As NY1 takes another look back at what the city was like in the early years of NY1, and how it has changed, Manhattan reporter Rebecca Spitz takes us to Harlem in the mid-1990's, where economic and political forces combined to eventually transform parts of Upper Manhattan.

In 1994 Harlem was on the verge of winning the federal equivalent of the lottery: designation as an Empowerment Zone that would bring $250 million in federal, state and city funds.

"Empowerment Zone in this particular community will be able to set an example of what can happen in urban policy throughout the country for urban areas,” Tony Rogers of the Greater Harlem Chamber of Commerce told NY1 in 1994.

Winning the designation was long sought by Congressman Charles Rangel. But getting it off the ground was easier said than done. When approval finally came in 1994, Rangel's Democratic allies David Dinkins and Mario Cuomo had given way to Republicans Rudolph Giuliani and George Pataki.

As city and state administrations changed, a new consensus had to be built:

“A lot of these seemingly disparate groups needed to come together to try to say, ÎOK, how are we going to implement this money, how are we going to make something happen up here in Harlem that's going to benefit everybody?’” said political consultant Basil Smikle.

In 1996, one of the first projects designed to jump start economic growth and new business, a massive retail and entertainment complex on 125th Street called Harlem USA. Just a concept then, nowadays home to dozens of big chain stores, and the Magic Johnson Movie Theater.

“This project in which we invested $11.2 million has produced 350 jobs, and more importantly it's been the catalyst for the retail development here on 125th street and even more importantly, they've paid us our money back so we can reinvest it in other economic development projects here,” said Upper Manhattan Empowerment Zone president and CEO Kenneth Knuckles.

Over the years, some have become concerned Harlem has become the victim of its own success, as new development displaces longtime businesses and residents. Rangel is proud of how much has been accomplished. But he concedes works needs to be done to find a way to balance the old and the new.

"As a result of the investments uptown there's booming back and it's doing so well that we're struggling so hard to make sure that our success doesn't outrun the people who've worked here, so they can afford to have their mom and pop stores and they can afford to live in this great community,” said Rangel.

— Rebecca Spitz