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Tackling Economic Development in Rural Areas

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Imagine being in the thick of a major U.S. city. There’s a certain rush that can only come from the metropolis. The movements are swift. The sounds are everywhere. It’s busy, and it’s thriving.

Yet, a short drive, perhaps 40 minutes or so, outside of the city, the landscape changes. In rural America, the movements are slower. The sounds are more peaceful. It is a calm that, on the surface, seems soothing.

But while the exposed horizon views and lush fields of undisturbed ground are appealing to the eye, they are concerning signs of an uncertain future. Rural and underserved areas have long struggled to gain an economic foothold for a number of reasons, all of which affect the financial means to help it keep pace with the city down the road.

Less Isn’t Always More

Some of the biggest challenges rural areas face are limited infrastructure, a lack of educational and industrial opportunities, weakened populations, and the necessities that keep businesses and industries running – internet, transportation, and other public services.

“In rural areas, we have to punch above our weight class because we are not on the tip of anyone’s tongue,” said Clarence Hulse, executive director of the Economic Development Corporation of Michigan City (EDCMC). “We’re not Indianapolis. We’re not New York City, so when we say our name, Michigan City, people ask, ‘Where?’”

Hulse said when he came to Michigan City 12 years ago, it was one of those characteristic rural settings – an area he describes as being asleep for 50 years. There were efforts along the way, he noted, to revitalize and stir up economic development. But those endeavors fizzled as the community failed to rally behind the leadership, find momentum in the initiative, or pick up and dust off when failures came about.

Small Wins Big Changes

It wasn’t until 2015 that Michigan City found a foothold that would start an economic engine. After two failed attempts to get funding to implement an arts space in the city’s inactive downtown area, the third was a success. Michigan City had a win, and Hulse said that’s all it took to spark hope again.

All of the economic disadvantages remained in Michigan City. There was still poverty. There was still a lack of funding and infrastructure. But now there was hope and a renewed interest. Properties were changing hands. New investments were being made. An economic transformation was starting from a small development and a large dose of commitment to not give up.

National Reach

By 2022, the economic development efforts of Michigan City were gaining attention on a national level. Hulse said the Local Initiatives Support Corporation, a national nonprofit that invests in under-served communities, and Brookings Institution, a think tank for solutions, approached the EDCMC about working together for an initiative. While the two organizations typically work with larger cities such as Indianapolis, Hulse said they were interested in working with a collaboration between Michigan City, Seymour and Warsaw, cities under 50,000 in population, to implement the same Community-Centered Economic Inclusive model they use in bigger cities. The goal was to identify issues in economic inactivity, unemployment, inequality and public safety issues in rural areas.

Through the collaboration, the Vibrant Michigan City initiative and playbook were developed. The platform is a three-year plan focusing on the West Side, Midtown and East Side areas of the city. The comprehensive playbook addresses economic opportunities, quality of life and quality of place. The book includes short-term and long-term strategies that can be adapted in other similar cities across the nation working towards positive economic change.

Insights from the Indiana playbook were included in the national playbook, “Advancing Inclusive Development in Rural Towns,” co-authored by the two national organizations and unveiled in Washington D.C. in late 2024.

Forward Momentum

Since starting the initiative three years ago, Vibrant Michigan City estimates over $582 million of capital investment and an additional $3 million in private capital has been pumped into the city through the development of residential housing and business space expansion and redevelopment. On the horizon is a proposed business park with a total projected investment of $31 million.

Karaline Edwards, Economic Development Manager for EDCMC, said one of the things that contributed to Michigan City’s growing success is the importance placed on effective communication and collaboration.

“I just think it’s good to make sure that you are also keeping your locals informed of what’s going on and involving them in the process. I think that’s something that we did really well and will continue to do well with Vibrant Michigan City,” she said.

Hulse said those long-term relationships – with community members, and partners at the federal, state, regional and local levels – are crucial in keeping the momentum going and the goals in clear view.

“You just can’t stay home and expect things to happen. You’ve got to go to conferences. You have to be telling your story,” he said. “In a small community, we don’t have the deep pockets. We don’t have the resources. So, we have to be more strategic. We have to be smarter. And we have to be more focused. And that’s where the hard work comes in.”