Research Paper on "City of Bloomington, Illinois"

Research Paper 7 pages (1973 words) Sources: 10

[EXCERPT] . . . .

city of Bloomington, Illinois is a city of just over 75,000 citizens and is the county seat of McLean County, Illinois. Located in the center of the state its economy has been heavily dependent on agriculture but there are also a number of insurance companies headquartered here with State Farm being the largest. Other major employers in the area include Illinois State University, Advocate BroMenn Medical Center, and a manufacturing facility for Mitsubishi Motors (City-Data.com).

Three major interstates, 39, 55, and 74 intersect here so that Bloomington has seen increased interest by trucking and warehousing companies. The area is served by Amtrak and a regional airport that is served by three major airlines: Airtrans, American Eagle, and Delta. Two professional sports teams, the Bloomington Extreme of the Indoor Football League and the Prairie Thunder of the Central Hockey League share accommodations at the U.S. Cellular Coliseum in downtown Bloomington.

The Bloomington area is served by two separate public school districts. Within those two districts are three high schools, four junior highs, and numerous elementary schools of various sizes. The only university directly located inside the city limits is Illinois Wesleyan which is a private facility operated by the United Methodist Church. The enrollment at Illinois Wesleyan is just over 2,000. Nearby is Illinois State University with an enrollment of over 20,000 students. It is the oldest public university in the State of Illinois.

Bloomington has taken the position of cooperating with other local areas in around Bloomington in an effort to promote itself. Bloomington provides the core city of an organization indentified as the Economic Development Council (EDC). The stated purpose of the EDC is lead "initiatives to help businesses and communities in the McLean County area prosper (Economic Development Council of the Bloomington-Normal Area)."

The EDC is entrusted with the responsibility of promoting the Bloomington, Illinois region relative to business and ensuring that the area continues to grow and prosper. In this regard, the EDC has recently announced a new unified plan that replaces a former business development plan that was initiated in 2006. The new plan, entitled as "Proposed Strategic Plan 2011-2015 (Economic Development Council of the Bloomington-Normal Area)" sets forth the blueprint for economic growth for the Bloomington area for the next five years. The plan sets forth five new priorities for the EDC. These five priorities are:

1) Business Assistance and Support -- will provide primarily level support for all area business. This support will include resource identification and direction toward area programs and services.

2) Illinois State University / EDC incubator -- federal funded project that attempts to combine the efforts of the University and the EDC.

3) Targeted Expansion and Development -- directed toward identifying businesses that are appropriate for the area based on the employment skills available. The goal is to provide the area with as many high paying jobs as possible.

4) Community Enhancement and Advocacy -- will provide advocacy support for programs that will produce jobs, new capital investment and have an economic impact on the area.

5) Economic Information and Communication -- coordinates relationships with local media so that information regarding EDC activities are fully and accurately disseminated.

In addition to the services and programs provided by the EDC the City of Bloomington itself has several departments within its government structure that are actively involved in the economic development of the City and surrounding area. The first of these departments is the Community Development office. Operated under the auspices of the City of Bloomington government, the mission statement of this department is: "To create, maintain, preserve, and provide affordable, safe housing opportunities, programs and services (City of Bloomington)." The department consistent with its mission statement addresses the general housing needs of the community. It relies upon development block grants from the federal government which are distributed by the Department of Housing and Urban Development (HUD). The department also administers other HUD programs such as Continuum of Care that provides assistance for the homeless and an Illinois State program entitled as the Single Family Owner Occupied Rehabilitation program (SFOOR). This broad program provides a variety of housing related issues but its primary emphasis is on providing assistance to low and moderate income home owners.

The City of Bloomington also maintains a separate department dedicated to administering to the recreational and cultural needs. This department "exists to maintain and enhance the quality of life for all citizens of Bloomington by providing park, recreation and leisure opportunities… (City of Bloomington )." This department administers to a broad range of recreational activities in the City of Bloomington and the surrounding area. According to its own statistics the department serves the needs of 75,000 citizens. The department's programs are supported through a combination of tax revenues and user fees.

The final department that is actively engaged in the economic development of the Bloomington area is the Planning and Zoning office. Although often overlooked in the economic development arrangement, this office provides direction to the City and the area relative to the proper zoning and land use that best provides for the future growth and development of the city. This department oversees the use of buildings and land throughout the city and also maintains a separate office that administers the historical building preservation program. Funding for the operation of this department is provided by tax revenues.

In reviewing the different agencies serving the Bloomington area there is a definite split regarding approaches as to the funding of economic development. As one might expect the agencies operating through the City of Bloomington rely heavily upon demand-side policies. Advocates of demand-side policies believe that the government should be deeply involved in the economy. This results in many of the departments within the City of Bloomington government depending on federal funding for their being able to provide services.

On the reverse side, the EDC directs much of its attention to promoting economic development through the involvement of private industry. Although the EDC receives some support from the federal government to fund its various programs the bulk of the EDC's efforts are directed at recruiting new businesses to the Bloomington area and the support of existing businesses. These efforts by the EDC are consistent with supply-side policies that view producers and investors of wealth as the primary motivators for economic development. In the EDC's new plan for economic development only one of its five stated priorities is reliant upon federal involvement and there is no mention of state funding in any of the five priorities. Instead, the plan speaks heavily about the EDC's goal of encouraging new businesses to the area and assisting existing businesses to grow.

The EDC in its promotional materials emphasizes the private business services that are available in the area. The EDC stresses that the area is served by outstanding hotels, unique restaurants, and exciting leisure attractions. All businesses privately owned and operated and generating private dollars and not dollars emanating from the federal or state government.

As the EDC begins its new five-year plan it is coming off the successful execution of its prior plan, "Navigating a New Direction (Economic Development Council of the Bloomington-Normal Area)." The old plan had only four priorities as distinguished from the five contained in the new Plan but the EDC did a remarkable job of achieving the levels set by the five priorities. In difficult economic times, Bloomington was able to keep its cost of living below the regional average; keep its housing costs way below the national average; and keep its health costs below the national average as well (Moody's ). The only real area for concern was that the income level was below expectations and the area offered little in the way of industrial diversity. Both of these concerns were listed as a priority under the new plan recently adopted by the EDC.

One of the most encouraging economic indicators for the Bloomington area is the steep increase in population over the past decade. In a period when most northern cities have been plagued with severe drops in population and the corresponding loss of skilled labor Bloomington has enjoyed an increase of over 10% in its population. In the period between the year 2000 and 2008 the population of Bloomington area, which included its sister city of Normal, Illinois, increased from 150,888 to 166,143, a 10.11% change. Additionally, economic experts predict a further increase in coming years. Add in an unemployment rate that has remained stabilized at one half the national average and you have a regional population that is content with economic conditions (Proximity). Even Bloomington's housing market has remained stable during a time when the national market has spiraled downward (Department of Housing and Urband Development).

Bloomington's remarkable economic performance over the past decade occurred during an era when supply side economic factors were considered unfavorable (U.S. Department of Labor). During this period income tax rates in Illinois were increasing, economic incentive grants were unavailable due to poor overall economic conditions, and tax… READ MORE

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