NEWS 25 WEHT Evansville, Henderson, OwensboroThe Economy Dominates State of the City Address

The Economy Dominates State of the City Address

posted by Ian Connor

EVANSVILLE - Despite tough economic times, Evansville Mayor Jonathan Weinzapfel says the city is doing well.

Mayor Weinzapfel talked a lot about the economy in his State of the City address Tuesday.

The mayor compared the closing of Whirlpool to a tidal wave that will have ripple effects throughout the community. However, he said Evansville is doing better than most other communities faced with a changing economy.

Mayor Weinzapfel said several companies are making investments in Evansville that will bring more jobs. The mayor mentioned the $130 million expansion at Berry Plastics that is supposed to create 360 new jobs, as well as the expansions at Mead Johnson and American General.

Weinzapfel also pointed out that public projects like the Downtown Arena and $150 million in EVSC projects are putting people to work.

The mayor also said the City will continue to invest in infrastructure projects and find ways to save money.

Below is a transcript of Mayor Weinzapfel's speech.

MAYOR JONATHAN WEINZAPFEL

STATE OF THE CITY ADDRESS

MARCH 9, 2010

PRESENTED TO:

THE ROTARY CLUB OF EVANSVILLE

Like many of you, every morning I get up, grab a cup of coffee, let out the dog, and reach down for the newspaper. As you can imagine, some days I'm a little more anxious than others to see what's inside.

One morning last week, three stories caught my eye. There was one about the ongoing tragedy of the earthquake in Haiti. Another story addressed the growing seriousness of cyber attacks on Pentagon databases. But then there was a reminder that miracles do happen. Remember Captain Chesley "Sully" Sullenberger, the pilot who successfully landed his plane in the Hudson? Well, he just announced his retirement.

As I thought about these three very different stories, it occurred to me that each had an important lesson to teach about a single concept: resilience.

The Haiti article described what is likely to be a long rebuilding effort. On its best days before the earthquake, Haiti struggled to reach even the most modest standards of a functioning, modern society. In the earthquake's aftermath, it has virtually no ability to bounce back on its own. It has no resilience.

The news about cyber attacks on the Pentagon was more hopeful. The report said that while the Pentagon and other security agencies remain subject to successful attacks, they are making improvements to their security systems. The Pentagon is building its capacity for resilience.

By far, the brightest news of the day recounted Captain Sullenberger's success. It described how he was able to land his plane in the Hudson River when its jet engines failed after striking a flock of Canadian geese. Sullenberger and his co-pilot followed the operational checklist that had been developed to assist pilots in just such an event – and not a single one of the 155 passengers or crew was lost. Now that's maximum resilience.

So as we gather here today to discuss the fortunes of our own City in what are certainly the most challenging economic times in generations, I wondered, "Do we have what it takes to survive a blow and come back stronger?" My answer is yes! Because Evansville is resilient – and we will continue to be.

Now, make no mistake. It's a challenging time to be managing a city. But for many, it's even more challenging to be running a business or feeding a family.

We've heard the statistics. But it's the human stories behind those numbers that show the real impact the economy is having on Evansville families.

Last September, I walked in the Labor Day parade with a group of Whirlpool employees. I spent a lot of time with one couple in particular. Both had worked at the plant for years, and the man's father had worked at the plant before him. So Whirlpool's decision to move its manufacturing operations to Mexico hit this family like a tidal wave. And its ripple effects are about to be felt in more than 1,000 homes throughout our region.

It's not just that most of the jobs at Whirlpool are being lost; it's that this way of life – spending a career at a single company – is vanishing too.

And to be truthful, the answer to a closing like Whirlpool is not, in most cases, to go and find another "Whirlpool" – because today those are few and far between. We face a far more dynamic economy that requires businesses and communities to be more nimble, more innovative and – yes – more resilient.

So is Evansville resilient enough? You bet. And here's how I know.

Even in these challenging times, Evansville is proving we have what it takes to weather the storm. The most recent unemployment rate for Vanderburgh County is 7.9 percent -- higher than anyone would like, but a full two points below the state and national averages.

Despite this downturn, there are companies that are making investments in our future. Three of the top nine facility projects in Indiana last year were in our area: Berry Plastics, Mead Johnson Nutrition and Toyota.

As you head west on the Lloyd Expressway, you can see the progress that Berry Plastics is making on its 130 million dollar expansion. That project will lead to the creation of 360 new jobs in the coming years. That's on top of the 250 jobs Berry added when it consolidated its corporate headquarters here. Those jobs could have gone anywhere in the world.

Mead Johnson is investing nearly 33 million dollars to expand and renovate its Evansville facility to produce powdered infant formula. The City's partnership with Mead Johnson has also resulted in the development of a new research center and the tapping of methane gas from Evansville's landfill to provide energy for the company.

AT&T's 22 million dollar call center started off with the promise of 565 jobs… which is a fantastic number in this economy… but what's even better is that number has grown to 750 jobs.

The 35 million dollar expansion of American General Finance downtown is now complete. Not only were more than 900 jobs retained as a result of this collaborative project, but American General has made a commitment to add at least 150 new jobs by the middle of next year.

And the City has just approved a new lease with Tropicana Entertainment that could bring more jobs to Casino Aztar. In addition, the agreement will result in 13.5 million dollars in prepayments to the City within the first year and increased rent payments for the next five years.

But these business expansions didn't "just happen." They are the result of a concerted effort to maintain a business-friendly environment in Evansville. It involves being a true partner with our businesses to find out what they need to succeed. It involves maximizing infrastructure projects. And it involves offering incentives that make sense for both business and the City's well-being.

Here's a great example of that partnership. We are working with the Airport Authority and Whirlpool to keep some of its operations here. We are still negotiating with the company, but we hope to make its 300 employee Product Development Center the anchor of our new Midwest Center for Innovation and Design. It will be part of a large campus that will attract other research, development and design centers to our area. Now that's resilience.

So what gives Evansville an edge when many communities across America – indeed across the globe – can offer incentives to businesses? It is because we have paid attention to infrastructure and worked hard to preserve our wonderful quality of life. Evansville is not just a great place to do business. It's a city that works – and a great place to live.

And that's vitally important.

Haiti is one of the least expensive places in the world to operate a business. And yet it remains the poorest nation in the Western hemisphere. Why? That is due in part, to the fact that it lacks even the most basic infrastructure to ship goods to world markets or bring goods into the country. We saw that clearly a few weeks ago. When the earthquake crippled Haiti's only major cargo facility, relief workers couldn't get food and materials into the country fast enough.

Infrastructure is the backbone of our City. It's what makes our city work. A strong, modern infrastructure is vital to the health of our residents, our quality of life, and our ability to attract and grow businesses that provide good-paying jobs. Despite the recession, we continue to invest in our infrastructure, especially in our neighborhoods where the impact is greatest.

Late last year, for instance, we broke ground on a project to separate the combined sewers along Southeast Boulevard and Brookside Drive. This 30 million dollar investment will reduce the raw sewage that flows into our rivers and help end chronic flooding for more than 1,500 residents. And this year we'll begin construction on three other sewer separation and drainage projects totaling about 31 million dollars.

And thanks to our fiscally prudent management of your tax dollars, we can continue to aggressively address sewer and flooding issues, build more ADA-compliant curb ramps, pave more streets, fill more potholes, replace more sidewalks, and make many other necessary improvements.

We are also making good use of more than 15 million dollars in federal Recovery Act funds. These dollars are helping pay for the reconstruction of Oak Hill Road. When it's finished, it will connect to the new cloverleaf INDOT is planning to build at the interchange of Hwy 41 and the Lloyd Expressway.

The Recovery Act funds will also allow us to complete the next phase of the Pigeon Creek Greenway, adding a new trailhead with bike racks and restrooms and extending the greenway from Franklin Street to the Maryland Street Bridge.

And, of course, the expected completion of the first leg of I-69 between I-64 and Crane in the next several years, gives us a great confidence that we will be able to drive on this highway during our lifetimes.

Other public investments are paying dividends as well. Last year, Mesker Park Zoo & Botanic Garden shattered attendance and revenue records. More than 200,000 visitors came to the zoo, a 12 percent increase over the previous year. Those families generated almost a million and a half dollars in revenue, that's a 20% increase over 2008.

We were able to build on the excitement generated by the Amazonia exhibit with the birth of two jaguar cubs – Maya and Zimba – on September 22. They're cute and cuddly – and rare. Only 19 zoos in America have jaguars.

And our efforts to make downtown the cultural and entertainment cornerstone of southwest Indiana continue to pay off.

The city has leveraged public dollars to encourage the development of more than 220 new condos and loft apartments downtown. For every one person living downtown when I took office…there are now 20.

Soon, these downtown residents will have another advantage: they will be able to walk to a state-of-the-art arena that will be the showcase for college basketball, professional hockey, high school and other sporting events, conventions, trade shows, expos, and concerts drawing thousands.

If you haven't been down by MLK and Main lately, you really should go and take a look at the progress on the arena project. In July, Browning Investments committed to redeveloping a portion of the former Executive Inn into a high quality hotel linked to the arena by a pedestrian bridge. In August, the arena project architects revealed a design that is every bit as bold and inspiring as we hoped it would be. It is vibrant and dynamic – with the kind of amenities that are expected of a modern venue. Given the public's overwhelmingly positive reaction to the design, there is no doubt that the arena will not only be the new anchor of downtown but the most desired venue for concerts, tournaments and conferences throughout the region.

According to an economic impact study commissioned by the Evansville Regional Business Committee, the arena construction alone is estimated to create 670 jobs. We'll be using local contractors when feasible for all phases of this project from architecture and engineering through construction. Once the arena is up and running, it will support another 530 jobs at the facility and the surrounding area.

And, most importantly, I want to reiterate the fact that this entire project is being done without raising taxes.

As exciting as the arena developments are, we continue to pay attention to neighborhoods all over the city – they are the key to maintaining our quality of life.

Our Front Door Pride program continues to focus on providing affordable housing in key areas. We have built or are nearing completion on 14 new homes. At an average cost of 180 thousand dollars per home, we have invested more than two and a half million dollars in new construction.

And this year will also mark the restoration of a real gem. A home at 620 Washington Avenue has been vacant for more than a decade. Tucker Publishing has selected this property for its Evansville Living Downtown Idea Home and will restore it to its full glory. My hope is that it will inspire others to reclaim the many great homes in the Washington Avenue Historic District.

The protection of our neighborhoods comes in all forms – and it often requires some innovative thinking. The EPA is getting ready to clean up more than 300 homes in the Jacobsville area that have high levels of lead in the soil. This is great news. But as part of its original plan, the EPA had selected a site near Glenwood Middle School to temporarily store the contaminated soil. That site also happens to be in an area that is part of Habitat for Humanity's neighborhood revitalization effort. That decision clearly wouldn't fly. So, I offered an alternative - a discounted rate at the county landfill so the contaminated dirt could be taken directly there without the need for a staging area. Last week, the EPA announced it would not dump near Glenwood or any other school. The agency is looking at the landfill and other options. So that's more good news.

Whether responding to the needs of local businesses, improving neighborhoods, or making government work better, the important thing is to bring everyone concerned into the room to encourage a conversation and find real solutions.

In the 1990s, the Pentagon and national intelligence agencies realized that they were being subjected to nearly constant and systematic attacks designed to infiltrate their computer systems. Some of these breaches were significant. The attacks forced a diverse group of departments that frequently operated in their own silos – the National Security Agency, the Pentagon and defense intelligence departments and the CIA – to start to talk to one another. It has taken a while but today they share information and coordinate responses in a way that has significantly improved the nation's ability to make our security systems more resilient to cyber terrorism.

I took a similar approach when I formed the Education Roundtable during my first months in office. I brought together representatives from all corners of our community to find ways to improve educational opportunities for students of all ages. But I didn't just involve educators. I also pulled together parents, business people, social service agency reps, technical tradesmen, health care workers and others. This had never been done before and I think it makes Evansville unique. The Roundtable doesn't exactly have the high stakes of cyber security issues, but the quality of education our region provides is vital to our future economic security.

Last fall, we celebrated a very special milestone.

As you know, one of the initiatives undertaken by the Roundtable was to establish the Southwest Indiana College Access Network, or SICAN. SICAN targets students who are minorities, low-income, or who could become the first in their families to go to college. It offers counseling and mentoring to guide kids and their families through the college application process and identify scholarships.

In its first full year of operation, 42 graduating seniors received help through SICAN. These students face barriers most of us in this room can't even fathom. Some don't have money for school supplies. A few are teen parents. Many don't have family support. Others are homeless. But now, 34 of those 42 students are furthering their education at schools including USI, Ivy Tech, Vincennes University, IU, and Kentucky Wesleyan.

SICAN is only in its second year, but we have been able to hire two additional counselors so we can expand our services to freshmen, sophomores and juniors in addition to seniors. We know it's critical to identify and help kids before they're seniors so there's time to get them where they need to go.

I'm excited to report that this year we have tripled the number of students being assisted. And soon we hope they will be making their own contributions to Evansville's success.

New challenges arise every day in my job. Some – like what road project we should build next – you can anticipate. Others, like what to do with truckloads of contaminated dirt, can surprise you. The key to negotiating all of these challenges is to have a set of guidelines – a checklist if you will – of your priorities.

In the days after the plane he was piloting went down in the Hudson, the conventional wisdom was that Captain Sullenberger's skill as a glider pilot was the reason he was able to land successfully. It made for a great story, but the truth is actually a lot more interesting.

As it turns out, what saved the day was the fact that Sullenberger and his co-pilot calmly and methodically ran through a predetermined checklist and executed, step-by-step, every emergency measure outlined in the manual. The checklist was simple but orderly – try to restart the engines, adjust the cabin pressure and, lastly, prepare for a powerless landing.

In order to make sure that city government is as innovative and resilient as it needs to be, I have a checklist of my own when looking for ways to make our government work better.

The first item is always "how can we save money?" For example, our joint purchasing agreement with the county and the EVSC is saving taxpayers hundreds of thousands of dollars a year. This year, the City/County Building Authority, which already handles facilities management for the Civic Center, the Jail and The Centre, will take over management operations for the C.K. Newsome Center, Victory Theatre and Roberts Stadium. This move will save the City more than 300 thousand dollars a year.

But saving money can't be the only criteria. After all, we could save hundreds of thousands of dollars each year by significantly cutting our police and fire departments. But we haven't done that. I'm particularly proud of the fact that, in spite of a significant decline in revenues, and despite the fact that other cities like South Bend, Hammond and Kokomo have been forced to cut their public safety departments, we have been able to maintain our police and fire departments at full strength.

So the next question on the checklist is, "how can we improve operations?"

Last year, we cut costs by asking City employees to pay more out of pocket for their health insurance to keep the City's budget balanced. In order to compensate for those increases, we opened a free health care clinic for employees where they can see a doctor or nurse for acute and preventive care. Employees will also have access to free generic drugs. Not only are city workers saving money on health care, but the city will see healthier, more productive employees, and save money in the process.

Another example of how we're working to improve operations and save money is the recent decision to end private management of the City's water and sewer systems and manage them ourselves. Just last week, the Utility officially began in-house management of our wastewater system, and will resume operation of the City's water system in the coming weeks. We believe this will save the city 14 million dollars over the next five years. That is a huge savings…money that can be reinvested in further infrastructure improvements.

The final question on my checklist is, "how can we make our government – your government – better suited to deal with the challenges of the future?"

The system of government we have today hasn't changed much since our constitution was ratified in the 1850s. Services are provided by an overlapping series of political units: townships, cities and counties. As I have mentioned, we continue to find ways for the City and County to cooperate and save money. But, it begs the question of what else can be done. To answer that question, we now have a panel in place to investigate the feasibility and advantages and disadvantages of reorganizing city and county government with an eye toward consolidating.

On the one hand, consolidation makes a lot of sense. The City and County provide similar services in a compact geographical area. It's fair to ask if we need both a city council and a county council, or both a sheriff's department and a police department?

On the other hand, consolidation brings with it a whole new set of challenges. If you consolidate public safety services, whose pay scale do we use: the Sheriff's Department or the Police Department? What will the impact be on taxpayers in the County versus taxpayers in the City?

These are not insignificant questions. I believe it is vitally important that the reorganization committee develop a detailed proposal that people can clearly understand.

The goal, of course, is to streamline City and County government in a way that allows us to make the most effective use of your tax dollars so we can build infrastructure, provide services, enhance quality of life, and grow our economy.

Believe it or not, after I got through the news the other morning, I actually felt better! Because as I read about the need for infrastructure in Haiti and the need for more communications and cooperation between our intelligence agencies and even Captain Sullenberger's checklist, I was able to identify real and significant ways in which our City already had the vital ingredients we need to make us resilient – even in the most challenging of times.

We are making investments in infrastructure today that will pay dividends far into the future. We have ways – from the Education Roundtable to the Government Reorganization Committee – to bring concerned parties from all over our community together and develop plans for the future. And I'm putting my checklist to work every day to make sure your government delivers for you.

The times are challenging – but we are up to the challenge. Every day, in ways large and small, we are recovering and we are succeeding. And every day we are proving our resilience.

Thank you.