New York City Department of Small Business Services

Effectiveness of the Empire Zone Program in the South Jamaica Empire Zone

In the Empire Zone Program, which is funded primarily by the State and administered by local governments, businesses located in certain economically distressed areas of the State (Empire Zones) may receive tax benefits and other incentives that are intended to encourage economic development, business investment and job creation. A total of 72 areas have been designated as Empire Zones. We performed a series of reviews in which we examined both the statewide administration of the program and the effectiveness of program activities in certain selected zones. This report, which examines the effectiveness of program activities in the South Jamaica Empire Zone, is one of three reports addressing zones located in New York City. Program activities in these zones are overseen by the New York City Department of Small Business Services, pursuant to a contract with the New York State Department of Economic Development.

We found that, while most of the economic development goals established for the South Jamaica Empire Zone are sufficiently specific and measurable, some are not, and as a result, it cannot be determined whether these goals are being accomplished. We also determined that many of the businesses in the South Jamaica Empire Zone have reported performance shortfalls, but no corrective action has been taken by program administrators. We recommend that a number of actions be taken to improve program administration and verify the accomplishments reported by participating businesses in the South Jamaica Empire Zone.

For a complete copy of Report 2003-D-6 click here.