Economic Development Plan For The City
of Michigan City

I. Introduction

Michigan City's natural and geographic location has historically provided a stimulus for its growth. The infrastructure consisting of interstate highways, rail network, Lake Michigan, natural gas, electricity, water and sewer capacity, a great dedicated workforce and proximity to the greater Chicago area have been key factors in industrial growth over the years. Michigan City has competed effectively and successfully for employment and population growth by providing inexpensive land, low taxes, infrastructure improvements, a beautiful waterfront recreational setting and a wholesome atmosphere where people could afford a better quality of life than they could in nearby urbanized areas.

In addition, the entrepreneur spirit gave rise to many successful local owned and operated businesses. Family and business names known for their Michigan City presence include Ruby, Sprague, Barker, and Eddy to name but a few.

Like many cities in the Midwest, Michigan City began feeling the effects of a declining economy in the 1960's and 1970's, during which many factories closed, population declined, jobs were lost and neighborhoods surrounding once vibrant factories began to erode. This left the City with an inventory of large, aging underutilized and abandoned industrial facilities in neighborhoods that became unstable.

Formed in 1996, the Michigan City Economic Development Corporation (MCEDC) has been the catalyst in economic development activities for the City through marketing, business attraction and retention, workforce development and brownfield redevelopment. In addition, the MCEDC provides relevant data and support to potential new and existing businesses. The MCEDC works closely with the City and the Urban Enterprise Association in helping to enhance the quality of life in the City through the creation of new higher paying jobs and added investment in the community. The Mayor of Michigan City is the only parental appointment to the MCEDC board of directors. The Mayor has the authority to nominate three other members to the MCEDC board.

While the MCEDC is an independent not-for-profit entity formed to provide full time efforts toward economic development initiatives in the City, the Mayor's office must be committed to supporting these efforts by actively participating on the MCEDC board of directors and by partnering with the organization through the City Council, City departments and the water and sanitation boards. Involvement by the Mayor and the City is essential in dealing with the many prospects and potential businesses that consider Michigan City as their new location. The Mayor, as the CEO of this community, has the obligation to share in the lead of economic development activities with the MCEDC, partnering with the Chamber of Commerce.

A. Business Attraction

The Mayor will serve as the City's most aggressive " cheerleader" in promoting the community as the best business location in the Midwest. Working with the MCEDC, the Mayor will be available at any time to meet with prospects (at their location or during their visit) looking at the City and will coordinate the City's efforts to make a project a reality. When business prospects contact the Mayor's office directly, the Mayor will immediately involve the MCEDC and continue to work together to attract the business to the City. The Mayor will avail himself to attend trade shows with the MCEDC and other events promoting the City. The Mayor will be part of the MCEDC's Marketing Committee that will develop and implement an aggressive targeted marketing program and work with the Indiana Department of Commerce Business Development Division to bring their programs to the City. The Mayor needs to "champion" the City's incentive packages, through the support of tax abatement, TIF, grants, etc. Training will be provided for Council members to inform all elected officials on what incentives are available and how they work.

The mayor will instruct the City plan department to work with the county to develop a business-industrial land use and utility plan for the properties along I-94, 400N and Cleveland Avenue.

B. Existing Business Retention and Expansion

Perhaps the most important function of any local economic development program is a strong Business Retention and Expansion effort. 70-80% of new jobs created in a community come from the expansion of its existing businesses. Therefore, it is essential that our existing businesses be recognized and " taken care of " in order to retain them and help them to grow. The Mayor must take an active role with the MCEDC and the Michigan City Area Chamber of Commerce in implementing their retention and expansion programs. The program includes on site visits to learn how the business is doing and to learn what the community can do to help them grow. The Mayor must attend these visits to demonstrate City's interest in their success. It is also important to recognize the many industrial/commercial businesses that make up the workforce base in the City. In that regard, the Mayor should partner with the MCEDC and the Chamber in promoting Business Appreciation Recognition events and a local Products Showcase event. Michigan City products should be incorporated into construction specifications for local buildings when ever possible.

C. Brownfield Redevelopment

The City has been aggressively addressing the problem of abandoned and underutilized brownfield buildings and sites for a number of years, partnering early on with the MCEDC, the Chamber of Commerce and the Urban Enterprise Association. Since 1996, the MCEDC and the City began developing a brownfield strategy that began to recognize the various aging vacant industrial facilities in the community as brownfields and as potential places of future employment. Even prior to that, in 1994, the City worked very closely with local developers who took possession of the former Joy Manufacturing Facility. This public-private partnership resulted in achieving an Industrial Recovery Site Designation (Dinosaur) Status and provided the impetus for the developers to purchase and develop the 600,000 sq. ft. facility, which is located in a neighborhood setting. The developers invested over $ 5 million in improvements and successfully recruited six companies that moved into the facility, creating over 600 jobs. Subsequently, the complex was sold and it continues to have companies expanding there. A similar situation occurred in 1997 with the former Michigan City Plastics facility. The partnership of the City, the Chamber of Commerce, the Urban Enterprise Association and the County resulted in a developer stepping forward and preparing the facility for the GAF Company, which invested $ 28 million and created over 125 new jobs. The former Josam Foundry redevelopment is another example of the above partnership. Soon this property will be ready for development.

The Michigan City Brownfield Task Force needs to develop a formal strategy to address brownfields in the City. The Task Force should be composed of people who are knowledgeable about brownfields and redevelopment as well as residents of the impacted areas.

In 2001, the City was awarded one of only 30 $250,000 U.S.EPA Brownfields Assessment Demonstration Pilot Grants for the former Royal Metal and Schmock Oil properties as well as the former City landfill on Karwick Road. In 2002, the City completed a US EPA grant proposal for assessments of additional properties in the City's Enterprise Zone and if approved, will allow the City to submit remedial action grants.

Brownfield redevelopment is a time consuming activity that takes time away from Tony Rodriguez and the MCEDC job development efforts. As Mayor, I will direct the planning and redevelopment office to assume this responsibility. This shift of responsibility will allow the MCEDC to pursue entrepreneurial development through a possible small business incubator, and to spend more time with the Technology Task Force developing a city strategy.

D. Workforce Development

The most important economic development effort will be in the area of workforce development, including training and education. While the old adage, "location, location, location" is still a primary characteristic in relocation decisions, most economic development organizations have indicated that the number one consideration of companies today is the workforce: availability of a skilled workforce; an educated workforce; a workforce with a good work ethic.

The Mayor needs to be involved in assuring that the local schools are preparing students for the workplace. The Mayor will assist the Chamber in establishing business/education partnerships between the local businesses and the school district to create a continuing dialogue to identify the skills students need to be successful. The Mayor automatically serves on the Center of Workforce Innovations Local Elected Officials board, working with the Center's six-county workforce investment board. This will provide many opportunities to identify workforce efforts in our region. The mayor will attend these meetings and bring back vital information on workforce development.

It is essential that a properly trained workforce continue to be available to fill job openings as they occur. As an urban school system, the MCAS has a large number of students who enter the system as "at risk students", meaning that they will need extra support to graduate. To assist these students, I proposed that the city provide financial assistance to extend after hour programs during the school years and into the summer months. Nationally these programs have proven to be successful in raising the level of self-esteem through better performance in the classroom.

E. Downtown Development & Tourism

The City will proceed with the development of the Trail Creek walkway while it seeks, through the redevelopment commission, a private developer willing to implement the recommendations of the existing north end plans. These tax paying developments should be year-around overnight attractions that compliment the city's other attractions. The redevelopment commission will be charged with the task of obtaining and administering federal grant to encourage preservation of the many architectural and historic structures in the area. And finally as a part of the over all economic development plan, a coordinated and aggressive marketing plan will be pursued.

The mayor should continue to participate in discussions on a countywide economic development effort. Until an agreement is reached for such an effort, the Mayor should recognize and support the potential for the new partners to begin working together in areas such as: joint marketing and advertising, trade shows, business recognition, infrastructure improvements, zoning, training, incentives, etc. The City, however, should not be the sole source of funding for these endeavors.

As one can see, economic development is a vast topic covering many issues. To be successful, many agencies, both private and public, must be involved. The Mayor, therefore, should convene a meeting with all of the City's economic development partners to develop a strategy for working together. These partners would include:

1. Local/County
   Michigan City Economic Development Corporation
   Michigan City Area Schools
   Marquette High School
   Michigan City Urban Enterprise Association
   Michigan City Area Chamber of Commerce
   Recognized business leaders
   Common Council
   County Commissioners/Council
   
   
2. Regional
   NW Indiana Forum
   The Center of Workforce Innovations
   NIPSCO
   Purdue North Central
   
   
3. State/Federal
   Department of Commerce
   State legislators
   Congressman

Together, we can achieve the dream of a better Michigan City.