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Strategic Development Group, Inc. 2901 N. Walnut Street Bloomington, IN 47404

T: (800) 939-2449

Hannum, Wagle & Cline Engineering 151 N. Delaware Street, Suite 800

Indianapolis, IN 46204 T: (317) 347-3663

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E

conomic

S

ummit

Thrall’s Opera House • New Harmony, Indiana • Thursday, September 2, 2010 •1:00 -4:00 p.m.

As a component of its economic development plan, Posey County convened an economic summit. The purpose was to identify and discuss strengths and weaknesses for Posey County in areas impacting economic development. The discussion focused on the following areas:

I. Education & Workforce Development II. Infrastructure & Land Use Planning III. Housing

IV. Available Vacant Space for Industrial or Business Use V. New Employer Marketing

VI. Retention & Expansion of Existing Employers VII. Small Business Development & Entrepreneurship VIII. Downtown Development

IX. Overall Business Climate

Steering committee members and other community stakeholders were invited to attend the summit. The following is a list of those present at the summit:

„ Michelle Hudson, EDPV Coalition

„ Karen Walker, New Harmony Town Council

„ Connie Weinzapfel, Historic New Harmony and University of Southern Indiana „ Rick Mileham, ERA R/E

„ Ron Keeping, Vectren

„ Fran Thoele, New Harmony School

„ Andy Rudolph, Tri County Realty „ Bruce Baker, Town of Poseyville „ Bob Gentil, County Council „ Craig Luebke, Evansville MPO

„ Tony Noelle, PCEDC

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„ David Cartlidge, New Harmony Resident „ Mindy Bourne, Posey County Area Plan „ Dave Pearce, Posey County News

„ Keely Winiger, Posey County Commissioners & Council „ Gene Culiver, PCEDP

„ Steve Fuelling, Mt. Vernon City Council „ Tom Kopatich, MSD Mt. Vernon Schools

„ Andrew Wilson, William Wilson Auction Realty, Inc. „ Bob Deig, Indiana State Senator

„ Tiffani Weatherford, Chamber of Commerce „ Brian O’Neill, SDG

„ Fatima Carson, SDG

The following report presents the results of the discussion in each of the areas listed above.

Education & Workforce Development

Participants identified strengths as well as challenges that the county faces with regard to education and workforce development. The group indicated that losing students is a challenge for the county. Specifically K-12 enrollment levels are declining and Posey County is also experiencing brain drain, where members of the community who receive post-secondary education do not return to work in the community. Posey County’s proximity to Evansville was cited as an obstacle. As stated by one participant, “Evansville has more to offer to retain younger people and Posey County must compete with Evansville to get people to live in and businesses to establish in the community.”

In addition the group noted the following challenges with regard to education and workforce development:

„ General agreement that there is a generational decline in the work ethic of the workforce.

„ Concern about the attitude toward lifelong learning. Participants suggested that individuals in the community may be satisfied with where they are at and not wanting to take on additional training. “Some people do what it takes to get by and nothing more.”

„ Another group member expressed apprehension about the impact increasing poverty in the county is having on education levels and work ethic.

„ It was stated that, “current social networking has resulted in people not communicating like they used to. People are interested in getting jobs where they

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sit at a computer and less time is being spent relating with neighbors.”

„ Apprehension was also expressed about how the reorganization of funding in education has resulted in communities losing a great deal of control over the decisions about education at the local level.

Access to post-secondary education opportunities for county residents was widely viewed as a strength. Group members were in agreement that the county is getting good service from post-secondary education providers. While post-secondary opportunities are available, group members were quick to note that all of these opportunities are outside of Posey County. As stated by one group member, “[We] need more opportunities for business people for continuing education at locations that are closer in the community so that people do not have to commute to Evansville.”

Another participant indicated that a number of industries in Posey County are providing opportunities for additional education and are offering training on site by bringing instructors in. Group members expressed that “part of the focus needs to be on determining what we need to train people in.”

Suggestions included the following:

„ Create a cooperative effort between the schools and the business community. „ Offer training on-site at business facilities to meet the needs of a specific employer. „ Target post-secondary education opportunities for industries in the area. For

example, in Posey County there is a strong plastics industry but there are no post-secondary education opportunities targeted toward plastics.

„ Promote students’ understanding of what types of employment opportunities are available to them. For example, Sabic employs people in a variety of occupations. When students think of employment opportunities at Sabic they may only think of working on the assembly line and do not understand all of the different opportunities available to them.

„ Increase leveraging of post-secondary education. One group member acknowledged that the county is not leveraging post-secondary education enough. It was suggested that post secondary education could be leveraged to attract employers to the area as well as to train community members with the skill sets desired by existing employers.

Infrastructure & Land Use Planning

There was agreement among group members that with regard to infrastructure the areas of greatest concern are sanitary sewer and water. One group member emphasized that for parts of the county sanitary sewer is a capacity issue.

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The sanitary sewer and water constraints are directly impacting other aspects of economic development in the county. The group gave the example of how there is very limited ability to do any development outside of existing locations without using a septic system. As stated by one participant, “There is a limited area where housing developments may hook up to sewer and this limits development.”

Another member acknowledged a relationship between business recruitment and infrastructure, “Businesses looking at the community need to be able to know what utilities are available and what the capacity of the utilities is.”

Other comments regarding infrastructure made by members of the group include the following:

„ If we developed the utilities over the years like we should have, we wouldn’t be struggling now.

„ It is very difficult to convince members of the community to upgrade. It takes an aggressive administration. The community may not necessarily be on board for projects when you mention $13 million.

„ Broadband service is an issue. There are lots of complaints throughout the county about a lack of access.

„ The amount of gravel roads in Posey County compared to other counties is very high. People don’t want to live on gravel roads.

„ Funding from economic development tax is going towards roads.

„ Get complaints from developers about the costs of sanitary sewer and water. For example German Township is buying water from Evansville rather than buying water locally. Posey County could be selling water but it is not.

„ Create infrastructure to provide recreational opportunities

„ The bridge at New Harmony is a real concern. Need to protect that asset.

The group also discussed the role zoning and land use planning should play in the future for Posey County. There was general agreement that there is a lack of clarity regarding zoning and land use planning as they are currently being implemented in the county. This was summarized by one participant in stating, “Another problem is that it is a mystery of what can and cannot be allowed based on zoning. It needs to be more clear where and what kind of developments can be built. Need consistent and clear cut zoning and regulations.”

It was noted that “there are a lot of hodgepodge developments out there that are also causing problems.” There was acknowledgment that the board now is more cautious when these new developments are coming across the table to make sure everything is being addressed. Participants expressed a need to get zoning ordinances up to date,

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noting that the county is presently using a 1993 ordinance. Group members emphasized that in addition to good ordinances there is a need for good enforcement.

Additional remarks made by group members regarding land use in the county included the following:

„ There are fewer and fewer home builders in the county. There is a need to attract builders who are willing to come in and take a chance.

„ People who have built spec homes in the past have had trouble selling them. „ There are sites that can be developed once they are served by infrastructure. „ We need to get some farmers who are willing to sell some farm land for

development. Often the land has been in the family and they are not willing to sell it. There are a number of large contiguous lots in Posey County which should be an advantage.

„ Need to identify ways to address environmental issues and prepare for opposition to development.

„ The question was asked, “once the sites become developable, how does a community get the guts to not have the land developed by the first gas station that comes along and hold out for an opportunity that would benefit the greater community?”

It was established that the sites being proposed as part of the economic development plan for the county will be subject to the zoning regulations.

The discussion on infrastructure and land use planning concluded with the recognition that presently there are no matching funds for grant projects in the county, and that if the community is going to grow it will need to generate some matching funds.

Housing

Summit participants identified the fundamental concern regarding housing as the need to have those who work in the county also live in the county. One participant made the point that there is a great manufacturing base in the county, but 50% or more of the workers come from outside of the county. It was suggested that people live in Evansville because of the attractions the community can offer and they don’t mind commuting. A group member added that people looking to locate from the east coast may not have the kinds of choices they would like for a high-end house in Posey County.

Another participant described the housing situation in Posey County as being analogous to the chicken or the egg dilemma: “To get the demand of people looking for housing, there needs to be something to make them want to buy a house here. Want the kinds of entertainment, recreation, and shopping opportunities that people with disposable

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income desire. But to provide these opportunities there needs to be a population to support them.”

The question was asked “what can we do to encourage employees to live in Posey County?” One response was to develop a marketing brochure. This idea was seconded by a participant who added that there is a lot going for the community, such as the good school system, and that these strengths need to be marketed to change the perception of the community. Another group member explained that there is a contractor in Mt. Vernon with 200 or 300 lots with infrastructure ready to build housing on but that businesses coming in might not know that this is available.

The original problem with housing in Posey County was traced backed 15 to 20 years ago when GE came in and there was a lack of housing. At that time there was a big attraction for people to start living in Newburgh. One respondent suggested that Newburgh has done well and that Posey County may want to look into what Newburgh did 15 years ago to make it an attractive place to live. Other participants cautioned that Newburgh is a bedroom community because of its proximity to Evansville and that whatever model they used to attract residents may not be well suited for Posey County.

One group member warned that, “You can’t build a tax base on a residential community. Need to have employers/businesses to develop a sufficient tax base.” This remark led to a discussion about of how the relatively tax base in the county limits the capacity of the community to raise revenue to invest in services and infrastructure. One participant stated that increasing the tax rate by 1% in Posey County may increase revenue by an estimate of $5 million where as other communities such as Hamilton County can increase taxes by 1% and generate much more revenue. During this discussion, a group member suggested a cautious approach to housing development noting that “in Warrick County there is a subdivision in every field. This may be a realtor’s dream but it is a recipe for urban sprawl. Be cautious and careful.” The group a whole agreed that the community has an opportunity to “get it right’ through reasonable regulations to manage growth.

Available Vacant Space for Industrial or Business

Use

Participants identified the following as vacant spaces available for use:

„ The Bristol-Myers building, located off of 62, is available. However, group members cautioned that there are lots of utility problems attached to it.

„ The former Kmart building.

„ There are a couple of vacant car dealerships that could be converted for business use.

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„ It was stated that in the county there are small manufacturing buildings sitting empty.

„ There was general agreement among group members that there is “lots of retail space.”

In terms of greenfield development, the group indicated that there have been difficulties finding willing sellers. As stated by one participant, “You can prove that a site has sewer and water, but until you can tell a developer that they can buy that land for a set price you don’t have a site you have a field. Anytime a property gets shown in the county the economic developer has to finish by saying ‘trust me.’ Need to figure out a way to help economic developers in the county have access to land.” This was reiterated by another participant who stated, “Right now they are not sites, they are fields. They become sites when we put a client with a seller and they have a price to work with.”

Group members also identified the state port as a potential space for industrial or business use. They noted that the state owns the land at the port and that the state prefers to lease it rather than sell it. There was also some uncertainty among members of the group regarding the actual amount of land available at the port and the traffic issues surrounding the port.

Participants also expressed a need to get support from the legislature to implement special taxing districts such as Tax Increment Financing, Certified Tech Parks, and Community Revitalization Enhancement.

New Employer Marketing

New employer marketing is an area where participants had relatively little to say. There has been no strategic, sustained effort up to this point to recruit new employers. One group member identified Posey County’s approach to new employer marketing as, “looking for the most likely candidates to recruit and then developing a strategy around that basis.” While currently there is not a strong new employer marketing program in place, a new economic development director is expected to initiate a more aggressive recruitment program. Group members expressed interest in strengthening new employer marketing as a component of the county’s economic development plan.

Retention & Expansion of Existing Employers

There was general agreement among summit participants that there is not a proactive program for retention and expansion of employers currently in place in Posey County. Group members made the following comments regarding reasons why the county should have a retention and expansion program and also steps the county may take to develop such a program:

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decision makers of your large and medium employers. Ask them what it takes to keep them here and then develop a program to satisfy those criteria.

„ The community needs to determine the top 10 companies with the most growth potential in the county and the 10 most likely to close. Then regular visits should be pursued with these 20 companies.

„ Retention and expansion demonstrates to prospective companies that this is not only a good place to locate to, but once you are here you can thrive and grow. A participant provided an example of how Poseyville set up an economic development commission and received industrial development bonds that made the expansion of North American Green possible.

While the county does not have an established retention and expansion program for area employers, the group acknowledged the importance of such programs and expressed enthusiasm for creating a strong retention and expansion program for existing employers in the county.

Small Business Development & Entrepreneurship

Participants agreed that smaller businesses create a more diverse economy. Nevertheless, the group indicated that very little was explicitly being done to support small business development or entrepreneurship in Posey County. The group noted that there are small business entrepreneurship programs in Evansville that serve Posey County, but all agreed that more services and outreach need to be conducted within the county.

One participant acknowledged that there is a need to develop niche markets and expand retail in Posey County and suggested that small business development and entrepreneurship programs could be targeted toward this aim.

Downtown Development

In discussing downtown development summit participants made the distinction that within Posey County there are three different downtown areas (Mount Vernon, Poseyville, and New Harmony) each with different strengths and opportunities. The group also noted that Cynthiana and Griffin are incorporated towns in the county each of which has a distinct character. While there was not a representative from either of those areas at the summit, participants noted that Cynthiana is primarily a bedroom community, with one restaurant but no retail. Participants pointed out that Griffin has one of the two 64 interchanges in the county, but it is subject to serious constraints as a result of flood plain issues.

Regardless of which specific community within the county they were from, there was general agreement among members of the group that increasing retail in the downtowns is a priority. As explained by one participant, “We need for there to be retail downtown and not just to have offices downtown. Lawyers and professionals move downtown so

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people will go there. People want to be in a vibrant, safe area, with nice restaurants to go to.”

Participants made the following comments regarding the need to develop downtown: „ Niche markets should be created downtown.

„ New and existing employers want to see a nice downtown. „ In downtown we need places for people to go and have fun.

The conversation then focused more specifically on challenges facing Mount Vernon’s downtown:

„ Concern was expressed that Mount Vernon seems to be allowing its downtown square to be torn down. There are empty lots now where some buildings of historic value formerly stood.

„ Many of the buildings have been empty for so long that they are structurally unsafe and demolition may be the only viable option. It becomes too expensive to do anything with these buildings. There is no economic reason not to tear them down.

„ Poseyville and New Harmony received grants for beautification. The group didn’t think Mount Vernon had secured any up to this point.

„ A suggestion was made to provide an incentive for people to fix up buildings downtown without being penalized by higher taxes.

„ Forming a redevelopment commission and creating a TIFF district were suggested. „ A group member gave the example of a neighborhood assistance program giving

tax credits for the money businesses invested in restoring buildings. In order to effectively pursue and manage this type of funding, many communities create a Community Development Corporation (CDC), a not for profit organization that often focuses on housing, livability, and other economic development issues in lower income areas.

„ Mount Vernon might also consider conducting “building triage,” where an engineer would estimate the cost of saving the building, keeping just the façade, or stabilizing the building for restoration in the future.

„ Another group member responded that Mount Vernon is doing a revitalization plan and an engineer is assessing the condition of downtown buildings but the main problem is that the buildings are structurally unsound.

Several members of the group thought the downtown in Noblesville was a good example of a well done restoration/revitalization project. There was uncertainty as to whether

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Noblesville saved the facades of the buildings or if they tore the buildings down and started over. The group was not sure how much of the downtown was saved versus how much was built in a consistent style.

Overall Business Climate

There was widespread enthusiasm from summit members about the potential for economic development in Posey County. One participant summarized this best in saying, “This is the first real chance in all the years where the county has been able to work on economic development issues together county wide.” Another group member added that there is a need to market the county as a whole.

Conclusion

As Posey County creates a plan to guide economic development in the short and long-term future there are a number of obstacles to address, as well as, assets to draw upon. Aspects of the county’s infrastructure must be expanded to keep up with the demands of business and industry and consistent and enforceable land use and zoning ordinances must be updated. The county has strong agricultural and industrial sectors to build upon and an active and engaged citizenry to steer future growth.

The key findings in terms of strengths and weaknesses identified at the summit are as follows:

W

eaknesses

„ Declining K-12 enrollment and brain drain

„ Sanitary sewer and water infrastructure in key areas of the county

„ Lack of planning to create effective policies for the extension of water and sewer services in key areas of the county

„ Lack of clear and consistent zoning and land use policies „ Reluctance of property owners to sell land for development „ Large percentage of workforce living outside of the county „ Deficiency of amenities to attract new residents

„ Lack of established new employer marketing or business retention and expansion programs.

„ Deterioration of the Mount Vernon downtown „ General condition of housing

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„ Lack of a continuum of housing from starter to executive „ Lack of high quality rental housing

s

trengths

„ Direct access to I-64 in the north – especially in Poseyville „ A port on the Ohio River in the south

„ Strong outreach programs from post-secondary education providers

„ Effective relationships and communication among employers and education providers – post-secondary as well as k through 12.

„ Strong school system K-12 – high matriculation and low drop-out rates „ Available land

„ Adequate infrastructure in key areas within the county „ Major employers with deep roots in the community

„ Proximity to the regional economies in Louisville and St. Louis

„ The countywide collaboration established through the Posey County Economic Development Partnership

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F

ocuS

G

roupS

Three focus groups were conducted as part of a series of input activities being undertaken for the county’s economic development planning process. Strategic Development Group, Inc. (SDG) is the consulting firm hired to oversee the development of the plan. The goal of these meetings is to determine the opinions and perceptions of area stakeholders regarding the overall business climate of Posey County.

In addition to focus groups, the planning consultants have conducted more than twenty key informant interviews and hosted an economic summit. The consultants have created a socioeconomic profile of the county and analyzed regional economic trends.

The planning process also includes a site assessment subcommittee to review possible sites for future development in the county. Work on the subcommittee is being overseen by Hannum, Wagle & Cline Engineering (HWC).

When completed, the economic development plan for Posey County will include achievable goals and longer-term initiatives with steps to completion and potential sources of revenue.

Major Employers

Old National Bank - Mt. Vernon, Indiana August 10, 2010

12:00 P.M. (CST)

I

ntroductIon

The major employers’ focus group consisted of companies with 50 or more employees. The following representatives participated:

„ Dennis Bloodworth, Posey County resident „ Nelson Christian, Refinery Manager, Countrymark

„ Carl “Gene” Culiver, Retired Superintendent, Posey County Strategic Economic Development Plan Steering Committee

„ Bob Goebel, Resource Planner, Vectren „ Michael Keene, General Manager, B&W „ Ron Keeping, Director, Vectren

„ Steve Kalsch, COO, Dans Comp

„ Sheila Naab, Public Relations, Sabic Plastics

„ Jeffrey See, VP Project Development, Aventine Renewable Fuels „ Jim Swiwney, General Manager, Posey County Co-op

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„ Brett Vierling, Transportation Manager, Archer Daniels

„ Tiffani Weatherford, Administrative Director, Chamber of Commerce „ John Weil, Director of Operations, Warehouse Services Inc.

„ Dusty Wilson, CFO, Dans Comp

The meeting was facilitated by SDG Consultants Brian O’Neill and Catie Kosinski. The discussion addressed the following questions:

„ What resources are needed for major employers in Posey County? „ Is there a need for new types of business space for major employers? „ How important is a vital downtown to the business environment? „ What do you think of Posey County’s workforce?

„ What is the availability of training opportunities for your workers?

„ What types of incentives and support services are needed in Posey County to promote business development?

„ Is there a good balance between keeping the tax base low and providing services in Posey County?

e

xecutIve

s

ummary

Participants in the major employers’ focus group recognized a number of advantages and strengths in Posey County. Its industrial sites in Mt. Vernon have access to rail lines and a port along the Ohio River and are about 25 minutes away from I-64. In addition, the community is located close to Evansville which provides many amenities including an airport, several institutions of higher education and healthcare specialists. Participants expressed satisfaction with the workforce at hand; they noted that Ivy Tech and USI offer education and training opportunities at campuses in Evansville and through outreach activities within Posey County. They indicated that good working relationships exist between the major employers and postsecondary education providers. There was general consensus on the perception that Posey County is a good place to raise a family with quality local school systems.

Despite these attractions, major employers noted several challenges to business retention and expansion. Many of the employers said that recruiting professional workers to Posey County was a serious challenge. A major contributing factor is the lack of available housing in virtually every price range. This deficit makes it difficult to attract employees from outside the community, especially professionals or executives looking for high end choices.

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was recognized for its well restored and maintained downtown and historic significance, but its primary focus is tourism and not basic employment. The condition of the Mount Vernon downtown was considered to be a distinct disadvantage in attracting employees for the larger businesses in that area. Many buildings have seriously deteriorated, and there are few shopping or dining opportunities. The group believed that assets such as the riverfront had not been properly developed as venues for walking or gathering in attractive public spaces. Poseyville was acknowledged to be in better condition but received less discussion since the vast majority of major employers were in or near Mount Vernon.

The lack of a clear policy for granting tax abatements was also characterized as a major disadvantage in expanding or recruiting businesses. The group was not aware of any organized, sustained effort to inform and educate local officials on the use and management of tax abatements.

It was clear throughout the discussion that the individuals representing the county’s major employers were – with no discernable exceptions - very pleased to live and work in Posey County, in spite of the challenges noted above. Their clear affection for and commitment to the community is an extraordinary asset, and one that should be cultivated through demonstrably addressing their concerns.

The following text summarizes the group discussions around each specific question.

W

hat resources are needed for major employers In

p

osey

c

ounty

?

Quality of life issues were viewed as important for retention and expansion of existing businesses in the area. Several focus group participants expressed a need for quality of life amenities to attract potential employees. Jim Swiwney said, “It’s critical to us that we improve the living atmosphere in the area so that people are willing to move here.” Sheila Naab echoed these sentiments, saying that attracting new employees to the area is “one of our biggest recruitment challenges.”

Improving the appearance of downtown Mt. Vernon and more strict zoning enforcement were mentioned by focus group participants. Some participants noted that Posey County had an insufficient continuum of housing to attract a range of potential employees and employers. Steve Kalsch noted that residential developers need “to have a relationship with infrastructure to support development quickly.”

New business recruitment was also mentioned as a priority for the county.

I

s there a need for neW types of busIness space for major employers

?

The group felt that there was adequate business space in Posey County especially for retail type businesses. Several participants noted that there was a need for extended water and sewer utilities especially near Poseyville. Steve Kalsch explained that there is currently insufficient infrastructure near Poseyville to support industrial development. Currently, Posey County does not have an inventory of available business space that is

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regularly updated. This was discussed as a possible activity that would be appropriate for the Posey County Economic Development Partnership which had just hired a new Executive Director, John Taylor.

Brett Vierling explained that the Chamber of Commerce had an initiative a few years ago to develop infrastructure with broadband services to attract “back office” type operations that would minimize environmental impacts. Brett noted that “pollution controls are important issues for us.”

h

oW Important Is a vItal doWntoWn to the busIness envIronment

?

Brian O’Neill explained that he defined a vital downtown as one that offers shopping and cultural opportunities with venues and restaurants that attract people to the area. There was strong consensus among the focus group participants that having vital downtown communities was essential for recruiting both businesses and residents to Posey County. Michael Keene summed it up: “Vitality of the downtown is one ingredient that makes [the community] attractive.”

Downtown revitalization in Mt. Vernon was viewed as a priority in large part because many of the county’s major employers are based in the Mt. Vernon area. There was broad consensus that the Mount Vernon downtown has deteriorated. There are few if any opportunities for shopping or dining. Many of the buildings are empty and in various states of disrepair. Participants agreed that a vibrant downtown was an important factor in attracting new employees to the community.

Brett noted that Poseyville’s downtown seems to be fairly active.

Several people said that some improvements to Mt. Vernon’s downtown area have been made, and John Weil noted that “Mt. Vernon has huge opportunities with the riverfront development.” Despite some efforts to improve Mt. Vernon’s downtown, Nelson Christian said that there remains a need for more variety, especially during the day for commuters. Jeffrey See made a similar comment about downtown, saying, “The biggest challenge is eateries other than fast food for networking and socializing. The downtown lacks a lot of attraction. Fourth Street in Mt. Vernon does not make a good first impression.” There was general consensus that Mount Vernon lacked attractive and inviting gateways.

There was concern that Mt. Vernon – or any downtown in Posey County – could never compete with the west side of Evansville for retail shopping, which already includes many familiar brands.

There was also broad consensus that the lack of quality housing was the most significant impediment to attracting employees. Participants agreed that this shortage existed in every price range from starter homes to executive housing. With regard to deteriorating conditions in Mount Vernon’s residential neighborhoods, the absence of code enforcement was noted as a major contributing factor.

In terms of higher quality offerings, Sheila specifically noted the lack of spec housing. John stated that, “I don’t think the infrastructure will support it.” The lack of sanitary

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sewer and water extensions are the primary deficits.

W

hat do you thInk of

p

osey

c

ounty

s Workforce

?

Workforce issues depended on industry-specific needs of Posey County’s major employers. In general, representatives from the major employers expressed satisfaction with the quality and affordability of the county’s workforce. One common theme was that attracting professional employees for white collar jobs remained a challenge. However, most employers said that turnover of employees was low once they lived in or near Posey County.

Gene Culiver asked employers why they thought recruited employees were satisfied in Posey County once they got to the community. The common responses were that the county is viewed as a good place to raise children and has good school systems.

W

hat Is the avaIlabIlIty of traInIng opportunItIes for your Workers

?

Focus group participants were relatively satisfied with training opportunities available in Posey County and in nearby Evansville. Several representatives from employers noted that Ivy Tech and the University of Southern Indiana (USI) offered outreach training programs in the county and were both adaptive to specific needs by employers. Ron Keeping explained, “Every employer ought to know that they can go to the regional workforce board” for worker training assistance. He continued to explain that the regional workforce board has a new initiative to off-set employer training costs. Brett noted that “the capability is there to retrain if you need it” in Posey County.

W

hattypesofIncentIvesandsupportservIcesareneededIn

p

osey

c

ounty

to promote busIness development

?

For the most part, representatives from Posey County’s major employers felt that the community offered sufficient incentives and financing to promote business development. Ron explained that incentives such as tax abatement “become available on a case by case basis that depends on the political climate of the time.” The fact that the community has no clearly defined standards for granting abatements was viewed as a significant problem. Multiple participants expressed an interest in regional efforts to promote business development. Partnering with Evansville would provide additional support for administrative duties and “help drive Posey County development,” according to Brett. It was discussed that Posey County businesses benefit from Evansville’s airport and development on the west side of Evansville.

The Greater Mt. Vernon Association and the Economic Development Coalition of Southwest Indiana were identified as two organizations that provide information about available business development incentives and resources.

I

s there a good balance betWeen keepIng the tax base loW and provIdIng

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There was no consensus on this issue among the focus group participants. Most felt it was a critical issue for the county. Until recently the county did not have a full-time staff member devoted to economic development and lacked a clear “champion for new businesses.” The lack of a set policy on tax abatement has led to at least one business experiencing frustration with the county’s attitude toward development. Jeffrey said of Aventine’s experience with tax abatement: “It was an important tool in attracting businesses to the community. How we’ve been treated since we’ve come here isn’t a model for new business recruitment.” A possible goal of the economic development plan might be to improve communication between elected officials and economic development professionals.

Education and Workforce Development

Thrall’s Opera House - New Harmony, Indiana Wednesday, August 11, 2010

12:00 PM (CST)

I

ntroductIon

The following professionals in workforce development and in K-12 and postsecondary education participated in the session:

„ Barbara Bennett, Assistant Director of Career and Technical Education, Southern Indiana Career and Technical Center

„ Todd Camp, Superintendent, North Posey Schools „ Carl “Gene” Culiver, Retired Assistant Superintendent „ John Emhuff, Retired Assistant Superintendent

„ Bill Groves, Corporate Services Manager, Ivy Tech State College „ Jim Heck, Executive Director, WorkOne Southwest

„ Tom Kopatch, Superintendent, MSD of Mt. Vernon „ Melvin Levin, Retired Superintendent, MSD of Mt. Vernon „ Jerrilee Lamar, Professor of Nursing, University of Evansville

„ Paul Parkison, Chair of Teacher Education, University of Southern Indiana

„ Ronald S. Rochon, Provost and Vice President of Academic Affairs, University of Southern Indiana „ Keith Spurgeon, Retired Superintendent, MSD of Mt. Vernon

„ John Taylor, Executive Director, Posey County Economic Development Partnership „ Fran Thoele, Superintendent, New Harmony Schools

„ Tiffani Weatherford, Administrative Director, PCEDP/Chamber of Commerce „ Cindy Wimpelberg, Posey and Gibson Site Director, Ivy Tech State College „ John D. Wood, Retired Superintendent, North Posey Schools

The meeting was facilitated by SDG Consultants Brian O’Neill and Catie Kosinski. The focus group addressed the following questions:

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„ What are the community attitudes toward learning and lifelong learning? „ What is the extent to which students dropping out of high school are a problem? „ What is the extent to which technical and vocational opportunities are available

in the community?

„ Are area schools successful in meeting state standards?

„ What are student attitudes toward pursuing post-secondary education?

„ What is the extent to which the economic distress of the community impacts student attitudes toward pursuing education with the goal of obtaining good jobs? „ What is and will be the impact of reduced state funding on educating students in

Posey County?

e

xecutIve

s

ummary

Community attitudes toward learning and lifelong learning were generally perceived to be poor or in need of improvement.

It was initially noted that the dropout rate for the three school systems in the county was lower than the state rate while students matriculating to college was higher. Both of these statistics speak well of the schools. It is also clear that good communication and positive relationships exist among the postsecondary education providers and the local schools. There was evidence of a clear engagement among the educators generally with issues regarding the effective delivery of vocational and technical services, alternative education, and providing outreach to non-college bound students and incumbent or displaced workers.

Nevertheless the community also faces major challenges in:

„ The net loss of educated, skilled individuals from the area – as students who go on to pursue college degrees do not move back to the community – what is commonly called “brain drain”

„ A generally poor attitude toward lifelong learning and continuing education within the county’s existing workforce, which includes incumbent workers as well as students just entering the local job market

These attitudes were perceived to be part of a larger problem in regard to the community’s “commitment to excellence.” Most participants perceived a broad sense of complacency concerning personal achievement, that “getting by is good enough.” Some statistics certainly support this perception. Although the schools may be sending a relatively high percentage of students to college, it is also true that in all three school systems the percentage of students passing advanced placement exams lagged or was significantly lower than the state rate. According to the school educators in the focus group, students

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simply are not taking advantage of programs such as dual credit classes that are designed to give them a head start in college. As one superintendent explained, “it’s difficult to get them to do the extra work.” This perception of complacency is also supported by the fact that educational attainment levels in the existing workforce are very low relative to postsecondary degrees.

However, the aforementioned assets do provide the community with a foundation to move forward on addressing issues of low achievement and complacency in the workforce. The availability of technical and vocational training at local high schools and the opportunities provided by USI, Ivy Tech, and others are assets being leveraged to address these issues. Many programs already exist that are helping students connect with training programs that lead to skilled jobs, though more may need to be done. It must also be said that many workers are presently pursuing continuing education opportunities. The local schools and postsecondary providers observed that they have good relationships with major employers – a sentiment shared by the employers in their focus group.

Although there are some clear challenges in the community, there are also assets and relationships that could begin to reverse some of the troubling trends. With a declining population and an aging workforce documented in the statistical report, Posey County must effectively leverage these assets to create a more educated workforce and an environment which appeals to younger professionals and skilled workers.

Finally, state funding cuts to primary and secondary education may present a major obstacle in moving forward. Without exception, educators at the focus group expressed strong concerns about the impact of the new state funding legislation and policies for public schools. They anticipate that students in Posey County will have larger class sizes and fewer electives and extra-curricular opportunities as a result.

W

hat are the communIty attItudes toWard learnIng and lIfelong

learnIng

?

Representatives from Posey County’s school corporations and post-secondary education institutions felt that community attitudes toward learning could be improved. A retired superintendent stated that “the schools have achieved some level of excellence in spite of the attitudes of our community.” Although a relatively high percentage of area students are graduating and pursuing postsecondary degrees, many of the educators believed that there remains in the wider community a sensibility that “mediocrity is okay.”

“Brain drain” – the emigration of college educated and skilled individuals from the area – was identified as a problem in Posey County. Former students are applying for the jobs available at the school corporations, but brain drain is “the bigger problem” for high tech and professional positions. As one participant explained, “there are no high tech jobs for kids to come back to in Poseyville.”

It was noted that there are post-secondary and continuing education opportunities available in nearby Evansville. However, focus group participants felt that some professionals in Posey County do not value continuing education opportunities. Jerrilee Lamar, Professor

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of Nursing at the University of Evansville, commented that “there’s been no push” for nurses at area hospitals to continue their education beyond associate degree programs, but both USI and the University of Evansville offer continuing education programs for nurses. This has a discernable impact on both the quality of care and the ratings of local healthcare providers. For primary and secondary teachers in the county’s school corporations “rules about continuing education have changed” but remain a priority, said Tom Kopatch, Superintendent of MSD Mount Vernon. While continuing education was encouraged for teachers, some focus group participants argued that “there’s not a drive to innovate or see higher education as an avenue to become a better teacher to create a better school.”

With a declining and aging population, Posey County’s workforce is expected to shrink. Although Posey County has skilled jobs available, Jim Heck, Executive Director of WorkOne Southwest, explained that “businesses want a trained, up-to-date workforce but job seekers don’t take advantage of training opportunities as much as they could.”

W

hat Is the extent to WhIch students droppIng out of hIgh school are

a problem

?

As noted previously, the dropout rates in Posey County are lower than the state in all three school systems. For students who do drop out, participants stated that they do have opportunities to return to school. The Career and Technical Education program through the Southern Indiana Career and Technical Center was noted as an alternative for non-traditional students.

W

hat Is the extent to WhIch technIcal and vocatIonal opportunItIes are

avaIlable In the communIty

?

Posey County has several outlets for students and workers to pursue technical and vocational education. The Southern Indiana Career and Technical Center in Evansville is among the largest such schools in the state. According to Barbara Bennett, 70 percent of the center’s graduates are “still enrolled in a post-secondary program 15 months out.” The center offers dual credit courses that transfer to other universities and colleges. Ivy Tech State College offers both credit and non-credit classes for incumbent workers in the area. The college also makes available onsite classes in Posey County. In addition, Ivy Tech partners with WorkOne and the Posey County school districts to offer classes and basic skills training. Cindy Wimpelberg noted that enrollment is up this fall for the courses offered at Mt. Vernon High School. The University of Southern Indiana (USI) provides similar opportunities including assessments for employers and continuing education for employees.

WorkOne holds job fairs on a regular basis and conducted a skill summit in partnership with the Chamber of Commerce.

Both Mount Vernon High School and North Posey Senior High School have dual credit courses that transfer to USI, Ivy Tech State College, and Vincennes University. In addition, Mount Vernon High School provides transportation to the Southern Indiana Career and

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Technical Center and is developing a welding class at the high school.

a

re area schools successful In meetIng state standards

?

This was not viewed as a problem by representatives from the county’s school systems. As one participant noted “Posey County schools typically do well on standardized tests,” but these rubrics do not measure socioeconomic distress. Area schools work hard to meet the needs of at-risk students and “close some of the gaps” in special education. All of the school corporations in Posey County offer programs to meet state standards. However, some students do not take advantage of programs such as dual credit classes that are designed to give them a head start in college. As one superintendent explained, “it’s difficult to get them to do the extra work.”

W

hat are studentattItudes toWard pursuIngpost

-

secondary educatIon

?

This was not viewed as a wide-spread problem, but educators at the focus group had various strategies to reach at-risk students. Keeping students engaged in high school was a primary focus for the educators.

Remediation sometimes becomes necessary for students who repeatedly fail ISTEP tests. One superintendent said that schools “need a graduation tool to send students to vocational programs” who repeatedly end up in remediation. Barbara Bennett said that the new APEX learning program will help reach those at-risk students before they drop out; the program allows them to “sign up for a virtual class and work at their own pace.” The state requirements for minimum literacy and math skills are fixed and not flexible. Ronald Rochon, Provost and Vice President of Academic Affairs at USI, said that it is good to hold everyone to the same standards. Rochon explained that Posey County schools need to be responsive to student needs and prepare students for success outside of the community.

Barbara Bennett felt that the key to getting students to pursue post-secondary education was to “integrate real-world experience in the classroom.” The superintendent for New Harmony Schools said they are looking into “skyping” mentors into the classroom. But, as another participant noted, the challenge is getting people from industries to participate in these programs. Brian O’Neill explained that employers may be more willing to participate if they see such programs as useful in recruiting new employees. He inquired as to whether there would be any interest among the schools in initiating a formal schools-to-work program in partnership with the business community. School representatives indicated that they would be interested.

W

hat Is the extent to WhIch the economIc dIstress of the communIty

Impacts student attItudes toWard pursuIng educatIon WIth the goal of

obtaInIng good jobs

?

Posey County has several programs to assist at-risk families and students. One successful program provides free meals in backpacks that are available at the schools during the

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school year and the food bank over the summer. A retired superintendent said that the alternative school is now called the Opportunity Center to mitigate the stigma. As one superintendent explained, “a lot of times people hear alternative school and they think discipline problems.” Another retired superintendent noted that Posey County has experienced an increase in homeless students, which is a relatively new problem for rural areas.

W

hat Is and WIll be the Impact of reduced state fundIng on educatIng

students In

p

osey

c

ounty

?

There was consensus among the educators that the new state funding formula for public schools will translate to larger classrooms and cut backs on electives and extra-curricular programs for students in Posey County. Focus group participants expressed concern about the loss of electives that may encourage students – such as athletes – to keep their grades up.

Declining enrollment was another concern for educators. MSD Mount Vernon recently closed an elementary school “because of the finances and dropping enrollment.” The school corporation is losing an estimated 50 students per year.

Paul Parkison, Chair of Teacher Education at USI, noted that the challenges for local schools present opportunities for education students at USI to provide supplemental educational services and afterschool programs.

A retired superintendent expressed his concern about the future of Indiana’s public education system if the tax caps become permanent, saying: “There will be two tiers of education. If we pass this legislation, the public education system will be very different.” There was consensus on the negative impacts of the state funding cuts to education, especially in more rural and less prosperous communities such as Posey County where raising the local tax levy by referendum has proven to be significantly more challenging.

Small Business & Downtowns

Thrall’s Opera House - New Harmony, Indiana Wednesday, August 11, 2010

2:00 PM (CST)

I

ntroductIon

The following individuals participated in the session:

„ David Campbell, Town Board President, New Harmony „ Rodney Cox, Owner, Four Seasons Motel

„ Carl “Gene” Culiver, Retired Assistant Superintendent, Posey County Strategic Economic Development Plan Steering Committee

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„ Angela Geralds, General Manager/Editor, Mt. Vernon Democrat

„ Steve Koenig, VP Business Development, Economic Development Coalition of Southwest Indiana

„ Bill Newman, Old National Bank, Posey County Strategic Economic Development Plan Steering Committee

„ David Rice, Retired Professor and New Harmony Resident „ Charles Riffert, Owner, Regency Properties

„ Jonathon Scott, Owner, Cook’s on Brewery B&B „ Cindy Smith, Owner, Floors & Walls

„ John Taylor, Executive Director, Posey County Economic Development Partnership „ Tiffani Weatherford, Administrative Director, PCEDP/Chamber of Commerce „ Larry Williams, General Manager, IGA

The meeting was facilitated by SDG Consultants Brian O’Neill and Catie Kosinski. The focus group addressed the following questions:

„ What additional resources are needed to support small business? „ Is there a need for more entrepreneurship support?

„ Is there a need for new types of business space?

„ What types of new incentives are needed in Posey County? „ What is needed to make downtown a vital business center? „ What do you think of Posey County’s workforce?

„ Do the communities in Posey County have the right balance between keeping taxes as low as possible and making timely investments in services and infrastructure?

e

xecutIve

s

ummary

Posey County has a mixed set of assets and challenges in regard to the downtowns and small businesses in its three largest cities and towns. Mt. Vernon has an excellent location on the Ohio River, but its downtown has limited business activity and many buildings are abandoned and in states of serious deterioration. Poseyville’s downtown has been better maintained but with only a 1,000 residents does not support much retail or restaurant activity. Although even smaller, New Harmony is the historic site of Robert Owens’ attempt to establish a utopian community. Historic buildings in the downtown and core neighborhoods have been meticulously restored and maintained over the years. Its economy is almost exclusively supported through tourism. Consistent with this fact, arts and crafts related shopping opportunities and niche retail dominate the downtown.

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Although the three communities are very differently situated, there were areas of common concern. Participants from all three areas believed that people are drawn to commercial shopping in Evansville because they believe it is easier to access a wider selection of goods and because it is less expensive. Although there may be a wider selection of shopping opportunities in Evansville, local business owners at the session contended that their prices were competitive and that many Posey County shoppers simply don’t give them a fair chance. There was significant frustration over this issue. Many of the participants pointed out that they were civically engaged and provided support for local groups, but members of these same groups would drive by their stores to shop in Evansville. Business owners also agreed that the community as whole needs to reverse population trends and attract more residents with disposable income.

Participants from New Harmony see the potential for creating additional business and housing opportunities through promoting the area as a retirement community. In addition, there was discussion about the possible development of an entrepreneurship mentoring program with local retirees. The need for such a program was discussed as another resource for small business development. While the virtual incubator in Evansville serves Posey County, participants felt that the available resources for entrepreneurship could be better communicated to local business owners.

There was consensus that there is adequate space available for new types of businesses in Posey County. Although Mt. Vernon’s downtown has empty storefronts and buildings, they are not immediately usable and are in need of rehabbing. Commercial loans and business incentives for retail were identified as additional resources that are needed in Posey County by small business owners. All the communities rely on agencies in Evansville for most of their small business support services. There was also consensus that the workforce that serves small business is available and performs well. The group was ambiguous on the question of local tax levels and the need to make investments in public services and infrastructure.

W

hat addItIonal resources are needed to support small busIness

?

One of the challenges for small businesses in Posey County – in both Mt. Vernon and New Harmony – was convincing residents to shop at locally owned businesses. Several focus group participants wanted to see an increase in community support for local businesses. One participant explained that people often assume that prices will be cheaper in Evansville. Larry Williams, General Manager of IGA in Mt. Vernon, said, “If you need something, you can go someplace else but give me the chance” to offer a competitive price. A commercial property owner said that this was the most common complaint among the businesses in the shopping center he owns.

One participant said that “it’s hard to fit into the community when you’re new.”

There was consensus that New Harmony was an asset that people did want to degrade. However, residents of New Harmony expressed both an interest in preservation of the past and attracting more non-manufacturing jobs. David Campbell, Town Board President, said of New Harmony: “Our business is intangible business. There’s no reason that an

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intellectual center that doesn’t require manufacturing couldn’t be here.” Campbell also described New Harmony as a “naturally occurring retirement community.” Another participant said that the shifting demographic profile in New Harmony would present new opportunities for housing and businesses.

There was a perception that Posey County does not have a large enough population to attract larger retailers and stores to the area. One participant noted that the county is “blessed to have the tax base with business, but we don’t have the people.” However, another participant felt that the county does not have an adequate range of available housing to attract more residents, especially young families. Some participants felt that Posey County could be more of a bedroom community, but there was the perception that “a lot of the major employer managers live in surrounding counties.” Participants acknowledged that many of the higher skilled workers commute in to Posey County and live in Evansville.

Income is another factor. In 2008, Posey County’s per capita income ranked 9th highest in the state, but high-paying manufacturing jobs skew the income distribution.

One participant felt that the interests of the county were polarized between the north and south, but “the north lacks the population to drive the political leadership of the county.” However, others in the group felt that progress had been made between the two parts of the county, especially in the past five years.

I

s there a need for more entrepreneurshIp support

?

The general consensus was that there are several resources available to support entrepreneurship, but people may not be aware of them. For instance, there is a virtual small business incubator in Evansville that serves Posey County. One of the focus group participants shared a negative personal experience regarding the Evansville virtual incubator. The implementation of periodic evaluations of the incubator may improve the delivery of services. The group felt that better communication between the regional small business development center and Posey County entrepreneurs is needed.

There was discussion about the possibility of developing an entrepreneurship mentoring program with volunteer retirees from New Harmony. As David Campbell explained, “we have the talent in New Harmony to get things done; there are a lot of skills here.”

Larry Williams said that the chambers of commerce merged recently with the intention to “make sure that people in Posey County are aware of the resources” available for small business development.

I

s there a need for neW types of busIness space

?

There was consensus that there is adequate space available for new types of retail businesses in Posey County. In particular, Mt. Vernon’s downtown has several empty storefronts and buildings. Participants acknowledged that these buildings are in poor condition. As Larry Williams put it, restoring Mt. Vernon’s downtown “will take redevelopment and demand.” He suggested a fund be developed to help rehab the downtown.

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W

hat types of neW IncentIves are needed In

p

osey

c

ounty

?

Commercial loans and business incentives for retail were identified as additional resources by small business owners. More than one focus group participant expressed a need for more locally owned restaurants in the county.

Bill Newman explained that it can be difficult for retail businesses to get commercial loans because they need to demonstrate a certain level of cash flow. However, he suggested that there could be a “drive to build a foundation to make those funds available” for niche businesses. Brian O’Neill added that most micro loan programs have a funding source. He gave the example that the Urban Enterprise Zones (UEZs) established micro loan programs to fund business development in urban areas.

Charles Riffert stated that, “It seems like everything goes back to population. Housing won’t come in without retail, retail won’t come in until there’s population.” Brian O’Neill agreed that this interrelationship presents a very challenging circumstance in Posey County that many other communities are facing. He told that group that, “You don’t turn this situation around overnight. You have to chip away at it.” Rodney Cox commented that “the perception of our community is that it’s low income with a lot of free and reduced lunches at schools.”

W

hat Is needed to make doWntoWn a vItal busIness center

?

There was discussion that New Harmony does not have a range of services downtown. It was discussed that the New Harmony market is not big enough to support a full-service grocery store.

The group discussed the fact that understanding market conditions will be an important activity in order to recruit or grow successful businesses in the downtowns. Brian O’Neill suggested that the community may want to conduct a downtown revitalization study to examine retail leakages and areas with high growth potential.

W

hat do you thInk of

p

osey

c

ounty

s Workforce

?

Many small businesses are managed by owners with minimal staff. Of the businesses with employees, the perception was that the county’s workforce is good. Rodney Cox said that “people take a lot of pride in their work.” Larry Williams said that most of the employees at IGA “have motivation to keep their job” because it is usually a first job for younger employees or a second job to augment family income.

Do the communities in Posey County have the right balance between keeping taxes as low as possible and making timely investments in services and infrastructure?

The group was ambiguous on the question of taxes and investments in public services and infrastructure. Some participants felt that tax rates were high enough already. Another participant said that “the tax restructuring is a burden on small towns.”

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catch-up after a period of time with stagnated tax rates. Funds from the economic development tax are currently paying for county roads and other infrastructure projects. He felt that Posey County is “meeting our limited economic development needs but not planning for the future.”

John Taylor, the new Executive Director of the Posey County Economic Development Partnership, shared an anecdote about how a large business essentially funded the construction of a new fire station after they became convinced that they would recover the costs from lower insurance rates over a short period of time.

Another participant felt that if “people understood why growth is good,” they would see the need for investment in infrastructure and economic development. He continued to explain that communities that rely on residential development for their tax base will begin to struggle.

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K

Ey

i

nFormant

i

ntErviEwS

Posey County is working to create a strategic economic development plan. The purpose of the plan is to create a vision of Posey County’s economic future and to develop a clear set of objectives to reach the goals of this vision.

The steering committee identified key informants from the county whose opinions on economic development issues were considered valuable. Key informants included representatives of small business, agriculture, education, government, industry, real estate, as well as other community members.

Interviews were conducted with community stakeholders between July 19 and August 5, 2010 via phone and email. The following twenty-two individuals participated:

„ Jim Alsop „ Mike Ashworth „ Walt Brunton „ David Campbel „ Nelson Christian „ Rod Clark „ Steve Fuelling „ Bob Gentil „ Andy Hoehn „ Larry Horton „ Mike Keene „ Steve Koening „ Melvin Levin „ Butch Proctor „ Mark Seib „ Allyn Simpson „ Richard Straub „ John Tucker „ Tim Wiley „ Larry Williams „ Andrew Wilson „ Kirby Wilson

Key informants were asked questions about specific aspects of Posey Count’s economic environment. The following report presents and analyzes their responses.

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