A HAMILTON community is already reaping the rewards of a Government plan to expand economic opportunity among the less well-off.And yesterday Finance Minister Paula Cox promised a raft of fresh initiatives which she said would transform the back-of-town area of the city into a “Mecca” of development.

Government announced the creation of Bermuda’s first Economic Empowerment Zone (EEZ) in the summer, claiming that incentives needed to be put in place to give small businesses a hand -up.

Yesterday it was revealed that the Bank of Bermuda, one of several partners in the scheme, had already committed $4.3 million of a $10 million fund to help small businesses in the area develop.

Businesses and residents within the EEZ qualify for preferential borrowing rates, tax incentives and other development incentives.

Ms Cox also confirmed that a ‘Design Roundtable’ had been established and was close to drawing up proposals to remodel aspects of the area, while funds from the Bank of Butterfield Foundation had been set aside for the possible development of a business centre.

And she promised fresh legislation in the coming year, including a review of payroll tax, possible Customs duty concessions and extended leases on some property development.

She also revealed that data from area residents and businesses had been collected to help formulate fresh schemes.

Keen to emphasise that economic empowerment was very much a partnership initiative, Ms Cox said: “This approach is about creating a buoyant, vibrant economy wherein the economic pie can be expanded.

“With the Economic Empowerment Zone initiative we are well on our way to ensuring that this is accomplished for those persons in our community that may not always have been included.

“Government believes this can be realised with actions taken in partnership with those whom we serve and those organisations in the private sector, such as financial institutions, to create increased benefits.

“People who live and work in a neighbourhood must be the drivers of any successful community development and empowerment efforts.”

Stating that Government was “putting its money where its mouth is”, the Minister also pointed out the philosophy behind the scheme.

“Government is committed to new wealth creation and expansion — this is quite different from redistribution,” she said.

Asked when a tangible change in the area will become evident, Ms Cox replied: “I think you’ll see some palpable change already. There are already indications of change even in terms of the atmosphere. There’s already a palpable shift in the mood.

“In terms of how soon you’re going to see the businesses being regenerated I think you will find again there are already entrepreneurs and would-be entrepreneurs who have made their way to the banks to flesh out and get approval.

“Clearly part of the legislative requirements is that I table the Industrial Development Act and also there are going to be other changes that are going to come during this parliamentary year.

“If you are asking about when we are going to say gateways and cobblestones and those sorts of things, while I would like flick a switch and say it will be tomorrow, I think being realistic and probably more conservative I would say that even 18 months might be a trifle optimistic given all the other blocks that we have to put in place.

“But certainly you will see the legislation come within this Parliamentary year.”

Bank of Bermuda CEO Philip Butterfield added: “One of the most compelling indicators is the fact that the bank has committed $4.3 million. Our approach to life is ‘when it’s real, we step forward’, and we have stepped forward in this instance. I don’t think you need any more evidence then our initial action.

“The reality is we have a comparable inventory of other projects under consideration and that is a very clear barometer of what one might expect for the redevelopment of that part of the City of Hamilton.”

[box] The North Hamilton Economic Empowerment Zone has been established between the boundaries of Parliament Street, North Street, King Street and Victoria Street. Currently there are nearly 100 commercial businesses in the area, 400 households and 900 residents.

[box] The Bermuda Small Business Development Corporation, in collaboration with grassroots group the Uptown Market Association, has highlighted nine areas which the initiative must tackle.

[obox] Elimination / Reduction of illegal drugs

[obox] Youth Development

[obox] People Empowerment

[obox] Image and Beautification

[obox] Creating partnerships and synergies with support organisations

[obox] Economic Development

[obox] Creating a vibrant cultural atmosphere

[obox] Development of the Uptown Market Association

[obox] Institution of ‘Quick Win’ projects.

Back-of-town area gets a shot in the arm