted: May 9, 2002
Summary of Community Renewal and New Markets Act of 2000 (S. 3152)

The idea behind the RC/NM initiative has been described as a merger of President Clinton's "New Markets Initiative"--including a tax credit and other incentives designed to attract capital to low-income areas--with a House Republican proposal called the "American Community Renewal Act (H.R. 815), which would provide tax and regulatory relief to economically distressed areas and help poor families set up subsidized savings accounts. (12) Instead of a merger, however, the bipartisan, anti-poverty package has been characterized as a juxtaposition: "We allow two different forms to see what we can learn over the next several years about what works best in attracting investment and job growth," said Gene Sperling. (13)

Indeed, if a renewal communities/new markets initiative is enacted, it may be possible in a few years to examine the results and draw conclusions about which incentives, programs, and approaches seem to work best. The phenomenon of moribund urban and rural areas, and the myriad economic and human problems associated with them, will present a public policy challenge for the foreseeable future. The need to learn what works best argues for systematic collection of data that will facilitate program evaluation.

On the other hand, history has shown that drawing conclusions about these types of economic development programs will not be easy. By the late 1980s, about three dozen states had created a variety of enterprise zone programs, yet even today there is little information about what works and what does not. The simple fact is that it is difficult to judge the success of economic development efforts. As one report notes:

Although the economic development literature often discusses the potential effects of enterprise zones, empirical research on, or analysis of zone programs is somewhat limited. The modest amount of empirical research is due to two basic constraints: (1) the lack of reliable quantitative data to evaluate zone performance, and (2) the difficulty of isolating the effects of zone designation and incentives from those of other economic development factors and initiatives.

Rural Renewal Community Informal Discussion in DC Posted: May 9, 2002
Sent: Monday, May 06, 2002 11:38 AM Subject: Rural Renewal Community Informal Discussion in DC

TO: RURAL RENEWAL COMMUNITY MEMBERS FROM: BRUCE S. REYNOLDS MISSISSIPPI RURAL RC CoRA

SUBJECT: INFORMAL DISCUSSION

By way of introduction, my agency orchestrated and has been named as the CoRA for the Mississippi Rural Renewal Community. This designation will go far in helping the economic situation in each of our designated areas. With this being a new program there are many unanswered questions, and each of us have similar challenges and questions.

With that in mind I would like to invite you and your fellow Rural RC CoRA counterparts to join CMPDD on Sunday May 19, at 4:00p.m. at the Marriot Crystal City Hotel Restaurant or Cocktail Lounge, depending on the response, for an informal discussion. Items of discussion may include:

1. Your efforts to date regarding organizing your Rural RC. 2. How you envision your Rural RC functioning. 3. How you are paying for administration. 4. Your plans to ensure that business/industry take full advantage of this program. 5. Success stories 6. Problems / Challenges

While this will be held in conjunction with the HUD Community Renewal Implementation Conference, this is an independent effort on our part to initiate dialogue and address issues common to Rural RC’s. We are not affiliated with nor sanctioned by H.U.D. Please fill out and fax or e-mail back your RSVP in regard to this meeting.

I look forward to meeting each of you in Washington!

Listen to the BOWL CoRA meetings: 4-27-02 Posted: May 8, 2002
4-27-02

Download Part 1 first (about 5 minutes on a modem line), and then pull down the rest while you listen. Click on the "Part #" to download. Part 1, Part 2, Part 3, Part 4, Part 5

The meeting sound files are low fidelity MP3's. The file names are MM.DD.YY.part#.mp3, that is the month, day and year, of the meeting and then the sequence number of the file, ie: part 1, part 2, etc.

I apologize for the very poor quality of part four: the cassette tracked very poorly on playback.

Use any MP3 player to listen to the meeting files. Common players are the Windows (c) Media Player, FreeAmp, Xmms, and any of the standalone players like the Rio.

Please forgive the sound quality, and the occaisional pops, warbles and dropouts-MP3's are a "lossey" compression technology and many compromises are made to make the files this small.

Bits of the meeting are not recorded, for example: flipping tapes, lunches, long silences, pre and post meeting discussions.

HUD's Renewal Community Web Page. Posted: May 5, 2002
Renewal community (rc) competition information and resources" This is the big HUD web page with most of the information you'll need on it. If you need to find a contact at HUD, or learn more about HUD policy, this is the place to start.

To Search the HUD web site go here.

Renewal Community Links on Appal.org Posted: May 4, 2002
The links listed here will take you to information about HUD's Renewal Communities Program. Categories include general information on Renewal Communities, Tax Advantages and Issues, the CoRA: Managing the RC program, Renaissence Communities and Renewal Communities on Main Street, and information specific to the Eastern Kentucky RC.

JOINT COMMITTEE ON TAXATION SEARCH ENGINE Posted: April 30, 2002
JOINT COMMITTEE ON TAXATION SEARCH ENGINE

To search for a document on the Joint Committee on Taxation's website, enter a single word, several words, or a phrase.

Main Street Revitalization in Beattyville (5 of 12) Posted: April 30, 2002
Get Ready, Company is Coming!

Submitted: 11 Feb. 2002
By: Larrey Riddle

Something exciting happened in Beattyville last Thursday night. It was not particularly Earth shattering. And, if you came to town Friday morning, nothing appeared any different. In fact, unless you spoke to one of the forty-five people who were there and witnessed it, you might not even know that something fundamental had changed.

So, what was it?

Simply this. People decided to take the future into their own hands. Forty-five people, from all walks of life, decided that they could effect how the future settles on their community. An organization was formed. As of now, it is an organization without a name, without a charter, and without leadership. Those details will be worked out at the next meeting. The amazing part of this is that people realized that if things are going to change, it had to be fueled by them. Not by government. Not by some of the myriad of non-profit organizations dedicated to “help” the people of the region. But, by the people whose futures are at stake. Government and non-profits are an important part of the solution. They can provide funds and technical assistance. Last Thursday night forty-five people decided to take the first step in making changes to their community. They decided to improve things themselves.

The meeting began with the agenda of forming a downtown association, looking to starting the process of a Main Street revitalization project. The merchants with shops downtown were well represented, but everyone saw the need for an organization that was more inclusive. After all, most of the people who work in Beattyville live not in town, but out in the county. The vitality of both is linked. The futures of both are inseparable. Those plans may include a Main Street project. They may include looking at ways to generate more business for merchants. The plans may include attracting new businesses. It may include developing a tourism infrastructure. Whatever direction this newly found organization decides to go, the biggest step has been taken.

Naming the organization, electing officers, and setting short and long term goals will all be dealt with at the next meeting. It will take place February 21st, at 7:00 p.m. at the P.E.P. Coalition offices. You are invited.

Main Street Revitalization in Beattyville (4 of 12) Posted: April 30, 2002
Get Ready. Company is Coming!

Fourth of twelve articles first published in the "Three Forks Tradition" newspaper

By: Larrey Riddle

Paint the Town Yellow

Paint the town green. Paint the town purple, if you like. A number of years ago, I am told, the debate on what color to paint the newly restored City Hall was a lively one. Now, as we are presented with the opportunity to revitalize Beattyville’s downtown, the need for consensus is even more important. The decisions necessary for that process to succeed are complicated and without teamwork and participation of a wide group of people, can be difficult. What is needed is a plan, Stan.

Two weeks ago, we invited everyone to a “town meeting” to discuss the benefits and process for Beattyville to become a Kentucky Renaissance community. There was a good turnout. People came because they care about the direction our town goes. It was a good beginning. But, in a sense, it was also putting the cart before the horse. Before we can even begin the process of a Main Street revitalization, we need an organization that can build consensus and establish a plan. While advocating the importance of a grassroots initiative, we were ignoring the fact that revitalizing Main Street is not necessarily what people wanted.

Therefore, without any further ado, I would like to propose the formation of a Downtown Association. The first order of business is to develop a “business plan” for downtown Beattyville. Like any good business plan it should identify assets and establish goals and objectives for the enterprise. It will provide a vision for where we are going. It will identify the hazards along the way, which can prevent us from getting there. It is a roadmap for where we go from here.

At the end of that process, the group may decide that the best thing for Main Street is to paint the town yellow. The group might decide to return to horse drawn wagons, or put on afternoon tea dances. Alternatively, we might decide to do nothing at all. And maybe, just maybe, the group will decide to put aside differences and pull together to begin a Main Street revitalization project. Whatever is decided, it will be a decision made by the group.

Join the discussion this Thursday, February 7th at the PEP offices in the Congleton Building on Main Street at 7:00 p.m. Please note that the location has been changed to make room for more people. Everyone is welcome. Your active participation is needed.

Main Street Revitalization in Beattyville (3 of 12) Posted: April 30, 2002
Get Ready, Company is Coming!

Third of twelve articles first published in the "Three Forks Tradition" newspaper

By: Larrey Riddle

Redefining Main Street

Norman Rockwell’s portraits of a slow-paced, more innocent time defined our image of small towns in the fifties. Mom and Pop shops, where every customer was a neighbor, set the standard. Small town America, in all its innocence, never looked so good. Shop owners lived above the store and made a good living. You never saw a “Going Out of Business” sign in a Rockwell painting.

Now, think about what was really happening in the period when Rockwell was in his heyday. America was rapidly becoming an urban society. Our own mountains, like rural areas everywhere, were emptying as people moved to Detroit and Chicago and Dayton for jobs that did not exist at home. According to Small Business Economics by W.A. Brock and D.S. Evans the period of 1958 to 1980 found that companies employing less than 500 people experienced a continual decrease in revenues that did not begin to turn around until the late 1970’s.

It has never been easy to run a small business. It takes a combination of hard work, luck, uncanny insight into customers’ needs, and more hard work. Today, small town retail businesses face pressures unimaginable just a generation ago. Discount superstores, catalog and Internet sales, and dips in the economy make running a viable business a challenge of unparalleled proportions.

Yet, a viable Main Street is comprised of robust retail businesses. The process of revitalizing our Main Street must include providing resources businesses need to thrive and succeed. Fortunately, there are some very good resources available both locally and on the Internet for advice on every aspect of running a retail business. Here are some of my favorite Internet sites:

www.business.com This a good site for business research. It is very well organized and you can customize the site to your own industry or product lines.

www.smallbusiness.com The National Federation of Independent Business (NFIB) has linked with this site to offer a free peer-to-peer network for exchanging ideas and advice.

www.isquare.com This site offers tips and wisdom about dealing with suppliers.

www.gatton.uky.edu/rboc/ce/ce.html The University Of Kentucky’s “Center for Entrepreneurship” provides technical support for new and expanding businesses.

http://www.ksbdc.org The Kentucky Small Business Development Centers provide the Commonwealth of Kentucky's entrepreneurs and small businesses with the high
quality one-on-one management consulting, educational training, and business
information they need to maximize their growth in today's intensely competitive
global economy.

www.smalltownmarketing.com/ This site specializing in small town retail businesses, offers money-saving marketing, advertising and promotional ideas. It has more than 300 Web pages of tips for small business success. This is a great site.

www.score.org The Service Corps of Retired Executives (SCORE) offers free tips, resources and expert how-to articles and profiles of small business owners who are achieving success with help from SCORE. Their “Get Email Counseling” lets you access advice electronically. Retired and active business owners and executives generally answer questions sent to them within 48 hours. Their real-world experience is an excellent resource.

Last week twenty people met to talk about the future of Beattyville’s downtown business district. They discussed the need for sprucing up the downtown and the resources that are available from Frankfort and beyond. The Kentucky Renaissance program offers an excellent path for doing just that. In order to get started with that program, we need your help. The next meeting of this group will be February 7th, at 7:00 p.m. at the fire station. Every business in town should be there. A vital downtown is made up of healthy businesses. This group can help achieve both.

Main Street Revitalization in Beattyville (2 of 12) Posted: April 30, 2002
Get Ready. Company’s Coming!

Second of twelve articles first appearing in the "Three Forks Tradition" newspaper

By: Larrey Riddle

In my last column I discussed the potential for regional tourism and the role a vital downtown for Beattyville plays in developing that industry locally. The rewards for successful Main Street program to a community are great: increased revenue, new job generation, rehabilitation of buildings, a healthier business environment, and more visitors. The National Main Street Project (www.mainst.org) offers a blueprint for successful Main Street revitalization. They have found that successes are based on a comprehensive strategy of work, tailored to the needs and opportunities in each community, in four broad areas, called the Main Street Four Point Approach. They include these elements:

Organization: Building consensus and cooperation among the many groups and individuals who have a role in the revitalization process.

Design: Enhancing the physical appearance of the commercial district by rehabilitating historic buildings, encouraging supportive new construction, developing sensitive design management systems, and long-term planning.

Promotion: Marketing the traditional commercial district's assets to customers, potential investors, new businesses, local citizens and visitors.

Economic Restructuring: Strengthening the district's existing economic base while finding ways to expand it to meet new opportunities – and challenges from outlying development.

The National Main Street Center's experience in helping communities bring their downtowns back to life has shown repeatedly that the Main Street Four Point Approach succeeds only when combined with the following eight principles:

The plan for Main Street must be comprehensive: A single project cannot revitalize a downtown or commercial neighborhood. An ongoing series of initiatives is vital to build community support and create lasting progress.

Work is accomplished one step at a time: Small projects make a big difference. They demonstrate that "things are happening" on Main Street and hone the skills and confidence the program will need to tackle more complex problems.

The process should be action oriented: Frequent, visible changes in the look and activities of the commercial district will reinforce the perception of positive change. Small, but dramatic improvements early in the process will remind the community that the revitalization effort is under way.

The program must be driven by the community: Although the National Main Street Center or the Kentucky Main Street program can provide valuable direction and hands-on technical assistance, only local leadership can initiate long-term success by fostering and demonstrating community involvement and commitment to the revitalization effort.

There must be a public/private partnership: Every local Main Street program needs the support and expertise of both the public and private sectors. For an effective partnership, each must recognize the strengths and weaknesses of the other.

The plan must identify and capitalize on existing assets: One of the National Main Street Center's key goals is to help communities recognize and make the best use of their unique offerings. Local assets provide the solid foundation for a successful Main Street initiative.

There must be a commitment to quality: From storefront design to promotional campaigns to special events, quality must be the main goal.

Change is difficult, but can be accomplished: Changing community attitudes and habits are essential to bring about a commercial district renaissance. A carefully planned Main Street program will help shift public perceptions and practices to support and sustain the revitalization process.

Listen to the BOWL CoRA meetings: 4-15-02 Posted: April 20, 2002
4-15-02

The BOWL CoRA is the Renewal Community Oversight Comittee for Breathitt, Owsley, Lee & Wolfe Counties, Kentucky

Download Part 1 first (about 5 minutes on a modem line), and then pull down the rest while you listen. Click on the "Part #" to download. Part 1, Part 2, Part 3, Part 4, Part 5, Part 6
Part 7, Part 8, Part 9

The meeting sound files are low fidelity MP3's. The file names are MMDDYY.part#.mp3, that is the month, day and year, of the meeting and then the sequence number of the file, ie: part 1, part 2, etc.

Use any MP3 player to listen to the meeting files. Common players are the Windows (c) Media Player, FreeAmp, Xmms, and any of the standalone players like the Rio.

Please forgive the sound quality, and the occaisional pops, warbles and dropouts-MP3's are a "lossey" compression technology and many compromises are made to make the files this small.

Bits of the meeting are not recorded, for example: flipping tapes, lunches, long silences, pre and post meeting discussions.

Intoduction to Appal.org Posted: April 17, 2002

Introduction to Appal.org

Basic Design

The Posting Date is Not the Date Something Was Written.

Search

Categories of Information in the Top (Main) Menu

The Bottom Menu

Basic Design

The website has a common look and feel. Each page has a menu at the top and bottom. Pages generally have a list of links or headlines running down the left side. Clicking on these will bring up the full text of the posted article. The site has been crafted to load quickly and retain it's basic look from computer to computer.

The Posting Date is Not the Date Something Was Written.

Appal.org is constructed much like a newspaper. Information is listed in chronological order by the date it is posted. It is important to note that the posting date has nothing to do with when an article was written. Because items are listed in the order they are posted, information gets buried over time, and you may need to search for it.

Search

You can search within the website, or across the Internet. You may also browse the headlines. The most effective means to find something on the site is to use the Search button, type in some keywords and press Enter. That will fetch all documents contain any of the words you've searched for. Once that page has loaded, use your browser's search/find within page (usually the Ctrl-F key pair) to look within the page for your query. Again, it is a two step process where you search up a list of documents, and then find your keywords within that document.

The Search button can be found at the top and the bottom of every page. The top link opens up a page of search options, and the bottom link immediately searches within the Appal.org website. The top search button offers to search within Appal.org, to Browse all headlines, go to Google search, or go to Google's Usenet Discussion Group search.

Categories of Information in the Top (Main) Menu

The Main Menu at the top of each page links to categories of information. Each category is a page a lot like the starting page, although the number of columns may vary. Each posted article has a headline that links you to the full text, and a lead paragraph or two that briefly introduces the article.

The categories are pretty ambiguous, so it is not always clear where an article is posted. However, every article, regardless of category, is listed in the headline column (the grey list on the left of the starting page). Items are eventually pushed off the bottom as only the most recent 50 items are displayed.

Some categories are explicit, however. If the information is a sound file or involves a lot of pictures, you'll find it in the Gallery & Auditorium. The Help/HOWTO contains documents like this one that explain how to use the site. The Search button has been described already. Contact information is the email and mail address. The Public Forums are 'chat rooms'. They may be moderated to keep Appal.org within the bounds of our ISP, applicable law, and polite conversation. The Links page has lists of related links. All the other pages listed in the Main Menu are more general.

The Bottom Menu

The bottom of each page has a Search button, a Browse button and a grey bar containing links. The Search button, described above, wil pull up all documents containing any of the words you key in. The Browse button brings up a list of all headlines ever posted on the site. You can scroll through that list, or use your browser's Find button (usually Ctrl-F) to locate a headline by keyword.

The grey bar has links for Private Meetings (invitation only), Privacy Policy, Webmaster & Acknowledgments, and Submit Photos and Articles. The Private Meetings link launches a password protected chat room, identical to the Public Forum. The Privacy Policy is Appal.org's rules for operating the website. The Webmaster page lists the programmers and coders who built the site and it components.

The Submit Photos and Articles link offers anyone a means to send information for possible posting on Appal.org. If you take advantage of this feature, please email also, and describe the information. There are size limits on the available storage which may cause your submission to fail without notice, so please email ap@appal.org if it is important to you to have the information listed here. There is no assurance that your information will be posted, however. It may be rejected for any reason.

The Submit step is too complicated to be called easy. If you prefer, you can email your submission instead.

Listen to the BOWL CoRA meetings: 3-27-02 Posted: April 14, 2002
3-27-02

The BOWL CoRA is the Renewal Community Oversight Comittee for Breathitt, Owsley, Lee & Wolfe Counties, Kentucky

Download Part 1 first (about 5 minutes on a modem line), and then pull down the rest while you listen.
Click on the "Part #" to download.
Part 1, Part 2, Part 3, Part 4, Part 5, Part 6

The meeting sound files are low fidelity MP3's. The file names are YYMMDD.part#.mp3, that is the year, month and day of the meeting and then the sequence number of the file, ie: part 1, part 2, etc.

The files are sized to download quickly and to fit on a floppy diskette. You can bring down the first file in less than 5 minutes. While listening to the first part of the meeting, you can download the remaining files.

Use any MP3 player to listen to the meeting files. Common players are the Windows (c) Media Player, FreeAmp, Xmms, and any of the standalone players like the Rio.

Please forgive the sound quality, and the occaisional pops, warbles and dropouts-MP3's are a "lossey" compression technology and many compromises are made to make the files this small.

Bits of the meeting are not recorded, for example: flipping tapes, lunches, pre and post meeting discussions.

Wolfe County Posted: April 14, 2002
Campton, Kentucky
Campton, Kentucky Scanner Frequencies
Natural Bridge State Resort Park
Wolfe County Board of Education
Campton: Commonwealth of Kentucky Cabinet for Families and Children
Red River Gorge Online

County History and Genealogy Posted: April 14, 2002
Kentucky Genealogy Web: genealogy, newspapers, magazines.

Lee County Posted: April 14, 2002
Welcome To The City Of Beattyville Kentucky
Weather Underground: Beattyville, Kentucky Forecast
Kentucky Atlas Kentucky Gazetteer County Information
Kiwanis Club of Beattyville, Kentucky
Lee County Kentucky Genealogy
North Fork Kentucky River at Heidelberg
Beattyville, Kentucky Scanner Frequencies
Lee Adjustment Center
Lee County Schools
Golf Course Guide: Beattyville Country Club

Kentucky Sites Posted: April 14, 2002
Kentucky Legislature Home Page
The Ky Legislative Record On-Line
Ky Div. of Water
Ky Secretary of State
The Univ. of Kentucky Directory
League of Women Voters of Ky
Kentuckians for The Commonwealth
Kentucky Resources Council
Kentucky Automated Flood Warning System
Photo Tour of Eastern Kentucky Dumps
ARC Corridors
The Appalshop & WMMT Radio

Owsley County Posted: April 14, 2002
Booneville, Kentucky
South Fork Kentucky River at Booneville
Owlsey County Kentucky: rental assistance for low-income households
Owsley County Ky Genealogy
KY Cabinet for Health Services
Kentucky Dept of Education: Owsley County

Breathitt County Posted: April 14, 2002
National Weather Service Jackson Kentucky
Jackson, Kentucky
BREATHITT COUNTY PUBLIC LIBRARY
Jackson, Kentucky: Coal Town
Jackson, Kentucky Scanner Frequencies

CONFERENCE REPORT ON H.R. 4577, COMMUNITY RENEWAL TAX RELIEF ACT OF 2000 Posted: April 13, 2002
2000CRH12355 [[pp. H12355-H12405]] CONFERENCE REPORT ON H.R. 4577, DEPARTMENTS OF LABOR, HEALTH AND HUMAN, Part 10/10

COMMUNITY RENEWAL TAX RELIEF ACT OF 2000

18 Dec, 2000 Following is explanatory language on H.R. 5662, as introduced on December 14, 2000. The conferees on H.R. 4577 agree with the matter included in H.R. 5659 and enacted in this conference report by reference and the following description of it.

TITLE I. COMMUNITY RENEWAL PROVISIONS

A. Renewal Community Provisions (secs. 101-102 of the bill and secs. 51, 469, and new secs. 1400E-J of the Code)

Present Law

In recent years, provisions have been added to the Internal Revenue Code that target specific geographic areas for special Federal income tax treatment. For example, empowerment zones and enterprise communities generally provide tax incentives for businesses that locate within certain geographic areas designated by the Secretaries of Housing and Urban Development (`HUD'') and Agriculture.

House Bill

No provision. However, H.R. 5542 1 authorizes the designation of 40 ``renewal communities'' within which special tax incentives would be available. The following is a description of the designation process and the tax incentives that would be available within the renewal communities. --------------------------------------------------------------------------- 1 H.R. 5542 was incorporated by reference into the conference agreement that accompanied H.R. 2614 (H. Rpt. 106- 1004), which was passed by the House of Representatives on October 26, 2000. --------------------------------------------------------------------------- Designation process Designation of 40 renewal communities.--The Secretary of HUD, 2 is authorized to designate up to 40 ``renewal communities'' from areas nominated by States and local governments. At least 12 of the designated communities must be in rural areas. Of the 12 rural renewal communities, one shall be an area within Mississippi, designated by the State of Mississippi, that includes at least one census tract within Madison County, Mississippi. --------------------------------------------------------------------------- 2 In making the designations, the Secretary of HUD must consult with the Secretaries of Agriculture, Commerce, Labor, Treasury, the Director of the Office of Management and Budget; and the Administrator of the Small Business Administration (and the Secretary of the Interior in the case of an area within an Indian reservation). --------------------------------------------------------------------------- The Secretary of HUD is required to publish (within four months after enactment) regulations describing the nomination and selection process. Designations of renewal communities are to be made during the period beginning on the first day of the first month after the regulations are published and ending on December 31, 2001. The designation of an area as a renewal community generally will be effective on January 1, 2002, and will terminate after December 31, 2009. 3 --------------------------------------------------------------------------- 3 The designation would terminate earlier than December 31, 2009, if (1) an earlier termination date is designated by the State or local government in their designation, or (2) the Secretary of HUD revokes the designation as of an earlier date. --------------------------------------------------------------------------- Elibility criteria.--To be designated as a renewal community, a nominated area must meet the following criteria: (1) each census tract must have a poverty rate of at least 20 percent, 4 (2) in the case of an urban area, at least 70 percent of the households have incomes below 80 percent of the median income of households within the local government jurisdiction; (3) the unemployment rate is at least 1.5 times the national unemployment rate; and (4) the area is one of pervasive poverty, unemployment, and general distress. Those areas with the highest average ranking of eligibility factors (1), (2), and (3) above would be designated as renewal communities. One nominated area within the District of Columbia becomes a renewal community (without regard to its ranking of eligibility factors) provided that it satisfies the area and eligibility requirements and the required State and local commitments described below. 5 The Secretary of HUD shall take into account in selecting areas for designation the extent to which such areas have a high incidence of crime, as well as whether the area has census tracts identified in the May 12, 1998, report of the General Accounting Office regarding the identification of economically distressed areas. In lieu of the poverty, income, and unemployment criteria, outmigration may be taken into account in the designation of one rural renewal community. --------------------------------------------------------------------------- 4 Determined using 1990 census data. 5 The designation of a nominated area within the District of Columbia as a renewal community becomes effective on January 1, 2003 (upon the expiration of the designation of the District of Columbia Enterprise Zone). --------------------------------------------------------------------------- There are no geographic size limitations placed on renewal communities. Instead, the boundary of a renewal community must be continuous. In addition, the renewal community must have a minimum population of 4,000 if the community is located within a metropolitan statistical area (at least 1,000 in all other cases), and a maximum population of not more than 200,000. The population limitations do not apply to any renewal community that is entirely within an Indian reservation. Required State and local commitments.--In order for an area to be designated as a renewal community, State and local governments are required to submit a written course of action in which the State and local governments promise to take at least four of the following governmental actions within the nominated area: (1) a reduction of tax rates or fees; (2) an increase in the level of efficiency of local services; (3) crime reduction strategies; (4) actions to remove or streamline governmental requirements; (5) involvement by private entities and community groups, such as to provide jobs and job training and financial assistance; and (6) the gift (or sale at below fair market value) of surplus realty by the State or local government to community organizations or private companies. In addition, the nominating State and local governments must promise to promote economic growth in the nominated area by repealing or not enforcing four of the following: (1) licensing requirements for occupations that do not ordinarily require a professional degree; (2) zoning restrictions on home-based businesses that do not create a public nuisance; (3) permit requirements for street vendors who do not create a public nuisance; (4) zoning or other restrictions that impede the formation of schools or child care centers; and (5) franchises or other restrictions on competition for businesses providing public services, including but not limited to taxicabs, jitneys, cable television, or trash hauling, unless such regulations are necessary for and well- tailored to the protection of health and safety. Empowerment zones and enterprise communities seeking designation as renewal communities.--With respect to the first 20 designations of nominated areas as renewal communities, preference will be given to nominated areas that are enterprise communities and empowerment zones under present law that otherwise meet the requirements for designation as a renewal community. An empowerment zone or enterprise community can apply for designation as a renewal community. If a renewal community designation is granted, then an area's designation as an empowerment zone enterprise community ceases as of the date the area's designation as a renewal community takes effect. Tax incentives for renewal communities The following tax incentives generally are available during the period beginning January 1, 2002, and ending December 31, 2009. 6 --------------------------------------------------------------------------- 6 If a renewal community designation is terminated prior to December 31, 2009, the tax incentives would cease to be available as of the termination date. --------------------------------------------------------------------------- Zero-percent capital gain rate.--A zero-percent capital gains rate applies with respect to gain from the sale of a qualified community asset acquired after December 31, 2001, and before January 1, 2010, and held for more than five years. A ``qualified community asset'' includes: (1) qualified community stock (meaning original-issue stock purchased for cash in a renewal community business); (2) a qualified community partnership interest (meaning a partnership interest acquired for cash in a renewal community business); (3) qualified community business property (meaning tangible property originally used in a renewal community business by the taxpayer) that is purchased or substantially improved after December 31, 2001. A ``renewal community business'' is similar to the present- law definition of an enterprise zone business. 7 Property will continue to be a qualified community asset if sold (or otherwise transferred) to a subsequent purchaser, provided that the property continues to represent an interest in (or tangible property used in) a renewal community business.

[[Page H12405]]

The termination of an area's status as a renewal community will not affect whether property is a qualified community asset, but any gain attributable to the period before January 1, 2002, or after December 31, 2014, will not be eligible for the zero-percent rate. --------------------------------------------------------------------------- 7 An ``enterprise zone business'' is defined in section 1397B. --------------------------------------------------------------------------- Renewal community employment credit.--A 15-percent wage credit is available to employers for the first $10,000 of qualified wages paid to each employee who (1) is a resident of the renewal community, and (2) performs substantially all employment services within the renewal community in a trade or business for the employer. The wage credit rate applies to qualifying wages paid after December 31, 2001, and before January 1, 2010. Wages that qualify for the credit are wages that are considered ``qualified zone wages'' for purposes of the empowerment zone wage credit (including coordination with the Work Opportunity Tax Credit). In general, any taxable business carrying out activities in the renewal community may claim the wage credit. Commercial revitalization deduction.--Each State is permitted to allocate up to $12 million of ``commercial revitalization expenditures'' to each renewal community located within the State for each calendar year after 2001 and before 2010. The appropriate State agency will make the allocations pursuant to a qualified allocation plan. A ``commercial revitalization expenditure'' means the cost of a new building or the cost of substantially rehabilitating an existing building. The building must be used for commercial purposes and be located in a renewal community. In the case of the rehabilitation of an existing building, the cost of acquiring the building will be treated as qualifying expenditures only to the extent that such costs do not exceed 30 percent of the other rehabilitation expenditures. The qualifying expenditures for any building cannot exceed $10 million. A taxpayer can elect either to (a) deduct one-half of the commercial revitalization expenditures for the taxable year the building is placed in service or (b) amortize all the expenditures ratably over the 120-month period beginning with the month the building is placed in service. No depreciation is allowed for amounts deducted under this provision. The adjusted basis is reduced by the amount of the commercial revitalization deduction, and the deduction is treated as a depreciation deduction in applying the depreciation recapture rules (e.g., sec. 1250). The commercial revitalization deduction is treated in the same manner as the low-income housing credit in applying the passive loss rules (sec. 469). Thus, up to $25,000 of deductions (together with the other deductions and credits not subject to the passive loss limitation by reason of section 469(i)) are allowed to an individual taxpayer regardless of the taxpayer's adjusted gross income. The commercial revitalization deduction is allowed in computing a taxpayer's alternative minimum taxable income. Additional section 179 expensing.--A renewal community business is allowed an additional $35,000 of section 179 expensing for qualified renewal property placed in service after December 31, 2001, and before January 1, 2010. The section 179 expensing allowed to a taxpayer is phased out by the amount by which 50 percent of the cost of qualified renewal property placed in service during the year by the taxpayer exceeds $200,000. The term ``qualified renewal property'' is similar to the definition of ``qualified zone property'' used in connection with empowerment zones. Extension of work opportunity tax credit (``WOTC'').--The bill expands the high-risk youth and qualified summer youth categories in the WOTC to include qualified individuals who live in a renewal community. GAO report The General Accounting Office will audit and report to Congress on January 31, 2004, and again in 2007 and 2010, on the renewal community program and its effect on poverty, unemployment, and economic growth within the designated renewal communities. Effective date Renewal communities must be designated during the period beginning on the first day of the first month after the publication of regulations by HUD and ending on December 31, 2001, The tax benefits available in renewal communities are effective for the period beginning January 1, 2002, and ending December 31, 2009.

Senate Amendment

No provision. However, S. 3152 8 authorizes the Secretaries of HUD and Agriculture to designate up to 30 renewal zones from areas nominated by States and local governments. At least six of the designated renewal zones must be in rural areas. The Secretary of HUD is required to publish (within four months after enactment) regulations describing the nomination and selection process. Designations of renewal zones must be made before January 1, 2002, and the designations are effective for the period beginning on January 1, 2002 through December 31, 2009. --------------------------------------------------------------------------- 8 S. 3152 was introduced by Senator Roth and others on October 3, 2000. --------------------------------------------------------------------------- The eligibility criteria (as well as the population and geographic limitations) are similar to those for renewal communities in the House bill, except that S. 3152 provides that any State without any empowerment zone would be given priority in the designation process. Also, the designations of renewal zones must result in (after taking into account existing empowerment zones) each State having at least one zone designation (empowerment or renewal zone). In addition, S. 3152 provides that, in lieu of the poverty, income, and unemployment criteria, outmigration may be taken into account in the designation of one rural renewal zone. Under a separate provision in S. 3152, the designation of the District of Columbia Enterprise Zone is entended through December 31, 2006. In order for an area to be designated as a renewal zone, State and local governments are required to submit a written course of action in which the State and local governments promise to take at least four of the governmental actions described in the House bill with respect to renewal communities. However, S. 3152 does not contain any of the economic growth provision requirements described in the House bill. Tax incentives for renewal zones.--Under S. 3152, businesses in renewal zones would be eligible for the following tax incentives during the period beginning January 1, 2002 and ending December 31, 2009: (1) a zero-percent capital gains rate for qualifying assets limited to an aggregate amount not to exceed $25 million of gain per taxpayer; 9 (2) a 15-percent wage credit for the first $15,000 of qualifying wages; (3) $35,000 in additional 179 expensing for qualifying property; (4) and the enhanced tax- exempt bond rules that currently apply to businesses in the Round II empowerment zones. --------------------------------------------------------------------------- 9 Any gain attributable to the period before January 1, 2002, or after December 31, 2014, would not be eligible for the zero-percent capital gains rate. --------------------------------------------------------------------------- GAO report.--The General Accounting Office will audit and report to Congress every three years (beginning on January 31, 2004) on the renewal zone program and its effect on poverty, unemployment, and economic growth within the designated renewal zones. Effective date.--The 30 renewal zones must be designated by January 1, 2002, and the tax benefits are available for the period beginning January 1, 2002, and ending December 31, 2009.

Conference Agreement

The conference agreement follows H.R. 5542 with the following modifications. The conference agreement does not include the rural renewal community designation with respect to an area within the State of Mississippi. The conference agreement does not include the special rule that provides that one nominated area within the District of Columbia becomes a renewal community (without regard to its ranking of eligibility factors).

B. Empowerment Zone Tax Incentives

1. Extension and expansion of empowerment zones (secs. 111- 115 of the bill and secs. 1391, 1394, 1396, and 1397A of the Code)

PRESENT LAW

Round I empowerment zones The Omnibus Budget reconciliation Act of 1993 (``OBRA 1993'') authorized the designation of nine empowerment zones (``Round I empowerment zones'') to provide tax incentives for businesses to locate within targeted areas designated by the Secretaries of HUD and Agriculture. The Taxpayer Relief Act of 1997 (``1997 Act'') authorized the designation of two additional Round I urban empowerment zones. Businesses in the 11 Round I empowerment zones qualify for the following tax incentives: (1) a 20-percent wage credit for the first $15,000 of wages paid to a zone resident who works in the empowerment zone, 10 (2) an additional $20,000 of section 179 expensing for qualifying zone property, and (3) tax-exempt financing for certain qualifying zone facilities. The tax incentives with respect to the empowerment zones designated by OBRA 1993 generally are available during the 10-year period of 1995 through 2004. The tax incentives with respect to the two additional Round I empowerment zones generally are available during the 10-year period of 2000 through 2009. 11 --------------------------------------------------------------------------- 10 For wages paid in calendar years during the period 1994 through 2001, the credit rate is 20 percent. The credit rate is reduced to 15 percent for calendar year 2002, 10 percent for calendar year 2003, and 5 percent for calendar year 2004. No wage credit is available after 2004 in the original nine empowerment zones. 11 Except for the wage credit, which is reduced to 15 percent for calendar year 2005, and then reduced by five percentage points in each year in 2006 and 2007, with no wage credit available after 2007. --------------------------------------------------------------------------- Round II empowerment zones The 1997 Act also authorized the designation of 20 additional empowerment zones (``Round II empowerment zones''), of which 15 are located in urban areas and five are located in rural areas. Businesses in the Round II empowerment zones are not eligible for the wage credit, but are eligible to receive up to $20,000 of additional section 179 expensing. Businesses in the Round II empowerment zones also are eligible for more generous tax-exempt financing benefits than those available in the Round I empowerment zones. Specifically, the tax-exempt financing benefits for the Round II empowerment zones are not subject to the State private activity bond volume caps (but are subject to separate per-zone volume limitations), and the per-business size limitations that apply to the Round I empowerment zones and enterprise communities (i.e., $3 million for each qualified enterprise zone business with a maximum of $20 million for each principal user for all zones and communities) do not apply to qualifying bonds issued for Round II empowerment zones. The tax incentives with respect to the Round II empowerment zones generally are available during the 10-year period of 1999 through 2008.

Proposed bill to allow a credit against income tax for information technology training expenses in RC's Posted: April 13, 2002
Archive-Name: gov/us/fed/congress/record/2001/apr/24/2001CRS3855A/part1
Message-ID: <2001CRS3855A@us.govnews.org>
MIME-Version: 1.0

[Congressional Record: April 24, 2001 (Senate)]
[Page S3855-S3864]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
[DOCID:cr24ap01-217]

S. 762. A bill to amend the Internal Revenue Code of 1986 to allow a credit against income tax for information technology training expenses and for other purposes; to the Committee on Finance. Mr. CONRAD. Mr. President, during the final months of the 106th Congress, the Senate and House completed action on the American Competitiveness in the 21st Century Act which will respond to the shortage of skilled IT workers and help ensure our nation's continued growth and leadership in the information technology field. Congress increased the cap on the number of H1B visas available for foreign workers with high-tech skills to fill the job vacancies in information technology in the US. As important as action by Congress to permit companies to hire foreign-born skilled IT workers is, this legislation by itself will not address our long-term IT worker needs. Throughout the recent debate on the IT worker shortage, I have urged that we focus our efforts on IT training and partnerships between the business and education communities. Many excellent partnerships between the IT community, state and local government, high schools, and colleges and universities that provide individuals of all ages with education and training opportunities in information technology are already underway. ... I ask unanimous consent that the text of this legislation along with statements of endorsement for the Technology Education and Training Act from the Technology Workforce Coalition, the Information Technology Association of America, and the American Society for Training and Development be printed in the Record. There being no objection, the material was ordered to be printed in the Record, as follows:

S. 762

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Technology Education and Training Act of 2001''.

SEC. 2. CREDIT FOR INFORMATION TECHNOLOGY TRAINING PROGRAM EXPENSES.

(a) In General.--Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following:

``SEC. 30B. INFORMATION TECHNOLOGY TRAINING PROGRAM EXPENSES.

``(a) General Rule.--In the case of a taxpayer engaged in a trade or business during the taxable year, there shall be allowed as a credit against the tax imposed by this chapter for such taxable year an amount equal to 100 percent of information technology training program expenses of the taxpayer and any employee of the taxpayer paid or incurred by the taxpayer during such taxable year. ``(b) Limitation.-- ``(1) In general.--The amount of information technology training program expenses with respect to any individual which may be taken into account under subsection (a) for the taxable year shall not exceed $1,500. ``(2) Increase in credit amount for participation in certain programs and for certain individuals.--The dollar amount in paragraph (1) shall be increased (but not above $2,000) by the amount of information technology training program expenses paid or incurred by the taxpayer-- ``(A) with respect to a program operated-- ``(i) in an empowerment zone or enterprise community designated under part I of subchapter U or a renewal community designated under part I of subchapter X, ``(ii) in a school district in which at least 50 percent of the students attending schools in such district are eligible for free or reduced-cost lunches under the school lunch program established under the National School Lunch Act, ``(iii) in an area designated as a disaster area by the Secretary of Agriculture or by the President under the Disaster Relief and Emergency Assistance Act in the taxable year or the 4 preceding taxable years, ``(iv) in a rural enterprise community designated under section 766 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999, ``(v) in an area designated by the Secretary of Agriculture as a Rural Economic Area Partnership Zone, ``(vi) in an area over which an Indian tribal government (as defined in section 7701(a)(40)) has jurisdiction, or ``(vii) by an employer who has 200 or fewer employees for each business day in each of 20 or more calendar weeks in the current or preceding calendar year, or ``(B) in the case of an individual with a disability. ``(c) Information Technology Training Program Expenses.-- For purposes of this section-- ``(1) In general.--The term `information technology training program expenses' means expenses paid or incurred by reason of the participation of the taxpayer (or any employee of the taxpayer) in any information technology training program if such expenses lead to an industry-accepted information technology certification for the participant. Such term shall only include includes expenses paid for in connection with course work and certification testing which is essential to assessing skill acquisition. ``(2) Information technology training program.--The term `information technology training program' means a program for an industry-accepted information technology certification--

[[Page S3858]]

``(A) by any information technology trade association or corporation, and ``(B) which-- ``(i) is provided for the employees of such association or corporation, or ``(ii) involves--

``(I) employers, and ``(II) State training programs, school districts, university systems, higher education institutions (as defined in section 101(b) of the Higher Education Act of 1965), or certified commercial information technology training providers.

``(3) Certified commercial information technology training provider.-- ``(A) In general.--The term `certified commercial information technology training provider' means a private sector organization providing an information technology training program which leads to an approved information technology industry certification for the participants. ``(B) Approved industry certification.--For purposes of paragraph (1), an information technology industry certification shall be considered approved if such certification is approved by the Secretary, in consultation with the Information Technology Training Certification Advisory Board. ``(d) Denial of Double Benefit.--No deduction or credit under any other provision of this chapter shall be allowed with respect to information technology training program expenses taken into account for the credit under this section. ``(e) Certain rules made applicable.--For purposes of this section, rules similar to the rules of section 45A(e)(2) and subsections (c), (d), and (e) of section 52 shall apply. ``(f) Application With Other Credits.--The credit allowed by subsection (a) for any taxable year shall not exceed the excess (if any) of-- ``(1) the regular tax for the taxable year reduced by the sum of the credits allowable under the subpart A and the previous sections of this subpart, over ``(2) the tentative minimum tax for the taxable year.''. (b) Clerical Amendment.--The table of sections for subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following:

``Sec. 30B. Information technology training program expenses.''. (c) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2001.

NATIONAL ECONOMIC ADVISOR GENE SPERLING ON NEW MARKETS INITIATIVE AGREEMENT Posted: April 13, 2002
THE WHITE HOUSE

Office of the Press Secretary ________________________________________________________________________ For Immediate Release May 23, 2000

PRESS BRIEFING BY NATIONAL ECONOMIC ADVISOR GENE SPERLING ON NEW MARKETS INITIATIVE AGREEMENT

The James S. Brady Press Briefing Room

10:25 A.M. EDT

MR. DORTON: Today we have National Economic Advisor Gene Sperling to give an on the record briefing about the landmark New Markets Renewal Communities Agreement between President Clinton and Speaker Hastert.

MR. SPERLING: Last night, the President and Speaker reached a landmark agreement on bringing capital and opportunity to America's untapped markets. As you recall, the Speaker had joined the President in November on the last leg of the President's second New Markets trip, and they had pledged to work together on bipartisan legislation. They shook hands on that, as you'll recall, at the State of the Union.

Over the last three to four months, we have been engaged in extensive negotiations with the Speaker's office, as well as with the House Ways and Means Committee, with J.C. Watts and Jim Talent, and members of the Black and Hispanic Caucus in the House of Representatives. The agreement that is reached is bold, comprehensive, and again, would mark an unprecedented commitment to bringing new incentives for capital investment in America's distressed and lower-income communities.

Let me describe the key elements. First of all, on the President's New Markets initiatives that he announced, the New Markets tax credit, which would be up to a 30 percent credit on investment in funds that invest in low-income areas, would be part of this agreement. This was the central tax piece, part of the President's New Market agenda. Secondly, also agreed to was the America's Private Investment Companies, APIC, which is meant to be the domestic component of our domestic counterpart of OPIC -- would provide for larger venture capital investments in distressed economic areas of our country.

The basic design is that where somebody raises a dollar, or let's say, raises $1 million, they are able to get a two-to-one match from the government in guaranteed lending. So, if somebody is able to raise $1 million, the government provides them $2 million of government-guaranteed lending. So, what this does is an incentive to raise equity capital in low-income areas, because for every dollar that's raised, you get $2 of preferred, cheaper financing.

The reason why this model has worked well in the OPIC context and has worked well in the SBIC -- Small Business Investment Company -- context is even though it is a very significant incentive to raise funds, the investors have to lose all their money before the government loses any of its money. And that has aligned the incentives in a way in which there has been very, very little loss to the government from this model. So, that is what the American Private Investment Companies -- or APICs -- does.

The third component of the New Markets package the President put forward was the New Market Venture Capital firms. This is similar to the APICs, except that it is designed to deal with smaller start-up, entrepreneurial firms, and allow them the kind of managerial assistance they need to get off the ground and get started.

Yesterday, when President Mbeki was here, we had Ray Moncrief from Kentucky Highlands, and Bill Bynum from the Economic Development Corporation in the Mississippi Delta. They are two of the leading examples of non-profits that help these kind of start-up companies in low-income areas. So that is one component. These three parts are the President's New Market initiative.

Secondly, there is a significant strengthening and expansion of the existing empowerment zones. Currently -- just to give you a little background on empowerment zones -- there were nine initial empowerment zones in the 1993 budget agreement. That was extended to 11 in the next year. Then, in 1997, 20 empowerment zones were added in the 1997 Balanced Budget Agreement.

So there are currently 31 empowerment zones, but the last 20 had never gotten the main tax incentive that the first nine had, which is a wage credit, which is very significant. It gives a wage credit of 20 percent of the first $15,000 in wages. So for any employee in an empowerment zone, their employer is able to get a $3,000 credit on the first $15,000 of wages. So it's a significant incentive to locate and to hire people in empowerment zones. That wage credit only existed in the initial nine empowerment zones; that will now exist for all 31 empowerment zones.

Also, all the empowerment zones will now have a zero capital gains rollover provision. And what that allows for is for capital gains made within the empowerment zones to be able to be rolled over with no taxes when the investment is put back into the empowerment zones. In addition, there will be a 60-percent capital gains exclusion for investment in small business in the empowerment zones.

So that is what is being done to strengthen the existing 31. Then there will be a new round of empowerment zones, of nine, that will take the total empowerment zones to 40.

The other major component of this is the renewal community proposal, which has been sponsored by J.C Watts, Jim Talent and Danny Davis -- J.C. Watts and Jim Talent are obviously prominent Republican members of Congress; Danny Davis is a Democrat from Illinois. The three of them have had a renewal community proposal for several years. Speaker Hastert has also championed it. This was what he asked us to work with in agreement for doing the provisions the President proposed.

The renewal communities are a form of empowerment zones, but have a slightly different form and a slightly different vision in that it relies on more incentives for streamlining and regulatory relief, and while it does not have as generous a wage credit as the empowerment zones, it does have a wage credit of 15 percent on the first $10,000. So while the credit in the empowerment zones could go up to $3,000, the wage credit in the renewal community could go up to $1,500.

It also has a zero capital gains rate for investments in companies, commercial real estate, as exists now for D.C. What the Speaker and Mr. Talent and Mr. Watts wanted was to have the same zero capital gains incentive that's in D.C. exist for the other 40 renewal communities.

Several members of the Black Caucus, including Chairman Clyburn and Representative Jefferson and Rangel also were entrusted in having different forms of capital gains relief in the renewal communities and empowerment zones. They also would have a commercial revitalization tax credit for taxpayers who rehabilitate or revitalize buildings in the renewal community.

So, the incentives between the empowerment zones and the renewal communities are balanced; they take a somewhat different form; there will be 40 renewal communities. So, where now there are 31 zones, this would grow now to 80. And we allow for two different forums to see what we can learn over the next several years about what works best in attracting investment and job growth.

In addition, there will be an expansion of the low-income housing tax credit. It will be expanded by more than 40 percent to build an additional 180,000 units of affordable housing for working families over the next five years. This had broad bipartisan support. We're very happy that the Speaker agreed to have this in the agreement.

Finally, a provision that was very important to particularly Congressman J.C. Watts was to allow faith-based organizations to qualify for substance abuse funding. This initiative would allow faith-based organizations who provide prevention and treatment programs to qualify on an equal basis with other non-profits, consistent with the 1996 Welfare Reform Act and the constitutional provisions that are relevant.

So, again, this has been an effort that has involved many, many people on both sides. On the Democratic side, Chairman Rangel, Mr. Clyburn; Roybal-Allard from the Hispanic Caucus, Sarah Jefferson -- many people; J.C. Watts and Jim Talent on the Republican side. I want to personally thank Ralph Hellman and Kiki Kless in the Speaker's Office for their good-faith negotiations over the last few months. And I'm happy to take any questions.

Q How much money is involved here? How much money in federal credits, and is there any direct payment to the --

MR. SPERLING: In terms of the budget costs, we are still doing a final estimate. My guess would be that over five years, this would be between $5 billion and $7 billion; and over 10 years, it would be probably close to $20 billion of costs to -- in terms of the federal budget cost.

But what's significant about this is the degree that this would leverage new investment. We believe the New Markets part alone would leverage up to $20 billion of investment. So, this is -- almost all of this investment is in the form of incentives that leverage additional private capital. So when you look at it in that context, it really is a historic agreement in terms of incentives to leverage private capital and to low-income areas.

Q In budget terms, how does that compare to what the President had been proposing? And would there be any offsets, or is it just in the scope of the budgets going forward would be accounted for?

MR. SPERLING: This is obviously larger than -- in terms of the low-income incentives, because it really includes the President's entire empowerment zone proposals, and his New Markets proposals. And it adds the renewal community. So I think when you're doing a bipartisan compromise, there's two ways you can do it. One is, you can both kind of trim down each other's packages; or you can try to work to include, really, the core of both ideas. That was -- the latter's the path we chose, and so obviously, as it includes some of their ideas and our ideas, the package is larger than either the Speaker's or the President's initiatives was alone.

Q Is it about twice as big or three times as big or just slightly larger -- do you have any --

MR. SPERLING: I would guess that our initiatives would have been $10 or $12 billion, and this probably added $5 or $6 billion on things that were important to them. That's over 10 -- I'm sorry -- the Republicans tend to focus on five-year numbers in their estimates, and I think the cost, obviously, because it doesn't start up as fast, would be less over the first five years, probably. We were aiming for $5 billion; it probably came in closer to $6 or $7 billion.

Q Gene, a lot of the stuff here are things we first saw last summer, I guess, when we went to Kentucky and the Delta and around --

MR. SPERLING: Right.

Q -- what are the major programmatic concessions here to the Republicans besides the faith-based substance abuse training?

MR. SPERLING: What are the concessions that we made?

Q Right. Which of this can they call their own, or which of these things are the ones that --

MR. SPERLING: I think the renewal community, the whole renewal community program -- well, let me make a comment. Just getting off the phone with the Speaker's office again, I really think what's very good about this initiative, unlike other compromises I've been in, is that I really believe both sides believe everything in this is positive. These reflect different ideas of reaching the same goal, which is using incentives to leverage private sector capital and private sector investment in lower-income areas and new markets.

This, for us, reflects the Third Way approach the President wanted for poor urban and rural areas, which was neither a laissez-faire approach, nor a direct, top-down government spending approach, but incentives that would encourage the private sector to find profits and create opportunities there.

So I think when you look at the 1997 Balanced Budget Agreement, I think there were clearly things in that package we did not like that we went along with as a means of getting the children's health package and other things. I think there were some things here that will be more controversial on our side and that were a little more difficult for us to agree with. But I think in the end we both felt good about it.

I think the renewal communities was, in a sense, I think they saw it as their version of empowerment zones. And they never meant -- and to their credit, they never meant to take the place of empowerment zones, they always wanted to do this in addition to empowerment zones as another way of using a slightly different set of incentives.

The zero capital gains tax rate was something that the Speaker pushed very hard for, and the agreement on the faith-based organizations providing drug treatment -- these were two things that were important to them and those were some of the things that came down to the end. For us, one thing I may not have mentioned was the second round empowerment zones had never received the funding that we had initially designed for them. They have agreed to do $200 million of funding, appropriations funding, for the 20 empowerment zones that had not gotten the funding. That was very important to us, because obviously the many mayors with empowerment zones felt we shouldn't go on and expand programs until we made whole the pledges made to them.

Getting the New Market tax credit as we proposed it was very important to us. That was a centerpiece of the President's New Markets Initiative, and we very much also wanted to see the low-income housing tax credit included. In the end, those three issues came together with the zero capital gains and the faith-based institutions. And on the faith-based institutions, a lot of that was just careful, painstaking exchanges of drafts until we were able to find something that met the goals of the Republicans and J.C. Watts, but also pass the constitutional test with our Justice Department and the policy test with our HHS.

Q Gene, on the faith-based, what kind of safeguards will there be? As you know, this has been controversial, especially in Texas where it's had questionable success and has been criticized -- there's been criticism that some of the religious groups have crossed the line and used this opportunity to try to spread their beliefs.

MR. SPERLING: What I would say is that our goal was to not go beyond what was in the 1996 Welfare Reform Act, or what was in -- I think Senator Frist's legislation in the Senate that passed by an overwhelming bipartisan vote. All I can tell you is that we were clearly concerned with those issues. We worked in good faith with the Speaker's Office, with our HHS and Justice Departments to make sure that this was something that clearly was acceptable constitutionally. And our goal -- what we were agreeing to was to simply not put them in a worse position than another non-profit and to ensure that the basic constitutional safeguards were met.

And I think the provisions in the language that were in the '96 Welfare Reform and would be in this, we believe would meet that test.

Q Can those safeguards really be assured, though, when they get down to the basic local level?

MR. SPERLING: I think this was something, again, was very important to the Speaker's office. We felt that -- one of the provisions that is in here is that in order for a faith-based organization that has a drug clinic prevention, they have to establish three years of success before they're allowed. So a state is able to certify that they've been in existence -- not just in existence, but that they've been successful for three years. So I think that gives the individual states an ability to look closely at who they're giving the money for, and I think that they were mindful of those concerns. And I think having the three years success requirement provides, we hope, a significant safeguard.

Q The report on the financial markets that Carol Parry is withdrawing her nomination from the Fed, is there any substance to that, or do you know her intentions?

MR. SPERLING: Not to my knowledge.

Q Gene, White House officials have indicated many times that they would not accept a tax cut until you understood the whole budget picture. It's been a rationale for sort of shooting down Republican proposals immediately. Is that still operative, and how is that consistent with what you're doing today?

MR. SPERLING: I think that because -- this was a special bipartisan commitment that the Speaker and the President made really before the State of the Union, and there was an understanding that we would keep this at a reasonable cost, that this would be a stand-alone provision.

And while we still share the basic concern that one should not have large tax cuts without having an overall framework for debt reduction, Social Security, and Medicare, we felt that the importance of ensuring that we used this time when the economy is strong to ensure we're doing more for low-income communities was a reason enough to allow for a $10 billion to $20 billion program over 10 years that has bipartisan agreement and is designed to help people living in the most distressed areas in our country.

Q If I could just follow up, basically, you're saying that it's small enough, the tax cut, and if everybody likes it, then you don't have to worry about the larger budget picture -- is that correct?

MR. SPERLING: No, I said that we had a special agreement on this in light of the relative size, the relative importance, and unlike so many tax cuts that pass in this place where they're motivated by special interests and for special reasons, this is the United States Congress, the Speaker of the House and the President of the United States deciding to put together a package not for the powerful, but for those who lack economic power and seek economic opportunity.

Q Gene, is there any significance to the timing of this, the day before the scheduled China vote -- some members who might stand to benefit as far as getting a new empowerment zone or other incentive package in their districts?

MR. SPERLING: No. We've been close for quite a while. I would say the following -- I think that over the last few weeks the Speaker and the President have had more reason to talk to each other, and I think that as they have talked, that has helped to kind of clear the path for some of the final issues that were being negotiated.

We've exchanged drafts with the Speaker -- offers and counteroffers -- with the Speaker's office probably 10, 12 times over the last few months. The interesting thing was the last -- on Thursday, we had been waiting for a reply to one of our offers for over a week. Normally, Ralph Hellman, their policy director, would send them to me directly.

On this occasion, the Speaker actually brought the offer with him and handed it to the President directly, in the East Room right before they went out for the Africa-CBI trade bill. And they spoke for probably the third or fourth time in 10 days. And I think that those of us who were negotiating felt we had a clear instruction to get to work and close the deal.

So this was a long time coming, and I think trying to get it done before Memorial Day and not letting it drag out into the summer was well in our interests because we still need to actually go through the mechanics of passing it in the House, and then we still have to go to the Senate where we're very hopeful that Senator Daschle and Majority Leader Lott will want to work on this. Clearly, many people in the Senate care about it; clearly, both of their states would benefit significantly from it.

Q But even coincidentally, do you think there's any effect on the China vote, or not?

MR. SPERLING: I don't know. There wasn't anything put in it regarding that. But I can't predict what effect it would have. I would say that people that we've invited down today for the signing who have been instrumental in this include both supporters and opponents of China PNTR.

Q The Secretary of Commerce just said there was a relationship between the timing of this getting resolved and the China vote. Is he wrong on that? About a half hour ago he said very specifically that it is one of the things that moved it along and got it done today.

MR. SPERLING: Well, he may have an opinion on whether it's helpful or harmful, but as the person who's been negotiating this, this has been a long time coming, for over three months, and we would have announced this any day that we could have closed on this agreement.

Q Gene, how do you choose the cities that get the money?

MR. SPERLING: There will be a competition, as done now, in which HUD basically chooses the urban and the Department of Agriculture has chosen the rural ones -- a competition. On the renewal communities, I believe they would take the same structure. I'm not entirely sure how they're going to choose the rural. Clearly, they would also have HUD choose the urban renewal community zones.

But it's been a competition, and in the first round, some of the cities people expected to win didn't, which drew some heat, but I think also showed that it really was a fair competition.

Q Gene, on the zero capital gains rate, you mentioned the District of Columbia is the only place where that exists now. Has the administration gathered any particular information, or has it reflected upon what that has meant for the District of Columbia as far as attracting investment? And on a technical question, I understand that rate applies if you hold the asset for five years.

MR. SPERLING: That's right, and let me make that clear. The D.C. does -- it is designed to not only bring in capital, but to bring in patient capital into lower-income areas. I think that it's hard to tell at this point what the exact impact of the D.C. initiative has been. It only passed a couple of years ago. But it is designed to bring in capital. You do have to hold it for five years, so it's not designed to encourage people to come in, make a quick buck and take their money out. It's encouraged to make people part of the community, investors and participants in the community. And in an empowerment zone, with the zero capital gains rollover, it will hopefully encourage them to reinvest their money.

But I think the fact that we did not know as much about it was one of the reasons that we had not supported this in the past. But again, the Speaker and Watts and Talent made a very strong case for this. And I think part of what we're trying to do is be respectful of different visions of how to bring incentives. They thought this was critical. And again, I should say that there are several Democrats, from Senator Lieberman to Congressman Jefferson, Congressman Clyburn, to some degree, Congressman Rangel, who also support having significant capital gain reductions in low-income areas.

Q Gene, what do you think will work better -- the renewal zones or the empowerment zones?

MR. SPERLING: For me, what I'm excited about was that 1993, there were no zones at all. And then we had nine. So for me to sit here now and announce that we have an agreement, a bipartisan agreement to have 80 of these type of zones with special incentives for investment, I think is just terrific. I hope it works.

I think that it would be -- I think one possibility is that as the years go by, perhaps people will get a sense of what they think works best in each and perhaps there will be legislation to harmonize them in the future, or maybe people will find that it's best to have two different competing models out.

But I think if you believe in this model of giving incentives for private capital, you have to be happy when there is this type of dramatic increase, even with slightly different forums.

Q Gene, you mentioned that there would be regulatory relief in the renewal communities. What is the nature of that relief?

MR. SPERLING: The nature of it is simply that -- the nature of it's simply is that in the empowerment zones, our philosophy on the applications has a lot been to make the community work together, come up with a strategic plan, and present that plan for how they're going to bring their community back.

One of the great things in the empowerment zones were some of the stories that came out of Detroit, for example, where people left meetings where they were working on their applications, saying this was the first time the civil rights groups and the auto companies and the unions had ever been in a room together, strategizing about what was best for Detroit. We think that process is very important for coming up with a strategy.

I think that in the renewal community, I think that their vision of it is that when they're looking for who to award that they would place a slightly higher emphasis on the degree that the community was providing regulatory relief, streamlining. So I don't think that they're inconsistent, but I think that it does reflect slightly different philosophies, and I think theirs goes under the vision that there may be regulatory burdens and zoning burdens that are inhibiting growth in some of these areas, and so they want that to at least be a factor to consider in the criteria. So it's a little bit of a different emphasis on the criteria for selection.

Q You're talking about local permitting and issues like that, not federal regulatory relief or OSHA exemptions or some other --

MR. SPERLING: Right. I think what they're saying is that under their vision of renewal communities when they were looking at the applications, they would give extra points where they saw more of the type of concern, the taking away zoning and regulatory barriers that they thought were not related enough to health and safety, and were simply serving as unnecessary burdens to entrepreneurship in those areas.

Q This isn't the first time someone has stood at that podium and told Americans living in depressed areas that help was on the way and that their lot in life would certainly improve, courtesy of the federal government. First of all, why should those folks believe it today, and at what rate should this help arrive, do you suspect?

MR. SPERLING: I think that what citizens in low-income areas should feel today is that while there is no silver bullet or single instant solution, that at least the federal government, in an election year, has gotten together in a bipartisan way and designed to make a major commitment to bringing in the capital and bringing in the investment opportunities that at least gives those communities a chance to start creating jobs, to start investing, to start bringing economic prosperity there.

I wouldn't -- I think it is a message of hope and opportunity to those areas. And I think that you will find significant excitement at a local level, among the community groups.

If you are a community group that's been trying to get investment into your area and you are out there trying to convince investors, take a chance -- take a chance on this area in the middle of Appalachia, or this poor urban area -- take a chance; you face a stiff challenge. If now you're able to say, hey, if you do that you can get a 30 percent tax credit right off; if you have a fund that invests, for every dollar you raise, you can get $2 of preferred financing from the government.

I think when you put all those things together, you really are empowering many of the local heroes in community groups across the country. You are giving them more tools, more empowerment to build jobs in their area. And I can tell you -- let me tell you, I would encourage you to talk to Ray Moncrief, the CEO of Kentucky Highlands, he was here talking to President Mbeki yesterday; talk to Bill Bynum from the Economic Committee for Corporation for Development in the Mississippi Delta; talk to Cathy Bassant who runs Community Development at Bank America; talk to Mark Willis, who runs community development at Chase Manhattan. I think this was not -- this was a plan that we designed by talking to the people who are on the front lines. And so, I think they've -- and what they told us was to be specific.

They said that under CRA and community development banking, that there had been an improvement in lending and mortgage accessibility. They said the problem was equity capital; there's not enough capital going into low-income areas, and even when there is, there isn't enough of the managerial assistance for the person who has the great idea, but may not be able to build up that network of managerial talent to do it.

And so when we designed the New Market Tax Credit, and when we designed APEC's and New Market capital firms, we were trying to address the need we heard from people on the front lines.

Thank you.

END 10:57 A.M. ED

PRESIDENT CLINTON ON RENEWAL COMMUNITIES Posted: April 13, 2002
THE WHITE HOUSE

Office of the Press Secretary
________________________________________________________________________
For Immediate Release May 25, 2000

REMARKS BY THE PRESIDENT

...

Q Mr. President, since you mentioned the New Markets Initiative, some Republicans say that that was the product of intense private negotiations between your staff and Hill Republicans. And there were substantial differences when those debates began. There were no public podium events dealing with New Markets, and yet they say there have been numerous public podium events on these issues -- prescription drugs and HMO -- but no intense private negotiations. Can you tell us why, sir, you and your staff have tried to use the podium more than intense negotiations?

THE PRESIDENT: No, I'm more than willing to engage in private negotiations, but I don't think that's a fair representation of exactly how these issues developed. We did have some interest on the part of some Republicans with New Markets -- I know some of you have to go vote, so as long as you don't say they're abandoning me on the -- (laughter) -- on the patients' bill of rights, I'm going to give the senators who have to leave a pass.

We did have a lot of interest on the front end in that -- and I made some calls around myself. But I have actually tried -- I have actually had several private conversations on these issues, and I will continue to do it. I think -- I believe we could pass the patients' bill of rights. We already passed a strong bill through the House with virtually 100 percent of our caucus, and a pretty good group of Republican votes with us. We're having trouble in the Senate, manifest in the conference committee, because some of the interest groups are still fighting what I think everybody who's looked at this believes is necessary to make a good bill.

But I'm trying to negotiate on that. I had a private meeting on the gun safety legislation. I've had several conversations about that. I will -- I'm willing to do anything to resolve these things. But what we can't do here is to -- let me just say what the difference is in blunt terms.

There is no great powerful special interest out there trying to beat the New Markets legislation. And therefore, what we had was people -- Washington was able to work the way it ought to work, because all we had were our philosophical differences. But we had a common goal. So we agreed in the best tradition of the founding fathers to let the Republicans try their ideas in 40 of their enterprise areas -- whatever the proper name is -- renewal community areas, and 40 for our empowerment zones. We agreed to provide for poor areas all over the country -- including those that aren't here, in either one of those two groups -- these special incentives of the New Markets.

It was a wonderful example. And if all we ever had to do was reconcile our philosophical differences, we could pass all kinds of bills up here. But when you have an independent, powerful interest group that won't let them go, then we can have all the private talks that we want, until we're blue in the face, it's still hard to work it through. I haven't given up. But if you want to know the difference in New Markets and those things, it's not that we haven't had private talks; it's that there's no overwhelming interest group trying to beat this thing.

1998CRH8806D TAXPAYER RELIEF ACT OF 1998, wrt RC's Posted: April 13, 2002
Archive-Name: gov/us/fed/congress/record/1998/sep/25/1998CRH8806D/part6

``(a) General Rule.--In the case of a renewal community business (as defined in section 1400G), for purposes of section 179-- ``(1) the limitation under section 179(b)(1) shall be increased by the lesser of-- ``(A) $35,000, or ``(B) the cost of section 179 property which is qualified renewal property placed in service during the taxable year, and ``(2) the amount taken into account under section 179(b)(2) with respect to any section 179 property which is qualified renewal property shall be 50 percent of the cost thereof. ``(b) Recapture.--Rules similar to the rules under section 179(d)(10) shall apply with respect to any qualified renewal property which ceases to be used in a renewal community by a renewal community business. ``(c) Qualified Renewal Property.--For purposes of this section-- ``(1) In general.--The term `qualified renewal property' means any property to which section 168 applies (or would apply but for section 179) if-- ``(A) such property was acquired by the taxpayer by purchase (as defined in section 179(d)(2)) after December 31, 1999, and before January 1, 2007, and ``(B) such property would be qualified zone property (as defined in section 1397C) if references to renewal communities were substituted for references to empowerment zones in section 1397C. ``(2) Certain rules to apply.--The rules of subsections (a)(2) and (b) of section 1397C shall apply for purposes of this section.''

SEC. 603. EXTENSION OF EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS TO RENEWAL COMMUNITIES.

(a) Extension.--Paragraph (2) of section 198(c) (defining targeted area) is amended by redesignating subparagraph (C) as subparagraph (D) and by inserting after subparagraph (B) the following new subparagraph: ``(C) Renewal communities included.--Except as provided in subparagraph (B), such term shall include a renewal community (as defined in section 1400E).''

[[Page H8834]]

(b) Extension of Termination Date for Renewal Communities.--Subsection (h) of section 198 is amended by inserting before the period ``(December 31, 2006, in the case of a renewal community, as defined in section 1400E).''

SEC. 604. EXTENSION OF WORK OPPORTUNITY TAX CREDIT FOR RENEWAL COMMUNITIES

(a) Extension.--Subsection (c) of section 51 (relating to termination) is amended by adding at the end the following new paragraph: ``(5) Extension of credit for renewal communities.-- ``(A) In general.--In the case of an individual who begins work for the employer after the date contained in paragraph (4)(B), for purposes of section 38-- ``(i) in lieu of applying subsection (a), the amount of the work opportunity credit determined under this section for the taxable year shall be equal to--

``(I) 15 percent of the qualified first-year wages for such year, and ``(II) 30 percent of the qualified second-year wages for such year,

``(ii) subsection (b)(3) shall be applied by substituting `$10,000' for `$6,000', ``(iii) paragraph (4)(B) shall be applied by substituting for the date contained therein the last day for which the designation under section 1400E of the renewal community referred to in subparagraph (B)(i) is in effect, and ``(iv) rules similar to the rules of section 51A(b)(5)(C) shall apply. ``(B) Qualified first- and second-year wages.--For purposes of subparagraph (A)-- ``(i) In general.--The term `qualified wages' means, with respect to each 1-year period referred to in clause (ii) or (iii), as the case may be, the wages paid or incurred by the employer during the taxable year to any individual but only if--

``(I) the employer is engaged in a trade or business in a renewal community throughout such 1-year period, ``(II) the principal place of abode of such individual is in such renewal community throughout such 1-year period, and ``(III) substantially all of the services which such individual performs for the employer during such 1-year period are performed in such renewal community.

``(ii) Qualified first-year wages.--The term `qualified first-year wages' means, with respect to any individual, qualified wages attributable to service rendered during the 1-year period beginning with the day the individual begins work for the employer. ``(iii) Qualified second-year wages.--The term `qualified second-year wages' means, with respect to any individual, qualified wages attributable to service rendered during the 1-year period beginning on the day after the last day of the 1-year period with respect to such individual determined under clause (ii).'' (b) Congruent Treatment of Renewal Communities and Enterprise Zones for Purposes of Youth Residence Requirements.-- (1) High-risk youth.--Subparagraphs (A)(ii) and (B) of section 51(d)(5) are each amended by striking ``empowerment zone or enterprise community'' and inserting ``empowerment zone, enterprise community, or renewal community''. (2) Qualified summer youth employee.--Clause (iv) of section 51(d)(7)(A) is amended by striking ``empowerment zone or enterprise community'' and inserting ``empowerment zone, enterprise community, or renewal community''. (3) Headings.--Paragraphs (5)(B) and (7)(C) of section 51(d) are each amended by inserting ``or community'' in the heading after ``zone''.

``Subchapter X. Renewal Communities.''

SEC. 606. EVALUATION AND REPORTING REQUIREMENTS.

Not later than the close of the fourth calendar year after the year in which the Secretary of

[[Page H8835]]

Housing and Urban Development first designates an area as a renewal community under section 1400E of the Internal Revenue Code of 1986, and at the close of each fourth calendar year thereafter, such Secretary shall prepare and submit to the Congress a report on the effects of such designations in stimulating the creation of new jobs, particularly for disadvantaged workers and long-term unemployed individuals, and promoting the revitalization of economically distressed areas.

CRS1463 AMENDMENTS SUBMITTED-HUD to transfer ownership of any qualified HUD property to the unit of general local government having jurisdiction for the area Posted: April 13, 2002
1998 CRS1463 AMENDMENTS SUBMITTED, Part 3/3
Archive-Name: gov/us/fed/congress/record/1998/mar/05/1998CRS1463/part3

(a) Transfer Requirement.--Pursuant to the authority under section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997, the Secretary shall transfer ownership of any qualified HUD property to the unit of general local government having jurisdiction for the area in which the property is located in accordance with this section, but only if the unit of general local government enters into an agreement with the Secretary meeting the requirements of subsection (d). (b) Qualified HUD Properties.--For purposes of this section, the term ``qualified HUD property'' means any unoccupied multifamily housing, project, substandard multifamily housing project, or unoccupied single family property, that is-- (1) owned by the Secretary; and (2) located within a renewal community. (c) Timing of Transfer.--Any transfer of ownership required under subsection (a) shall be completed-- (1) with respect to any multifamily housing project or single family property that is acquired by the Secretary before the date on which the area in which property is located is designated as a renewal community and that is substandard or unoccupied (as applicable) upon such date, not later than 1 year after such date; and (2) with respect to any multifamily housing project or single family property that is acquired by the Secretary on or after the date on which the area in which the property is located is designated as a renewal community, not later than 1 year after--

[[Page S1475]]

(A) the date on which the project is determined to be substandard or unoccupied (as applicable), in the case of a property that is not unoccupied or substandard upon acquisition by the Secretary; or (B) the date on which the project is acquired by the Secretary, in the case of a property that is substandard or unoccupied (as applicable) upon such acquisition. (d) Agreements To Sell Property to Community Development Corporations.--An agreement described in this subsection is an agreement that requires a unit of general local government to dispose of the qualified HUD property acquired by the unit of general local government in accordance with the following requirements: (1) Notification to community development corporations.-- Not later than 30 days after the date on which the unit of general local government acquires title to the property under subsection (a), the unit of general local government shall notify each community development corporation located in the State in which the property is located-- (A) of such acquisition of title; and (B) that, during the 6-month period beginning on the date on which such notification is made, such community development corporations shall have the exclusive right under this subsection to make bona fide offers to purchase the property on a cost recovery basis. (2) Right of first refusal.--During the 6-month period described in paragraph (1)(B)-- (A) the unit of general local government may not sell or offer to sell the qualified HUD property other than to a party notified under paragraph (1), unless each community development corporation required to be so notified has notified the unit of general local government that the corporation will not make an offer to purchase the property; and (B) the unit of general local government shall accept a bona fide offer to purchase the property made during such period if the offer is acceptable to the unit of general local government, except that a unit of general local government may not sell a property to a community development corporation during that 6-month period other than on a cost recovery basis. (3) Other disposition.--During the 6-month period beginning on the expiration of the 6-month period described in paragraph (1)(B), the unit of general local government shall dispose of the property on a negotiated, competitive bid, or other basis, on such terms as the unit of general local government deems appropriate. (e) Satisfaction of Indebtedness.--Before transferring ownership of any qualified HUD property pursuant to subsection (a), the Secretary shall satisfy any indebtedness incurred in connection with the property to be transferred, by-- (1) canceling the indebtedness; or (2) reimbursing the unit of general local government to which the property is transferred for the amount of the indebtedness. (f) Determination of Status of Properties.--To ensure compliance with the requirements of subsection (c), the Secretary shall take the following actions: (1) Upon designation of renewal communities.--Upon the designation of any renewal community, the Secretary shall promptly assess each residential property owned by the Secretary that is located within such renewal community to determine whether such property is a qualified HUD property. (2) Upon acquisition.--Upon acquiring any residential property that is located with a renewal community, the Secretary shall promptly determine whether the property is a qualified HUD property. (3) Updates.--The Secretary shall periodically reassess the residential properties owned by the Secretary to determine whether any such properties have become qualified HUD properties. (g) Tenant Leases.--This section shall not affect the terms or the enforceability of any contract or lease entered into with respect to any residential property before the date that such property becomes a qualified HUD property. (h) Procedures.--Not later than the expiration of the 6- month period beginning on the date of the enactment of this Act, the Secretary shall establish, by rule, regulation, or order, such procedures as may be necessary to carry out this section. (i) Definitions.--For purposes of this section, the following definitions shall apply: (1) Community development corporation.--The term ``community development corporation'' means a nonprofit organization whose primary purpose is to promote community development by providing housing opportunities for low-income families. (2) Cost recovery basis.--The term ``cost recovery basis'' means, with respect to any sale of a residential property by a unit of general local government to a community development corporation under subsection (d)(2), that the purchase price paid by the community development corporation is less than or equal to the costs incurred by the unit of general local government in connection with such property during the period beginning on the date on which the unit of general local government acquires title to the property under subsection (a) and ending on the date on which the sale is consummated. (3) Low-income families.--The term ``low-income families'' has the meaning given the term in section 3(b) of the United States Housing Act of 1937. (4) Multifamily housing project.--The term ``multifamily housing project'' has the meaning given the term in section 203 of the Housing and Community Development Amendments of 1978. (5) Renewal community.--The term ``renewal community'' means an area designated (under subchapter X of chapter 1 of the Internal Revenue Code of 1986) as a renewal community. (6) Residential property.--The term ``residential property'' means a property that is a multifamily housing project or a single family property. (7) Secretary.--The term ``Secretary'' means the Secretary of Housing and Urban Development. (8) Severe physical problems.--The term ``severe physical problems'' means, with respect to a dwelling unit, that the unit-- (A) lacks hot or cold piped water, a flush toilet, or both a bathtub and a shower in the unit, for the exclusive use of that unit; (B) on not less than 3 separate occasions during the preceding winter months, was uncomfortably cold for a period of more than 6 consecutive hours due to a malfunction of the heating system for the unit; (C) has no functioning electrical service, exposed wiring, any room in which there is not a functioning electrical outlet, or has experienced 3 or more blown fuses or tripped circuit breakers during the preceding 90-day period; (D) is accessible through a public hallway in which there are no working light fixtures, loose or missing steps or railings, and no elevator; or (E) has severe maintenance problems, including water leaks involving the roof, windows, doors, basement, or pipes or plumbing fixtures, holes or open cracks in walls or ceilings, severe paint peeling or broken plaster, and signs of rodent infestation. (9) Single family property.--The term ``single family property'' means a 1- to 4-family residence. (10) Substandard.--The term ``substandard'' means, with respect to a multifamily housing project, that 25 percent or more of the dwelling units in the project have severe physical problems. (11) Unit of general local government.--The term ``unit of general local government'' has the meaning given the term in section 102(a) of the Housing and Community Development Act of 1974. (12) Unoccupied.--The term ``unoccupied'' means, with respect to a residential property, that the unit of general local government having jurisdiction over the area in which the project is located has certified in writing that the property is not inhabited.

SEC. ____22. CRA CREDIT FOR INVESTMENTS IN COMMUNITY DEVELOPMENT ORGANIZATIONS LOCATED IN RENEWAL COMMUNITIES.

Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C. 2903) is amended by adding at the end the following new subsection: ``(c) Investments in Certain Community Development Organizations.--In assessing and taking into account, under subsection (a), the record of a regulated financial institution, the appropriate Federal financial supervisory agency may consider, as a factor, investments of the institution in, and capital investment, loan participation, and other ventures undertaken by the institution in cooperation with, any community development organization (as defined in section 234 of the Bank Enterprise Act of 1991) which is located in a renewal community (as designated under section 1400D of the Internal Revenue Code of 1986).''.

Index of Topics in the Free Management Library Posted: April 11, 2002
Index of Topics in the Free Management Library

Complete, highly integrated library of resources for nonprofit AND for-profit businesses

Starting Nonprofit Business - what mean by "Starting a Nonprofit"? - feasibility study -- "really start nonprofit?" - consider fiscal sponsorship - need lawyer? - nonprofit incubators - free development program - checklists for starting new nonprofit - table of reminders - free on-line program to build nonprofit - also see: - - - e-commerce (start business on Internet?) - - - enterprise law - - - organizations (an introduction) - - - social entrepreneurship

Taxation (Nonprofit) - getting tax-exempt status - importance of record keeping - federal, state, sales, payroll taxes, etc. - preparing and filing Form 990s (and disclosure) - donations and taxes - unrelated business income taxes (UBIT) - lobbying and taxes - topic -- independent contractor or employee? - also see: - - - finances and accounting (nonprofit) - - - fundraising & grantwriting (nonprofits) - - - Free Management Library, Micro-MBA and Nonprofit Micro-MBA are service marks of Authenticity Consulting, LLC (763-971-8890) Used by The Management Assistance Program for Nonprofits 2233 University Avenue West, Suite 360 St. Paul, Minnesota 55114 (651) 647-1216 With permission from Carter McNamara, MBA, PhD, Copyright 1999

The Quality 990 (qual990.org) website Posted: April 11, 2002
The Quality 990 (qual990.org) website encompasses a number of projects and activities to improve the quality of IRS Form 990 reporting by nonprofit organizations.

Why is Quality 990 Important?

* Compliance?
Filing an accurate and complete Form 990 with the IRS and state charity officials is the law.

* Public Accountability?
With the new IRS regulations, anyone can request a copy of any nonprofit organization's Form 990.

* Public Relations?
The Internet is making the Form 990 more widely available than ever before.
* Primary Source of Data?

Form 990 is the most commonly used data source about nonprofit organizations

* Policy Making?Accurate Form 990 data will help policy makers develop the most effective ways of helping the sector, and allow nonprofits to better defend themselves against ill-advised legislative initiatives.

Demonstration Electronic Form 990 Data Transfer

Forming a Non-Profit Organization Posted: April 11, 2002
Questions About Forming a Non-Profit Organization:

What is a nonprofit company?

A nonprofit corporation is simply a corporation that is formed pursuant to a different state law than a standard for-profit corporation. The corporation must be formed for some religious, charitable, educational, literary or scientific purpose. While a standard business corporation is designed to benefit and generate a profit for its shareholders, nonprofit do not have the profit motive. Nonprofit corporations are allowed to apply for tax-exempt status at both the federal and state level.

[Q & A - Non-Profit]

Questions About Forming a Non-Profit Organization:

What is a nonprofit company?

A nonprofit corporation is simply a corporation that is formed pursuant to a different state law than a standard for-profit corporation. The corporation must be formed for some religious, charitable, educational, literary or scientific purpose. While a standard business corporation is designed to benefit and generate a profit for its shareholders, nonprofit do not have the profit motive. Nonprofit corporations are allowed to apply for tax-exempt status at both the federal and state level.

What steps need to be taken to form a nonprofit corporation?

The first step is to file nonprofit articles of incorporation with the proper state agency. It is important that the articles contain the required clauses to make sure your articles will qualify for tax-exempt status. Business Filings Incorporated prepares and files nonprofit articles of incorporation.

After the nonprofit articles are filed, tax-exempt status must be applied for at both the federal and state levels. To apply at the federal level, a timely filing of form 1023 must be made. Business Filings does not prepare IRS form 1023. To determine what form needs to be filed at the state level, contact department that deals with taxation.

The corporation must comply with corporate formalities and hold annual meetings of directors and members. Bylaws must be adopted for the corporation. Documents that help you comply with these corporate formalities are contained in our corporate kit.

What purposes are valid for a nonprofit?

To qualify for federal tax-exempt status, the nonprofit corporation must be organized and operate for some religious, charitable, educational, literary or scientific purpose permitted under 501(c)(3) of the tax code.

The religious category refers to general types of religious organizations and more formal institutionalized churches.

Charitable purpose is defined in section 501(c)(3) as providing services beneficial to the public interest.

Scientific research that is carried on in the public interest qualifies for tax-exempt status; however, research incidental to commercial or industrial operations does not qualify.

The literary purpose includes writing, publishing and distribution of books which are directed toward promoting the public interest rather than engaging in commercial book writing and selling.

The educational purpose is a broad purpose that allows instruction for both self-development and the benefit of the community.

The purpose must be listed in the articles of incorporation; therefore, it is very important the purpose of the corporation be well described on the articles of incorporation.

For a specific answer to whether of not your company?s purposes is acceptable, contact an attorney or account.

IRS classification of Nonprofit Corporations?

Business Filings Incorporated prepares articles of incorporation for nonprofit corporations pursuant to section 501(c)(3) of the IRS code. Nonprofits formed under 501(c)(3) must be formed for some religious, charitable, educational, literary or scientific purpose.

Nonprofit corporations may also be formed for other purposes pursuant to different sections of the IRS code. If you want Business Filings to form your nonprofit pursuant to a different provision of the IRS code, please let us know the code section in the purpose portion of the order form.

To determine if your nonprofit needs to be formed pursuant to another provision of the IRS code, please consult the IRS organizational reference chart. (click here to view the IRS organizational chart).

For specific advice, please consult an attorney or accountant.

What form needs to be filed to apply for federal tax-exempt status?

For a nonprofit company to qualify for 503(c)(3) federal tax-exempt status, a timely filing of IRS form 1023 must be made.

A few groups are NOT technically required to file form 1023.

1. A church, interchurch organization, convention of churches, or an integrated auxiliary of a church

2. A subordinate organization covered by a group exemption letter (A parent tax- exempt company must submit a letter saying its subsidiary company will be tax- exempt).

3. A group that qualifies for public charity status and which normally has gross receipts of LESS than $5,000 per year.

However, it is recommended that these companies still file for tax-exempt status because this is the only way to be assured that the IRS views the corporation as a 501(c)(3) tax-exempt group. For example, it is possible that the IRS might later challenge your corporation?s tax-exempt status by arguing that your organization is not a church. If their argument is successful, your corporation would be subject to back tax and tax fines for the period it operated as a corporation.

When the IRS approves the tax-exemption, then and ONLY then, can the nonprofit company be assured that contributions made to it are tax deductible, and that your corporation is a tax-exempt company.

When must form 1023 be filed?

The 1023 application is filed in a timely manner if it is postmarked within 15 months after the end of the month when your articles were filed.

If you file on time, the tax-exemption is effective retroactively to the date on which your articles of incorporation were filed.

How many directors are nonprofit corporations required to have?

Most states require nonprofit corporation to have a minimum of three directors. The following states only require, at minimum, one director: CA, CO, DE, IA, KS, MI, MS, NH, OK, OR, PA, SC, VA, WA & WV.

The following states allow less than three directors if there are less than three members: LA, MA, MN & VA.

What are the advantages of filing a nonprofit corporation?

If your nonprofit is granted tax-exempt status under 501(c)(3) of the Tax Code, your corporation will be exempt from payment of federal corporate income taxes. With federal income tax rates at between 15% to 34% this can amount to quite a tax savings.

A 501(c)(3) nonprofit is eligible to receive both public and private grants. Individual donors can claim a federal income tax deduction of up to 50% of income for donations made to 501(c)(3) groups.

Nonprofits also receive the same limited liability protection as for profit companies. This means that directors or trustees, officers and members are typically not personally responsible for the debts and liabilities of the corporation.

Other benefits include:

A corporation's life is not dependent upon its members. A corporation possesses the feature of unlimited life. If an owner dies or wishes to sell their interest the corporation will continue to exist and do business.

Retirement funds, qualified retirement plans (like 401k) may be set up more easily with a corporation

503(c)(3) corporations receive lower postal rates on some bulk mailings.

Disadvantages of Forming a Nonprofit Corporation?

The main disadvantage of forming a nonprofit company is the increased paperwork that is required. Articles of incorporation must be filed with the state, bylaws prepared and meeting minutes must be kept with your corporation&?s records. Business Filings Incorporated can help by preparing and filing your incorporation papers and our nonprofit kit does contain sample bylaws and meeting minutes. Also, applications for tax-exempt status must be filed at both the federal and state levels.

It is important to remember that nonprofit can not be used to generate profits for the owners and the purpose must confirm to IRS regulations.

SUMMARY OF PROVISIONS CONTAINED IN H.R. 5662, THE "COMMUNITY RENEWAL TAX RELIEF ACT OF 2000" Posted: April 11, 2002

SUMMARY OF PROVISIONS CONTAINED IN H.R. 5662, THE "COMMUNITY RENEWAL TAX RELIEF ACT OF 2000"

Prepared by the Staff of the Joint Committee on Taxation

December 15, 2000JCX-112-00

(i)

CONTENTS

Page INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 TITLE I. COMMUNITY RENEWAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . 2

A. Renewal Community Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

B. Empowerment Zone Tax Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

C. New Markets Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

D. Increase the Low-Income Housing Tax Credit Cap and Make Other Modifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

E. Accelerate Scheduled Increase in State Volume Limits on Tax-Exempt Private Activity Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

F. Extension and Modification to Expensing of Environmental Remediation Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

G. Expansion of District of Columbia Homebuyer Tax Credit . . . . . . . . . . . . . . . . 4

H. Extension of D.C. Enterprise Zone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

I. Extension and Modification of Enhanced Deduction forCorporate Donations of Computer Technology . . . . . . . . . . . . . . . . . . . . . . . . . . 5

J. Treatment of Indian Tribes as Non-Profit Organizations and State or LocalGovernments for Purposes of the Federal Unemployment Tax ("FUTA") . . . . . 5

TITLE II. MEDICAL SAVINGS ACCOUNTS ("MSAs") . . . . . . . . . . . . . . . . . . . . 6

TITLE III. ADMINISTRATIVE AND TECHNICAL CORRECTIONSPROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Subtitle A. Administrative Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

A. Exempt Certain Reports From Elimination Under the Federal ReportsElimination and Sunset Act of 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

B. Extension of Deadlines for IRS Compliance with Certain NoticeRequirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

C. Extension of Authority for Undercover Operations . . . . . . . . . . . . . . . . . . . . . . . 7

D. Competent Authority and Pre-Filing Agreements . . . . . . . . . . . . . . . . . . . . . . . . 7

E. Increase in Joint Committee on Taxation Refund Review Threshold . . . . . . . . . 7

F. Clarify the Allowance of Certain Tax Benefits With Respect to KidnappedChildren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

G. Conforming Changes to Accommodate Reduced Issuances of Certain TreasurySecurities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

H. Authorization of Agencies to Use Corrected Consumer Price Index . . . . . . . . . . 8

I. Prevent Duplication or Acceleration of Loss Through Assumption of CertainLiabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

J. Disclosure of Return Information to the Congressional Budget Office . . . . . . . . 9

Subtitle B. Tax Technical Corrections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

TITLE IV. TAX TREATMENT OF SECURITIES FUTURES CONTRACTS . . . 10

1 This document may be cited as follows: Joint Committee on Taxation, Summary of Provisions Contained in H.R. 5662, the "Community Renewal Tax Relief Act of 2000," (JCX-112-00), December 15, 2000.

INTRODUCTION This document,1 prepared by the staff of the Joint Committee on Taxation, contains asummary of the provisions in H.R. 5662, the "Community Renewal Tax Relief Act of 2000". The provisions of H.R. 5662 are to be incorporated by reference in the conference agreement for H.R.4577, the Departments of Labor, Health and Human Services, and Education and Related Agencies Appropriations Act, 2001.

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TITLE I. COMMUNITY RENEWAL PROVISIONS

A. Renewal Communities Provisions The bill authorizes the Secretary of HUD to designate up to 40 "renewal communities"from areas nominated by States and local governments. At least 12 of the designated renewal communities must be in rural areas. In general, nominated areas are ranked based on a formulathat takes into account the area's poverty rate, median income, and unemployment rate.

A nominated area that is designated as a renewal community is eligible for the followingtax incentives: (1) a zero-percent rate for capital gain from the sale of qualifying assets; (2) a 15- percent wage credit to employers for the first $10,000 of qualified wages; (3) a "commercialrevitalization deduction" that allows taxpayers (to the extent allocated by the appropriate State agency for the period after December 31, 2001) to deduct either (a) 50 percent of qualifyingexpenditures for the taxable year in which a qualified building is placed in service, or (b) all of the qualifying expenditures ratably over a 10-year period beginning with the month in which suchbuilding is placed in service; (4) an additional $35,000 of section 179 expensing for qualified property; and (5) an expansion of the WOTC with respect to individuals who live in a renewalcommunity.

The 40 renewal communities must be designated by January 1, 2002, and the resulting taxbenefits will be available for the period beginning on January 1, 2002, and ending December 31, 2009.

B. Empowerment Zone Provisions The bill extends the designation of empowerment zone status for existing empowermentzones (other than the D.C. Enterprise Zone) through December 31, 2009. The 20-percent wage credit is made available to all existing empowerment zones beginning in 2002 (and remains at the20-percent rate). Under the bill, $35,000 (rather than $20,000) of additional section 179 expensing is available for qualified zone property placed in service in taxable years beginningafter December 31, 2001, by a qualified zone business. Also beginning in 2002, certain businesses in existing empowerment zones (other than the D.C. Enterprise Zone) become eligiblefor more generous tax-exempt bond rules.

The bill authorizes the Secretaries of HUD and Agriculture to designate nine additionalempowerment zones (seven to be located in urban areas and two in rural areas) by January 1, 2002. Businesses in the new empowerment zones are eligible for the same tax incentives that,under the bill, are available to existing zones (i.e., a 20-percent wage credit, $35,000 of additional section 179 expensing, and the enhanced tax-exempt financing benefits). The new empowermentzones must be designated by January 1, 2002, and the tax incentives with respect to the new empowerment zones generally are available during the period beginning on January 1, 2002, andending on December 31, 2009.

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The bill permits a taxpayer to roll over gain from the sale or exchange of any qualifiedempowerment zone asset held for more than one year if the taxpayer uses the proceeds to purchase other qualifying empowerment zone assets (in the same zone) within 60 days of the sale of theoriginal asset. In general, a qualifying empowerment zone asset refers to a stock or partnership investment in, or assets acquired by, a qualifying business within an empowerment zone that ispurchased by a taxpayer after the date of enactment of the bill.

The bill increases to 60 percent (from 50 percent) the exclusion of gain from the sale ofqualifying small business stock held more than five years if such stock also satisfies the requirements of a qualifying business under the empowerment zone rules. The provision iseffective for qualifying stock that is purchased after the date of enactment of the bill.

C. New Markets Tax Credit The bill creates a new tax credit for qualified equity investments made after December 31,2000, to acquire stock in a community development entity ("CDE"). The maximum annual amount of qualifying equity investments is capped as follows:

Calendar Year Maximum Qualifying Equity Investment 2001 $1.0 billion2002-2003 $1.5 billion per year 2004-2005 $2.0 billion per year2006-2007 $3.5 billion per year

The amount of the credit allowed to the investor is (1) a five-percent credit for the year inwhich the equity interest is purchased from the CDE and for the first two anniversary dates after the purchase from the CDE, and (2) a six-percent credit on each anniversary date thereafter for thefollowing four years. The credit is recaptured if the entity fails to continue to be a CDE or the interest is redeemed within seven years.

A CDE is any domestic corporation or partnership (1) whose primary mission is serving orproviding investment capital for low-income communities or low-income persons, (2) that maintains accountability to residents of low-income communities through representation ongoverning or advisory boards of the CDE, and (3) is certified by the Treasury Department as an eligible CDE. A qualified equity investment means stock or a similar equity interest acquireddirectly from a CDE for cash. Substantially all of the cash must be used by the CDE to make investments in, or loans to, qualified active businesses located in low-income communities, orcertain financial services to businesses and residents in low-income communities. A "low-income community" generally is defined as census tracts with either (1) poverty rates of at least 20 percentor (2) median family income which does not exceed 80 percent of the greater of metropolitan area income or statewide median family income. The Secretary may designate any area within anycensus tract as a low-income community provided that (1) the boundary is continuous, (2) the area would otherwise satisfy the poverty rate and median income requirements, and (3) an inadequateaccess to capital exists in the area.

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D. Increase the Low-Income Housing Tax Credit Cap and Make Other Modifications

The bill increases the per-capita low-income housing credit cap from $1.25 per capita to$1.50 per capita in calendar year 2001 and to $1.75 per capita in calendar year 2002. Beginning in calendar year 2003, the per-capita portion of the credit cap will be adjusted annually forinflation. For small States, a minimum annual cap of $2 million is provided for calendar years 2001 and 2002. Beginning in calendar year 2003, the small State minimum is adjusted forinflation. The bill also makes programmatic changes to the credit. The provisions are generally effective for calendar years beginning after December 31, 2000, and buildings placed-in-serviceafter such date in the case of projects that also receive financing with proceeds of tax-exempt bonds subject to the private activity bond volume limit which are issued after such date.

E. Accelerate Scheduled Increase in State Volume Limitson Tax-Exempt Private Activity Bonds

The bill increases the State volume limits on tax-exempt private activity bonds from thegreater of $50 per resident or $150 million to the greater of $75 per resident or $225 million beginning in calendar year 2002. Under the bill, the volume limit is the greater of $62.50 perresident or $187.5 million in calendar year 2001. Beginning in calendar year 2003, the volume limit will be adjusted annually for inflation.

F. Extension and Modification to Expensing of Environmental Remediation Costs

The bill extends the expiration date for expenditures for environmental remediation to beeligible for a current deduction in lieu of capitalization to include those expenditures paid or incurred before January 1, 2004. The bill eliminates the targeted area requirement, therebyexpanding eligible sites to include any site, other than a site identified on the national priorities list, containing (or potentially containing) a hazardous substance that is certified by the appropriateState environmental agency. The provision to expand the class of eligible sites is effective for expenditures paid or incurred after the date of enactment.

G. Extension of the District of Columbia Homebuyer Tax Credit The bill extends the $5,000 tax credit that is available to first-time homebuyers of aprincipal residence in the District of Columbia for two years (through December 31, 2003).

H. Extension of the D.C. Enterprise Zone The bill extends the D.C. Enterprise Zone designation through December 31, 2003.

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I. Extension and Modification of Enhanced Deduction forCorporate Donations of Computer Technology The bill extends the current enhanced deduction for donations of computer technology andequipment for two years (through December 31, 2003). In addition, the bill expands the enhanced deduction to include donations to public libraries, to apply to property donated no later than threeyears (instead of two years) after the date the taxpayer acquired or substantially completed the construction of the donated property, and to apply to property donated after reaquisition by acomputer manufacturer. The bill permits the Secretary to develop standards to assure that computer donations meet minimum standards for educational purposes. The provision is effectivefor contributions made after December 31, 2000.

J. Treatment of Indian Tribes as Non-Profit Organizations and State orLocal Governments for Purposes of the Federal Unemployment Tax ("FUTA") The bill provides that an Indian tribe (including any subdivision, subsidiary, or businessenterprise chartered and wholly owned by an Indian tribe) is treated like a non-profit organization or State or local government for FUTA purposes (i.e., given an election to choose thereimbursement treatment).

The provision generally is effective with respect to service performed beginning on orafter the date of enactment. Under a transition rule, service performed in the employ of an Indian tribe is not treated as employment for FUTA purposes if: (1) it is service which is performedbefore the date of enactment and with respect to which FUTA tax has not been paid; and (2) such Indian tribe reimburses a State unemployment fund for unemployment benefits paid for serviceattributable to such tribe for such period.

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TITLE II. MEDICAL SAVINGS ACCOUNTS The bill extends the MSA program through 2002. It is clarified that, as under present law,the cap and reporting requirements do not apply for 2000.

MSAs are renamed under the bill as Archer MSAs.

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TITLE III. ADMINISTRATIVE AND TECHNICAL CORRECTIONS PROVISIONS

Subtitle A. Administrative Provisions A. Exempt Certain Reports From Elimination Under the Federal ReportsElimination and Sunset Act of 1995

The bill exempts certain reports from elimination and sunset pursuant to the FederalReports Elimination and Sunset Act of 1995, effective on the date of enactment. B. Extension of Deadlines for IRS Compliance with Certain Notice Requirements

The Internal Revenue Service Restructuring and Reform Act of 1998 requires the IRS toinclude the following information in each notice imposing a penalty: (1) the name of the penalty; (2) the Code section under which the penalty is impose; and (3) a computation of the penalty. TheAct also requires the IRS to include in notices requiring an amount of interest to be paid by the taxpayer a detailed computation of the interest charged and a citation to the Code section underwhich such interest is imposed. The bill extends the deadlines for the IRS to comply with the penalty and interest notice requirements from December 31, 2000, to June 30, 2001. For everytaxpayer in an installment agreement, the IRS is required to send an annual statement of (1) the initial balance owed, (2) the payments made during the year, and (3) the remaining balance. Thebill extends the deadline for the IRS to comply with this requirement from July 1, 2001, to September 1, 2001.

C. Extension of Authority for Undercover Operations The bill extends for five years (through December 31, 2005) the authority of the IRS to"churn" the income earned from undercover operations to pay additional expenses incurred in the undercover operation, effective on the date of enactment.

D. Competent Authority and Pre-Filing Agreements The bill affirms that closing agreements, similar agreements, and related backgroundinformation, are confidential return information. Closing agreements and similar agreements includes pre-filing agreements. The bill also clarifies that information exchanged and agreementsreached pursuant to tax treaties are confidential. The provision is effective for documents in existence on or created after the date of enactment.

E. Increase in Joint Committee on Taxation Refund Review Threshold The bill increases the threshold above which refunds must be submitted to the JointCommittee on Taxation for review from $1,000,000 to $2,000,000, effective on the date of enactment, except that the higher threshold does not apply to a refund or credit with respect towhich a report was made before the date of enactment.

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F. Clarify the Allowance of Certain Tax Benefits with Respect to Kidnapped Children

The bill clarifies that the dependency exemption, the child credit, the surviving spousefiling status, the head of household filing status, and the earned income credit are available to an otherwise qualifying taxpayer with respect to a child who is presumed by law enforcementauthorities to have been kidnapped by someone who is not a member of the family of such child or the taxpayer. Generally, this treatment continues for all taxable years ending during the period thatthe child is kidnapped. However, this treatment ends for the taxable year ending after the calender year in which it is determined that the child is dead (or, if earlier, the year in which the childwould have attained age 18). The provision is effective for taxable years ending after the date of enactment.

G. Conforming Changes to Accommodate Reduced Issuances of 52-Week Treasury Bills

The bill changes references to "52-week Treasury bills" in the Code and in certain otherprovisions of Federal law to refer instead to "the weekly average one-year constant maturity Treasury yield, as published by the Board of Governors of the Federal Reserve System." Theprovision is effective on the date of enactment.

H. Authorization of Agencies to Use Corrected Consumer Price Index ("CPI")

The bill authorizes the Secretary of the Treasury to use the corrected levels of the CPI forall purposes of the Code to which they might apply, for taxable years beginning after December 31, 2000. In addition, the bill provides that the Director of the Office of Management and Budget("OMB") is to assess Federal benefit programs to ascertain the extent to which the CPI error has or will result in a shortfall in program payments to individuals for 2000 and future years andinstruct the head of any Federal agency which administers an affected program to make a payment or payments to compensate for the shortfall and that such payments are targeted to the amount of theshortfall experienced by individual beneficiaries. The provision is effective on the date of enactment.

I. Prevent Duplication or Acceleration of Loss Through Assumption of Certain Liabilities

The bill requires that the basis of stock received in a tax-free incorporation be reduced(but not below the stock's fair market value) by the amount of any liability that (1) is assumed in the exchange for such stock and (2) did not otherwise reduce the transferor's basis of the stock byreason of the assumption. Except as provided by the Treasury Department, the provision does not apply if the trade or business with which the liability associated is transferred to the corporationas part of the exchange, or if substantially all of the assets with which the liability is associated are transferred to the corporation as part of the exchange. The Secretary is to prescribe similar rulesfor transactions involving partnerships. The provision is effective for assumptions of liabilities on or after October 19, 1999.

J. Disclosure of Return Information to the Congressional Budget Office

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The bill amends section 6103 to permit the Secretary to furnish to CBO return informationto the extent such information is necessary for purposes of CBO's long-term models of Social Security and Medicare.

Subtitle B. Technical Corrections The bill contains technical corrections to recent tax legislation.

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TITLE IV. TAX TREATMENT OF SECURITIES FUTURES CONTRACTS The bill provides rules regarding the tax treatment of securities futures contracts. Asecurities futures contract generally is a contract of sale for future delivery of a single security or a narrow-based security index.

Under the bill, except in the case of a dealer securities futures contract, gain or loss from asecurities futures contract is generally treated in a manner similar to gain or loss from transactions in the underlying security. Gain or loss from the sale or exchange of a securities futures contractgenerally is considered gain or loss from the sale or exchange of property which has the same character as the property to which the contract relates has (or would have) in the hands of thetaxpayer. Any capital gain or loss from the sale or exchange of a securities futures contract to sell property (i.e., the short side of a securities futures contract) generally will be short-term capitalgain or loss. The bill also provides for the application of the wash sale rules, the short sale rules, and the straddle rules to securities futures contracts.

A "dealer securities futures contract" is treated as a section 1256 contract, which ismarked to market and treated as 40 percent short-term capital gain or loss and 60 percent longterm capital gain or loss. The term "dealer securities futures contract" means a securities futurescontract which is entered into by a dealer in the normal course of his or her trade or business activity of dealing in such contracts, and is traded on a qualified board of trade or exchange. Theterm also includes any option to enter into securities futures contracts purchased or granted by a dealer in the normal course of his or her trade or business activity of dealing in such options. Thedetermination of who is to be treated as a dealer in securities is to be made by the Secretary of the Treasury or his delegate not later than July 1, 2001, in a manner to provide comparable taxtreatment to dealers in equity options.

The bill modifies the definition of "equity option" for purposes of section 1256 to take intoaccount changes made by the non-tax provisions of the bill. These provisions are effective on the date of enactment of the bill.

Questions and Answers for Renewal Communities Workshops (8/22/01 revision) Posted: April 11, 2002

Questions and Answers for Renewal Communities Workshops (8/22/01 revision)

* APPLICANTS WHO ARE NOW ECs or EZs

* ROLE OF THE STATE

* HOW THE APPLICATION WILL BE EVALUATED

* POST DESIGNATION

* DESIGN OF THE CORA

* ADDITIONAL QUESTIONS

* APPLICATION PROCESS

* ELIGIBILITY

* POVERTY RATES

* CENSUS TRACTS

* POPULATION CRITERIA

* LEVERAGING OF COMMITMENTS

These Renewal Community Questions and Answers are merely a study guide and not intended to provide an authoritative interpretation of the legal and administrative requirements governing HUD's Renewal Community Initiative or any other federal requirements. For official guidance on the RC initiative, please refer to the Interim Rule (24 CFR part 599) published on pages 35849 to 35860 of the July 9, 2001 Federal Register and the Notice Inviting Applications. When the Interim Rule is cited in the Q&As, only the section number will be used, for example, "599.107(b)."

APPLICATION PROCESS

1. Does the course of action limit the types of actions to business activities only or can it include such actions as housing and recreational activities within the nominated area? The Course of Action should be limited to at least four of the six strategies listed in the Interim Rule 599.107.

2. Why aren't public hearings and direct participation a requirement in the development of the course of action? Applicants are required to provide certification of public notice. HUD does not mandate a specific form of community participation or notice, but communities are encouraged to use a variety of ways of involving the public. See 599.203 (c).

3. Does each nomination package need to show the boundaries of their nominated area on an original census bureau plot map using 1990 census geography? No, unlike the Round III EZ requirement that Applicants show the boundaries of their nominated area on a 1990 census tract outline map, Renewal Community applicants may submit a map of their choice so long as it shows each of the 1990 census tracts making up the nominated area and clearly delineates the boundaries of the proposed Renewal Community.

4. To what extent may CDBG funds be used for developing a Tax Incentive Utilization Plan for a Renewal Community (RC) or Round III Urban Empowerment Zone (EZ), for developing an EZ Strategic Plan, or to cover the costs associated with the submission of an application for designation of an area as an EZ or RC? Please refer to the CDBG regulations, 24 CFR Part 570. As a general rule, use of CDBG funds is permissible when the proposed expenditure is for an eligible activity and meets a national objective. At least 70% of a community's CDBG expenditures must be for activities that meet the national objective of benefiting low- and moderate-income people. Planning also is a CDBG-eligible activity if it meets the criteria set forth in 24 CFR 570.205. However, the recipient's total expenditures for administrative and planning costs under section 206 may not exceed 20% of its total CDBG expenditures.

5. If an entity wants to submit a Renewal Community application can that entity submit an application directly to HUD for CDBG funds to cover the costs associated with the submission of an RC application? No. It's up to the entitlement community or the state to decide whether they wish to use CDBG funds for these costs.

6. Will the applicant's statistics and narrative information indicating poverty, unemployment and general distress be rated and ranked as part of the Renewal Community scoring? Scoring is based on specified statistics, not on narrative information. See 599.105 & 599.303.

7. Is there any way that I can compare my renewal community nominated area with other urban and rural areas eligible to compete for a Renewal Community designation? Applicants are welcome to do the research they feel necessary to determine the merits of their application, but in the interests of fairness HUD cannot share information about the status of applications or notices of intent to apply.

ELIGIBILITY

8. Why do existing Empowerment Zones and Enterprise Communities receive preference for the first twenty RC designations? HUD is limited to the selection criteria as authorized in the statute enacted by Congress. Existing EZs or ECs receive preference provided at least one census tract of the designated area is included in RC nominated area.

9. Q. If you are not selected for a Round III EZ designation, does the EZ applicant get preference for obtaining an RC designation? Only existing EZs or ECs get a preference. See 599.401 (b). INCOME 10. In the case of Renewal Community nominations, is HUD's definition of low income based solely on a percentage of median income, such as 80%, 50% or 30%? Yes. The data that HUD compiled for this competition lists the number of households in each census tract whose incomes are below 80% of the Household Adjusted Median Family Income. The HAMFI reflects a HUD adjustment, however, and the adjustment comes in several forms, such as a household size adjustment and also an area adjustment that replaces local MFI with US or state MFI, or with a high rent based number. See 599.105(d).

11. Where exactly do people get the Household Adjusted Median Family Income (HAMFI)? HUD-adjusted area median family income (HAMFI) -- In 1974, Congress defined "low income" and "very low income" for HUD rental programs as incomes not exceeding 80 and 50 percent, respectively, of the area median family income, as adjusted by HUD. Statutory adjustments now include upper and lower caps for areas with low or high ratios of housing costs to income and, for each non-metropolitan county, a lower cap equal to its State's non-metropolitan average. Estimates of the median family income and the official income cutoffs for each metropolitan area and non-metropolitan county are based on the most recent Decennial Census results and then updated each year by HUD. Each base income cutoff is assumed to apply to a household of four, and official cutoffs are further adjusted by household size: one person, 70 percent of base; two persons, 80 percent; three persons, 90 percent; five persons, 108 percent; six persons, 116 percent; and so on.

UNEMPLOYMENT

12. Does the unemployment requirement apply to the nominated area as a whole and not to each individual tract? Yes. See 599.105(b).

13. We have been calculating the unemployment rate by looking at the 1990 number of unemployed for the nominated area and then determining what percentage this represents of the total 1990 persons listed as employed or unemployed (the sum of the two). Which is correct? Our on-line application system does the calculations for you and the practice system allows you to do all planning necessary. The correct procedure is the number of unemployed persons divided by the sum of employed persons and unemployed persons.

14. It was noted that a 9.4% unemployment rate was necessary to be eligible for an RC designation. This sounds higher than 1 1/2 (150%) of the national unemployment rate. Is the 9.4% figure correct? This would place the national rate at 6.3%? The nominated area must have unemployment greater than 9.4%, i.e. 9.401% or greater. This figure is based on 150% of the 1990 national unemployment figure.

POVERTY RATES

15. Does the EZ 20% and 25% poverty rate requirement regarding a census tract with a population less than 2,000 and where 75% of the tract is zoned for commercial or industrial apply to Renewal Communities? No. EACH census tract in the RC nominated area must have at least 20% poverty unless it is on an Indian Reservation in which case we take the nominated area as a whole. 16. Is it 20% of households or persons living in poverty in e

Rebuilding the Sawmill

BREATHITT, LEE, OWSLEY, AND WOLFE COUNTIES

RENEWAL COMMUNITIES APPLICATION

TABLE OF CONTENTS

SECTION

COURSE OF ACTION

COOPERATIVE COMMITMENT TO THE RENEWAL COMMUNITIES COURSE OF ACTION

PARTNERSHIPS AND AGREEMENTS

The Commonwealth of Kentucky (http://www.state.ky.us)

Kentucky Cabinet for Economic Development (http://www.edc.state.ky.us)

Kentucky Cabinet for Families and Children (http://cfc.state.ky.us)

The East Kentucky Corporation (http://www.eastkentucky.com)

Kentucky River Area Development District

Middle Kentucky Area Development Council

Mountain Association for Community Economic Development (http://www.maced.org)

Southern Kentucky Economic Development Corporation (http://www.southernkentucky.com)

Signed Cooperative Commitment

GOALS AND ACTIONS

GOALS AND ACTIONS

Social Services and Assistance

Education and Work Experience

Childcare

Transportation

Communication

Agricultural Assistance

Domestic Abuse

Housing

Public Access to Technology

Healthcare

RECOGNITION OF PAST EFFORTS

RECOGNITION OF PAST EFFORTS

Timeline

TIMELINE

PERFORMANCE MEASURES AND EVALUATION

PERFORMANCE MEASURESAND EVALUATION

Performance Measures:

HOWTO: Searching for information on Appal.org.

The Commonwealth of Kentucky
(http://www.state.ky.us)

PERFORMANCE MEASURES
AND EVALUATION