"The next bill before me today is Introductory Number 247, sponsored at my request by Council Members Sanders, Gerson, Comrie, Golden, Jackson, and Liu. This bill authorizes the City to submit an application to the State Commissioner of Economic Development for the designation of an area within the City as an Empire Zone. The area we are seeking to designate as an Empire Zone includes Chinatown, Little Italy, and parts of the Lower East Side.

"Such a designation will greatly benefit the City in that new businesses will be encouraged to locate in the zone and existing businesses will be encouraged to expand in the zone through a set of State tax credits and exemptions. These State incentives include a wage tax credit, an investment tax and employment incentives tax credit, and a sales tax exemption. These benefits -- and all other tax credits and refunds that are part of the program -- are paid entirely by the State. This economic development incentive is enjoyed at virtually no cost to the City.

"The area we are seeking to designate as an Empire Zone is still reeling from the catastrophic effects of September 11th. 15,000 workers in the proposed Empire Zone were dislocated as a result of the attack, with 23% of the labor force in Chinatown alone being laid off. This area is impacted further by poor transportation access and chronic economic disadvantages, as evidenced by its 10% unemployment rate and 21% poverty rate.

"The New York State Empire Zones program is an effective incentives package that will help the City bolster a key component of our economic development program by providing incentives that help attract and grow businesses in different areas of the City. In late June, the State announced that it was accepting applications for the designation of six new Empire Zones throughout the State. Applications are due on August 30th and the State will announce the six new Empire Zones in October. Our application is very strong and we hope that Chinatown, Little Italy, and the Lower East Side will become the City's 11th Empire Zone. I would like to thank Business Services Commissioner Robert Walsh and his whole team for their work in turning around this application in such short time. Additionally, the Councilmembers deserve high praise for their ability to work together within the short timeframe."