RECOGNITION SHOULD HELP S. ILLINOIS; THREE COUNTIES TO SHARE EMPOWERMENT ZONE FUNDS

CAIRO, Ill. -- Pulaski County and parts of Alexander and Johnson counties have been named a federal empowerment zone, a designation that will enable them to qualify for more federal assistance and should make them more attractive to business.

The region will be eligible for $2 million in federal assistance during the first year of the U.S. Department of Agriculture program. Officials hope $2 million will be made available each of the 10 years the zone is exists, for a total of $20 million.

Only five rural areas across the United States will be designated as federal empowerment zones when Vice President Al Gore makes the announcement today. Donna Raynalds, economic development director for Cairo, will be in Washington, D.C., for the ceremony.

Communities within the zone become eligible for technical assistance, employer tax credits for wages and job training, and additional tax deductions for business investment.

The designation also gives communities within the zone priority on receiving funding from other government agencies.

"This will help us get precedence on grants," Cairo Mayor James Wilson said. "I think this is going to be a tremendous help."

Building a crane on the riverfront to lift goods over the floodwall from barges to trucks is one project Cairo is interested in funding. Demolition and cleanup of vacant buildings is another, Wilson said.

East St. Louis and St. Louis compose one of 15 urban areas designated federal empowerment zones. Nearly 40 percent of East St. Louis residents live beneath the poverty level.

"To have the empowerment zone designation for East St. Louis and Southern Illinois means tremendous incentives for business location, infrastructure improvement and direct aid from the private sector and federal government," said U.S. Rep. Jerry Costello, D-Belleville.

McClure and East Cape Girardeau were not included in the zone because they did not meet the poverty criteria, Wilson said. An estimated 32 percent of the residents in the three Southern Illinois counties live beneath the poverty level.

Wilson said his city and Alexander County had applied for the program three or four years ago and were turned down, as was Pulaski County's application. This time a coalition of groups within the region combined forces and were successful.

Don Denny of Anna is chairman of the coalition. He said the grant money could increase to as much as $4 million a year and could be used to acquire matching grants from the state government for roads and other projects.

The Associated Press contributed to this report.