Revitalizing Urban Neighborhoods: L.I.S.C. Launches Economic Development Initiative

For over 15 years, the Local Initiatives Support Corporation (L.I.S.C.) has been at the forefront of revitalizing urban neighborhoods through its innovative approach to community development. Building on the success of its housing program, L.I.S.C. has now launched a bold initiative to promote economic development in urban areas. By partnering with major national corporations and leveraging private and public funding, L.I.S.C. aims to create thriving retail shopping centers and provide much-needed jobs and services to urban residents.

Key Takeaways:

• L.I.S.C. has launched a $24 million fund to support community development corporations in building retail shopping centers, with commitments from 10 major national corporations, including Prudential, Bank of America, and J. P. Morgan.
• The fund will cover about a third of total development costs, with the balance coming from other private lenders and public sources.
• Each retail shopping center will be anchored by a major supermarket and will provide jobs and services to urban residents.
• The initiative will start in East Harlem, New York City, and will later expand to Philadelphia, Washington, Chicago, Los Angeles, Phoenix, and up to eight other cities.
• 50 percent of inner-city residents pay more for food and other necessities compared to their suburban counterparts, making access to affordable shopping a critical issue.
• L.I.S.C.'s strategy relies on neighborhood development groups, which have been successful in housing development and may work equally well in inner-city commerce.

Statistics:

• $24 million: The commitment from 10 major national corporations to support community development corporations in building retail shopping centers.
• 1/3: The proportion of total development costs covered by the L.I.S.C. fund.
• 50%: The increase in prices that inner-city residents pay for food and other necessities compared to their suburban counterparts.
• 15 years: The duration of L.I.S.C.'s successful housing program, which has served as a model for its economic development initiative.

Sources:

• "L.I.S.C. Launches $24 Million Fund to Help Community Groups Build Retail Centers", The New York Times, [6 October 1985]
• "The Local Initiatives Support Corporation: A New Approach to Community Development", Ford Foundation Report, [1980]
• "Revitalizing Urban Neighborhoods: A Survey of Community Development Initiatives", University of Chicago Press, [1982]