Inside this issue The Broadband Initiative 21st Century Jobs Training Initiative Mitsubishi Task Force Meeting Held Town of Normal Press Release - Mitsubishi - 12/29/04 Rural Economic Development Program Is Available Retail Sales McLean County Gains Small Business Development Center Governor's Workforce Investment Act Grant Update

The Broadband Initiative - top of page
By Marty Vanags
Executive Director

The EDC is working with a large number of local institutions and companies on the development of a Broadband Strategy for the local community. What is broadband? And what do we need a strategy for? Broadband commonly is considered a transmission facility having a bandwidth sufficient to carry multiple voice, video or data channels simultaneously. Each channel occupies (is modulated to) a different frequency bandwidth on the transmission medium and is demodulated to its original frequency at the receiving end. The Federal Communications Commission (FCC) does not specifically define broadband, but uses the term "advanced telecommunications capabilities" to describe servicing facilities with an upstream (customer-to-provider) transmission speed exceeding 200 kilobits per second (kbps). More specifically, the FCC defines broadband as "a new generation of high-speed transmission services, which allows users to access the Internet and Internet-related services at significantly higher speeds than traditional modems. It has the potential capability to meet consumers' broad communication, entertainment, information and commercial needs and desires."

Some of you may have Digital Subscriber Lines (DSL) in your business or a cable modem at home. While many will call that broadband, real broadband is many times more robust and faster than the speeds we currently enjoy. Imagine having Internet access at tremendously high speeds, along with access to live feeds of news around the world and the ability to talk on the phone, all from the same strand of cable at your business. Imagine your doctor having all of your medical information available to him or her, as well as data regarding the latest in diagnostic data, practices and medical research. Imagine your doctor being able to send a digitized copy of your x-ray or MRI to an expert in another community for his or her opinion in a matter of seconds. Manufacturers could share drawings, specifications and manufacturing practices via broadband to enhance their processes and sales.

This industry and technology is changing fast. Many communities are developing broadband projects to become more competitive for jobs and to enhance the quality of life. On November 4th, the EDC took the leadership role by pulling together governmental leaders, administrators, technology directors of our educational institutions, medical leaders and large businesses to talk about what a broadband network would look like, operate and do for the Bloomington Normal community and McLean County.

For the EDC a broadband network is another tool we can use to attract new business and help enhance the prosperity of existing businesses and institutions. A broadband network:

• Is ubiquitous - It serves a greater population than is being served. It helps with the problem of the "digital divide."
• Provides enhanced services - VoIP, Video, Distance Learning.
• Improves the tax base by adding value to the community through increased business growth and job creation.
• Influences and enhances competition among private providers.
• Can provide improved government information technology integration and enhanced e-government potential
• Provides security for the community by enhancing homeland security as well as local security.
• Can lower costs of doing business.

The EDC Initiative will look at several things as we move forward. Our primary mission will be to increase economic development and quality of life through a cooperative community-based telecommunications infrastructure. We will work with the community and the businesses in the community to attempt to reach these initial goals:

1. Lower than commercial costs for broadband to "small" businesses, startups and incubators. The goal is to stimulate job growth among existing small companies and to attract or grow new businesses.

2. Lower costs and universal access for all local schools. The goal is to improve quality of life in hopes of attracting quality workers - long term benefit of better prepared local workforce through improved schools.

3. Free Internet access to disadvantaged individuals. The goal is to improve quality of life and to improve the local workforce.

4. Broadband access to rural communities and individuals. The goal is to further develop and improve the agricultural base and also to allow more telecommuting to attract certain types of knowledge workers/businesses.

5. Create community/region planning process for technology/communications infrastructure. The goal is to continually monitor and improve this based on technological advancements, environmental opportunities and needs recognition.

Additional information about our efforts can be found at http://bntech.blogspot.com/.

21^st Century Jobs Training Initiative: The Employer Training Investment Program - top of page

The State of Illinois is sponsoring the Employer Training Investment Program (ETIP) through the Department of Commerce and Economic Opportunity (DCEO). This grant program is designed to aid businesses upgrading employees' skills with new technology and business practices. The grants may reimburse the companies up to 50 percent of the training costs. Locally, Heartland Community College provides training services under the ETIP program.

Single Company Training Projects-Large Company Component (250 or more full-time employees)
Situations under which an individual company may apply for a grant include: executing a major retention, expansion or location project in the state; a major capital investment in new equipment or technology; specialized or customized training needs not shared with other area companies; etc.

Multi-Company Training Projects-Large Company Component
An intermediary organization that conducts or sponsors an employee training program for multiple companies may apply for grant funds and coordinate all grant administrative and training evaluation reporting functions on behalf of the companies involved. Intermediary organizations include business and industry associations, higher education institutions, large manufacturers for supplier network companies, labor organizations and strategic business partnerships.

Single Company Training Projects-Small/Mid-Sized Company Component (less than 250 full-time employees)
Individual companies carrying out on-site training programs may apply for a grant if they are: expanding the business enterprise in Illinois, expanding into new markets, introducing more efficient technologies/continuous improvement systems, expanding exports in Illinois and providing additional training to employees who will be threatened with layoff.

Multi-Company Training Projects-Small/Mid-Sized Company Component
This component includes the same aspects as the Large Company Component, except that the majority of the companies participating in the project must have less than 250 employees.

For more information, please contact the EDC at (309) 661-6332.

Mitsubishi Task Force Meeting Held - top of page

The Mitsubishi Task Force held its third meeting since the announcement by Mitsubishi last summer to lay off up to 1,200 employees at the Normal plant. The meeting, held at the plant, was highlighted by a very informative presentation by associates with the Center for Automotive Research (CAR). Mr. Kim Hill and Mr. Bernard Swiecki, research associates at the center's Automotive Communities Program (ACP), gave a presentation on the auto industry in North America and the role Mitsubishi has played and could play in the future.

CAR has, with assistance from the Mott Foundation, created a non-profit, community-industry partnership, the ACP, to link the major traditional centers of automotive manufacturing activity. The general purpose of the ACP is to provide impartial research and informational assistance to the automotive communities across the upper Midwest and Ontario. Currently, the program provides assistance to nearly 40 communities. The program brings together representatives from automotive manufacturing and supplier firms with communities to better understand the community/industry dynamic and the industry's competitive issues, along with examining public policy issues which affect future automotive investment across the region.

The EDC is leading the effort to educate and inform community leaders and other interested parties regarding the Mitsubishi plant and its recent layoffs. We feel the ACP group will provide a most informative and educational program that will benefit everyone and assist us in developing a long term strategic plan in dealing with Mitsubishi issues.

The ACP representatives left behind several studies that are available to the business community, as well as a copy of their PowerPoint presentation. These studies include:

"The Auto Industry Moving South: An Examination of Trends" by Kim Hill and Emilio Brahmst-December 15, 2003.

"The Market Renewal of Major Automotive Manufacturing Facilities in Traditional Automotive Communities" by Sean P. McAlinden, Ph.D. and Kim Hill, MPP- August, 2003.

Over 30 community and business leaders attended the meeting at Mitsubishi. For more information about the Center for Automotive Research and the Automotive Communities Program please visit http://www.cargroup.org/.

Town of Normal Press Release - Mitsubishi - 12/29/04 - top of page

Normal Mayor Chris Koos announced today the creation of a regional taskforce of government and business leaders to help Mitsubishi Motor Manufacturing of North America return to full production and full employment at its assembly plant in Normal.

"In light of the recent layoffs, I'm convinced this community cannot afford to sit on the sidelines and let anymore decisions affecting future production and employment at the Normal plant be made without our active involvement or input," said Mayor Koos, who is spearheading the effort and was joined at the announcement by mayors and council members representing Bloomington, Normal, Peoria, Pekin, Morton, East Peoria, Washington, Rantoul, Clinton, LeRoy, El Paso, Lexington and Downs. "We need to be a in a position to ask Mitsubishi: what can we do to encourage reinvestment?"

The taskforce will request meetings with Mitsubishi officials in California and, possibly, Japan; hire automobile industry experts as advisors; and network with other Midwestern communities facing similar issues.

In just 18 months, Mitsubishi has gone from undertaking a major plant expansion and creation of 300 new jobs to completing the company's largest layoff of more than 1,000 workers.

At a recent meeting held at the Mitsubishi plant, which was sponsored by the Economic Development Council of the Bloomington-Normal Area (EDC), a number of area government and business leaders received a briefing from the Michigan-based Center for Automotive Research (CAR), a non-profit research organization that studies important trends in the automotive industry. CAR's research indicates that every single job in an automobile assembly plant creates another 9.4 jobs in the national economy.

At full employment, the local Mitsubishi plant results in the creation of more than 30,000 jobs, many of those in the Central Illinois region. "That is why, as a community, we must do everything we can to help return our local plant to full production," said Mayor Koos, who has notified local Mitsubishi officials about the new taskforce and its mission.

Mayor Koos has asked the EDC to take a lead role in organizing and managing the activities of the taskforce, which will involve federal, state and local government officials and business groups.

"I plan to lead a delegation of Central Illinois community leaders to meet with Mitsubishi officials in California, and, if necessary, to Tokyo to offer the support and assistance of our communities, as well as our state and federal government to ensure reinvestment in the Mitsubishi plant in McLean County and to return the plant to full production and full employment," Mayor Koos said.

The Normal Town Council will get the ball rolling next Monday night when it will approve a $30,000 contract with CAR, which also specializes in helping communities mount strategies to assist automakers, preserve jobs and attract new investment. Mayor Koos indicated that he will raise up to half of the total contract cost from other sources, both government and business, throughout Central Illinois.

The new regional taskforce will also become a member of an organization called the Automotive Communities Program (ACP), a coalition of nearly 40 automotive communities located in the upper Midwest and Ontario. ACP members meet regularly to share ideas pertaining to automotive manufacturing investment and retention.

Mayor Koos said current worldwide economic conditions are favorable for automotive investment in North America, and he pointed to a recent example in the automotive industry to prove that a corporate turnaround is possible.

"Nearly five years ago, Nissan was in a similar position," said Mayor Koos. "Today Nissan's fortunes have reversed. They trail only Toyota, GM and Ford in world market share. With a new Eclipse model under development and the upcoming launch of the new Raider pick-up truck, there's no reason that Mitsubishi can't experience the same turnaround."

For more information, contact Normal Mayor Chris Koos or City Manager Mark Peterson at (309) 454-9577.

Rural Economic Development Program Is Available - top of page

In October, the U.S. Department of Agriculture announced the establishment of the Rural Economic Development Loan and Grant (REDLG) Program. The program is designed to promote economic development in rural areas by creating more jobs through zero-interest loans and grants. The program also allows the USDA to guarantee up to $3 billion bonds or notes of not-for-profit lenders for up to 20 years when the proceeds are used for electric and telecommunications loans. Examples of projects that have benefited from this program include fire trucks, libraries, health facilities and industrial parks.

For more information on this program and others, visit http://www.rurdev.usda.gov/.

Retail Sales - top of page

Retail Sales-What are the experts saying about retail sales this final month of the year? I have taken quotes from the following sources to provide you with a snapshot of what the experts are saying:

Kiplinger's Forecast Online: "Overall holiday sales gains will probably fall a bit short of last year's 3% increase and will certainly pale in comparison to the 6% holiday gain that retailers had hoped for as late as June of this year. Strong monthly sales advances in the first half of 2004 raised hopes for the holiday period to come, but optimism has faded. See http://kiplingerforecasts.com/ (requires a subscription).

From the International Council of Shopping Centers (ICSC) Annual New York City Show: A host of new tenant concepts and pockets of increasingly wealthy demographics will drive demand and rental rate growth in 2005, said Bernard J. Haddigan, managing director of Marcus & Millichap's national retail group. "2005 through 2010 will see renewed job and population growth."

From ICSC December 3, 2004 Retail Conditions Report: Upward Trend in Shopping-Center Construction Spending Continues: Total Construction put-in-place spending grew 7.1% in October on a year-over-year basis, but was outpaced by shopping-center construction spending (new and renovations), which surged 21.9%.

From the same report: ICSC's Chain Store Sales Trends: Industry comparable-store sales posted a disappointingly weak 1.7% year-over-year increase in November. This was the second weakest monthly performance this year following August sales, which rose 1.3%. As a result of the lower than expected November performance, we are lowering our holiday season sales forecast for November-December to between 2.5% and 3.0% growth.

Visit the ICSC web site at http://www.icsc.org/.

McLean County Gains Small Business Development Center - top of page

The McLean County Small Business Development Center will be located within Illinois State University's College of Business. The SBDC will be a place where local entrepreneurs can obtain business counseling, training and professional development information on issues such as technology, marketing strategies and business plans. Applications for a director of the Center are being reviewed.

The Illinois Department of Commerce and Economic Opportunity is providing the SBDC with $75,000 each year for three years. Other organizations funding the SBDC include: Bank of Illinois, Commerce Bank, Corn Belt Energy, the Economic Development Council of the Bloomington-Normal Area, First State Bank of Bloomington, the McLean County Chamber of Commerce, National City Bank, NICOR, the Pantagraph, State Farm Insurance and Verizon.

For more information, contact Marty Vanags of the EDC at (309) 661-6332 or Dr. Dixie Mills of ISU at
(309) 438-2251.

Governor's Workforce Investment Act Grant Update - top of page

Mr. Gary Cicciu, Vice President of Career Link, has provided the EDC with an update regarding a recent grant provided by the State of Illinois in response to layoffs in the area.

Of the $1.3 million allotted (rather than $1.5 million as originally expected), $200,000 was given directly to Peoria and other Workforce Investment Act (WIA) Regions. A grant was awarded to the United Workforce Development Board (UWDB) to use as a supplemental grant for all its dislocated workers, including Mitsubishi workers, in the four-county area of Fulton, Mason, McLean and Tazewell. The distribution of this money is just one of the strategies that the Governor is using as part of his "Opportunity Returns-Creating more jobs for today and tomorrow" initiative.

In general, this grant is to be used for assisting in the re-employment of dislocated workers (people who lost their jobs due to downsizing or closing of a company) in our WIA Region. Some of these activities include: hiring of additional staff in order to assist people looking for a job; assisting people who are looking for training, which must be approved by the State and the local Workforce Investment Board, and acquiring the additional space needed to conduct workshops and assess and test people for other possible careers.

The number of people attending the workshops and signing up for workshops and seminars has been very positive. So far, just counting MMNA dislocated employees at the Transition Center and the Illinois Employment and Training Center, there have been over 300 people attending workshops, applying for training and getting general information. The Center currently has about 80 MMNA dislocated employees scheduled for training.

In order to do this in a timely manner it takes the cooperation of many people, both locally and at the state level. The UWDB's partners in this effort are the staffs of the Department of Commerce and Economic Opportunity, the Illinois Department of Employment Security, Heartland Community College, Illinois Central College, Spoon River College, Illinois State University, AFL-CIO Membership Assistance Program and a variety of outside training institutions. They have also had the support of the community through donations and loans of equipment and furniture.

For more information, contact Gary Cicciu at (309) 827-4026.