From dream to reality: Work starts

THE BALTIMORE SUN

As Baltimore began taking steps yesterday to turn its empowerment zone from a book-length proposal to real programs, Mayor Kurt L. Schmoke pledged a "very public process" in deciding how tens of millions of dollars in public funds would be spent.

He said Michael V. Seipp, the author of the city's empowerment zone proposal, would lead the effort until a permanent staff is selected. Appointments to the quasi-public board overseeing the zone could be made next week, the mayor said.

The method of awarding contracts for health services, job training and other programs under the $100 million federal program have yet to be worked out, Mr. Schmoke said.

But he added, "There's not going to be anything hidden about the process."

"There could be some contracts like professional services that could be done on a no-bid basis, I'm not sure," the mayor said. "But everything will be open for scrutiny and review."

The mayor made his comments after meeting at his office with U.S. Department of Housing and Urban Development Secretary Henry G. Cisneros, who said the first of two $50 million checks to Baltimore should arrive within a month. The meeting was followed by a celebratory community rally.

The point of the meeting, he said afterward, was to describe the kind of federal technical assistance that would be available and to outline Vice President Al Gore's role in monitoring progress and coordinating federal departments.

Mr. Cisneros promised HUD oversight of the city's empowerment zone, which covers decaying areas in East, West and South Baltimore. But he said it would not be "the sort of intrusive oversight that we've been criticized for over the years."

"This is taxpayers' money," he said. "But the whole point here is maximum flexibility and responsiveness to the real problems."

Mr. Schmoke said the quasi-public Empowerment Zone Management Corp. will include residents from each of the zone's eight "Village Centers," as well as representatives from city and state government, business and private foundations. The board, which will run the city's program, will have between 15 and 20 members.

Some interim appointments may be made until the neighborhood centers can organize and elect their own leaders, the mayor said.

Mr. Seipp said his first order of business as head of the transition effort will be to develop a preliminary budget.

The first draft of that budget, based on the federal money and as-yet-unspecified contributions from private foundations, could be completed by the end of next week, said Mr. Seipp.

He heads the Historic East Baltimore Community Action Coalition, one of the key centers in the empowerment zone that includes the Johns Hopkins Medical Institutions.

Meanwhile, a group of top-level Schmoke administration officials has been formed to coordinate the city's efforts in the zone.

Also, the quasi-public Baltimore Development Corp. is preparing send letters to hundreds of businesses, letting them know about available tax breaks for hiring and expansion in the zone, officials said.

Those tax breaks could be worth $225 million, officials estimate.

The empowerment zone also will trigger $800 million in city, state and private support, officials say.

Yesterday's rally to celebrate Baltimore's selection, in the basement room of the War Memorial Building across from City Hall, had the feel of a two-pronged revival -- spiritual and urban.

It included prayers, gaily colored balloons and performances by a high-school choir.

Among those in attendance were public housing residents, local clergy and top civic and political leaders, including Cardinal William H. Keeler, urban visionary James Rouse and Lt. Gov.-elect Kathleen Kennedy Townsend.

Mr. Cisneros told the rally that Baltimore was selected largely because of its record in urban redevelopment -- and the belief that it could make the empowerment zone work.

"I want to tell you we have a president who believes in America's cities," he said. "He chose Baltimore, Maryland, to show America how it can be done."

Mr. Schmoke said the impact of the empowerment zone is "going to emanate through this entire city."

"We're going to produce the businesses, we're going to produce jobs, we're going to move homeownership in the empowerment zone from 30 percent to 50 percent and maybe even more," he said.

L "We now have the money," the mayor added. "We're on a roll."

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