Evansville Handles Recession Well but 10 Year Growth Reflects Population Shrinkage

The Evansville MSA ranked #117 of the 363 studied in the category of Gross Metro Product

Evansville’s Average Annual Growth Rate of 4.1% over a period of 10 years ranked #187 of the 363 metro areas studied. Surprising to some Evansville’s MSA ranked ahead of Lexington, Louisville, Indianapolis, and Chattanooga in this statistic that reflects improvement in productivity. Ranking in the last 5 are the rust belt cities of Kokomo, Flint, Saginaw, Detroit, and Springfield, OH.

Real Gross Metro Growth Rate from 2007 – 2009 had Evansville ranked at #201 with a -1.6% rate. A surprise local success story was Owensboro, KY that cam in at #56. Elkhart, IN ranked dead last at #363.

The 10 year employment change for the Evansville MSA was -3.8% reflecting the loss of population of the City of Evansville. The question is did these people leave because jobs went away or did the jobs go away because the people left?

The entire study is available at the following link.

http://www.usmayors.org/metroeconomies/2011/report.pdf

Conference of Mayors Predicts Evansville Recovery in 2013, other Hoosier Cities to take over 10 years

In Indiana, metro areas slated for a return to peak employment after 2020 include: Anderson, Elkhart-Goshen, Kokomo, Michigan City-LaPorte, Muncie, South Bend-Mishawaka and Terre Haute. Those metro areas are all predicted to recover the jobs lost in the recession beyond 2021.

An economic report from the United States Conference of Mayors estimates seven metro areas in Indiana will not return to pre-recession job levels for at least another ten years.

Other Indiana metros:

Indianapolis-Carmel, IN 2007 Q4 – Return 2013 Q2
Fort Wayne, IN 2007 Q1 – Return 2015 Q2
Evansville, IN-KY 2005 Q4 – Return 2013
Q1 Bloomington Peak in 2008 Q2 – Return: 2014
Q1 Chicago-Joliet-Naperville, IL-IN-WI (includes Gary) 2008 Q1 – Return 014 Q3
Cincinnati-Middletown, OH-KY-IN 2008 Q1 – Return 2014 Q4 Columbus 2008 Q2 – Return 2017 Q2 Lafayette, IN 2008 Q4 – Return 2013 Q3

June 20, 2011

U.S. METRO ECONOMIES | JUNE 2011
GMP AND UNEMPLOYMENT FORECAST

Key Findings

National Economic and Job Projections

• The report projects economic growth of 3.5% for the second half of the year, after 1.9% growth in the first half.

• Debt ceiling negotiators need to bear in mind that although the economy needs a credible long‐term deficit reduction plan, it does not need an immediate dose of austerity. Aggregate demand is too fragile.

• Job growth in 2011 will reach just 1.2%, only a bit higher than underlying labor force growth, resulting in an unemployment rate that only slowly retreats from its current rate of 9.1%.

• Unemployment will end 2011 at 8.6%, and not fall below 8% until late 2013.

• Only in the first half of 2014 will employment in the U.S. match its previous peak level of early 2008. Gross Metropolitan Product (GMP)

• In 2010, U.S. metro economies accounted for 89.8% of the nation’s gross domestic product and wage income, and 85.7% of all jobs—slightly down from 2008, but still the overwhelming majority of domestic product and wage and salary disbursements.

• New York metro ranked first with a 2010 GMP of $1.28 trillion, followed by Los Angeles ($738 billion), and Chicago ($531 billion)

• Following consecutive years of decline in 2008 and 2009, total real GMP increased by 3.1% in 2010, with 347 (out of 363) metros experiencing increases—a stark contrast to the previous year’s performance when 280 metropolitan areas saw it fall.

• Houston (7.6% real GMP growth), Oklahoma City (7.5%) and El Paso (7.2%) lead the nation’s 100 largest metros in real GMP growth in 2010. State and International Economic Output Rankings

• New York’s metro economy, when compared to nations, ranks as the 13th largest economy in the world; Los Angeles ranks 18th; and Chicago ranks 21st.

• Of the 100 largest economies in the world, 37 of them belong to metropolitan areas of the United States.

• Output from the metros of New York, Los Angeles, and Chicago was greater than that of 44 other individual states, and the combined production of the 10 highest grossing metros is greater than that of the combined 36 smallest states.

Metro Area Unemployment

• Through April 2011, double‐digit unemployment rates persist in 103 (28%) of the 363 U.S. metro areas. This number is down from 150 (41% of all metros) a year ago. 33 metros currently have rates higher than 12%, half the total of 66 from the same time last year.

• By the end of 2011, 75 metros will have double‐digit unemployment rates, and 193 metros (53%) will have rates higher than 8%.

• Most metro areas will suffer persistently high unemployment beyond 2011, many of which will continue with high rates into the middle and latter part of the decade. At the end of 2007, prior to the recession, only 50 metro economies had jobless rates above 6%. However, by the mid‐point of the decade (2015), we expect 198 metros (55%) to still be suffering unemployment above the 6% mark, with 61 metros still above 8%, and 13 metros above 10%.

• At the end of 2012, 311 metros will have unemployment rates above 6%; 173 metros will have rates above 8%; and 69 metros above 10%. Return to Peak Employment

• The vast majority of employment gains the U.S. will experience in the coming years will be provided by metro economies. In 2011, metros will add more than 1.2 million jobs, and comprise 86.4% of all new jobs in the U.S. through 2015.

• By the close of 2014 over half of the metro areas will have returned to their previous peak employment level.

• Forty‐eight metros are not expected to return to their peak employment during this decade.

• Not only are many metro areas struggling to climb their way back to their pre‐recession peak employment, 166 metros (46%) have suffered net payroll losses between the second quarter of 2001 and the second quarter of 2011.

Source: United States Conference of Mayors

IS IT TRUE that the City County Observer has still not been contacted by the City of Evansville Department of Metropolitan Development regarding the two Freedom of Information Act requests that were due us on June 16th?…that DMD is now 5 days into being in violation of Indiana Public Access laws?…that we have been contacted by people who say this is not the only time that DMD has blatantly ignored these laws?…that we have been contacted by several people advising us on exactly how to turn the heat up by seeking a delinquency ruling against DMD?…that when they are found to be in violation that the penalty will be to turn the documents over AND to pay any legal fees incurred by the CCO to obtain the ruling?…that would truly be a waste of taxpayer’s money and the easy way out is to just cough up the documents right now?

IS IT TRUE that Roberts Stadium has been given a chance by executive decision of Mayor Jonathan Weinzapfel?…that after sitting back, seeing all of the responses to the August 3rd trial balloon that was floated last week, reviewing the legal damages that could be awarded to SMG by shutting Roberts Stadium down on August 3rd, that Mayor Weinzapfel reached the only logical decision possible?…that decision is to allocate some funding in next year’s budget for the next Mayor of Evansville to deliberate and make the final decision on the Future of Roberts Stadium?

IS IT TRUE that it has been suggested that any decision about public money or a sweetheart deal for public land with regard to the recently approved POLE BARN INDOOR TENNIS CENTER may be more appropriate for the NEXT MAYOR as well?…that Mole #357 tells us that there is some resentment within private businesses that are in the sporting world who have not been given any sweetheart deals of public money and public land?…that we shall keep our feelers out on this one?

IS IT TRUE that Roberts Stadium by virtue of Mayor Weinzapfel’s decision just became a front and center election issue for this year’s City of Evansville elections?…that Republican candidate for Mayor, Lloyd Winnecke is on record as stating that discussions should already have been started but that it is not a candidates place to hold such meetings?…that Democratic candidate Rick Davis has repeatedly stated that he wants to fully examine how to get the most value out of Roberts Stadium?…that Roberts Stadium as an issue is not off limits to candidates anymore?…that both candidates should be working to formulate a plan for Roberts Stadium and should express their leanings in a more than platitudinal way before the November election?…that this is a chance to prove yourselves guys?…that we await each candidate for Mayor and even ideas from the candidates for City Council?…that Mayor Weinzapfel gave them all a license to think yesterday?

IS IT TRUE that we are somewhat mystified that News 25 was still running a piece at 10 o’clock last night about Dan Schall’s recommendation that Roberts Stadium be shut down on August 3rd after Mayor Weinzapfel’s decision was made public?…that we are beginning to wonder if Mr. Schall and the Mayor ever talk to each other?…that the Mayor’s decision put an end (we hope) to one of the most surreal weeks of any decision making process in recent memory?…that this does not seem to have been SNEGAL, but it surely does seem haphazard?

IS IT TRUE that it is not just the Jehovah’s Witnesses and the Evansville Icemen who are having some reservations about making the new Arena their home?…that Mole #357 tells us that the popular charity even Guns and Hoses is feeling sticker shock at the amount of rent that is being asked to use the new Arena for their event?…that Mole #357 has alleged that the price for the new Arena for a one night stand is triple that of Roberts Stadium?…that we are not surprised as the cost of the new Arena is about triple the estimated value of Roberts Stadium?…that this cost differential is a very good reason to keep both venues open for a while and to see how they can work together?…that we do not want to lose some of our legacy events and conventions because of price?…that Roberts Stadium has coexisted with the Coliseum for its entire life, that Evansville has enjoyed appropriate events in both venues, and that the Roberts/Arena combination can work too?

IS IT TRUE? June 20, 2011

IS IT TRUE that the City County Observer just had its second highest week ever for readership?…that the highest week was as expected the week of the 2011 primaries for the City of Evansville elections?…that we continue to climb in both Alexa.com and trafficestimate.com rankings?…that the number of people that are making the CCO a regular part of their day is steadily increasing?…that the statewide online publication Inside Indiana Business and the CCO have been consistently ranking similarly for the last couple of months?…that this is what we set goals to do a year ago when professional planning and daily publishing was being committed to?…that the CCO will be celebrating an anniversary in July?…

IS IT TRUE that insiders with financial savvy know that there is not sufficient information in place to make an informed public disclosure regarding the impact of bond underwriting if consolidation is passed?…that to even take such an action to a vote without sufficient numbers in place to inform the public of how such a merger could affect the coming increase in municipal utility rates is irresponsible?…that a full analysis needs to be conducted that includes the implementation of the EPA mandated improvements to the sewer system so that both the residents of the City of Evansville and Vanderburgh County will have some knowledge about how consolidation will impact their household budgets?…that absolutely NO SIGNIFICANT FINANCIAL SAVINGS have been identified by the consolidation committee, the Evansville City Council, or the Vanderburgh County Commissioners YET?…that this is beginning more and more to look like a faith based arranged marriage?…that as they say across the money saving bridge “THAT DOG DON’T HUNT”?

IS IT TRUE that both Republican Mayoral Candidate Lloyd Winnecke and City Council candidate E. Lon Walters have published position papers on the subject of JOB CREATION?…that both candidates are now on written record with the position that the formation of some INVESTMENT FUND so that Evansville money can back Evansville entrepreneurs?…that the City County Observer wholeheartedly agrees with these two gentlemen and hope to see other position papers coming forward in the near future?…that in a SWOT analysis that was conducted and included in 2000 that one of the weaknesses cited was the fact that there was NO INVESTMENT FUND IN EVANSVILLE?…that seven years later when another SWOT analysis was done in 2007 as part of the Wired Initiative that there was NO INVESTMENT FUND and that once again this fact was stated as a WEAKNESS and a THREAT?…that now four years later there is still NO INVESTMENT FUND IN EVANSVILLE?…that if a SWOT analysis were done again in 2011 that it would still be cited as a WEAKNESS and a THREAT?…that it should have been a STRENGTH and OPPORTUNITY by now?…that at least two candidates for office GET IT, that the business community at large seems to GIVE IT LIP SERVICE, and that the entrepreneurs who have BRAIN DRAINED to other places during the last 50 years certainly know it?…that we certainly hope that the newly stated awareness of the importance of INVESTMENT CAPITAL in the JOB CREATION EQUATION does not go on ignored by the wealthy of Evansville?…that as much as politicians need to support the concept of an Investment Fund and even purchase some shares in it with Public Money, that there is absolutely no place in the decision loop for private investment for political initiatives of any kind?

IS IT TRUE that people from all over Indiana and even in the Evansville community believe that there is sufficient wealth in this area to form an INVESTMENT FUND?…that either that perception is incorrect or that the people of wealth in Evansville prefer not to invest in Evansville talent?…that it is hard to make a justifiable case to an outside investor the Evansville is a good place for them to invest if local dollars are not made available to local businesses?…that the slogan to form an INVESTMENT FUND needs to be “If Evansville will not invest in itself, why would any outsider invest in Evansville”?

IS IT TRUE that the City of Evansville Department of Metropolitan Development responded to the City County Observer’s Freedom of Information Act request letter dated 5/19/2011 with a letter in which they stated under the signature of Shannon Begeman, Keeper of Records that DMD would make the requested records available to the CCO on or before 6/16/2011?…that 6/16/2011 has now passed and the CCO has not received any response from DMD?…that 6/16/2011 was the absolute longest time period allowed by Indiana’s Access to Public Records Act I.C.5-14-3 et seq to respond?…that taking every minute allowed by law while legal purposefully withholds information for the longest period allowable which raises suspicion that the contents of the documents will not cast good light on the City of Evansville?…that today the DMD is in violation of the Freedom of Information Act?…that we hope that this was oversight that is corrected today?…that we will make every attempt to reach Ms. Begeman today to retrieve the records requested?…that we invite Ms. Begeman to contact us first to arrange for us to get these records?…that she may do so by the means described in the Contact Us header on this website?

FOIA Response from DMD: Convention Hotel Documents

FOIA Response Letter: VenuWorks Contracts

IS IT TRUE that the information that we requested on a standard letter of request under the Freedom of Information Act was a) all correspondence, contracts, and agreements between Woodruff Hospitality/Kunkel Group and the Evansville Redevelopment Commission/City of Evansville, and b) all correspondence, contracts, and agreements between VenuWorks and the Evansville Redevelopment Commission/City of Evansville?…that we have no nefarious purpose in obtaining these documents but do believe that the citizens of Evansville have a right and even a need to know what the real contractual facts are regarding these important deals that we all will be asked to financially support?…that extension after extension of contracts that are not disclosed as has been done with the McCurdy Hotel does not give a good impression of the ability of the City of Evansville to make business deals that have the desired outcomes?…that we want to do whatever is possible to fully inform the citizens of Evansville about THEIR BUSINESS?

IS IT TRUE that we do not know what the penalty is for a city that refuses to respond to a Freedom of Information Act request?…that unless the City of Evansville DMD is technically already in violation?…that if this violation is not cured in short order that the City of Evansville will be finding out what the penalties and inconveniences are for violating the Freedom of Information Act?

IS IT TRUE that several members of the Evansville City Council are being stonewalled about requests for information that they have made?…that the duration of the stonewalling already exceeds the 21 day limit of a formal FOIA?…that members of the city council should not be forced to make a formal FOIA request to be granted access to the business contracts and agreements that they are the legislative body in charge of?...that the CCO offers to craft any FOIA letter needed for members of the Evansville City Council who are being denied access to pertinent information?…that we will do this FREE?

IS IT TRUE that it has now been 1,511 days since the announcement was made on May 14, 2007 that the McCurdy Hotel was to be refurbished into luxury apartments?…that it has now been 1,364 days since the Evansville Redevelopment Commission at the request of Mayor Weinzapfel approved the spending of $603,000 to purchase the parking lot?…that City Centre Properties and Scott Kosene the developers of the McCurdy project are both listed as contributors to the Weinzapfel for Mayor committee for 2010?

IS IT TRUE that there are now 498 days remaining in the two years that the EPA had given the City of Evansville to present an acceptable solution to the Combined Sewer Overflow problem?…..that this plan is an expensive and complex endeavor that needs immediate attention to avoid the embarrassment and expense of another round of fines?

All Relevant Position Papers for all Candidates will be Published without Edit or Bias

The City County Observer would like to extend the courtesy of publication to all candidates for the 2011 City of Evansville election. The criteria for publication is that the topic should be of relevance and interest to the voters of Evansville. We will not edit the length of any position paper and will not create any headline or subtitle that may bias the content of any candidate.

The kinds of topics that we are interested in are things like jobs, the economy, general improvements, smoking ordinances, the McCurdy, the downtown Hotel, Roberts Stadium, public works projects, tax abatement policies, the greening of Evansville, reversing brain drain, crime prevention, etc. etc. etc.

Please do not send in the same article multiple times and please do not attack your opponent. This is very much about each of you having a forum to make a case why a vote for you is a good decision for the City of Evansville. Make the most of it.

Incumbents, please share what are you proudest accomplishments and biggest disappointments of your service as our leaders.

We do not limit our offer to those topics and encourage creativity among those who seek to serve us by seeking elected office.

The City County Observer thanks each and every candidate in advance for your contributions.

Position Papers may be submitted by email in Word format to:

hadannahbusiness@aol.com

NORTH CHARLESTON, S.C., June 10, 2011 /PRNewswire/ — Elected officials and representatives from numerous community and business groups, suppliers and subcontractors joined more than 1,000 Boeing [NYSE: BA] employees at its North Charleston, S.C., facility today for a ribbon-cutting ceremony to mark the opening of the new 787 Dreamliner Final Assembly building.

“In this building, our talented Boeing South Carolina teammates are going to assemble the finest, most technologically advanced commercial widebody airplane in history,” said Jack Jones, vice president and general manager of Boeing South Carolina. “Airline customers from around the world will come to the South Carolina Lowcountry to take delivery of their 787s, and we look forward to demonstrating what ‘made with pride in South Carolina’ is all about.”

Boeing’s Site Services Group and BE&K/Turner, the design-build team, were recognized at the ceremony for their work in bringing construction of the building to completion six months ahead of schedule. In addition the BE&K/Turner team has worked 3.7 million labor-hours without a lost time incident. Employees began moving into the new building in May, and final assembly of the first South Carolina-built 787 Dreamliner will begin later this summer.

“Our partnerships with state and local government and industry have made today possible,” said Marco Cavazzoni, vice president and general manager, Final Assembly & Delivery, Boeing South Carolina. “I have a lot of gratitude and respect for every person who has worked hard to help build this new ‘house’ for us. Every person who steps through these doors is making history, and that’s something we should all take pride in.”

In April, Boeing announced that thin-film solar laminate panels would be installed on the roof of the Final Assembly building. This solar installation will provide up to 2.6 megawatts of electrical power for the site and is the largest in the Southeast by production capacity.

The new Final Assembly building features 642,720 square feet (59,711 m2) of covered space, roughly the equivalent of 10.5 football fields. More than 18,000 tons (16,329 mt) of steel and one million cubic feet (28,316.8 m3) of concrete were used in its construction. At full production rate, the South Carolina Final Assembly facility will produce three 787 Dreamliners per month.

Contact:

Candy Eslinger
Boeing South Carolina
+1 843-789-8270
+1 843-819-1488 (mobile)
Candy.l.eslinger@boeing.com
Rob Gross
Boeing South Carolina
+1 843-789-8084
+1 843-276-8643 (mobile)
robert.g.gross2@boeing.com

More information: http://boeing.mediaroom.com/index.php?s=43&item=1704

SOURCE Boeing

IS IT TRUE that a silence has come over the downtown Arena with respect to making a deal with the Evansville Icemen to make this their home?…that the Icemen have made very good progress at building a fan base in Evansville and that people really do drive in from 50 miles away to see the games?…that the owner of the Icemen is a very astute businessman and will not have the wool pulled over his eyes by the minions of local government?…that Louisville is a bigger market and does not currently have a professional hockey team of any kind?…that the last professional hockey franchise to make Louisville home was the Louisville Panthers that played in Freedom Hall?…that word on the street in Louisville is that the Evansville Icemen are getting “nickeled and dimed” by the management of the new Arena and are considering a move to Louisville?…that this is not a time for the Arena management to prove their manhood by running a perfectly good and well liked local team out of town to make the top line look better during the early years?…penny wise and pound foolish will not look so smart if the Louisville Icemen are playing in Freedom Hall next year?…that would absolutely prove that an old arena can beat a new one when a win-win solution is undermined by short sightedness?

IS IT TRUE that we have been keeping track of comments coming in from candidates for Evansville City Council with regards to Dan Schall’s letter of exploration of shutting down Roberts Stadium before the new Arena is running smoothly?…that if this action went to a vote of the candidates for Evansville City Council that it WILL NOT PASS?…that more and more people are openly expressing increasing levels of disbelief that such a self defeating action was even sent out as a trial balloon?…that some things can be effectively argued both ways and that the eventual fate of Roberts Stadium is one of those things?…that both sides can be made to make sense?…that stranding a city of over 100,000 people in a region that serves over 500,000 with NO STADIUM AT ALL because a couple of public servants are emotional about swinging the wrecking ball makes no logical sense to any thinking person that has expressed an opinion?…that we once again shake our heads in disbelief that such a recommendation could be made by serious people?…that even Mayor Weinzapfel is quoted as allocating money to deal with Roberts Stadium NEXT YEAR?…that his statement is even open to keeping it open if a good idea with funding comes forward?…that the attention spans and logical thought processes in the Civic Center are getting stranger every day?

IS IT TRUE that the chatter about building a ballfield complex are getting louder?…that there are now insults being hurled at the group including the CCO that were vocal about not spending $18 Million on 8 ballfields?…that Evansville still has over 50 ballfields and that many of them are a disaster?…that one of the reasons for not building 8 more ballfields was the failure of the Parks Department to adequately maintain the 50+ that we already have?…that problem has not been fixed?…that another reason was that the cost was exorbitant at $2 Million per ballfield at a time that other locations were publishing prices of less than one-fourth of that for tournament quality ballfields?…that if ballfields are the salvation of our economy that there is still no reason to overspend by 300% to build any?…that there were many SNEGAL (sneaky but legal) spending measures hidden in the proposal for The Park including a $2.5 Million bailout of the City of Evansville for the demolition of Roberts Stadium?…that The Park was a poorly thought out project and a misappropriation of public money?…that is why the CCO and other opposed The Park then and will oppose it now unless the design makes economic sense and the Parks Department figures out how to maintain what we already have?

IS IT TRUE that we are curious about the coming reaction to the POLE BARN INDOOR TENNIS CENTER that was recently proposed for Wesselman Park?…that the source of funding has not been disclosed?…that an environmental impact statement has not been issued?…that the economic benefit of having 12 more tennis courts has not been put forward?…that we will defer our judgment on the POLE BARN INDOOR TENNIS CENTER until real impact statements are released and until the people of the 3rd Ward who will be its neighbors have expressed their opinions?

Let me start by saying that any jobs creation is not going to be a sprint it is going to be a marathon.

The greatest job-creation machine always has been and will continue to be private enterprise. It does not come from the government. The problem is that companies have been beat-up by the economic situation. Most economists think the worst is now behind us, but firms are still plagued by uncertainty about how fast the economy will recover. They cannot plan responsibly without knowing the bottom-line costs of the massive new initiatives out of Washington on health care reform and carbon-emission regulation. Even companies relatively financially fit often do not feel like taking the risk of ramping up operations and hiring more workers. Job creation is also a function of the labor supply. It is not just about firms wanting to hire, but also about having people they can usefully employ. We have to have a talented job pool.

• We are going to need to work with the local universities, Chamber for Commerce, GAGE, business leaders, Vectren, (local electric rates are too high), and local banks to bring jobs to Evansville.

• Real jobs; we have to be producing products. We cannot just be a service industry economy.

• We need to simplify local codes and regulations so that companies find Evansville as a place that is easy to do business. This will also help existing businesses wishing to expand.

• Allow entrepreneurs the ability to create without such a stringent local code. Set-up an internet site, (one stop shop), where they can obtain all the information, forms, and permits they need. Make as many of these forms as possible interactive so that they can be completed online.

• Put together a group comprised of people from local universities, Chamber for Commerce, GAGE, business leaders, representatives of local government, and local banks. This Group should be empowered to offer incentives, training, and financing to bring jobs to Evansville. They need to be people that are able to think outside of the box, be willing to travel around the United States and the world being cheerleaders for Evansville, Indiana. We cannot narrow our vision to within the shores of the United States of America anymore. However, we should not continue to ignore what we have. We need to visit the existing industries/businesses in Evansville to see if we can assistance them with expansion.

• Set up a business incubator to house fledgling firms, plying them with business-plan advice, contact with financiers and lots of coffee over which to share ideas and solve problems. This incubator should be set up for companies that will be producing a product, close or attached to an industrial park where they can manufacture their product.

• Establish an Evansville Growth Capital Corporation (EGCC), which would function as a one-stop resource for debt and equity financing for small businesses.

Companies do not start unless they are resourced. These new companies are key to job growth. People talk about small businesses being such great generators of jobs, but a more precise assessment is that young businesses are. John Haltiwanger, an economist at the University of Maryland, has been studying government data for 25 years and has determined that about a third of all new jobs created come from start-ups. Furthermore, young companies add jobs faster.