HomeMy WebLinkAboutPSA - Four (4) Month Recast Boost for Target Jurisdiction and Property - Recast City LLC1316 COUNTY -CITY BUILDING C t
�' ti 4 PHONE 574 235-9251
227 W. JEFFERSON BOULEVARD
1 I 1 r; FAX 574/ 235-9171
SOUTH BFND_ INDIANA 46601-1 930 r
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65
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
BOARDLIC WORKS
December 19, 2019
Ilana Preuss
Recast City LLC
7401 Baltimore Ave.
Takoma Park, MD 20912
RE: Professional Services Agreement
Dear Ms. Preuss:
The Board of Public Works, at its meeting held on December 19, 2019, approved the
above referenced agreement for the four (4) month recast boost for target jurisdiction and
property in the amount of $29,000.
Enclosed please find a copy of the agreement for your records.
If you have any further questions regarding this matter, please call this office at (574)
235-9251.
Sincerely,
Linda M. Martin, Clerk
Enclosure
GARY A. GILOT GENEVIEVE E. MILLER ELIZABETH A. MARADIK LAMA L. O'SULLIVAN THERESE J. DORAU
Modification of Specific Terms
The specific terms of a Client's individual consultancy agreement may be amended, extended
or canceled only by mutual agreement in writing signed by both parties.
A consultant appointment is in effect only after receipt by Recast City LLC of the
countersigned copies of the consultancy agreement.
Countersignature Required
If the terms and conditions of this Agreement are acceptable to you, please sign and scan this
letter and return it via email to Ilana Preuss, Founder, Recast City LLC at
ilana@recastcity.com, as soon as possible.
Sincerely,
Recast City, LLC
By: Ilana Preuss, Founder & CEO
TERMS OF AGREEMENT CONFIRMED AND AGREED TO:
By: CITY OF SOUTH BEND, INDIANA
BOARD OF PUBLIC WORKS
Gary A. Gilot, President
"�ereor , rber
Elizabeth Maradik, Member
ATTES
iL X,01 M. Martin ILrI<
Gen iewe Miller,n�',
2 .
ura O'Sullivan, Member
www.RecastCity.com
4
Recast Boost Contract
Please review and sign the following contract from Recast City LLC (the "Consultant") with
the undersigned ("the Client") for the provision of services as described in the Scope of
Assignment, below.
The terms and conditions of this contract (the "Agreement") are as follows:
Scope of Assignment
Under the Agreement, the Consultant will work with the undersigned to conduct a 4-month
Recast Boost for the target jurisdiction and property.
This includes:
16 Weekly coaching calls with the Client to train select staff on how to engage target
businesses and partners and determine local activities and next steps;
2 one -day onsite visits to meet with local stakeholders identified by the Client and all
facilitation and presentations as needed for those visits;
- Identification with the Client of the top 3-4 initiatives to implement in the short-term
and all needed research to support that implementation, including comparable models,
funding sources, business development programs, and policy language changes; and,
Final deliverable of a 4-5 page memo that collects all information provided above in
one concise document for community use.
By the end of the engagement, the team will be prepared to move forward on these issues as
needed and implement the target initiatives.
Note: The Client will be responsible for all scheduling and logistics with target stakeholders
for the onsite visits.
Term of Contract
The Agreement shall begin on Monday, January 13, 2020 for a kick-off call and continue until
Friday, May 1, 2020.
Fee and Expenses
For the services performed under this Agreement, the undersigned agrees to pay the
Consultant a flat fee of $29,000 (twenty-nine thousand). A retainer fee of $5,000 must be paid
www.RecastCity.com
within thirty (30) days of contract execution. The remainder will be billed monthly in four
installments.
Independent Contractor
In performing the services described herein, the Consultant shall be deemed to be an
independent contractor and not an employee of the Client. Any and all employees of the
Consultant or other persons (including any subgrantees, subcontractors, or subconsultants
engaged by the Consultant), while engaged in the performance of any work or services
required by the Client under the Agreement, shall not be considered employees of the Client.
The Consultant will be solely responsible for payment of all compensation owed to its own
personnel and any subcontractors or subconsultants engaged by the Consultant, as well as all
employment -related and other similar taxes and liabilities incurred by the Consultant.
Indemnification
Each party agrees to indemnify, and hold harmless the other, its affiliates, subsidiaries,
directors, officers, employees, on behalf of the indemnified party from and against and in
respect of any and all third party claims, demands, suits, causes of action, judgments,
obligations, damages, settlements, liabilities, penalties, costs and expenses of any kind or
nature, arising out of, or relating to the performance or breach of the Agreement or negligent
or wrongful act or omission (or alleged act or omission) in connection with the Agreement.
Neither party shall be required to indemnify the other party for the intentional, reckless, or
negligent acts of the other party. The indemnified party agrees to provide the indemnifying
party with prompt notice of any event or assertion of which it has knowledge concerning any
matter as to which a request for indemnification under this Agreement may be made.
Notwithstanding the foregoing, the Client does not waive any governmental immunity to
which it may be entitled.
Dispute Resolution
In the event any of any dispute between the parties related to the Agreement or any services
provided by the Consultant, such dispute shall be brought in any mutually agreed upon court
having jurisdiction over the State of Indiana, shall be governed by Indiana law and the
prevailing party shall be entitled to the costs of litigation, including reasonable attorneys'
fees. In any event, the Consultant's liability to the Client in any dispute shall be limited to
any amounts actually paid to the Consultant; the Client's liability to the Consultant shall be
limited to $500.00.
www.RecastCity.com
2
Confidential Information
Unless otherwise agreed in writing by the Client and Consultant, all work product prepared or
assembled by Consultant under the Agreement shall be the property of the Client for purposes
of copyright or intellectual property law. Consultant shall retain ownership of intellectual
property rights to any methods or models created or used to produce the work product
provided to the Client under this Agreement. Consultant may use the work product for its
marketing and promotional activities, with attribution to the Client but without prior consent
of the Client.
Expenses
The Client will be responsible for all expenses associated with in -person meetings. This
includes, but is not limited to: venue rental, food and beverage, document copies, name tags,
pens and paper. All such expenses will be agreed upon by Consultant and Client and will be
the responsibility of the Client.
Travel
The Consultant will be responsible for all personal travel expenses. This will include travel to
and from the city, all flights or trains, rental car, hotel room rental, and any meals during
travel that are not with the local team. The cost of travel is included within the project fees.
Assignment, Delegation and Subcontracting
The Agreement and the rights and duties under the Agreement shall not be assigned,
delegated or subcontracted by the Consultant without the prior written consent of Client, and
any purported assignment, delegation or subcontracting of this Agreement without said consent
of Client shall be void.
www.RecastCity.com
CITY OF SOUTHBEND
COMMUNITY INVESTMENT
JITIN KAIN, INTERIM DIRECTOR
TO: BPW
FROM: DCI - Dan Buckenmeyer, Director of Business Development
RE: Additional Detail on Recast City Boost Contract 12/19/29
Per BPW request we are providing this additional detail to the "Recast Boost Contract" submitted for
approval on 12/19/19.
DCI is taking deliberate actions to better support small business creation and growth in South Bend in
2020. This contract and engagement is a key part of that burgeoning initiative. The focus of this
engagement and contract is to understand from nationally -recognized experts (Recast City) how South
Bend can create an ecosystem for small, local businesses and germinate focused locations for them to
thrive. In this process we will direct new and growing businesses to centralized locations where existing
infrastructure in legacy, vacant buildings and vacant retail locations can be re -activated. This initiative
dovetails with many other elements of small business support planned and underway.
In 2019 Recast City led the implementation of a Technical Services Grant awarded to the City of South
Bend. The Grant team included several individuals from the U.S. Economic Development Administration
including their Regional Director and additional experts from Smart Growth America, but Recast City was
the primary resource and expert. This engagement included 3-days of on -site evaluation involving many
stakeholders across the City. Our learnings were compiled into a final report outlining some of the
recognized needs and potential initiatives for South Bend to implement. (Attached for Reference.) In
2020 the DCI team, with the support of Recast City via this contact will transition into implementation.
Recast City's guidance is critical to the timely and effective implantation of best practices out of the
gate.
The scope and activities of the engagement are outlined in detail on the contract.
I am happy to answer any further questions about this contract and engagement, and welcome the
opportunity to share subsequent small business successes as we implement throughout the City of
South Bend. Thank you.
DANIEL J. BUCKENMEYER ALKEYNA ALDRIDGE .PAMELA MEYER 1 IM CORCORAN
BUSINESS DEVELOPMENT ENGAGEMENT & ECONOMIC EMPOWERMENT NEIGHBORHOOD DEVELOPMENT PLANNING & COMMUNITY RmouRcFs
i
Recast Boost Contract
Please review and sign the following contract from Recast City LLC (the "Consultant") with
the undersigned ("the Client") for the provision of services as described in the Scope of
Assignment, below.
The terms and conditions of this contract (the "Agreement") are as follows:
Scope of Assignment
Under the Agreement, the Consultant will work with the undersigned to conduct a 4-month
Recast Boost for the target jurisdiction and property.
This includes:
16 Weekly coaching calls with the Client to train select staff on how to engage target
businesses and partners and determine local activities and next steps;
w 2 one -day onsite visits to meet with local stakeholders identified by the Client and all
facilitation and presentations as needed for those visits;
- Identification with the Client of the top 3-4 initiatives to implement in the short-term
and all needed research to support that implementation, including comparable models,
funding sources, business development programs, and policy language changes; and,
- Final deliverable of a 4-5 page memo that collects all information provided above in
one concise document for community use.
By the end of the engagement, the team will be prepared to move forward on these issues as
needed and implement the target initiatives.
Note: The Client will be responsible for all scheduling and logistics with target stakeholders
for the onsite visits.
Term of Contract
The Agreement shall begin on Monday, January 13, 2020 for a kick-off call and continue until
Friday, May 1, 2020.
Fee and Expenses
For the services performed under this Agreement, the undersigned agrees to pay the
Consultant a flat fee of $29,000 (twenty-nine thousand). A retainer fee of $5,000 must be paid
www.RecastCity.com
within thirty (30) days of contract execution. The remainder will be billed monthly in four
installments.
Independent Contractor
In performing the services described herein, the Consultant shall be deemed to be an
independent contractor and not an employee of the Client. Any and all employees of the
Consultant or other persons (including any subgrantees, subcontractors, or subconsultants
engaged by the Consultant), while engaged in the performance of any work or services
required by the Client under the Agreement, shall not be considered employees of the Client.
The Consultant will be solely responsible for payment of all compensation owed to its own
personnel and any subcontractors or subconsultants engaged by the Consultant, as well as all
employment -related and other similar taxes and liabilities incurred by the Consultant.
Indemnification
Each party agrees to indemnify, and hold harmless the other, its affiliates, subsidiaries,
directors, officers, employees, on behalf of the indemnified party from and against and in
respect of any and all third party claims, demands, suits, causes of action, judgments,
obligations, damages, settlements, liabilities, penalties, costs and expenses of any kind or
nature, arising out of, or relating to the performance or breach of the Agreement or negligent
or wrongful act or omission (or alleged act or omission) in connection with the Agreement.
Neither party shall be required to indemnify the other party for the intentional, reckless, or
negligent acts of the other party. The indemnified party agrees to provide the indemnifying
party with prompt notice of any event or assertion of which it has knowledge concerning any
matter as to which a request for indemnification under this Agreement may be made.
Notwithstanding the foregoing, the Client does not waive any governmental immunity to
which it may be entitled.
Dispute Resolution
In the event any of any dispute between the parties related to the Agreement or any services
provided by the Consultant, such dispute shall be brought in any mutually agreed upon court
having jurisdiction over the State of Indiana, shall be governed by Indiana law and the
prevailing party shall be entitled to the costs of litigation, including reasonable attorneys'
fees. In any event, the Consultant's liability to the Client in any dispute shall be limited to
any amounts actually paid to the Consultant; the Client's liability to the Consultant shall be
limited to $500.00.
www.RecastCity.com
Confidential Information
Unless otherwise agreed in writing by the Client and Consultant, all work product prepared or
assembled by Consultant under the Agreement shall be the property of the Client for purposes
of copyright or intellectual property law. Consultant shall retain ownership of intellectual
property rights to any methods or models created or used to produce the work product
provided to the Client under this Agreement. Consultant may use the work product for its
marketing and promotional activities, with attribution to the Client but without prior consent
of the Client.
Expenses
The Client will be responsible for all expenses associated with in -person meetings. This
includes, but is not limited to: venue rental, food and beverage, document copies, name tags,
pens and paper. All such expenses will be agreed upon by Consultant and Client and will be
the responsibility of the Client.
Travel
The Consultant will be responsible for all personal travel expenses. This will include travel to
and from the city, all flights or trains, rental car, hotel room rental, and any meals during
travel that are not with the local team. The cost of travel is included within the project fees.
Assignment, Delegation and Subcontracting
The Agreement and the rights and duties under the Agreement shall not be assigned,
delegated or subcontracted by the Consultant without the prior written consent of Client, and
any purported assignment, delegation or subcontracting of this Agreement without said consent
of Client shall be void.
www.RecastCity.com
Modification of Specific Terms
The specific terms of a Client's individual consultancy agreement may be amended, extended
or canceled only by mutual agreement in writing signed by both parties.
A consultant appointment is in effect only after receipt by Recast City LLC of the
countersigned copies of the consultancy agreement.
Countersignature Required
If the terms and conditions of this Agreement are acceptable to you, please sign and scan this
letter and return it via email to Ilana Preuss, Founder, Recast City LLC at
ilana@recastcity.com, as soon as possible.
Sincerely,
Recast City, LLC
By: Ilana Preuss, Founder & CEO
TERMS OF AGREEMENT CONFIRMED AND AGREED TO:
By: CITY OF SOUTH BEND, INDIANA
BOARD OF PUBLIC WORKS
Gary A. Gilot, President
Therese Dorau, Member
Elizabeth Maradik, Member
ATTEST:
Linda M. Martin, Clerk
Genevieve Miller, Member
Laura O'Sullivan, Member
www.RecastCity.com
4
Introduction
Smart Growth America's Small -Scale Manufacturing and Place -Based Economic Development
program, a project in partnership with Recast City, is designed to help communities make strategic
land use decisions that will enhance small-scale manufacturing and improve economic
revitalization. This technical assistance, funded by the U.S. Economic Development Administration,
guides communities to create policies and programs that will support local producers to grow their
businesses in target neighborhoods.
Communities requested technical assistance and were selected through a competitive process by
Smart Growth America (SGA). Selected communities participated in a four -month project and
received a three-day community assessment, during which the project team conducted fieldwork
in the local subject area, in-depth interviews with small-scale manufacturers, and hosted
presentations and brainstorming sessions with local stakeholder focus groups.
The Smart Growth America technical assistance team made a site visit to South Bend, Indiana
from April 24 to 26, 2019. In addition to elected officials, city staff, and local producers, the
technical assistance team met with property owners, business leaders, entrepreneurs, developers,
financial institutions, educational institutions, and community members. The site visit began with a
tour of Vested Interest and group meetings with small-scale manufacturers and financial
institutions. Day one concluded with a tour and interview with a local candy producer and tour of
the focus area —the Sample Street Corridor. The team started day two with onsite business
interviews and a lunch meeting with the Elkhart Regional Partnership, South Bend Regional
Chamber, city staff, and local manufacturers. The second day included additional onsite business
interviews and meetings with property owners. A meeting with West Side Business Development
Center and community stakeholder forum conclued the trip.
The intent of the site visit was to meet with local businesses and community leaders, share
information about local opportunities and challenges, and to provide South Bend with a set of
steps to bring more small-scale manufacturing businesses onto the Sample Street Corridor. The
technical assistance was designed to build local capacity, support economic development and
planning efforts, examine development challenges, assist in potential policy changes, and help
coordinate among city agencies and partners.
This memo is a summary of the community workshop and on -site interviews. It includes an
assessment of existing conditions in South Bend, along with recommendations for strengthening
local small production businesses and supporting investment on the Sample Street Corridor as
well as other parts of the city.
Recommendations are focused on actions to:
1. Focus on building strong and diverse relationships
2. Refine zoning and permitting to allow and encourage small-scale manufacturing in existing
buildings
3. Create financing programs to support diverse owners of small-scale manufacturing
businesses and the property they use
4. Increase visibility and business development support for local small-scale manufacturing
5. Bring people together more
Our understanding of what makes an ideal environment
for manufacturing is changing. Traditional assumptions of
large, sometimes polluted and isolated spaces are giving
way to manufacturing infrastructure that is small, clean,
sometimes shared amongst multiple firms, and integrated
with other land uses. Communities benefit in a number of
ways when they bring manufacturing and small
production businesses into neighborhoods.
Small-scale producers and manufacturers attract people
to downtown and neighborhood centers who want to be
a part of that community and support locally made
products.
These businesses can occupy vacant industrial properties
or storefronts and they bring vitality to neighborhood
centers. Similarly, some manufacturers have found creative ways to be actively place conscious by
rehabilitating properties, creating shared workspaces, and locating facilities in places that are
accessible by public transportation. This strengthens the community of producers and promotes
the area as an employment avenue. Some businesses provide programming to engage residents;
often by making use of public spaces to create a vibrant street life and attract people to the target
areas on a more regular basis.
Additionally, small-scale manufacturing businesses are key assets for the local job base. These
jobs, as well as business ownership, provide options to residents without college or advanced
degrees. They also give opportunities to minority populations who might otherwise face language
or cultural barriers.
Communities with a diverse set of small businesses can weather market changes more
successfully and are less likely to lose their growing businesses to other cities or countries. Many
cities are working on a concept known as economic gardening —growing the size and scale of
existing local businesses —because these owners are most likely to stay in town. Additionally,
small-scale manufacturing jobs pay salaries 50-100 percent higher than service and retail jobs.
As such, providing space for these local producers to grow their business in neighborhoods can
help to connect more people to well -paying jobs, strengthen small business and startup sectors,
and keep jobs for a variety of education and skill levels in the community. These businesses and
their owners can help bring vitality to main streets and neighborhood centers and bring economic
opportunity to all. Furthermore, manufacturing employers benefit from being part of a close-knit
community with opportunities to make meaningful connections with nearby firms. Small businesses
located within the community are able to respond quickly to market demands.
Communities that recognize demand for these trends and harness their power will take a key step
towards diversifying their local economies, the local real estate markets, and the employment base.
While some communities have shown promise on this front, many more struggle to effectively
coordinate the ongoing public and private investments required. At the municipal level, staff, local
3
business leaders, and community groups must understand what needs to be in place to spur a
paradigm shift from the conventional economic development approach to the specifics of growing
small manufacturing. Anchor institutions, such as universities and hospitals, can enhance
workforce education, create demand for products, and spin off ideas that can be brought to
market. State and federal governments can provide funding for training and infrastructure. And
finally, the case needs to be made to the private sector that small-scale manufacturing businesses
can thrive and be a real estate benefit in both a light industrial land use environment and in a
commercial area; in turn, the private sector can offer partnership opportunities in neighborhood
development.
SGA's initiative aims to position communities to reap the benefits of a small-scale manufacturing
sector to strengthen their business base, reinforce goals for cities and neighborhoods, fill vacant
properties, create vibrant places, and build a strong pipeline of businesses to grow locally.
South Bend is a city built on a foundation of
manufacturing that endured the loss of the
Studebaker Corporation and other major
employers in the post-industrial era. The
population in South Bend hit its peak in the
1960s when a majority of the workforce
was employed in the manufacturing sector.
Shortly after, like many other post-industrial
cities, South Bend experienced severe job
loss and population decline as heavy
industry closed or relocated overseas.
Despite a troubling transition —particularly �, I
for working class and minority residents —
the city has begun to rebound and remains
a manufacturing center. Leadership, skills,
and commitment to manufacturing persist
and have signaled an awakening of small-
scale manufacturing. The growing sector is providing competitive jobs and beginning to take
advantage of the city's legacy of older industrial buildings. Manufacturing employment in the South
Bend-Misawaka metropolitan area dipped to 16% in 2009 and has since climbed back to 18% in
2018 (US Bureau of Labor Statistics).
The City of South Bend has led a number of initiatives with industrial -sector partners and local
employers to revive manufacturing in recent years. Zoning adjustments, financial incentives, job
training, and other resources have been designed to attract small-scale manufacturers. By
supporting the South Bend Regional Chamber's St. Joseph County Manufacturing Day and South
Bend Elkhart Regional Partnership, the City is increasing the visibility of manufacturing careers and
providing support for emerging entrepreneurs. The City is also backing a handful of coworking,
incubator, and educational spaces like LangLabs and Vested Interest, as well as Ignition and
Innovation Parks where aspiring innovators from the University of Notre Dame and other emerging
entrepreneurs accelerate and commercialize their products by connecting with investors and
industry experts.
For this technical assistance project, the city requested a focus on the area just south of South
Bend's downtown along the Sample Street Corridor (see the appendix for a map). The Corridor is
anchored by Vested Interest and adjacent to the city's older industrial district, much of which was
part of the Studebaker campus. Although a few coworking spaces and businesses have begun to
populate the area, many industrial buildings, vacant parcels, and surface parking lots have left it
underused.
Or 0,
City leadership wants to continue the momentum of small-scale manufacturing by better
coordinating existing initiatives and policies for small business development. It also aspires to target
redevelopment along the Sample Street Corridor in a way that reintroduces manufacturing into
downtown and repurposes historic buildings. South Bend's goals focus on ways to improve the
local small-scale manufacturing climate by increasing jobs, providing adequate retail and
production space, and by building strong relationships to better understand the challenges small
businesses face —all with the goal of supporting new and growing businesses.
.r,
The team conducted interviews with business owners, property owners, and other community
leaders to collect information about the assets and successes that can support small-scale
manufacturing and strong placemaking. A number of themes emerged:
1. Cheap land, empty buildings. A legacy of its industrial history, South Bend currently
enjoys a plentiful supply of relatively low-cost land and buildings suitable for manufacturing
at every scale of production. Some available buildings are already equipped with high
capacity power and broadband internet.
2. A re-emerging downtown, While many smaller "rust belt" cities remain moribund, South
Bend has joined those at the vanguard of the 21' urban renaissance, with an intentional,
policy -driven focus on revitalizing the core of the downtown. Restoration of two-way travel
on the gridded streets and implementation of complete streets policies are happening at
exactly the right time to position South Bend as the kind of smaller city to which millennials,
5
and companies, are increasingly seeking out as prices escalate in major metropolitan
areas. Business owners are choosing South Bend on purpose —and they want to be near
downtown. Additionally, there is evidence of a recent influx of young adults who grew up in
South Bend returning to the city.
Civic spirit and the "creative sandbox." The community shows key traits that suggest
that this may be a great moment for South Bend. The phrase, "We are our own cavalry"
came up a number of times. People believe and are ready to act —momentum is building.
Both the public and private sectors are willing to try new things right now and see South
Bend as a great "sandbox" in which to experiment. A number of people and businesses are
actively taking risks and creating something completely new (LangLab, Vested Interest,
Sew Loved, Sibley Building, Invanti, and all their partners/tenants).
4. Social capital is strong. There is significant social capital among people who have lived in
the area for a long time or attended Notre Dame, and to some degree within specific
populations. Alumni do business together, Latino neighborhood business owners lend to
each other, and many partnerships grow out of high school friendships.
5. Business infrastructure is growing. A strong philanthropic community is engaged and
currently focused on poverty alleviation. Education and training programs include Ivy Tech,
Career Academy, Tech Step, and the Excel Center. Spark and SCORE provide help to
local small businesses including manufacturing.
City leadership. The City is implementing a number of supportive policies. The existing
incentives, including Tax Increment Financing (TIF), the Industrial Revolving Loan Fund
(IRF), facade improvement grants, and property tax abatement provide support for
business growth and redevelopment projects. In many cases the City can defray up to 15%
of building renovation costs for a private sector investor —key in a lower priced market. City
policies are under review to add artisan manufacturing, makerspaces, and commercial
shared kitchens as allowable uses in an update to zoning code. The City is already working
to create a CDFI-friendly program which could provide key loans for small business
investment and small commercial property purchases by business owners. Additionally, the
City is working to understand the disparity of procurement in government contracting.
7. Existing regional foundation for manufacturing business. Manufacturing is still an
important part of the regional economy, and this provides both demand for the output of
m
small-scale manufacturers and supports its own needs for equipment, services, and skills.
In particular, the region has a strong supply chain industry for RVs, precision metal work,
and aviation. This history and current daily work in manufacturing also mean South Bend
has many people with the skills to launch and support more small-scale manufacturing
businesses.
Challenges moving forward
Feedback from the interviews and workshop pointed to a number of obstacles that small-scale
manufacturing businesses face, and that may impact neighborhood redevelopment in South Bend
and specifically on the Sample Street Corridor. These challenges could limit the ability to attract
additional businesses.
2. Availability of skilled workers may limit growth. Demand for skills may outstrip supply as
manufacturing seeks to return and expand. Part of a national skills gap trend, this is an
issue in South Bend both for traditional trade skills and for those based on university
degree programs. There is also some concern that people get trained on these skills and
then leave the area. This suggests that South Bend is not yet winning the competition as a
place people want to stay and be a part of.
3. Access to resources is limited for small businesses. Micro -enterprises (those with one
to twenty employees) have a very difficult time obtaining funds to start and grow
businesses, and to buy property. Similar to other sized cities, we heard, "Banks don't want
to lend," and "SBA is hard," repeatedly from small producers. Currently, there are a limited
number of options from local or state sources, and many of them (like TIF and IRF) do not
reach local micro -enterprises. In other cases, immigrant populations noted that they do not
trust the larger banks and prefer to put up personal collateral with credit unions for loans at
much higher rates. There is no pool of funds targeted to small-scale manufacturing,
businesses owned by women and/or people of color, or residents launching micro -
enterprises. Small product -based business owners also noted that many of them do not
have access to the strong social capital that benefits many of the larger manufacturers in
the region. Additionally, local philanthropy is not yet investing in entrepreneurship as a
means to address generational poverty.
4. Finding leasable or buyable space is challenging for small businesses. Obtaining
leasable space in move -in condition is a problem for smaller businesses. Most buildings
need extensive renovations before they can be used by small producers, and few of these
businesses have the capital for those investments. A common concern was that small-
scale manufacturers can't compete for commercial buildings in downtown. Small buildings
in and near downtown may get sold without coming on the market. These deals may
minimize the potential for owner -occupied commercial properties.
Property assets sitting unused. Properties are being held off the market for a variety of
reasons. Property owners receive a tax deduction on vacant buildings. This depresses
activity and property values for others —especially in downtown. In some cases, potential
sellers may be overvaluing their property, holding parcels for speculative reasons. For
instance, the Pepsico property was cited several times as likely being over -valued by the
company. In other contexts along Sample Street, ownership may not be clear.
6. No organization is bringing together small-scale production businesses, South Bend
is not home to any entity working to organize or network small manufacturing business
owners or small enterprises generally. No organization regularly brings producers and other
local businesses together or provides access to mentors specific to small-scale
manufacturing. There is a limited amount of small business help in business development,
permitting for occupancy, or access to contracts with anchor institutions. Additionally, there
is no stated vision for the role of small-scale manufacturing in the local economy, nor is
there an asset map of the entrepreneurial and small-scale manufacturing industry. Without
a coordinated effort to help build relationships among these business owners, other
entrepreneurs, and the support they need, it will be difficult to grow this business sector.
7. Downtown is not there yet. The chance for small-scale manufacturing to thrive in South
Bend, and especially in the Sample Street Corridor, will be directly related to the strength
and vibrancy of downtown. While downtown is undergoing a rebirth due to the work of
Downtown South Bend (DTSB) and public -private investment, it is still early in the process
N
and the level of vitality has not quite crossed the critical threshold. At present there are still
too many "missing teeth" (empty spaces between buildings), too many surface parking lots,
and far too few residents throughout the core of downtown South Bend. Several small
manufacturers indicated that they liked being able to live downtown while having their
business nearby, a desire that reflects national trends. Housing options in downtown are
growing but are still limited. The funding directed at reinvestment in downtown is still fairly
limited, but the model could support other target neighborhoods —like the Sample Street
Corridor —specifically for building facade and retail improvements.
Recommendations
The recommendations below include both short-term projects to quickly mobilize the community
and its business owners, and long-term projects around which to build consensus. A number of
specific tactics for each major recommendation are provided to help the city find the activities most
appropriate to the community. The recommendations fall into five major categories.
1. Focus on building strong and diverse relationships.
South Bend clearly has a lot to offer small-scale manufacturing business owners. But these
owners do not know how and where to connect to existing services, mentors, or other
entrepreneurs. Additionally, Latino and African American business owners may face significant
additional barriers to these assets. The City, service providers, and neighborhood leaders need
to continue to work together to build relationships —and trust —across business owners from
different communities in South Bend. The business community will be strongest this way and
the local economy most vibrant. This includes:
• Find more trusted connectors who will help the City reach business owners not yet
represented at the table. These connectors, from the business community,
neighborhood associations, faith leaders, neighborhood service providers, and many
other civic leaders, can help the City understand in detail the barriers each population
faces to launch and grow businesses in South Bend.
• Build a network of small-scale manufacturing business owners to consistently
bring this part of the local business community together. A location -based program
such as CoMo Makes may serve as a great model for the Sample Street Corridor or
city-wide. Regular meet -ups in different neighborhoods will help to bridge the gaps
across communities and help to identify more business owners looking for support.
Specifically reach out to consumer -focused product businesses who feel completely
left out of the broader manufacturing conversation.
• Bring services into the neighborhoods, similar to the current programming on
Western Ave and the La Casa De Amistad. Partner with a trusted leader in each target
neighborhood to organize pop-up business service days and create a one -stop shop
for all business needs on a regular schedule.
• Support business owner outreach and leadership through funding competitions,
consumer product pitch events, and reverse pitch events from anchor institutions in
need of products. Consider adapting programs from Startup Communities for the local
small production sector to help build the network and the public relations around this
sector.
• Build a business database of local small-scale manufacturing businesses. Solicit this
information from the community and create a space online for these businesses to sign
0
up and register for programming and support. At minimum, collect information about
the owners, the types of product businesses (supply chain or consumer), and their
contact information. This database will be key to future outreach, business sector
organizing, business development support, and research on this part of the local
business community. Consider using the database information to create an online
directory of South Bend product businesses similar to the Knoxville Biker° City
directory.
_ IT
2. Refine zoning and permitting to allow and encourage small-scale manufacturing in
existing buildings.
South Bend successfully invested in two-way streets and sidewalk improvements throughout
downtown to support more people along the streets and in the shops. This was a key first step
to creating a welcoming place for people and to increase revenues at local businesses. City
policy needs to keep moving ahead to improve the zoning and permitting process so that
rehabilitation of existing buildings and build out of space is not only straight forward but also
streamlined for the type of development most preferred. This includes:
• Adopt the drafted language for "artisan industrial" land use into the zoning code.
This land use definition can be modeled on the simple language in the Nashville or
Indianapolis zoning code. The use should be allowed in all commercial zones, mixed
use projects, and office uses. The limitations can be based on square footage or sound
nuisance comparable to other allowed uses in that zone.
• Create a small area plan for the core of the Sample Street Corridor, The City can
work with property owners along Sample Street to create a vision for future
development, The area is ripe to be the urban industrial/creative district for the City and
rehabilitation of older industrial buildings alongside new construction in a core area will
bring that to life. This includes establishing an urban layout of the area with wide
sidewalks, gridded streets, and buildings at the parcel edge.
• Continue to implement urban design throughout downtown. People prefer to walk
past buildings, not vacant lots and endless parking lots. The City should work with
developers to ensure new properties compliment the existing urban fabric of
10
downtown, including adding housing.
Review existing building codes tuensure they donot create a barrier tosmall-scale
manufacturing in commercial buildings or storefronts, or to commercial shared
kitchens. This technical assistance did not audit the details of the current building
codes, but testing a few prototypes of development (like a commercial shared kitohan,
food hall, or makerspace) through the permitting process will highlight those barriers to
be fixed.
• Integrate all zoning and permitting information into an accessible online p|a1kzrrn
so that all small business owners and local developers have access to the information
in one place. A number of business owners interviewed noted that they needed to get
some of permitting information from hard copies at the library because they could not
find it online. This is a major threat to investment and business development and needs
tobeaddressed immediately. Aone-stop shop both online and in -person for
occupancy permitting will also help streamline the process.
• Fund brovvOf|8|dS Phase 1 and 2 StUU|G8 for all properties that were owned by the
City at any point. This will move redevelopment forward more quickly in many cases
and remove concerns about liability and cost. The Ohio Brownfield Fund ioogood
example tobe adapted for South Bend.
• Establish a commercial improvement district (CID) along the Sample Street
Corridor to organize business and properties to invest in the corridor. A CID will ensure
that someone is focusing on next steps for the district, organizing input and buy -in from
property owners onthe corridor, and can lead programming tosupport more
community and business engagement.
� Support condo models in space for small-scale manufacturers to ensure NGOs
qualify for key funding. Nonprofit organizations are eligible for funding from EOAand
other agencies, while for -profit entities are not. Division ofownership can allow the
NGOs to apply for federal funding for capital improvements and programmatic support.
� Create a database nfall vacant commercial spaces that would permit small-scale
manufacturing uses. Work with local brokers and property owners to collect the
information and offer it as part of a matchmaking service to business owners, similar to
SFMade's Place to Make initiative or Motor Cit Match in Detroit.
3. Create financing programs to support diverse owners of small-scale manufacturing
businesses and the property they use.
The City has anumber of financing tools and is actively working to expand access to new
forms offunding through the C0q-fhandlyinitiative. The completion ofPhase One ofthe `CDf|
hiendlyBouthBend^initiativewiUhelptheCdvand|ooa|benhinginduotrybetterunderstond
the financial needs of the local small businesses. Anecdotally, funding seems mostly limited to
business owners well connected to the City and to Notre Dame. Economic development will
only be successful when access to capital and investment reaches all parts of South Bend's
business community. This includes:
� Launch the CDF|-friendlyprogram and set goals for micro -lending to small
businesses inaway that represents the demographic diversity preaentinSouthBend.
Bring the program to community events in different neighborhoods and create straight
forward handouts that can be given out directly to business owners. Ensure that strong
connections are created between potential borrowers and representatives ofbanks,
M
credit unions, and CDFIs who will support these individuals. Consider creating materials
in English and in Spanish.
Expand access to existing financing programs like IRF for smaller projects. Work
with leaders of the networking groups and meetups for small-scale manufacturing (and
other small businesses) to present the programs, educate more business owners about
how to apply to use the funds for building improvements or infrastructure, and
understand what barriers these owners may face that prevent them from applying
today. Although the IRF may be used for loans from $5,000-$50,000, it is primarily
uses for larger loans. The City may choose to provide a set of smaller loans, even
though the processing time required is the same as the larger loans, in an effort to
direct more of the funding to underrepresented populations.
Interview additional business owners —both supply chain (selling pieces to larger
businesses) and consumer -focused (consumer products for wholesale or retail)
to understand what kinds of financing they would consider. Anecdotally, the team
learned that Latino business owners may be paying higher fees on loans because they
do not trust the primary banking system. Additional interviews suggested that
consumer product businesses are not accessing bank loans because they may need
too small of a loan or they are considered "high risk" because the bank is not familiar
with their type of business.
Finance commercial real estate purchases for owner -occupied commercial
properties. A number of local product business owners expressed interest in buying
local real estate while it is still affordable. This investment in a neighborhood or in
downtown can allow that business owner to benefit long-term from the city's
redevelopment as property values increase. It also allows the business to control their
cost of space in a changing market. This funding may be supported as a pilot program
through the existing IRF or TIF funds, or as part of a City -led Opportunity Fund.
service or storage back to retail
use.
Fund the costs of build out
for local small businesses in
target locations. This can be
an expansion of the existing
f aide andinterior
improvement grants offered b
DTSB to reach the core of
Sample Street (both sides of the
street) and allow the City to
support small business exactly
12
where they need it —the cost to renovate a space for occupancy. Businesses may be
selected through a competitive process and/or target specific neighborhoods
(jovvntVvvn) oracorridor (Sample Street). The Lowell FUnd (a partnership of local
banks) and/or the Great Streets program in VVeahinQton. DC can serve as models. This
can also be achieved with new funding sources such aaEDARevolving Loan Funds.
Partner with developers to build turn -key space for small-scale manufacturing
businesses in a shared building. Renovated space ready for business use allows
businesses to focus on what they do best —run their business, not worry about building
renovations and operations. This may work ooenon-profit epeoe|ikenlHubinChioaQo
or an industrial building renovation like MaKen Studios in Philadelphia. Any model would
need to be adapted to South Bend's market and size, but each model would benefit
the South Bend's production economy.
4. Increase visibility and business development support for local small-scale
South Bend is home to many different types ofsmall product businesses —both consumer and
supply chain facing. Yet most of these businesses are operating under the radar —few people
in city government know them and few organizations supporting business development are
aware of them. Yet, the arno||-noa|e manufacturing business owners are the pipeline of South
Bend's growth and future economic resilience. They can also serve anakey "cool factor" to
help retain talent and attract others. But they need visibility and help getting it. This includes:
� Give small product business owners some public love. The owners could be
featured in a running column in the paper, the tourism board could promote them
online like Visft Baltiniore, orthe City could run onannual recognition event for small
businesses with fewer than ten employees.
� Create anadvisory council ofsmall-scale manufaoturingbusin8Gemvvnerotn
provide input to the City on policy changes and to the Chamber on business
development opportunities. The advisory council can be hosted by either entity but it
will be essential that the members of the council represent the diversity of business
types and owners inSouth Bend.
= Create a one -stop shop City webpage with information and links to local services
that help small businesses launch and grow. This can bmmodeled nnthe Pennsylvania
One -Stop Shop for small business Vrsimply have everyone connect toone office that
will serve oaanombudsman for small businesses inneed ofhelp.
� Expand entrepreneurship programs, like Spark, |nVaOti. SCORE and the Notre
Dame Idea Center, to be held in different neighborhoods. Additionally, consider
adding EforAll in Spanish oroprogram similar to We are Mortar tohelp more under-
represented business owners launch and scale businesses. Research shows that
access to business development programs, mentors, and a network of business
owners helps more businesses gain stability and grow. These kinds of programs help
entrepreneurs from under- represented populations create viable buoineaoen, ready to
ace|o.
Partner with anchor institutions to host a Reverse Pitch Competition. These
events work with major companies and anchor institutions to identify items in their
supply chain that they could procure locally or problems they want to solve with new
innovations. The events are a great chance for local product businesses to understand
the needs of major regional entities and then come back to the table to offer services or
products as needed. Additionally, anchor institutions can make local procurement
commitments similar to Johns
Hopkins Local in Baltimore.
Leverage programming and
funding in the LIFT Network
and LIFT Catalyst Fund to
invest in entrepreneurship
training and business
development for small-scale
manufacturing businesses. The
new ro ram could be a key
resource to build an inclusive
program into South Bend's
neighborhoods and bring more
opportunity to
underrepresented populations.
5. Bring people together more,
This may sound simple but it is in fact key to the success of downtown South Bend, the
business community, and the local economy. People feel tied to a community when they feel
included and have places (and events) to come together. South Bend has achieved significant
momentum and can build on the good will through programming and targeted small group
conversations. This includes a diversity of activities such as:
• Program events on Sample Street and Western Ave, and in other neighborhood
centers to bring residents together more often in ways that celebrate South Bend.
Building on the programming led by DTSB, these new events should be sponsored by
different populations to ensure that everyone sees their community reflected in South
Bend. These events help to bring a critical mass of people into the community,
showcase local businesses, and drive spending. Additionally, these events create
South Bend's identify —what is it known for now? What does it want to show off to the
region? How will it stand out? Programming helps to answer all of these questions. A
community development corporation or a downtown improvement district could
facilitate the programming, similar to 3CDC in Cincinnati.
• Support more housing development in downtown. Activities, stores, and people all
benefit from more housing downtown. This will be essential for the future economic
viability of downtown South Bend. Adaptive reuse of existing buildings and new
construction in downtown will help fulfill this need. Many housing units are under
construction today —a key first step. Continued momentum will be essential.
• Bring philanthropy to the table to support entrepreneurship programming directed at
under -represented populations and those most in need of help to break out of
generational poverty. Existing programs such as Refoundry and Esty's Craft
[-;ratrepr n ursh program are great examples that reach these populations in ways
ME
that build wealth in communities rarely connected to these opportunities.
Celebrate the wins. Work with partners, such as the Chamber of Commerce, DTSB,
local festivals, and the tourism authority to shout it from the rooftops. Put it on social
media. Make sure residents feel the excitement and the building momentum in South
Bend.
Conclusion
South Bend is building momentum and is poised for great leaps forward in economic development
and neighborhood reinvestment in a way that truly benefits everyone who is South Bend. But the
details will matter. Key steps, such as those listed in this memo, will be essential to build more buy -
in and more inclusion into small manufacturing support and placemaking moving forward.
15
Below is a map of downtown South Bend, with the Sample Street Corridor highlighted in blue..
ib t t h. vi 11 S Led Parcels (PropeM1y lYpes'Induslral Commerc al Va[anl)o
n^ Small Scale Manufacturing Focus Area
Y ^et from Vest d I l esl (0 Iding Foolpr nls (w lh'n selected parcels)
"wa VD INTEREST la— and formed Cm OF 5OUTII9END
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BOARD OF PUBLIC WORKS
AGENDA ITEM REVIEW REQUEST FORM
Date 12/04/2019
Name Daniel, Buckennre e-r Department DCI
BPW Date 12/l�/2019 Phone Extension -925--- r 36
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to Submittal... _::..._. to Board
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BPW Attorney ❑ Attorney Name
Dept. Attorney ❑ Attorney Name Sandra Kenned
Purchasing
Check the apt°o ri ate Item '°1 ape w ,� x 1,1
E] Professional Services Agreement X Contract
Ej Open Market Contract ❑ Amendment/Addendum
Bid Opening EJ Bid Award
{� Quote Opening Quote Award
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❑ Chg. Order, No. ❑ Traffic Control
F-1 Other:
Company or Vendor Name
New Vendor
MBE/WBE Contractor
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E]Proposal
❑ Special Purchase, QPA
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❑ Reject Bids/Quotes
PCA
EJ Resolution
Ease./Encroach
❑ Title Sheet
Recast Boost
Yes I ...� _ __ ----------
f Yes, Approved by Purchasing
X No
F❑ MBE Completed E-Verify Form Attached No
WBE
Recast Boost Contract
EDIT
_ _ 001-4 0.39.30
$29,000.00
Under the Agreement, the Consultant will work with the undersigned to
conduct a 4-month Recast Boost for the target jurisdiction and property..
Amount of Increase $
EJ Decrease$ )
Previous Amount $
Current Percent of Change
New Amount
Increase %
Decrease (..._W..
Increase %
Total Percent of Change: Decrease %
Time Extension Amount:
New Completion Date: .....................__