Job Creation

Job Creation

The Job Creation initiative relates to MAP Initiative 1, “Linking learning, Health, and Prosperity”. In subsection 2 of initiative 1, it states, to “create and implement an economic development plan to expand the number of competitive-wage jobs”. The initiative calls for collaboration of existing economic development agencies and major employers to develop an economic development plan, that assesses economic diversification, increases the number of competitive- wage and knowledge based jobs. [1] This applies to TPA because the neighborhood wishes to create more competitive-wage and knowledge based jobs to combat against unemployment.

How

This initiative was created through emails and conversations with the residents of the community that believe that there is a need for more jobs that offer a competitive-wage. The residents believe that creating more jobs will not only improve the tax base, but will also lead to a better quality of life in the neighborhood.

Why

The initiative is important for the neighborhood because TPA was once the center of industry, previously housing the major GM transmission factory that shut down in 1996. Since many jobs have been outsourced to other places and lost, the area has suffered from unemployment and economic dismal. The job creation initiative is important because it will allow for the neighborhood to cure its issues of unemployment, and increase its tax base. Along with curing the issues of unemployment and increasing the tax base, having more competitive wage and knowledge based jobs will make TPA more attractive to those looking to move to the area.

connection maker

Figure 1: http://www.munciepubliclibrary.org/hours-and-locations/

Connections_Classes

Figure 2: Jessie Boshell, Image of local business ready classes at local library

Who

For this initiative to take place, the TPA neighborhood association and business leaders of the area could form a coalition to brainstorm and survey the particular needs of the community. The neighborhood association and neighborhood business leaders should consider collaborating with the Economic Development Alliance, and the Muncie Department of Community Development so they can have guidance on how to apply for grants, and to promote job creation. However, the responsibility will fall on the neighborhood association and neighborhood businesses, because the neighborhood residents are the major stakeholders and should serve those that live in the area. There are several sources that can help with job creation in the area, those being the work one center in downtown Muncie that helps unemployed people find jobs that are based on their knowledge and expertise, another source would be the ABC Construction Training Center located on state S.R. 67. This is a great option for job creation because construction is a career that will always be needed.

What

TPA has a large amount of abandoned houses that offer an opportunity for job creation. Many of the residents have discussed the issue of abandoned housing and how it affects the quality of life in the neighborhood, but it also offers a unique scenario that could create jobs. The neighborhood association in collaboration with the City of Muncie, could purchase the abandoned housing, and place them in a land trust. After purchasing the homes, those living in the area could apply for a job helping renovate the properties or demolish the properties. This would allow the neighborhood to rid itself of the abandoned houses, while creating jobs for the residents of the neighborhood.

One of the resources that could be tapped into is the entrepreneurial spirit. There are many people living in TPA that have great business ideas, but do not have the means to act on their dreams. The vacant commercial properties in the area offer sites for a potential business incubator program. The business incubator program would offer the unemployed with business ideas a place to start small businesses without the initial rent costs. The incubator program would act as the catalyst for those seeking to start their own business with the guideline that once the business has started and is making a profit that it will stay in the neighborhood. These businesses would then provide more jobs for the area.

There are many possibilities for TPA, but it will require that the neighborhood association form an alliance with the community development resources such as the Delaware County Economic Development corporation and forming an economic development coalition, with the main focus being on attracting new businesses and creating new jobs.

TPA has a wide variety of community assets that can be used to help foster job creation. Several assets that can be used are Maring-Hunt Library, and Work One center in downtown Muncie on Charles Street. Maring-Hunt library is a perfect asset that can contribute to furthering the potential for job prospects by offering educational and job specific skill classes so that potential job seekers will be prepared for interviews and have vital skills that will make them a highly sought out candidate for a job. Another asset in the community is the ABC construction training school near the neighborhood, and Work One in downtown Muncie, on Charles Street is an asset for the community, while it is outside the physical neighborhood boundaries it serves the community of Muncie and can help those seeking employment find a job that is within the scope of the skills education of the job seeker.

  Where

The maps below offer vital information into available commercial sites for sale and abandoned houses. The commercial site map describes in detail by color the type of property is available, and those with gradient over the color are for sale. The abandoned housing map is color coded in yellow and green. Yellow represents homes that are owned by the city, and green represents homes owned by private owners that are abandoned. This will allow for the neighborhood to have access on who to contact if interested in purchasing the property.Business_Map

Map: Tiffany Gerhke

AbandonedHousing

Map: James Sandberg

Case studies

Cleveland Empowerment Zone, Cleveland, Ohio

Cleveland, Ohio, once a thriving city in the Midwest began to decline in the 1950’s, and that decline continued until 2000. During the span of a 50- year decline the population of Cleveland declined dramatically from 914,000 to 478,000 in 2000. The population decline was a result of loss in manufacturing jobs. In 1994, the city of Cleveland applied for President Clinton’s Empowerment Zone program, which would have brought new jobs to the city and would have helped revive Cleveland. However, Chicago and Detroit beat out Cleveland to become and Empowerment Zone.

In 1994, after not be approved to become an Empowerment Zone, HUD named Cleveland a Supplemental Empowerment Zone awarding the city with $3 million in direct aid and $87 million in through HUD’s Economic Development Initiative. As a result Cleveland selected four neighborhoods to receive the aid. Those neighborhoods were Fairfax, Glenville, Hough, and Midtown Corridor. Each of these neighborhoods had a community development corporation within them that was started by the neighborhood association. The City of Cleveland chose these neighborhoods because they wanted to promote job creation within these neighborhoods that would be for the residents that live in them.

To carry out the initiative, the neighborhoods partnered with local agencies and organizations for advice on how to best meet the goals of the neighborhoods. The local agencies and organizations in partnership with the City of Cleveland and the neighborhoods decided to give HUD funds to local small businesses and created a private security patrol in the neighborhoods. They also used the funds to set up a labor-ready center and the rest to foster community building. The partners selected small local businesses in the neighborhood, not just to further the businesses of those in the area, but also to help foster economic development by making the area more attractive with successful small businesses.

Source:https://www.researchgate.net/publication/238116361_CLEVELAND_OHIO_USA_THE_TALE_OF_A_SUPPLEMENTARY_EMPOWERMENT_ZONE

Forming Connections

In 1999, the Casey Foundation created an initiative called Making Connections. The idea behind the initiative was to help communities that were suffering from unemployment and low to moderate- income have a chance at finding work that paid a competitive wage. There has been numerous sites that implemented the initiative. Making Connections focuses on creating a neighborhood workforce pipeline. The workforce pipeline acts as an advocate for those in need of work by helping unemployed find jobs and get their foot in the door, to employers that pay competitive wages so that the quality of life for suffering families can be improved.

One of the sites that has implemented the Making Connections initiative is Louisville, Kentucky. In Louisville, Kentucky, three of the most economically challenged neighborhoods partnered with one another, having 2,200 members in total. One of the issues that arose in Louisville was that the neighborhoods that were most economically challenged and suffered from unemployment three times the rate of the Louisville metro area was gaining access to jobs at Norton HealthCare. To help residents get their foot in the door the network partnered with Norton to form a workforce pipeline. Together they developed a training package and a support system to help promote job success and job retention. Not only did the network partner with Norton HealthCare, but they partnered with other employers and unions in the area, such as UPS and the state construction program, and helped 300 men and women gain jobs that paid a decent wage and offered a new start. Out of the 300 men and women that gained jobs, 84% of the jobs include health benefits, and overall the workforce pipeline has helped increase the tax base of the area. The jobs have yielded more than $1.5 million in new income for families in the neighborhoods.

Source:https://folio.iupui.edu/bitstream/handle/10244/139/Connecting%20people%20to%20jobs.pdf?sequence=1

Resources

CDBG- Community Development Block Grant

State Agency:

Director, Grant Support Division

IN Office of Community and Rural Affairs

One North Capitol, Suite 600

Indianapolis

Telephone#: (317)-232-1703

Fax: (317)233-3597

Website: http://www.in.gov/ocra/

http://www.hud.gov/local/in/community/cdbg/

NSP: Neighborhood Stabilization Program: NSP provides grants to states, localities, and nonprofit organizations to stabilize communities that have suffered foreclosures and abandonment through the purchase and redevelopment of foreclosed and abandoned residential properties.

Local Agencies:

Terry Bailey

Community Development Directior

City of Muncie

300 N. High Street

Muncie, IN 47305

Phone: (765) 747-4825

Email: tbailey@cityofmuncie.com

Kay Piner

HOME Program Coordinator

City of Muncie

300 N. High Street

Muncie, IN 47305

Phone: (765)-747-4825

Email: bmorgan@cityofmuncie.com

Contact information

Department of Community Development
300 N. High St. City Hall
Muncie, IN 47305-1639
Phone:   (765) 747-4825
Fax:          (765) 747-4898
Contact: Terry Whitt Bailey, Director
Email:     tbailey@cityofmuncie.com
http://www.hud.gov/local/in/community/cdbg/

Indiana Business Credit Corporation– The Credit Corporation takes a subordinate collateral position, participating in projects that need at least $200,000 in total new financing. The Indiana Credit Corporation can provide between $100,000-$500,000, but no more than 50% of the total cost of the project. The goal of the Indiana Business Credit Corporation is to help established businesses grow, with the hopes that more jobs will be established from the project. This could be used by businesses in the Thomas Park/ Avondale neighborhood to expand small businesses.

Contact Info: Indiana Business Credit Corporation

Charles Kennedy

Phone: (317) 843-9704 EXT. 124

Email: ckennedy@cambridgeccapitalmgmt.com

Cambridge Ventures L.P.- Provides capital from $100,000-$1,000,000. Funds generally structured as debt. The management team is review followed by the review of the product and market. Decisions to invest are only made after an exhaustive review of the company, the product, the market, and the individuals involved. There is no set distinction in type of project, each project is tailored to the needs of each applicant. This could be a vital asset for Thomas Park/ Avondale to encourage the entrepreneurial spirt and start new businesses that would produce jobs for the area.

Contact Info: Cambridge Ventures L.P.

Bob O’Brien

Phone: (317)814-6192 EXT. 131

Email: bobrien@cambridgecapitalmgmt.com

Jean Wojtowicz

Phone: (317) 814-6192 EXT. 126

Email: jwojtowicz@cambridgecapitalmgmt.com

Small Business Innovation Research Initiative (SBIR/STTR); 21st

Century Research and Technology Fund

http://www.21fund.org/

Eligibility Requirements:

Small businesses must meet certain eligibility criteria to participate in the SBIR program.

They are as follows:

  • Organized for-profit US business independently operated
  • Principal Investigator must be 51% employed by business
  • Company size limited to 500 employees

or less, including affiliates

  • PI’s employment must be with the small business concern at the time of award and for the duration of the project period
  • Subsidiaries are NOT eligible for STTR program

The small business innovation research initiative could be used to grow businesses in the neighborhood. Making them more attracting, and on the cutting edge to be competitive in the market, leading to job growth.

Indiana Economic Development Corporation

One North Capitol, Suite 700

Indianapolis, Indiana 46204

Tel 317.232.8800 / 800.463.8081

Fax 317.232.4146

Rural Capacity Grant Workforce and Educational Development

Grants

The Rural Capacity Grant Workforce and Educational Development service would be beneficial to the social needs of the community. It would allow for grants at a place like the Ross Center to offer educational classes to help those with low educational attainment grow as an individual. The grant would also help offer workforce training classes so that those that are out of work, or recently released from prison can have a chance of getting a decent job.

http://www.in.gov/ocra/2357.htm

Geoff Schomacker at gschomacker@ocra.in.gov

Additional websites of interest

http://www.insideoutmuncie.com/

[1] http://muncieactionplan.org/wp-content/uploads/2011/07/MAPReportFINAL.pdf