The art of economic development in Steuben County
January 1, 2012
Rick Farrant, Herald Republican
Steve Smith’s disheveled strands of graying hair, impish grin and free-wheeling vernacular belie the seriousness of his vision for picturesque Steuben County and its economy.
In early December, the sculptor, retired Defiance College professor and world traveler opened 4 Corners Gallery Studio & Pottery on the shores of Lake James.
He has invested $200,000 in the gallery project and sees it not only as a can’t-miss personal business opportunity but eventually a catalyst for Steuben County to become an artists’ colony similar to Brown County in its heyday.
“Even though I’m an artist, I’m also a businessman,” Smith, 60, said. “When you walked in, the first thing you saw was my mailing list and you signed it. Most businesses live and die on their mailing list. I’ve already got a list of 1,500 people.”
Smith’s enterprise may not be at the forefront of strategies envisioned by the new executive director of the
Steuben County Economic Development Corp. But David Koenig said capitalizing on the eclectic mix of people and businesses in the rolling land of 101 lakes is an important piece of an economic development puzzle that also includes raising the area’s wages, securing more shovel-ready sites and enhancing the county’s manufacturing portfolio.
“These lakes and this lifestyle have attracted a very interesting group of people,” Koenig said. “There’s a lot of energy coming from people in this community … and they’re bringing with them a lot of wonderful ideas.”
Koenig, formerly director of the
Region III-A Development and Regional Planning Commission, assumed the helm of Steuben County’s economic development organization in early October. He became the organization’s third director in a year.
Gary Nielander, who had led the organization since its start in 2004, left in February when the SCEDC board decided not to extend his employment. Board member and Angola Mayor Richard Hickman said the board’s decision was triggered in part by a feeling among board members that it “might be time to look at another direction” for the organization.
Susan Miller, who had been assistant director of the SCEDC, was named executive director in April, then left in September for California, where her husband had relocated for work.
Hickman acknowledged the county’s economic development efforts may have suffered a bit with the rapid-fire changes in leadership.
“There may have been a little focus lost,” he said. “But I think it really helped that Susan had been there — had been the assistant. And I do believe that in a short time David is doing a real good job of getting us all back on track.”
One of the first challenges Koenig plans to tackle is elevating the average annual wage of employees in Steuben County.
Steuben County’s average annual wage, according to state figures, is $29,222.
That’s less than the wages paid in the nearby counties of DeKalb, LaGrange and Noble. The county’s per capita income is 74.2 percent of the national average.
“Wages,” Koenig said, “are a product of skills and competition. So we need to create more competition for the labor force in and around Steuben County so employers are required to pay a more competitive wage.”
The SCEDC is addressing the skills needs by working with the STEM-related
Talent Initiative, an Angola Chamber of Commerce committee and area educational institutions like Trine University.
Koenig said Scott Fergusson, new dean of Trine’s Ketner School of Business, is developing an entrepreneurial curriculum track that could lead to business development and investment in Steuben County.
The county, Koenig said, also needs to provide more sites for prospective development that are either deemed shovel-ready by the state or certified by the
Northeast Indiana Regional Partnership. Such designations ensure that site studies and infrastructure have been completed.
A 48-acre industrial park in Hudson became the county’s first shovel-ready site in November. In January, Koenig said, a business intern from Trine will begin assisting the organization in forming a plan to add more shovel-ready or certified sites.
Heightening the manufacturing footprint in Steuben County, which relies heavily on tourist-related retail, food and accommodations, is another item on Koenig’s agenda.
Manufacturing often pays higher wages than retail, he said, and therefore helps raise an area’s standard of living.
Yet manufacturing in Steuben, according to state figures, accounts for just 28 percent of employment. That compares with 45 percent in Noble and 38 percent each in DeKalb and LaGrange.
Koenig said Steuben County should never lose sight of the role tourism plays in the local economy. A recent study by Louisville, Ky.-based Certec Inc. determined tourism in 2010 contributed more than $135 million in direct expenditures to the county’s economy.
But Koenig and Hickman believe Steuben County has the assets to attract manufacturing and other types of businesses — assets like the lakes, Pokagon State Park, Interstate 69, the
Indiana Toll Road, a small airport, and the short-line Indiana Northeastern Railroad.
“We need,” Koenig said, “to continue to focus on attracting additional manufacturing, logistics or information-technology-type jobs, which are going to be on the higher end of the pay scale.”
The Ball State University economics graduate said it would also be worth exploring ways to utilize the education, experience and wealth of people who he believes are increasingly making their lakeside homes permanent residences rather than summer playground destinations.
Lastly, Koenig said, there is something to be said for the economic benefits of a relatively unique collection of existing businesses that includes
Satek Winery,
Wild Winds Buffalo Preserve, Skydive Fort Wayne and Smith’s new arts enterprise.
Smith’s gallery, in two adjoining and renovated log cabins, is just down the road from other Lake James amenities, including Tom’s Donuts, Jimmy’s Restaurant & Pub, Acapulco Mexican Grill and Sharkey’s Pizzeria.
The gallery closed for the season after Christmas, but Smith will reopen it in late March or early April to begin serving the arriving tourists and part-time lake residents.
In its first incarnation, Smith’s gallery featured not only his works, but also the sculptures, pottery and paintings of 10 other regional artists at prices ranging from a few dollars to several hundred dollars. Among the least expensive items were 50-cent clay refrigerator magnets sculpted by his 15-year-old daughter, who now accepts the moniker “Zoe: The Magnet Girl.”
In the off-season, Smith will travel to Nicaragua with Potters for Peace to help set up ceramic factories that will not only assist residents in crafting income-producing pottery but also develop kiln-fired clay filters to improve the quality of drinking water.
Then he’ll be back at Lake James, where he expects his gallery will not only bring a cultural value to the region but create jobs, spin off revenues for other businesses and provide an activity for high-end customers looking for something to do or buy.
The option his gallery presents won’t just be for the sun-washed, tourist-thronged days of summer.
“The best thing for me,” Smith said, “is a holiday weekend when it rains. People need something to do and this gives them something to do.
“People will have a house full of guests and it’s raining and they were going to be out in the boat. So they’ll say, ‘Let’s go for a ride. There’s this crazy guy down the road who makes cool stuff and he’s got this shop full of stuff and he’ll take us out back and he’ll show us the kiln and he’s been all over the world and he’s this fascinating kind of guy. He’s fun to hang out with. Let’s go down there.’
“And they’ll come. And they’ll buy lots of stuff.”
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