Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, May 31, 1994                   TAG: 9406020007
SECTION: BUSINESS                    PAGE: C-6   EDITION: METRO 
SOURCE: Associated Press
DATELINE: SNEEDVILLE, TENN.                                LENGTH: Medium

BEEN DOWN SO LONG, THE ONLY VIEW IS UP

But the three counties hope to combat some of their isolation and poverty by teaming to seek a $40 million federal development grant.

The money stems from a bill passed in 1993 to send $1 billion in federal funds to poverty-stricken rural and urban areas.

The Cumberland Gap empowerment zone, which the area will be called if it wins the grant, is competing with more than 200 other small communities around the country for the money.

But Cumberland Gap leaders think they have a good shot at it; they started early, in December, and organized well. ``We might be one of the teams to beat,'' said Ron Flanary, executive director of the planning district for Southwest Virginia.

Jimmy Jackson, a Middlesboro, Ky., businessman and chairman of Bell County's effort, points out that three governors, three congressmen, six senators, plus state legislators can be called on to lobby.

``Three counties in three states - think of the strength,'' he said.

Officials are so optimistic that they've been holding public meetings to learn what residents think the money should be used for.Six areas of emphasis have emerged: infrastructure, human resources and education, health care, finance and government, economic development, and natural resources and the environment.

Cecil Kinder, who's had a business in downtown Sneedville for 25 years - first an auto parts shop and now a florist - worries that too few roads make it impractical for businesses to locate in the town.

The Cumberland Gap zone is eligible for the money because 35 percent of the people in half of its census tracts live below the poverty line. Further, it meets the requirements that no more than 30,000 people live in 1,000 square miles, and the census tracts are contiguous.

All of Hancock County, at the edge of Tennessee, is in the zone seeking the grant, along with parts of Bell and Lee counties, both at the corners of their states. Together, the three counties are home to 26,000 people. ``You have to be going here to end up here,'' said Phil Harrison, owner of Harrison Farm and Home Supply in Sneedville. ``We're just a little on the isolated side.''

Under the federal program, three rural areas will be named empowerment zones - a designation that will provide tax incentives for businesses - as well as six urban areas. The application is due June 30. Vice President Al Gore, a former Tennessee senator, is to be chairman of the committee that will make the selections. A decision is expected in the fall.

Even if the Cumberland Gap area doesn't get anything, those involved say the effort has been worthwhile.

Officials say that although residents of the communities do cross paths, the local governments had little contact until they began working on the grant application. ``I think the fact we're doing this is a success,'' said Sim Ewing of the Center for Public Service of the University of Virginia. ``The thing that matters is getting the lines of communication - talking to each other.''

Lee County Executive Phill Gay says working together has produced hope for the region.

``The area has been depressed for so long, and now we're starting to see we do have opportunities. I think we've already won.''