(WSBT) The latest WSBT/South Bend Tribune poll on the South Bend mayor's race shows economic development is the top issue on the mind of voters at November approaches. The city has seen retail development in the past few years and more is on the way when construction begins on the Eddy Street Commons project. But attracting non-retail jobs has become an issue in the race for mayor.
"We have to market the assets. Every city has pros and cons, good qualities and things they want to improve on," said Republican candidate Juan Manigault.
But Manigault says South Bend isn't marketing itself well. He cites Census Bureau statistics which show job growth has been relatively flat for the past few years.
Mayor Steve Luecke says his office is working to attract new business. He says the goal is to create a diversified business community so the city isn't as impacted when a big employer like Studebaker decides to close down.
"Over the years, we've really emphasized light industrial, warehousing and distribution. We think those are great jobs for our community," Luecke said.
He says the area around the Blackthorn Industrial Park has been a big success, but says it's not something many local people realize is even there.
"People don't travel there unless they have business there. It's not as visible as the Grape Road area where people go all the time for the retail or the restaurants."
"We've seen 3,000 new jobs created out there, 7,000 jobs retained out there over half a billion dollars in investment over the last number of years," Luecke said.
Manigault disputes that. He claims new businesses are not locating there. The city counters three new businesses have in the past two years — United Fixtures which relocated from Niles, Elkhart Plastics and Enzyme Research Laboratories.
The mayor's office also claims expansion of existing businesses is just as important as attracting new business.
"It's disingenuous to say those (new businesses) are the only businesses creating jobs," said Mikki Dobski, the mayor's director of communications.
But Manigault also claims development is slow in other industrial parks.
"There's been no new development in the Oliver Plow and the only new development in Studebaker complex is Transpo which is a public sector company. They don't pay taxes," he said.
He's correct about the Studebaker complex, but one new business has announced plans to locate in Oliver. Raitt Corporation will build a 50,000 square foot warehouse. It's a $1.8 million project. The mayor admits Studebaker and Oliver are struggling and the city hasn't done as good a job as it could have.
"It's easy to sell land in a suburban type park. That's what people are used to seeing. It's harder to bring people back into the inner city," he said.
Luecke says his office of Community and Economic Development is now working with a private developer to market those areas.
The city says it doesn't keep records on the number of jobs created and lost each year, but it does track them for businesses that receive tax breaks.
Since 1997, only 1,600 new jobs have been created by those businesses.
"Not every company that creates jobs applies for a tax abatement," Dobski said. "Some are creating jobs on their own."
Still, the mayor says the city is ready to work with companies thinking about expansion. He praised the efforts of Community and Economic Development's interim director Jeff Gibney, who's held the office since late 2006. The two worked together before Luecke was elected mayor at the South Bend Heritage Foundation, where Gibney was director.
"Being in touch with those local companies that are ready to expand and grow, having a place for that to happen, is really the best planning that we can do," he said.
Manigault claims the city has been slow to respond to business, and that's kept some he's spoken with away.
"Businesses who are here who say it's very difficult to work with the city of South Bend and the economic development department because of all the bureaucracy, the red tape, the hoops that people have to jump through," Manigault said, although he declined to name those companies.
That's why he's proposing reorganizing the current economic development department. He would dismantle it and create a new one with the stipulation it grows the economy of the city. He also wants to be actively involved in promoting the city to local businesses and those outside the area.
Manigault says he wants to develop a list of companies that have CEOs with Notre Dame, St. Marys, Bethel or other local college ties. The goal: to get them to consider South Bend for relocation or expansion opportunities.
"I think we need to develop relationships with some of the intermediate businesses out there like Tramel Crowe which is the largest site development company in America," he said.
That company was purchased last year by CB Richard Ellis, which the city recently announced was helping market properties around the city to developers.
Manigault also wants to sell off city-owned property to private developers.
"Because when they own the property, they move the property and make projects happen. When the city owns the property, the property sits," Manigault said.
The mayor's office claims that of city-owned properties in the downtown area, only 43 parcels in 16 areas are marketable. The others are parks, facilities or other city amenities.
"Some of the parcels that are on [Manigault's] list are very small parcels that are really undevelopable," Luecke said.
The mayor also disputed Manigault's claim that there are too many non-profit organizations in the city — organizations that are exempt from paying property taxes.
"They certainly pay local income taxes that help to support the local economy. They're buying. They're supporting our restaurants. They have discretionary income that helps support local retail," he said.
Manigault says the city can't survive if its income is placed on the back of a few businesses and property owners. He said public sector investment can't support itself.
"The property taxes that are supporting a fire station are coming from residential properties and corporate properties," he said.
And when those taxes get too high, he says people leave, creating a different set of problems with abandoned or vacant buildings.
He says the key is to create relationships with local developers — developers he says are now choosing to build in Mishawaka and other areas because it's easier.
"As we begin to grow from local investment, we'll start to get national investment both for the downtown and from companies that want to be close to Notre Dame or markets in the Midwest," Manigault said.
He claims developers don't want to work with the city because the city takes too long to respond or creates too much red tape.
"They're falling apart because the city's not dealing up front and honestly with these developers," Manigault said. "They're constantly changing their mind, constantly asking for more."
Manigault mentioned Holladay Properties and Panzica Building Corp. specifically. Holladay Properties did not return calls seeking comment. Philip Panzica, the president of Panzica Building Corp., says the problems South Bend is experiencing are common to the region. He declined to comment specifically on Manigault's claims, but said, "The city has done a good job, but can do better if we're going to attract new business."
Nicholas Witwer, an economic development planner for the city's office of Community and Economic Development, says the office is more streamlined under Gibney's leadership.
The mayor's assistant, Tom Price, says the office is now "more geared toward business" and they're "not hearing those kinds of things anymore."
The mayor agreed the city is working better with developers. He cited the Eddy Street Commons project, the REI hotel project planned downtown and expansion of many existing businesses.
"Development often takes longer than one would like, certainly from our perspective, but also from the private sector. These are often complicated development projects that we've been working on," he said.
Both candidates agree there are business sectors that would fit in South Bend. Luecke says health care and financial sectors are already seeing success here. He says a 12-acre technology park just south of Notre Dame will help attract research businesses. He says the Studebaker and Oliver industrial parks could benefit from that.
Manigault would like to see the scope of that expanded. He says medical and nano-technology businesses would be perfect for South Bend because of its location.
And both agreed the Metronet, the city's fiber optic network, is a draw.
