Groups vying for money in Regional Cities Initiative not stopping work

The next steps may involve expanding a coalition of partners beyond Vigo, Sullivan and Knox counties — while still emphasizing the river as a connector between the region’s communities — and developing a more strategic plan to broaden the scope.

Members of the Wabash River Region’s application committee are confident, however, that the original plan was a good start and encouraged by the likelihood for future state dollars.

The region did not receive full funding in the first phase of the initiative, created to help address population stagnation and a shortage of talented workers living in or moving to Indiana. Out of seven applications, the state decided to fund proposals from the South Bend, Fort Wayne and Evansville areas.

But the Indiana Department of Economic Development’s Board of Directors voted last week to continue supporting the four remaining, through helping identify public or private funds for planning to continue development of the regional plans. Amounts will depend on fund availability.

“They were pleased with all seven proposals, but I think what they’re most proud of is it’s a very, very unique approach to economic development by way of talent attraction,” said committee member David Haynes.

Once the General Assembly approves funding the winning three regions, the committee believes enough money will be left over to share with the rest.

“There’s more money out there, but it has to be directed,” said Haynes, president of the Terre Haute Chamber of Commerce.

Haynes helped organize the committee earlier this year to apply for a portion of $84 million in state matching funds. The region partnered with higher education institutions, business organizations and development corporations to make the pitch.

Proposed projects included renovating the former ICON building on First Street into apartments and entrepreneurial collaboration space; a precision agriculture facility for Ivy Tech Community College; a facility for academic equine programming at St. Mary’s; and additional funding for ongoing projects in downtown Sullivan and Vincennes.

Committee members said they were pleased with the progress made in a short window of time ahead of the state’s Aug. 31 plan submission deadline.

Haynes said he felt the team got “a lot” accomplished, especially since they competed with areas that had years of experience collaborating regionally.

“And we were able to get into the game and be a player after only two or three months,” he said. “And what that suggests to me is, given a little more time, we’re going to be more and more impressive to the folks that are delivering the funds.”

While the state took note of the region’s level of effort, the plan didn’t meet requirements for population and return on investment.

IEDC guidelines called for all proposals to cover a minimum of 200,000 people. The combined population of Vigo, Sullivan and Knox counties is 170,000, as reported in the region’s plan.

Broadening the focus is a key goal moving forward, said Greg Goode, another committee member. 

Goode, executive director of government relations for Indiana State University, said while the river aspect would remain an important piece of the next phase, counties not along the Wabash’s path may join the effort.

“I say that plural,” he said, “because I think there’s a real opportunity for growth now, that we still want to prominently celebrate that connector — the Wabash River — but there’s going to be other things on which to build as well.”

Building a larger coalition, Goode said, will likely be the first order of business for the newly-formed Regional Development Authority, which is tasked with prioritizing projects. The board was another requirement in the application process.

The RDA’s members are: Bob Baesler, owner of Baesler’s Market; Mary Ann Conroy, CEO of Terre Haute Regional Hospital; Kent Utt, president of the Knox County Development Corp., Phil Rath, vice president of financial services and government relations at Vincennes University; and Jim Exline, executive vice president of Wabash Capital.

Rachel Leslie, a third committee member, said Baesler and Conroy’s involvement as major private-sector executives alone expands the group’s foundation.

“I don’t think we can overlook just that first initiative that we have made through this process,” said Leslie, chief external relations officer for Saint Mary-of-the-Woods College. “And we have not yet had the opportunity to identify what that might bring to us because we’re in such early stages of that process.”

The plan’s estimated positive return on investment depends on population growth, Goode said, adding it could be five or 10 years until those numbers can be measured.

He said the state is using the right metric to determine the amount of profit from investments, “but it’s still a bit nebulous, though, at this point for any of our regions to determine what that might look like.”

The application drew criticism from a Ball State University faculty member who reviewed the proposals for his newspaper column. 

Michael Hicks, director of the Center for Business and Economic Research and associate professor of economics, singled out the Wabash River and East Central Indiana’s plan for what he called hasty preparedness and insufficient details.

“Financing details for both are hazy, making this look more like a grant request than a strategic plan,” Hicks wrote in mid-November. “To be fair, the other regions have been doing these things for 15 years, and both of these plans were pieced together in 15 weeks.

“That in itself is why the economic prospects of these places remain among the poorest in the state.”

In a follow-up phone interview with the Tribune-Star, Hicks said the Wabash River’s plan is a good start, but lacks a central theme and didn’t have enough time to develop into a competitive proposal.

“It looks more like a menu than a meal, or more like a recipe than a meal,” Hicks said.

Goode said local stakeholders didn’t know until the end of the legislative session that funding incentives would be attached to the initiative. Gov. Mike Pence signed the initiative into law in May.

Parts of the region are tapping in to grants and other sources for some of the ongoing projects listed in the proposal.

In Sullivan, the city is working to secure grants from the Indiana Office of Community and Rural Affairs, the Wabash Valley Community Foundation and private donations for developing a plaza outside the new civic center, Mayor Clint Lamb told the Tribune-Star.

The center, located on the site of the former Central Elementary School, has hosted a religious revival, employment expo and private events since opening in September.

“So it’s starting to become a source of revenue and build itself up,” said Lamb, another committee member.

In Vincennes, revitalization of the riverfront Kimmel Park is underway. Knox County’s Parks and Recreation Department has transferred the deed to Vincennes University, which will be connected to downtown through the park.

Private donors are lined up to finish funding to renovate the Pantheon Theatre and New Moon Theater, said Utt, who also belongs to the committee.

Moving in to the second phase, Utt said the region’s group needs to determine what is in the area’s best interest to increase the population, even if those ideas don’t fall along the river.

He welcomed the opportunity for seed money as the region continues to build partnerships.

“It’s like you come in second, if you will, but we’re still winning,” he said.