[Southsider2k12]

http://www.thenewsdispatch.com/articles/20.../news/news3.txt

City balances tourism, industry
By Jason Miller, The News-Dispatch

The constant struggle among city officials and residents is reaching a consensus on what type of economy should drive Michigan City in the future.

To many, the city should always be known as an industrial town, full of factories paying “decent, living wages,” like the former Pullman Standard company at which the fathers and grandfathers of many current residents worked their entire adult lives.

To others, the combination of Lake Michigan, Blue Chip Casino and Lighthouse Place Premium Outlets make it clear what should drive the city economically.

“I think Michigan City needs both. But in reality, this is a tourist town whether (people) want it to be or not,” LaPorte County Convention and Visitors Bureau Director Sue Bietry said.

Michigan City's industrial base has dwindled in recent decades, with the loss of jobs at factories like Weil-McLain and the loss of businesses like Paltier, Clark Equipment and Joy Manufacturing.

What made Michigan City tick 30 or 40 years ago may no longer be a viable option. Tourism, meanwhile, has bucked the trend, and continues to grow, according to Bietry.

And so does the money brought in from the out-of-town guests who visit Washington Park and the city's other attractions.

According to a 2005 study by the magazine “Sales and Marketing Management,” a key economic indicator of out-of-town spending shows Michigan City's retail sales top the amount of “effective buying income” of its residents. Effective buying income is essentially what most people call disposable income, or money left to spend after taxes and staple expenditures are removed from the equation.

The study shows that Michigan City registered an EBI of $456,135,000. The 2005 retail sales listed reach $623,949,000. The number indicates that almost $168 million of the city's listed retail sales comes from people not living in Michigan City.

That tells Michigan City Economic Development Director John Regetz that the city's tourism and retail element is a strong complement to what he says is still a good manufacturing base.

“That's bringing in dollars and that's always a good thing. Bringing in those dollars employs people, which is something I think any community would want to encourage,” he said. “That's why retail centers have a benefit.”

Compared to cities of similar size, Michigan City is relatively solitary in the ratio between local dollars and out-of-town dollars. The city of Marion, in Grant County, registered an effective buying income of $433,428,000 and retail sales of $592,307,000.

But Henderson, Ky., just south of Evansville, Ind., had an EBI of $447,918,000 and retail sales of $414,634,000, and Goshen, Ind., had an EBI of $466,865,000 and retail sales of $379,880,000.

The numbers show Bietry what she already knew - that the city benefits greatly from out-of-town visitors. They also make her wonder why there seems to be an undercurrent of resentment in Michigan City toward out-of-towners spending money in Michigan City.

“I don't know if people don't understand that this type of spending is reducing their tax burden or if they just don't care,” Bietry said. “I don't think a lot of people understand the benefits tourism brings. I know a lot of people just have an issue with people from other cities. They want things to stay the way they were 50 years ago.”

While Regetz said the city may never become the manufacturing hub it was decades ago, he said the “diversity” of business is a “blessing.” If one area falters, the other is there to pick up the slack, he said.

[Southsider2k12]

I figured that there would be a little more interest in this topic, but maybe that is just the economics nerd in me creeping out...

Anyways, I was glad to see some public acknowledgement that the times have changed in regards to industry and manufacturing. I will be blunt when I say this, manufacturing as it used to be in the 60's and 70's for example, is dead. Foreign competition dictates that we will never see that type of era again, because we cannot afford the wage rates versus places like China, and even closer to home, Mexico. Not only do they work for a fraction of the wages, but they do not require the prohibative benefit programs that are paid out in the US. Today much of the cost of an employee is never really seen by them, through things such as health insurance, medicaid insurance, and unemployment insurance. A good rule of thumb has become that whatever a person is making in wages, the company is paying again in benefits. The problem comes in when a competitor can not only eliminate the costs of benefits, but also 90% or more of the wages by shipping jobs outside of the USA. Its puts pressure on the US companies to cut costs and stay competitive. These conditions make it impossible for manufacturing to exsist here like it used. I always cringe when I hear people talking about the need to bring these jobs back to MC. The problem is that these jobs are disappearing so fast, and they are never coming back. If this sector represents your skill set, you need to go back to skill and learn a new ability, and do it quickly.

[Ang]

The problem comes in when a competitor can not only eliminate the costs of benefits, but also 90% or more of the wages by shipping jobs outside of the USA. Its puts pressure on the US companies to cut costs and stay competitive. These conditions make it impossible for manufacturing to exsist here like it used.

Thank you Bill Clinton for giving us NAFTA and taking away our jobs

[Max Main]

Your observations are not new, though accurate: What would be new is if people start following the course you outline!

[Southsider2k12]

Thank you Bill Clinton for giving us NAFTA and taking away our jobs

NAFTA, despite what Ross Perot will tell you, is not the problem. American jobs have been leaving the US for two generations now because of higher US labor costs, and the low costs around the rest of the world, combined with our having no problems buying foreign goods.

[mcstumper]

Michigan City has got to stop the bleeding when it comes to highly educated labor. Kids going away to college to get the skills necessary for decent paying white collar jobs don't come back here. Michigan City needs to reinvent itself as a Chicago commuter community with perks that set it apart from competitors west of Chicago. We need to open our arms to those looking to flee Chicago's overpriced housing by encouraging the development of upscale housing ($300k+, which is bargain basement compared to what you pay in suburbs like Lombard). At the same time we should strive to become a haven for entrepreneurs. Get the well-educated risk takers to move here even if they are initially working in Chicago. Your hope is that those who wish to strike out on their own will see Michigan City as a good place to start a new company.

To do this we need:
1. A business friendly city government (definite improvement with this last election).
2. Solid infrastructure (including roads and sewers as well as low cost access to high quality telecom assets)
3. School vouchers to give more parents the ability to move their children out of the broken public school system
4. Improvements to the South Shore to get the commute time to downtown to 1 hour 20 minutes or so from the current 1 hour 45 minutes.
5. New housing development within the city limits that appeals to high wage earners.
6. Continued downward trend in crime rates, work to give the City a reputation as a safe place for people to raise their families.
7. Continue to develop our quality of life assets (parks, walkways, family entertainment options)

[Southsider2k12]

I can speak to #4 enough to tell you that it will never happen. Between the amount of stops that exsist along the line, and the speed limits that also exsist with the equiptment, it would take a nine figure investment to give the South Shore the ability to cut the commute by that much.

[JHeath]

I can speak to #4 enough to tell you that it will never happen. Between the amount of stops that exsist along the line, and the speed limits that also exsist with the equiptment, it would take a nine figure investment to give the South Shore the ability to cut the commute by that much.

The South Shore Line has not upgraded their systems for quite some time (we're talking before 1950, from what I've been told). They are, however, in the process of making some of the upgrades this year. A good friend of mine who works there is now working 12+ hours a day to help with this...unless it rains.
I just wonder how much this will help, and how it could increase thier efficiency for their patrons.

MCStumper, I'm not sure how you define a business friendly government, but there were not that many changes made during the primaries...and our current administration has placed so many roadblocks for a number of potential investors in our area, that they turn around and leave. Just count the number of jobs that have been lost and look around at the companies that have closed...we could have done a much better job at retention, and added more to our community.

[Southsider2k12]

The South Shore Line has not upgraded their systems for quite some time (we're talking before 1950, from what I've been told). They are, however, in the process of making some of the upgrades this year. A good friend of mine who works there is now working 12+ hours a day to help with this...unless it rains.
I just wonder how much this will help, and how it could increase thier efficiency for their patrons.

MCStumper, I'm not sure how you define a business friendly government, but there were not that many changes made during the primaries...and our current administration has placed so many roadblocks for a number of potential investors in our area, that they turn around and leave. Just count the number of jobs that have been lost and look around at the companies that have closed...we could have done a much better job at retention, and added more to our community.

The work they are doing now is signal work that will supposedly improve the effeciency of the line. The problems are the amount of stops, the amount of other train traffic once you get into Chicago, and the age of the equiptment. The max speed they are allowed to travel is 79 mph, and that is only when they are not in a busy area. The can't travel that until between East Chicago and downtown Chicago at all. Then once you get into the areas where you can go fast the nature of the infastructure won't let you do it, because you run the risk of breaking something, usually an electric line, which is a big disaster when it happens. They would literally need to put in all new infrastructure to support faster speeds of travel, and the NICTD doesn't have the money, and the feds aren't about to give it to us with much bigger projects needed nationwide.

[Max Main]

As far as the second number 2, that is years away, if ever. After any law is passed, the court cases begin.

[mcstumper]

I just noticed my creative numbering system.

Maybe I can apply for a government accounting job!

[Southsider2k12]

BTW, just to not appear negative, I do like many of your ideas Stumper. There is some really good stuff in there, but I think the biggest thing we can do to attract people to MC is change the attitude of apathy here first of all, but the big things is to make the school system an asset again. People are not going to want to send their kids to this district, so they are not going to want to live here. Private school is expensive, and not all can afford it.

[JHeath]

Private school is expensive, and not all can afford it.

Isn't Renaissance Day Academy moving toward becoming a charter school?

[mcvoter]

To do this we need:
1. A business friendly city government (definite improvement with this last election)
a. What has improved with the last election? The mayor is in the developers back pocket (keep a watch on the Pahs Road development, the Transfer Station, the use of 1 developer for all local development, etc.), the planning commission and the planning director don't know the ordinances (i.e. 2 buildings in Sheridan Beach that violate city code for height), 1 new (january, 08) council member has a proposed "list of appointees" that she wants placed into positions within the city government (as promised to for votes) etc., etc., The city government is status quo - no one has the guts to shake things up - including the current mayor.

2. Solid infrastructure (including roads and sewers as well as low cost access to high quality telecom assets)
a. The cities infrastructre is already 98% separated, yet they do not follow storm water quality guidelines for post-construction - so what type of infrastructure are you referring to? and how will this improve MC?

3. School vouchers to give more parents the ability to move their children out of the broken public school system
a. Maybe the answer here is to fix the public school system - and 1 way to do so is the establishment of a Charter school program in MC - unfortunately, no matter how much money they pump into bricks and mortar, the present school board has been very ineffective in resolving conflicts and educational problems, other than to cover up what really happens behind the school doors ---

4. Improvements to the South Shore to get the commute time to downtown to 1 hour 20 minutes or so from the current 1 hour 45 minutes.
a. This is not reality - if the job in Chicago is so important, then you have to pay the price ---

5. New housing development within the city limits that appeals to high wage earners.
a. How about more subdivisions for the average wage earner like Suburban Estates on south Ohio Street?

6. Continued downward trend in crime rates, work to give the City a reputation as a safe place for people to raise their families.
a. This is good -- however, with our current trend (and current administration), MC will be an extension of the blight in Gary before long.

7. Continue to develop our quality of life assets (parks, walkways, family entertainment options)
a. This is also a good point, and the platform of 2 mayoral candidates not elected --- unfortunatley, we will now see the park "atmosphere" compromised now that McKee has a position on the council - and will bend with whatever the current Mayor wants -- i.e., let's put a slide down Bismark Hill!!!!! or better yet, let's build a water park on the top of Bismark Hill!!!!

[JHeath]

The city government is status quo - no one has the guts to shake things up - including the current mayor.

Let's not forget that this was only the Primary...an independent or GOP candidate could still run in the Nov. general election. Maybe LaRocco could consider a November run? He didn't fare too badly in the primary, and with the great weather over the summer, there's a lot of time to go knocking on doors...

Solid infrastructure (including roads and sewers as well as low cost access to high quality telecom assets)
a. The cities infrastructre is already 98% separated, yet they do not follow storm water quality guidelines for post-construction - so what type of infrastructure are you referring to? and how will this improve MC

$30 million in new sewer lines, and we're still not following storm water quality guidelines for post-contruction? I'm no Dr. Phil fan, but he said it best: "How's that workin' for you?"

...the present school board has been very ineffective in resolving conflicts and educational problems, other than to cover up what really happens behind the school doors.

I give Mr. Burgwald quite a bit more credit here than you seem to--he's been very vocal when questioning items he does not agree with since taking his seat on the school board.

4. Improvements to the South Shore to get the commute time to downtown to 1 hour 20 minutes or so from the current 1 hour 45 minutes.
a. This is not reality - if the job in Chicago is so important, then you have to pay the price ---

This is the reality: there is a broader job market in Chicago offering higher earning potential than many positions here in MC. However, MC offers more affordability than the Chicago suburbs as well as many of our surrounding communities.

How about more subdivisions for the average wage earner like Suburban Estates on south Ohio Street?

How about taking a look at all of the houses on the market right now, or the current vacancy rates in rentals around the City? Why not attract people with more money into the community to help rebuild? It takes "movers & shakers" to make things happen...look at the history of our City. People like Al Pontius, Nate Winski (and his brothers--Henry, Mort, and Jack), the Ruby and Hoodwin families, and many others made some wonderful things possible here. We're losing people much like them to Valpo, Granger, and even Chesterton.

7. Continue to develop our quality of life assets (parks, walkways, family entertainment options)
a. This is also a good point, and the platform of 2 mayoral candidates not elected --- unfortunatley, we will now see the park "atmosphere" compromised now that McKee has a position on the council - and will bend with whatever the current Mayor wants -- i.e., let's put a slide down Bismark Hill!!!!! or better yet, let's build a water park on the top of Bismark Hill!!!!

I agree that Joie and Joe were much more in line with this thinking. But, again, this election was only the Primary. If a candidate felt that strongly, and doesn't want to support the Dem candidates elected, then maybe he should consider an independent run in the fall.

[mcvoter]

I agree that Joie and Joe were much more in line with this thinking. But, again, this election was only the Primary. If a candidate felt that strongly, and doesn't want to support the Dem candidates elected, then maybe he should consider an independent run in the fall.

Or - maybe, since Joie was the runner up, she should consider the independent ticket, unless, she to has inspirations to run again in 2011........

[Southsider2k12]

I give Mr. Burgwald quite a bit more credit here than you seem to--he's been very vocal when questioning items he does not agree with since taking his seat on the school board.

I will agree 100% with this. We need about 4-5 more people like this on the board. The administration in our school system has done whatever they wanted, whenever they wanted, ever since Harding took over. Well guess what, nothing has improved. I am glad a couple of the guys have the guts to question things. The others need to go.

This is the reality: there is a broader job market in Chicago offering higher earning potential than many positions here in MC. However, MC offers more affordability than the Chicago suburbs as well as many of our surrounding communities.

I fall right into this category. With my education and skill set, I could find a livable wage in MC for my families needs. MC also fits as my hometown, and an affordable place to live. Heck if I tried to buy my house in most Chicago burb's I would end up paying somewhere in the area of 2 to 3 times what I paid here.

[JHeath]

I agree that Joie and Joe were much more in line with this thinking. But, again, this election was only the Primary. If a candidate felt that strongly, and doesn't want to support the Dem candidates elected, then maybe he should consider an independent run in the fall.

Or - maybe, since Joie was the runner up, she should consider the independent ticket, unless, she to has inspirations to run again in 2011........

Sorry, mcvoter, but she already told Chuck that she would support the Dem party in the fall election...she won't be running this fall.

[mcvoter]

Sorry, mcvoter, but she already told Chuck that she would support the Dem party in the fall election...she won't be running this fall.

What about in 2011? By the way, straight up, how much money was directed into her campaign from the Dem party?

[JHeath]

What about in 2011? By the way, straight up, how much money was directed into her campaign from the Dem party?

You saw it in the N-D---Shaw did not back her at all. All of the money she raised was from private donors mostly at fundraisers, along with some other smaller donations. But, to the best of my knowldege, none directly from the party.

As far as 2011, I won't put any words into her mouth. You'd have to ask her that directly. I think it's really too early to be thinking about that. After all, there's still the general election in November.