A Minneapolis Civil Rights Commission panel led by Larry Blackwell, the city's former affirmative action director, issued a report last month finding "significant disparities in awarding empowerment zone dollars to organizations of color."
The report concluded that only $3.4 million of the approximately $25 million spent in empowerment zone funding had gone to minority-led groups and businesses. Looking for a way to save her struggling beauty salon in north Minneapolis, Barbara Howard sought a $15,000 grant through a federal program that was supposed to spur business development in the inner city. But when all she could get was $5,000 from the Minneapolis empowerment zone, Howard folded up Barbara's Salon last year and took a job at the JCPenney Styling Salon in Minnetonka. "I was looking for real help," Howard said. "All I got was a little dab." Typical of those left out, says activist Ron Edwards, was Howard, the proprietor of Barbara's Salon, a black-owned business that closed in the heart of the empowerment zone area. Howard said the city's $5,000 grant wasn't enough to keep her current on her rent in a small Plymouth Avenue shopping center. Federal wage credits would not have helped her either, she said. As the Bush administration shifts away from cash grants, U.S. Rep. Martin Sabo, a Democrat who represents the Minneapolis area, argues that tax breaks are not the answer. "Tax incentives have some inherent limitations on effectiveness," he wrote to congressional leaders in May. A prime example is Café Tatta Bunna, the Near North Side's first coffee shop, which opened three years ago with a $30,000 empowerment zone loan. The five-worker business is struggling to break even, much less make a profit for tax purposes. "You can hardly talk about tax credits until you can make payroll on the revenue that you're getting," said co-owner Ella Gross. "We're in a part of town where people aren't all prepared to pay $2 for a cup of coffee." http://www.startribune.com/stories/535/5722606.html Posted by Shawn Lewis, Minnetonka -- ___________________________________________________ Play 100s of games for FREE! http://games.mail.com/ REMINDERS: 1. Be civil! Please read the NEW RULES at http://www.e-democracy.org/rules. If you think a member is in violation, contact the list manager at [EMAIL PROTECTED] before continuing it on the list. 2. Don't feed the troll! Ignore obvious flame-bait. For state and national discussions see: http://e-democracy.org/discuss.html For external forums, see: http://e-democracy.org/mninteract ________________________________ Minneapolis Issues Forum - A Civil City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:mpls@mnforum.org Subscribe, Un-subscribe, etc. at: http://e-democracy.org/mpls
