How will the Economic Empowerment Zone transform North East Hamilton? The Royal Gazette talks to Roxanne Christopher and Erica Smith of the Bermuda Small Business Development Corporation.

North East Hamilton has had a chequered history. In the 1800s the wealthy had townhouses there and retired to their country homes at the weekends while in the early 1900s the area was a hub for black businesses.

But since then it has become a backwater to Front Street, too often associated with crime and drugs.

While some say the negative aspects are overplayed, virtually everyone agrees 'the back of town' has massive potential and needs revival.

In 2005 Government announced plans for an Economic Empowerment Zone (EEZ) and now a dedicated team is working to make dreams of transformation a reality.

Roxanne Christopher, who started in July as business development officer for the Bermuda Small Business Development Corporation (BSBDC), has a big role in the development of the EEZ.

In the next few weeks she will start working out of an office on Union Street, in the heart of the zone, to give her a more hands-on feel and offer locals a one-stop shop to handle concerns.

But she needs no introduction to the area as she has owned the Bliss Hair and Nail Salon on Court Street for the last nine years.

"I have grown up in the area. My mother had a business there for almost 40 years – In-between Boutique.

"I have spent all my life in the zone, I have seen all the struggles and the successes. I have seen the businesses that have closed and those which have risen and are still holding on. I have shared the struggle.

"I went to Berkeley and came to Court Street after school. This is where I played, ate and socialised. My life was in North Hamilton. There's a unique culture – a spirit, vibrancy and closeness. There's definitely a bond shared between the residents and business owners."

Ms Christopher believes the area is better than it was. "I feel the most challenging days are over.

"The tide has turned and there is excitement now, the business owners and residents can't believe that the many promises made many years ago have come to fruition now."

She said some businesses had been skeptical when approached by BSBDC.

"But then they finally realised we are serious about helping."

She realises funding opportunities are the first step after going door to door and meeting many of the 168 business owners to learn of their concerns.

Assistance with accountancy, marketing, cash flow management, purchasing inventory and business planning are all being offered.

Ms Christopher said: "Some people have been operating a business for 20 or 30 years, basically barely staying open. We need to re-educate business owners in how to maximise productivity."

Some need help in managing cash flow and reinvesting on a regular basis so grants and loans of up to $10,000 are available for each business, giving a total maximum capital injection of $20,000.

Residents or businesses working on capital projects can also get duty deferment.

"The duty will still have to be paid but it gives them time to start generating the revenue we envisage or for residents to get a chance to complete the projects and pay the duty," said Ms Christopher.

"There are a lot of employee issues. In 2009 we are going to have a career fair in the zone, strictly for businesses in North East Hamilton."

Statistics gathered by the BSBDC have highlighted the need for regeneration.

A survey showed the median household income of the area was $55,000 compared to a Bermuda average of $84,000.

Unemployment stands at five percent compared to the Island-wide rate of 2.1 percent while home ownership is just 23 percent.

However Ms Christopher says the area isn't as bad as people fear.

"There is a perception that crime is higher in the area, but statistically it is not. That perception needs to be changed."

Her colleague Erica Smith, the lead consultant on the project, says: "There may not be crime but patrons are intimidated by people who are hanging about. We are creating an environment where people don't feel intimidated and afraid when they are shopping."

The team hope that by boosting business it should create unemployment and reduce the numbers of people loitering.

In December a six-month training course will begin to prepare the under-35s for the workplace by teaching computer programmes and office skills.

And the hope is they will soon be working in a much better environment with more pedestrianisation, trees and ambient lighting.

Angle Street might get pedestrianised, said Ms Smith. "This area is steeped in history and Hubie's Bar is the anchor that drives the whole renaissance in that area."

Entrances to the EEZ will be marked with gateways, including one at the bottom of Court Street which is aimed at drawing visitors up from Front Street while smaller gateways and arches will signify entries into specific districts within the 13-zone district.

Initial studies over the last few years had marked up significant differences between the districts.

But designers are keen not to price the locals out of their own neighbourhood with the upgrades, said Ms Christopher.

"We want the people who live and work there to still be able to live and work there in ten years' time.

"You don't want them displaced due to all the new development we foresee going on – we still want the culture and the persons to have a major stake."

And Ms Smith said: "In some urban revitalisation projects what happens is you create a much more aesthetically pleasing environment which raises property values which in essence raises the cost of doing business there so the original people can't afford to live or work there anymore.

"And then you have a flight of the people you were originally trying to help not being there any more."

Creating equity is the key and the concept will be used in how permission for high-rise building is handled.

Because of their character and topography some districts will be restricted to two or three storeys while others have the potential for much more so incentives will be designed to even out opportunity disparities.

Analyses show there is a visual barrier between North Street and into Court Street because of the elevation of Till's Hill.

One idea is to lower the brow of the hump which would involve an overpass for Ewing Street.

"By bringing it down people can at least begin to see more activities there," said Ms. Smith.

A road could eventually extend from Court Street into the Marsh Folly Park, if and when that gets done, with the old TCD building being removed.

"These are ideas that are just being floated. We want to bring together projects that have probably never been seen before in Bermuda," said Ms Smith.

A design competition will be announced in the next few weeks allowing more public input in the shaping North Hamilton's future.

"We are really trying to engage the public," said Ms Smith. "We have put down broad ideas, now we need stakeholders to come through with what these ideas could look like."

Entrants wouldn't have to be design professionals. "Someone might just draw something on a piece of paper and we could look at it and say it could really work."

While the Corporation of Hamilton has already created Jubilee Park on the north east boundary the area lacks open space so more will be created including plans for a park next to the Jamaican Grill.

"We see it as a pretty significant site," said Ms Smith. "We have floated ideas of having a heritage museum and parking underground with public space on top of that."

Provisionally named Gombey Square it might include a gombey statue.

"The space across the street which is a parking lot could potentially be used more as a market space."

Prices are likely to change when the requests for proposals are in but initial costs flagged up include $15 million for land acquisition and construction in Court Street and Gombey Square.

The Government-owned Victoria Street Clinic site is seen as a key catalyst because of its large size.

It could be changed to include a national library and an amphitheatre and open space while keeping some Government offices, said Ms Smith.

"It is such a huge footprint, it could be six- or seven-storey building incorporating a lot of different things. We are doing an in-depth study to see what we would like on that site. It is a key lynch-pin on making this whole project work."

The lack of bus routes is a problem in the EEZ, said Ms Smith.

"That's something we want to see changed. Part of the proposal is to re-route one or two routes to penetrate the zone – or, if that is not possible, have a minibus service.

"It is not that far from the terminal but the further you are from transportation where people get dropped off in a huge mass the more retailers and businesses struggle. Right now Court Street is just used as a thoroughfare."

Asked if there might be resentment from businesses who fall just outside the EEZ Ms Smith said that was why there was a 50-foot transition zone. It gives the opportunity for help to be given to businesses and property owners on the margins with the Minister of Finance having the final decision.

And there is thought given to extending the whole zone to the North Shore and eastwards right up to the National Stadium.

In all, the EEZ project in North East Hamilton is set to last a decade. An EEZ agency will be set up to run the project and look at the potential for similar ones in the east and west ends.

Ms Smith said: "Ten years is a pretty good time period to see change. You don't want it any longer otherwise you have the potential problem of setting up a cycle of dependency.

"We want this whole process, especially with the economic and social policies to be a hand up not a hand out. It is helping people understand about wealth creation and wealth retention."

What the EEZ offers

Bermuda Small Business Development Corporation guarantees on business loans.

EEZ business loans and grants, available up to a maximum of $10,000 each.

Reduction in payroll tax rate up to nine tax periods for new businesses established in the EEZ.

Wealth building and financial management courses for EEZ residents.

Grants provided to EEZ community organisations to undertake direct grassroots initiatives in the zone.

Duty exemption for retailers on imported items for capital improvement and refurbishment projects.

Preferential lending rates and terms for EEZ businesses and residents.