September Issue - 2007

   The Case for Warehouse/Distribution and Logistics
    by Marty Vanags, CEO

Traveling about the community and region, I often get asked about our ability to attract warehouse distribution companies to the area. The usual anecdotal evidence offered is the presence of three Interstate highways converging upon the Bloomington-Normal area. Good highways, a central location in the heart of the Midwest and plenty of developable land should bode well for the location of warehouse/distribution facilities, right? Well, the honest answer to this question is that we don’t honestly know. We (the EDC) are proposing to look at this more closely in the coming months, however, and hope that we can identify several issues and factors that will help us market the area to these would-be warehousing companies and distributors of products and goods.

Click here to read more...

Economic Development Priorities

Business Assistance, Retention & Expansion

Never fear, BizBAM man is here! Be sure to check the Pantagraph's B2B this month - BizBAM is the cover and feature article. The recent media event held at the Bank of Illinois was a success with stories carried by WJBC, WHOI and the Pantagraph. Thanks to those that participated!

C7 interviews are complete and mentor/protégé groups are formed.  We are still taking applications and can expediate the selection process for last-minute paticipants. Spread the word! For more information about C7, visit www.bnbiz.org/C7.asp.

For more information related to business assistance, retention and expansion, contact Chad Carson at (309) 452-8437 or chad@bnbiz.org.

 

New Business Recruitment & Development

While the EDC is actively pursuing new companies to come to the area, a heavier concentration of our efforts are on the development of a local small and medium-sized business infrastructure. If we are successful, it will become our attraction program. Business people talk among themselves, and the “buzz" created by our burgeoning local businesses and the environment we create become attractive and an important part of our strategy.

Aside from this strategy, we are doing several things to bring greater awareness to our area:

  • Managing the Central Illinois Development Partnership and implementing the group’s postcard marketing campaign has been driving people to its Web site (www.cidponline.com).
  • Attending professional real estate meetings like CoreNet Global in Chicago on a monthly basis is also benefiting us.  Ken Springer of our staff also recently attended an industrial development trade show in Oak Brook.
  • Careful ad placement in Midwest Real Estate News is also beginning to increase our “brand” awareness.

Marty Vanags, CEO, is responsible for this priority. Please call the EDC with any leads you may have regarding new businesses interested in Central Illinois.

 

Community Improvement

  • The EDC has received confirmation that the Normal Multi-Modal Transportation Center will receive funding in the state budget from Rep. Dan Brady in the amount of $275,000.
  • Christina, Chad and Ken recently met with Jeff Clawson, City Manager of LeRoy, Danvers Mayor Ron Roth and Heyworth Mayor Steve Crum to discuss current and future development.  A follow-up meeting is in the process of being scheduled with Mayor Roth and council member Tim McManaman to discuss funding opportunities for economic development projects in Danvers. 
  • Christina and Ken, along with Heather Paul of State Farm and Bruce Williams of Habitat for Humanity, met with Bloomington Alderwoman Karen Schmidt and leaders from the GAP and Old Town neighborhood associations to discuss potential redevelopment on the west side of Bloomington. In addition, proposals to study the redevelopment have been received from LISC consultants Teska Associates and Camiros. A meeting to discuss the proposals has been scheduled for September 18th. 

For more information relating to the One Voice Task Force, community outreach or government relations program, please contact Marty Vanags at (309) 452-8437 or mvanags@bnbiz.org.

 

Program Oversight & Investor Relations

The EDC is very aware of the tremendous trust our investors have placed in us. We have promised many great things, but in particular, we have promised jobs and capital investment.Currently, we have helped create and retain 278 jobs, leveraged $4.2 million in financing through the revolving loan fund and assisted three companies with the extension of the enterprise zone. By the end of the year, enterprise zone projects alone will end up creating over 500 new jobs and retaining at least 300 jobs. This is just a small part of what investors' dollars are working towards. There are other projects and initiatives that are being developed.

All of our work will be highlighted at our next Community Leaders Breakfast on November 8th at the Doubletree Hotel and Conference Center. Along with a dynamic challenge from our speaker, Laurel Managre, you will hear how the EDC is managing your investment. Don’t forget to mark your calendar right now for November 8th at 7:00 a.m. for our next update on our progress.

If you have questions about our reporting, the investment you have made or any other matter regarding this area, please contact Marty Vanags, CEO, who has functional responsibility for this area at
(309) 661-6332 or mvanags@bnbiz.org.


EDC Featured Service

1/3/5 Mile Demographics

The EDC has recently acquired software that allows us to generate demographics reports for custom radii in McLean County.  We can now take any point in the county and quickly generate summarized statistical readouts about population, economic factors, housing and social characteristics for a specified distance surrounding the chosen point.  The reports we create are very similar to those constructed by for-profit companies like Claritas and ESRI, both of which charge upwards of $70 per report.  The EDC is proud to offer this service to our investors at no cost.  Contact Ken Springer at (309) 452-8437 or ken@bnbiz.org to see sample reports or to answer any questions.

 

Investor Highlight

Franmar Chemical

Soy - not just a food substitute anymore. Evidently, it can be a chemical substitute as well. Franmar Chemical manufactures 100 percent biodegradable and recyclable soybean and corn-based products for the restoration and remodeling, asbestos removal, screen-printing, industrial cleaning, boating and consumer markets.

President Frank Sliney founded the company in 1983 in the kitchen of his Normal townhouse, with a mission of finding better ways to help clean up the world. For over two decades Franmar has been developing replacements for petroleum products that work better and are less harsh on the environment and the individual using them. Franmar's products are not only safer, but also help reduce high labor costs associated with using ineffective solvents and costs of the disposal of dangerous chemicals.

Some of the unique brand names chosen by Sliney include
Bean-e-doo adhesive remover, Kernel Clean surface and window cleaner, Ickee Stickee Unstuck Graffiti Remover and Soy Smooth hand lotion. Customers of the environmentally responsible products include government agencies and foreign restoration companies.

Franmar is a growing company in an industry that is seeing more and more exposure as environmentally-friendly products are becoming the preferred choice by consumers. The company's production business is long established in Bloomington-Normal, and we are excited to watch their soy and corn-based product growth, figuratively and literally!

To learn more about Franmar Chemical, visit www.franmar.com.

Featured Building/Site 
112B Southgate

This building is a former Lifeline facility, located right off of US-51, less than a mile from the I-74 interchange. It has a heated garage area, offices and conference areas. Zoned B-1, general commercial.  Tons of possible uses. Contact John Albee, (309) 665-0787.

Learn more about our building and sites locator.

Partner Profile 

City of Bloomington - Bloomington Center for the Performing Arts

What a great year it has been for the Bloomington Center for the Performing Arts (BCPA)! The Center, which celebrated its grand opening on September 16, 2006, has quickly become a major regional attraction. In its first year, the BCPA has welcomed over 74,000 visitors to more than 300 events. The events have attracted ticket buyers from almost 300 communities throughout Illinois. The BCPA has also been in high demand for area organizations that have booked everything from performances to holiday parties.

The BCPA is the main anchor of the Cultural District in the north end of Bloomington’s downtown, offering performing, visual arts and arts education facilities as well as additional green space and improved parking. Initial plans included a limited $3.5 million renovation of the Temple as part of a total $15 million project. In 2000, the City Council approved a ¼-cent sales tax increase to fund the project. That tax initially provided $1.5 million annually through 2010 to the District. In 2003, the City Council authorized an extension of the sales tax support to the Cultural District through 2025 to enable a larger scale project and the issuance of 20-year bonds to finance it.  In addition, $175,000 has been earmarked in the FY 08 federal budget for BCPA from Congressman Jerry Weller.

For more information regarding the BCPA, visit www.artsblooming.org.

*Information for this article was provided by the Bloomington Center for Performing Arts.

Upcoming Events 
Mark Your Calendars

Tue., Sept. 25:

Technology Master Plan Meeting - 2:00 p.m., Bank of Illinois Community Room

 

Thu., Sept. 27:

Community Development Corporation Advisory Board Meeting - 10:00 a.m., Bank of Illinois Community Room

 

   
Fri., Sept. 28:

Incubator Interim Board Meeting - 10:00 a.m., Bank of Illinois Community Room

 

   

Thu., Oct. 11:

EDC Executive Committee Meeting - 7:30 a.m., Bank of Illinois Conference Room C

 

   
Sat., Oct. 13:

Illinois State University Homecoming - visit www.ilstu.edu for more information on Homecoming activities.

 

   
Tue., Oct. 16:

Toastmasters Organizational Meeting - 5:30 p.m., Bank of Illinois Community Room. Come find out what Toastmasters is all about and how it can help you and your employees' communication and leadership skills.

 

   
Thu., Oct. 18:

Toastmasters Organizational Meeting - 5:30 p.m., Bank of Illinois conference room C/D. Come find out what Toastmasters is all about and how it can help you and your employees' communication and leadership skills.

 

   
Thu., Oct. 18:

EDC Full Board Meeting - 3:30 p.m., Bank of Illinois Conference Room C/D

 

   
In the Works  

Call for One Voice projects

It’s that time again! The One Voice Task Force is looking for projects to support for the FY 09 fiscal budget. In March, the OVTF will be going to Washington, D.C. to advocate for funding of our priority projects. Last year, three out of the four One Voice projects received federal and state funding requests. Those projects included: Normal Multi-Modal Transportation Center, the Bloomington Cultural District and the McLean County Business Incubator.

For a project to be considered it must meet the following criteria:

  • Formal request for funds to the federal or state legislators
  • Economic impact in McLean County
  • Improve the quality of life

All projects must be submitted to the EDC no later than November 1st, 2007. For more information, please contact Marty Vanags at mvanags@bnbiz.org or (309) 452-8437.

 

Uptown Normal offering walking tours

Beginning in September, there will be regularly scheduled walking tours of Uptown Normal on the first and third Wednesdays of each month. The tours will leave from the Uptown Renewal Office (108 E. Beaufort) at noon. Town Council and staff will be available on the tours to answer your questions. Tours are also available by appointment. For more information, contact Nora Dukowitz at
(309) 433-3420 or ndukowitz@normal.org.

 

EDC starting Toastmasters group

The EDC is starting a Toastmasters International group. At Toastmasters, members learn better communication skills by speaking to groups and working with others in a supportive environment. At each meeting, members give impromptu and prepared speeches and receive constructive evaluation from their peers.

Toastmasters helps employees give better sales presentations, improve their management skills, work better with other employees, effectively develop and present ideas, offer construction criticism and accept criticism more objectively.

The EDC will be holding two informational sessions: Tuesday, October 16 and Thursday, October 18, both at 5:30 p.m. at the Bank of Illinois. If you are interested in attending the meeting, please contact Brooke Weishaupt at (309) 452-8437 or brooke@bnbiz.org. To learn more about Toastmasters, visit www.toastmasters.org.

 

Twin Groves construction update

Twin Groves Wind Farm, Phase I
The last turbine was commissioned on May 22, 2007 and Twin Groves I became fully operational. Horizon Wind Energy is in the process of reducing the number of lights on the turbines from 86 lit turbines to 25. An Avian Mortality Study will begin in the fall after harvest and will take one full year.

Twin Groves Wind Farm, Phase II
Thirty-seven of 120 turbine foundations have been poured, and access roads are 45 percent complete. The second phase will have its own project substation - the underground conduit is 38 percent complete, foundations are 95 percent complete, grounding cable is 40 percent complete and steel erection is 80 percent complete. There are 27 complete towers on site, and components are being received everyday. Fourteen of the turbines have been erected.


The Case for Warehouse/Distribution and Logistics (continued) 

The EDC is involved with a regional economic development effort called the I-39 Logistics Corridor. This corridor encompasses 10,000 square miles and spans 165 miles from Janesville, Wisc. on the north to the terminus of the highway here in Bloomington-Normal. In 2005, the I-39 Logistics Corridor studied this area, identified its assets and developed an analysis to determine the likely users and providers of logistics services that could be targeted for recruitment for prospective sites in the corridor. The study was conducted by the St. Onge Company. Here are some of the findings pertinent to the Bloomington-Normal area that address logistics, warehouse/distribution and allied industries:

  • The Chicago National Transportation Analysis Region (NTAR), which includes the Bloomington-Normal area and Peoria, is a major transportation service of all types.  Shipping and receiving in excess of 1.15 billion tons, this NTAR dominates Midwest cities competing as logistics and distribution centers.
  • Despite capacity constraints, Chicago is consistently rated in the top 50 areas, or “5 Star,” for its logistics quotient. The most recent ratings find Chicago fourth, Rockford 84th and Peoria 53rd. Bloomington-Normal was rated 112th.
  • The infrastructure for logistics integrated with I-39 is extensive and interconnected for both domestic and international commerce. I-39 has the distinct advantage of being the only Interstate connecting the northern cluster of Interstates (I-90, I-94, I-80, I-88) with the central cluster of Interstates (I-74, I-55, I-70, I-57, and I-64). The I-39 logistics corridor is one of the most interconnected areas of the country.
  • International trade will continue to grow, and that will fuel future growth in containerized intermodal shipping. The region itself is the sixth largest population center for imports and exports. Worldwide GDP is expected to grow every year by 3 percent until 2023. Related logistics will grow accordingly.
  • The CenterPoint Intermodal Center (in Will County) provides a logistics capability as a GlobalTrans Center. GlobalTrans Center represents a mega trend in logistics and supply chain management. Global III (Rochelle) is similarly positioned. The I-39 Logistics Corridor is strategically positioned to service users of both intermodal centers.
  • In the region, major highway infrastructure improvements are needed due to road conditions, congestion and lack of intermodal connectors.
  • The Chicago area has many roadways that need rehabilitation. Fifty-three percent of roadways in Chicago are in poor or mediocre condition. Ninety-six percent of the state highways and 85 percent of the Interstate highways have exceeded the 20-year design cycle. State and local highways in the region are similarly affected.
  • Congestion is a major problem for the Chicago area. Congestion will dramatically impact the productivity of the freight system. Companies are increasingly factoring this into their location decisions. Truck flows to and from Illinois are forecasted to be highly congested in 2020.
  • The mean population center of United States is located in Edgar Springs, Missouri. The median center is located in Indianapolis. The implication of this is that Midwest locations are increasingly attractive as distribution center locations.
  • Single and dual distribution center networks that are national in scope are not cost-appropriate for the I-39 corridor. Three or more distribution center networks align well with the node. The greater number of distribution centers in the network, the more likely the I-39 corridor is an appropriate location  to form a transportation network.
  • Labor costs in the I-39 corridor are competitive or better than locations with high congestion.
  • The addition of fiber optic cable along the corridor would position the corridor to deal with the evolving network needs of prospective clients for high- speed transmission of voice, video, multimedia and data.

This report has much data and information and has a bias towards locations north of LaSalle County and the highway network located in that area. The fact that the two largest intermodal hubs are located in that area and a majority of Illinois’ population lives there would lead us to expect this. The study has enough data to give us guidance in marketing our area to major users of containerized shipping, third party logistics providers and a wide variety of companies that have a base of consumers and users of everything from aerospace and defense parts to computers to apparel and footwear to consumer electronics.

Over the next several months we will begin the process of developing our strategies in this endeavor. Hopefully, we will plant the seeds of tremendous growth over the next several years in the area of warehouse/distribution and logistics and grow this important part of our economy.

 

Economic Development Council
of the Bloomington-Normal Area

200 W. College Ave., Suite 402
Normal, IL 61761
(309) 452-8437
www.bnbiz.org

 

The Case for Warehouse/Distribution and Logistics

Economic Development Priorities
  • Business Assistance, Retention & Expansion

  • New Business Recruitment & Development

  • Community Improvement

  • Program Oversight & Investor Relations

EDC Featured Service

  • 1/3/5 Mile Demographics

Investor Highlight

Featured Building/Site

  • 112B Southgate

Partner Profile

  • City of Bloomington - Bloomington Center for the Performing Arts

Upcoming Events

In the Works

  • Call for One Voice projects
  • Uptown Normal offering walking tours
  • EDC starting Toastmasters group
  • Twin Groves construction update