By Dave Gatton
June 27, 2005

Gary (IN) Mayor Scott L. King reported to mayors attending the U.S. Conference of Mayors Annual Meeting in Chicago on June 11, that its Council for the New American City would work to expand its initiatives in metro economies, retail and commercial development, homeownership and DollarWi$e, the mayors' national financial literacy campaign.

King announced that the Council was forecasting that the nation's 367 metro areas would grow to over $10.6 trillion and comprise 86.4% of the nation's Gross Domestic Product in 2005. He told the mayors that the 2005 job growth was expected to be 1.64 percent in metro areas compared to 1.46 percent for the entire nation.

"For many cities, especially those hit hard by the recession, this is welcome news," said the mayor. "Our hope is that the economy will continue to improve and that more robust job growth will follow."

King also told the mayors that the Council would continue its push to increase the dialogue between the nation's retail and commercial developers and mayors. At the Council meeting the previous day, mayors heard from International Council of Shopping Centers (ICSC) members Anne L. Ewing of Starbucks, Lyneir Richardson of General Growth Properites, Daphne Davis of Wal-Mart, and Mike Logan of Target. The common theme among their presentations was the opportunity for development in the nation's cities and underserved markets.

Herb Tyson, ICSC Vice President for State and Local Governments, told the mayors that more and more retail interests were taking a strong look at inner city markets.

King also announced in the plenary session of mayors that the DollarWi$e Campaign to promote financial literacy in cities would hold its annual DollarWi$e Week September 26 through October 1. He encouraged mayors to hold at least one major event in their cities to highlight the importance of financial literacy and to encourage citizens to take financial literacy educational classes.

Jimmie Williams, Vice President of Countrywide, a founding sponsor of the campaign, briefed mayors on the Campaign's expansion to 38 cities in its first year. He indicated that applications for the Campaign's Capacity Grants program would be available in the fall. The grants will be awarded on a competitive basis to participating Campaign cities and their non-profit organizations to expand local financial literacy programs.

Rebecca Stiehl, President of the InCharge Education Foundation briefed the mayors on the financial literacy programs spearheaded by Detroit Mayor Kwame M. Kilpatrick, Chair of the Council, and Miami Mayor Manny Diaz. Both cities are training financial literacy educators who will make themselves available to teach classes sponsored by non-profit and community-based organizations.

King also told the mayors that the Council would continue to find new ways to help cities increase homeownership rates. One such approach is the Council's Ambassadors program with the National Association of Realtors, which encourages local realtor boards and mayors to work together to form down payment assistance programs as in Cincinnati; educational outreach programs as in Nashville; and employer-assisted housing as in Wilmington, DE.

King thanked the Council's members for their strong support for preserving the Community Development Block Grant program. Many private members of the Council, including the ICSC and the Mortgage Bankers Association, supported full funding of CDBG, positions that emanated from the Council's National Economic Summit held in November of 2004 in Washington, D.C.

"We owe these organizations a great deal of gratitude for stepping up to the plate and supporting this vital program that helps cities create jobs and leverage private investment," King said.