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Highlighting The Investments Of Sports Organizations & Private Corporations In Newark

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The Briefing Room
Highlighting The Investments Of Sports Organizations & Private Corporations In Newark
November 4, 1999

TODAY, PRESIDENT CLINTON WILL VISIT NEWARK, NEW JERSEY TO HIGHLIGHT PRIVATE SECTOR/SPORTS ORGANIZATIONSí EFFORTS TO INVEST IN THEIR COMMUNITIES AND YOUTH PROGRAMS. President Clinton will kick off his second New Markets tour in Newark, NJ, an Enterprise Community, where he will visit Malcolm X Shabazz High School in Newark and speak to young people and community leaders. On this first stop of his two day tour of underserved communities, President Clinton will emphasize how sports organizations and private corporations can develop ongoing partnerships with their home cities and local community organizations to spur redevelopment and provide opportunities for young people.

President Clintonís New Markets Initiative builds on the Clinton/Gore Administrationís strong record of promoting economic development, which includes the creation of the Empowerment Zone/ Enterprise Community Initiative in 1993. This second New Markets trip comes four months after his first trip highlighting the untapped potential in Americaís underserved markets. This second trip will emphasize how corporations and communities can leverage that potential through long term, sustainable partnerships. Through the New Markets Initiative, President Clinton is mobilizing corporate America and encouraging the private sector to invest in our inner cities so that all communities can share in the prosperity of this economic expansion.

NEWARK FACES SIGNIFICANT ECONOMIC CHALLENGES LIKE OTHER INNER CITIES.

Decline in Population. The population in Newark dropped from 329,248 in 1980 to an estimated 267,823 in 1998, an 18.7% drop, while during that same time period the overall U.S. population grew by 19.3 %. (Bureau of the Census).

High Poverty. After increasing from 26.3% in 1989 to 35.3% in 1993, the poverty rate improved but remains high at 30.5% in 1995. (Bureau of the Census).

Unemployment Rate. The cityís unemployment rate declined from 15.2% in 1993 to 9.6% in 1998, more than twice the national average and the 4.1% unemployment rate in the suburbs.

PRESIDENT CLINTON WILL BE JOINED BY NUMEROUS CORPORATE LEADERS, ATHLETES AND REPRESENTATIVES OF SPORTS ORGANIZATIONS TO ANNOUNCE AND HIGHLIGHT NEW PARTNERSHIPS IN NEW MARKETS. These include: Art Ryan (CEO, Prudential), Ray Chambers (Co-Owner of the New Jersey Nets, New York Yankees and Chairman of the Amelior Foundation), Lewis Katz (Co-Owner of the New Jersey Nets and New York Yankees), Larry Siegal (CEO, Mills Corporation), Paul Tagliabue (Commissioner of the NFL), Bob Craves (Co-Founder, Senior Vice President of Costco Wholesale), Bill Freeman (President, Bell Atlantic, New Jersey), Frank Ianna (President, AT&T Network Services), Art Guida (Director of External Affairs & Economic Development, PSEG), Bob Lanier (Former Basketball Player, Detroit Pistons), Rev. Jesse Jackson, Hugh Price (President, Urban League), Michael Rubinger (President, Local Initiatives Support Corporation) and Al From (Executive Director, Democratic Leadership Council).

CORPORATE AND ECONOMIC DEVELOPMENT LEADERS WILL JOIN THE PRESIDENT TO ANNOUNCE THE FOLLOWING COMMITMENTS FOR NEWARK AND AMERICAíS INNER CITIES:

The New Jersey Nets Partner with Malcolm X Shabazz High School and Commit Funding to Youth Programs in Newark. Today, President Clinton will highlight the efforts of Ray Chambers and Lewis Katz, co-owners of the New Jersey Nets. In Fall 1998, Ray Chambers and Lewis Katz invested their 38 percent ownership of the New Jersey Nets into the Community Youth Organization (CYO). Today, Chambers and Katz will announce another step to improve opportunities in the Newark community. The New Jersey Nets will adopt an after-school program at Malcolm X Shabazz High School in Newark, as part of the Newark Allianceís program for corporations to adopt Newark schools. The Newark Alliance is made up of eight leading business and civic leaders. Its goal is to improve the city of Newark focusing on education and economic development by creating, facilitating and leveraging partnerships between and among private corporations, community organizations, educational institutions and the residents of Newark. Currently, Lucent and the Ford Foundation already provide funding to the Malcolm X Shabazz High School through the Project GRAD program.

In addition, the New Jersey Nets will make the following new commitments to programs in Newark:

  • The Nets will increase their funding to $500,000 a year for city teen job training and scholarship programs, with a particular focus on high school and post-high school students.
  • As part of their plans for the new Newark Sports and Entertainment Redevelopment Plan, the Nets will include an educational and classroom section in the building to provide a venue, or even a potential Sports Business Academy, for sports-related job training, from service industry positions to sports marketing and management.
  • The Nets will adopt a policy to encourage all sponsors to become similarly involved with New Jerseyís youth directly through financial contributions or programmatic participation.

The NFL Community Football Fields Program Commits $1.5 Million to Neighborhood-Based Organizations. Today, the National Football League (NFL) and the Local Initiatives Support Corporation (LISC) will announce this yearís NFL Community Football Fields Program grants totaling $1.5 million. In Newark, Corinthian Housing Development Corporation, a community development corporation that has developed new single family homes around the park that will be rehabilitated, received this yearís grant. This program is a partnership between the NFL and LISC that provides non-profit neighborhood based organizations with financing and technical assistance to improve the quality, safety and accessibility of local football fields. In just two years (1998 and 1999), it has made 34 grants totaling $2.7 million dollars in the distressed urban areas of 29 NFL cities. LISC works to ensure that field projects receiving NFL funding have matching dollars to meet their total development budgets. These field projects are located in close proximity to other community revitalization efforts, creating a strong web of investment.

Costco Challenges Sports Teams to Follow the Seattle Seahawks Academy Initiative. Costco has challenged national sports teams to become involved with the Community in Schools program, a dropout prevention program that supports the connection between community resources and schools. Costco has pledged a total of $500,000 to the Communities in Schools program. The Seattle Seahawks Academy in Seattle, Washington exemplifies this type of partnership. In 1997, Costco and the Seahawks both funded the Seahawks Academy and this partnership has continued flourish. Studentsí test scores have and dropout rates are down. While the Seahawks provide annual funding for the school, a number of the teamís players have taken a personal interest in the students, many of whom had difficulty themselves with academics. Players visit the schools on a monthly basis to talk with the students and in turn students have the opportunity to take field trips to the stadium to meet with players. Player participation in the program has created a personalized atmosphere for these children that provides inspiration and motivation to stay in school and excel in the future.

Major League Baseball (MLB) and the National Basketball Association (NBA) Will Commit to the Community. Major League Baseball will commit to the Diverse Business Partners Program that encourages relationships with businesses owned by women and minorities. Many teams will participate in the program by looking at qualified vendors for services in the ball park, including food, merchandise, office supplies and landscape. The NBA TeamUp Program involves the active participation of all 29 NBA teams who are then partnered with numerous area non-profit organizations and social service agencies in an effort to provide community service opportunities for area youth. By the end of the 1999-2000 season, all 29 franchises will have undertaken to engage 2,000 young people in each respective city in community service projects. A number of other sports teams and organizations have partnered with community organizations to provide funding and technical assistance to groups in their local community and around the country. These programs include:

  • Jacksonville Jaguars Foundation: Honor Rows Program
  • Chicago White Sox: Cultivating lasting relationships with minority-owned businesses.
  • Portland Trailblazers: Blazers Community Builders Program-- the first and only professional sports team to receive the Points of Light Foundation Award for Excellence in Corporate Community Service.

The Prudential Insurance Company of America Will Provide $2.5 Million to the Young Entrepreneur Program. Today, Prudential will announce a $2.5 million, four-year grant to launch the Prudential Young Entrepreneur Program (PYEP), a pilot program to be administered by the Association for Enterprise Opportunity (AEO). This grant will support the creation of a new comprehensive entrepreneurial development and job creation program for young people between the ages of 18-30 in Newark, NJ and Philadelphia, PA. It is part of the Department of Laborís Youth Opportunity Movement, which was announced in Los Angeles, CA during the Presidentís July New Markets tour. Other organizations participating in PYEP include the National Foundation for Teaching Entrepreneurship (NFTE), which created the programís curriculum, the New Jersey Institute of Technology Enterprise Development Center (NJIT EDC), the West Philadelphia Enterprise Center (WPEC), the Greater Newark Business Consortium, a small business micro-lender, and QED group which will evaluate the program. This commitment builds on Prudentialís history of investing in programs all over the city of Newark. Recently, Prudential announced that it will help assemble financing for the Newark Arena (up to $170 million). The company also participates in the New Newark Foundation that is working on a plan to rebuild a section of downtown Newark. In addition, Art Ryan, the CEO of Prudential, participates on the Newark Alliance Board that focuses on education in Newark.

The Mills Corporation Will Commit $1 Million Toward a Training Facility and Projects to Hire Approximately 1,000 people from the Newark Community through the Welfare to Work Program. Today, the Mills Corporation will make a $1 million dollar commitment towards a pre-employment training and career development center at their Meadowlands development, which will provide retention and career advancement services for all employees. In partnership with the Rockefeller Foundation and Newark organizations helping people move from welfare to work, the Mills Corporation projects that they will hire approximately 1,000 people from the Newark community. The Meadowlands development site is located 10 miles north of Newark, and is one of five sites in the Mills Corporationís Jobs Initiative. The Mills Corporation is a board member of the Welfare to Work Partnership, and through its Jobs Initiative, it will offer opportunities for thousands of welfare recipients and other individuals in underserved communities not only to get a job at one of its development sites, but also to advance on a career path. The first Jobs Initiative site, which opened last week, is Katy Mills in Houston, TX, where 200 welfare recipients have already been hired.

AT&T Will Announce a Commitment of $100,000 to Develop an Academy of Information Technology. Today, AT&T will commit a $100,000 grant to develop an Academy of Information Technology, a 9th - 12th grade curriculum in information technology to be delivered in conjunction with existing high school programs. They will also establish a new partnership with the Department of Laborís Edison Job Corps center to sponsor internships for graduates who meet technical certifications and provide three months of experiential training through a Minority and Women Owned Business Enterprise. AT&T also will announce the establishment of a corporate mentoring program with Newark students, "Leadership Conversation for the Next America," in which students will engage in online discussions with policymakers across the country to discuss leadership, economic opportunities, education and job skills for the 21st Century. In addition, AT&T will announce its Learning Network Program, which will offer free online basic technical training, and provide links to fee-based online learning courses, some of which offer credits and or certificates.

Bell Atlantic and Ford Motor Company Help Create the Youth Automotive Training Center. Today, the Bell Atlantic Foundation will announce a $70,000 grant to fund the creation of an interactive "distance learning" classroom at the New Community Corporationís (NCC) new workforce development center, enabling it to interact with NCCís Youth Automotive Training Center (YATC), an innovative partnership with Ford Motor Company, Bell Atlantic, and Hillside Auto Mall. This new grant adds to Bell Atlanticís past philanthrophic contributions of over $5 million to support technology and education initiatives, workforce development and job training in Newark. This new commitment also builds upon Fordís commitment to YATC that will reach $1 million in financing alone. The program, which will soon become an official training program for Ford, offers at-risk youth job training in automotive careers. Ford will use YATC as a prototype for community-based organizations and local auto dealers to train and certify technicians in urban areas. NCC has been a major contributor to the revitalization of Newark and continues to work on building a solid economic base that will create jobs and keep profits in the community.

Department of Housing and Urban Development

Today, HUD will announce the launch of a pilot program with Tutornet.com, Inc., an online interactive tutoring service. Tutornet will donate tutoring services in math and science via the Internet to 4th through 12th grade students living in public housing areas that include computer-training sites. This partnership is part of a comprehensive effort on Tutornetís part to narrow the gap between those with access to technology and those without. The service normally costs $30/student per month. Tutornet is offering to provide it free of charge through the end of this school year. Eight sites (Boston (2), Philadelphia, Chicago (3), San Francisco and Newark) have been identified.

THE PRESIDENT WILL ALSO HIGHLIGHT OTHER PROJECT PARTNERSHIPS AND EFFORTS TO BRING LONG-TERM IMPROVMENTS TO NEWARK AND OTHER UNDERSERVED AREAS. Thirty-two years after the riots, the city of Newark is experiencing social and economic redevelopment. A number of projects established through funding from private corporations, federal, state and local entities and community organizations have continued to create new opportunities for the residents of Newark and disadvantaged people all over the country.

Lucent and Ford Foundation Commit Funding to Project GRAD. Lucent Technologies and the Ford Foundation have made a $17 million, five-year commitment to bring this educational program to the city of Newark. Project GRAD seeks to guarantee academic success through the promise of a college scholarship. Students qualify for these $1,000 to $2,000 annual scholarships if they complete high school and remain in the GRAD program. The programís goal is to improve academic performance and serve as a model for school reform in other areas of Newark as well as around the country.

American Express Helps the National Retail Institute Establish a Training Facility in New Jersey. The National Retail Institute recently opened a retail skill development center at Jersey Gardens Mall in Elizabeth, New Jersey. As the second facility of its kind in the U.S., the center's goal is to provide pre-employment training and post-employment career advancement opportunities for mall employees. Funded by the New Jersey State Department of Labor and American Express, the center will eventually be funded by mall tenants.

The New Newark Foundation: The New Newark Foundation seeks to re-establish and rebuild the waterfront area of Newark as a vital part of the city. The projectís goal is to redevelop this area of Newark as a place for commerce, recreation, transportation and housing. Extending upland, the plan connects the waterfront to the city and the historic parks through a network of streets and public open spaces. The plan draws upon many existing resources in Newark to generate economic development on the Newark riverfront.

The Newark Sports and Entertainment Redevelopment Plan. In an effort to breathe new life and energy into Newarkís downtown area, the Newark Sports and Entertainment Village Redevelopment Plan provides for development of the Newark Arena as a new home for a number of New Jersey sports team. This plan will transform what was once an isolated and largely deserted section of the city into a well-populated and much utilized venue for sporting events, entertainment, transportation, shopping, and additional office employment. The plan also calls for the Village to sponsor sports and management education, training for jobs in the sports and communication industries, as well as help teams promote and provide community service initiatives throughout the city and state. Prudential Insurance has already announced it will assemble financing of up to $170 million to support this initiative.

Public Service Electric and Gas (PSE&G) Southward Neighborhood Partnership. In 1996, PSEG undertook an initiative in Newarkís South Ward community to create and sustain a stable community for about 8,000 residents through the promotion of job-readiness, home ownership and business growth. Their efforts focused on job creation and retention, small business and real estate development, improving the quality of life, transportation, education, housing, environment, health and public safety. As a result, 820 residents have undergone job training, the Newark Housing Authority is acquiring 96 properties to build 200 rental townhouses, 125 residents participated in the positive parenting program, a coalition of 16 partners was established to address healthcare issues, and the crime rate decreased. PSE&G is now proceeding with Phase II of this initiative in the Clinton Hill section the South Ward. This phase will, once again, focus on public safety, economic development, job training, housing, social services, health, environment, education, and recreation in a comprehensive approach to revitalize this neighborhood.

Continental Airlines and Port Authority of New York and New Jersey Undertake $1 Billion of Improvements at Newark Airport. Continental Airlines and the Port Authority of New York and New Jersey have commenced a $1 billion improvement project at Newark International Airport. The project is expected to create 5,000 construction jobs and 3,200 airline jobs. Improvements to the airport will include a 600,000 square-foot terminal expansion for Continental Airlines which will provide 12 wide-body gates, retail areas, customs and immigration facilities, and roadways and parking facilities. In addition, the airport is also using Passenger Facility Charge revenues to link the on-airport monorail with the Amtrak line and construct an Amtrak station approximately 1 mile from the airport.

Department of Commerce

The Urban League of Essex County is one of four National Urban League affiliates selected to participate in a 1997 TIIAP award. Under this project each affiliate has designed a Technology Education and Access Center (TEAC). These affiliates represent four states in urban areas targeting low-income and disadvantaged adults and children. Programs offered by the centers include adult literacy, computer literacy, Internet training, web design, employment readiness, job searching, after school enrichment, and summer youth programs. All of the centers structured programs and set hours for public access/walk-in clients. The TEAC in Newark has 30 personal computers connected to the Internet through an ISDN connection. Seven instructors provide classes covering topics from computer literacy to basic Internet skills. The average class size is about 30 students.

Department of Transportation

The New Jersey Transit Corporation has proposed to build a one-mile, five-station segment of an 8.8 mile, 16 station light rail transit system to link Newark with Elizabeth, New Jersey. This new system will extend from the existing Newark City Subway light rail line from Broad Street Station in Newark to Newark Penn Station. This new rail link will help to provide better access for area residents to job opportunities. The FY 99 Budget appropriated $17.91 million in U. S. Department of Transportation Section 5309 funds for this project, which is estimated to have a total cost of $694 million and will provide service to 24,900 riders per day in 2015 when completed.

 

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