[Weekly Compilation of Presidential Documents Volume 33, Number 11 (Monday, March 17, 1997)]
[Pages 335-338]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks Announcing the Economic Plan for the District of Columbia

March 11, 1997

    Thank you. Thank you very much. Mr. Vice President, Representative 
Norton, Representative Moran, members of the administration, Mr. Mayor, 
Chairman Brimmer, Mr. Evans, and especially all the citizens of the 
District of Columbia who are here today. You know, every year millions 
of visitors come here, but even those who don't come know a good deal 
about our Capital. America's eyes and the eyes of the world constantly 
focus on Washington. They see the good, and there is much good.
    There is history here, everywhere, tremendous resources and talent 
from all over the world. But there is more as well. There are the people 
of the District, some of whose families have lived here for generations. 
They are hardworking, and they are committed to making the community and 
their neighborhoods better. There are businesses which strive to make 
it, sometimes under very difficult conditions. There is much dedication 
and much heart.
    In my State of the Union Address, I said that we have to renew our 
Capital City, to make it the finest place to learn, to work, and to 
live, because people here deserve no less and because the District 
matters beyond

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the city limits. The city is every American's home, and it should be 
every American's pride. Our Capital City must reflect the best of who we 
are, what we hope to become, and where we are going.
    Washington started as a planned city. George Washington, Thomas 
Jefferson, and a soldier and architect name Pierre L'Enfant shared a 
vision of order and beauty. The boulevards, the museums, the monuments 
reflect their vision. But this is a different time, and our city needs a 
new and different vision, one that reaches where the magnificent vistas 
end; one that touches our schools where too often books and teachers are 
in short supply; our streets where too often children are robbed of 
their futures, their freedom, and law-abiding citizens too often live in 
fear of the few who break the law; one that touches the lives of those 
who want to be responsible in work but lack the opportunity to do so; 
one that makes businesses want to locate here, to create jobs here, to 
give the community new economic life and spirit and vitality.
    Our strategy must begin to reset the course for a better life for 
all who call the District home. Our challenge is to revitalize the city 
as the Nation's Capital, to improve the prospects of self-government to 
succeed, and to make it a place where people really want to live, to 
work, to do business. We can clearly do this.
    From New York to Chicago to San Francisco we have seen new life 
brought to urban areas. Unemployment is down. Crime is down. Things are 
looking up. We know that if we empower people and we help them within 
the economic framework, they will do the rest, and that is the heart of 
our strategy.
    Of course, our Capital City faces enormous challenges. Of course, 
these challenges are, to some extent, unique to DC and have been a long 
time in the making. But at least now we have a plan, and we are 
committed. More of you, in more ways than I have ever seen before, are 
committed. We at the Federal level must help our Capital City to lift 
itself to the point where it can be a model for the Nation for 
revitalization. Working together, we can and we must make Washington 
once again the proud face America shows to the world.
    As the Vice President said, there are steps which have been taken 
already, but now it's time for the next step, our economic plan for the 
District of Columbia, an important piece of a larger strategy, to build 
on the work begun and on what we have learned from success stories in 
other cities about what actually is working there. It reflects our 
agenda to revitalize urban America. It addresses the unique needs of the 
District. It recognizes that only the people of the District can lift it 
up in the end, so it gives people the tools to do the job.
    Our $300 million plan has two parts. First, it will provide $250 
million in Federal tax incentives for jobs and capital to strengthen the 
economic base in our Capital City. Second, it will provide $50 million 
in Federal commitment to help capitalize a new, non-Federal public-
private partnership, the DC Economic Development Corporation.
    The corporation will develop an economic development strategy, 
coordinate large-scale development projects, support efforts to create 
jobs and business opportunities. It will have broad powers to facilitate 
many existing plans such as the Monumental Corps, the Downtown 
Interactive, and the New York Avenue plans. The Economic Development 
Corporation will be authorized to allocate a new DC Capital credit, 
which will provide $95 million in tax credits for investors in and 
lenders to DC businesses. These credits will be worth up to 25 percent 
of the amount invested or borrowed. This will help to bring and keep 
businesses where jobs are needed, and they will be given on a 
competitive basis to investors and lenders who can do the most for the 
District and its people.
    The corporation will also have authority to issue tax-exempt private 
activity bonds to finance businesses in hard-hit areas. And it will be 
able to receive transfers of land or development rights from the Federal 
Government and from others. It will work with the National Capital 
Infrastructure Commission we're creating to make certain that 
infrastructure and economic development build on each other.
    The corporation will be a driving force for our Capital's renewal, 
for it to take its rightful place in the fast-growing economy of this 
region and in our Nation. The Federal Govern

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ment's investment of $50 million in the corporation is just a start. Our 
goal is to involve all sectors of the economy in helping the District.
    Our plan also includes a new DC jobs credit, available to businesses 
in the District that hire low- or moderate-income residents living in 
economically distressed areas. It would provide a 40 percent tax credit 
on the first $10,000 of eligible wages in the first year of employment. 
This jobs credit builds on the work opportunity tax credit passed last 
year and my proposed welfare-to-work tax credit. Our plan will also 
allow small businesses in distressed areas to deduct up to $20,000 in 
additional expenses for certain equipment costs. Just as we are 
committed to seeing that self-government works as it should, we have a 
commitment from the District government to cooperate fully in the 
Economic Development Corporation.
    This is important, but we need more. I challenge business and 
community leaders to give their unqualified support to bringing back the 
District. If you're a business or an association in the District, don't 
give up on it. I commend the members of the National Association of 
Homebuilders, who decided to keep their headquarters here, because 
that's important for a truly national organization, and it's important 
for a truly international organization as well. I thank MCI for its 
decision to keep their offices in the District.
    If you're a business making money in the District, then invest here. 
Follow the lead of Ford Motor Company, which is providing a line of 
credit to repair emergency police, fire, and other vehicles. And Ford 
has set up an automotive program with three District schools.
    I want to mention another example of good citizenship as well, and 
good business. Tomorrow Secretary Cuomo will be on hand as Safeway opens 
a large supermarket in Southeast DC. It sounds so basic to have access 
to a grocery store, but that area has not had one in 20 years. Safeway 
will create 200 new jobs. And we thank you, sir. Thank you very much.
    I want to thank all the businesses who are here today for everything 
you do to support the District. I hope you will work with Director 
Raines and Secretary Rubin to develop concrete ways to participate with 
the Economic Development Corporation and the District and report back to 
me within 60 days.
    The Government will honor its commitment to the District. We know 
the Federal presence here is critical to the local economy. We know that 
we must do more, and that is why I have issued a directive to ensure 
that agencies do all they can to stay here and to contribute here. We 
want to build on our presence wherever possible. For example, the Navy 
will boost employment at the Southeast Navy Yard by doubling its current 
levels by 2001, adding 5,000 jobs here in the District.
    As District residents, the First Lady, the Vice President, Tipper, 
and I will continue to do our part. Recently, the First Lady presented a 
check for $18 million to repair our city schools coming from the 
Privatization of Connie Lee, the institution that insures college and 
university bonds. And our public-private partnership will now benefit 
District schoolchildren. The First Lady also challenged law firms--I 
thought that was good--we don't have any shortage of law firms in DC--
[laughter]--to expand their efforts to adopt DC schools, to visit with 
students, to develop relationships with them and mentor them.
    I'm proud of all the departments and agencies in the Federal 
Government that have adopted DC schools. And I would like to say a 
special word of thanks to my Secret Service detail who gave that to the 
First Lady and me as a Christmas present not very long ago. I couldn't 
imagine a better gift. And the work they do at the Kramer School is 
something that I am particularly proud of.
    As the Vice President said, our administration has worked hard to be 
a good neighbor. But I've asked the Cabinet to do more. You will hear 
and see a lot of our Cabinet Secretaries in the District. You will see 
them doing things. In the next 2 weeks, for example, Secretary Albright 
and Ambassador Richardson will adopt local schools to teach children 
about diplomacy and geography. Secretary Glickman will announce a 
renewed effort to glean surplus food from cafeterias at Federal 
buildings to feed the hungry here

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in the District. And I'm asking all the Secretaries to report back to me 
within 90 days with a targeted plan of action for each department to do 
all it possibly can to help the District.
    It has been said that Americans didn't think much of their Capital 
until they had to defend it during attack in the War of 1812 when, as 
all of you know, in 1814 the White House was burned. In a way, history 
is repeating itself, because for too long, Americans have not thought 
enough about our Capital City. But Washington is still worth fighting 
for. In fact, it's more worth fighting for than ever.
    The people I have seen who live in this city, who do miraculous 
things every day to try to help people make more of their own lives, to 
try to help kids in trouble, to try to turn things around and see people 
live up to their potential, deserve more than the rest of us have done. 
And I am determined that even though the solutions will not come 
overnight, we will provide our part of the effort. And together, with 
local government and business, with the involvement of every citizen, we 
can have a strategy and implement a strategy that makes Washington the 
city we all know it ought to be and that we must believe it will be.
    Thank you very much.

Note: The President spoke at 4:40 p.m. in the East Room at the White 
House. In his remarks, he referred to Mayor Marion Barry of the District 
of Columbia; Andrew F. Brimmer, chairman, DC Financial Responsibility 
and Management Assistance Authority (Control Board); and District of 
Columbia Ward 2 Councilman Jack Evans.