ELEMENT: THE ECONOMY

ECONOMY: EXISTING CONDITIONS

Demographic And Business Trends

Frankfort’s population was an estimated 16,153 in 2014, and is slowly declining. It dropped about 2 percent from 2010 to 2014. Clinton County’s population, now at 32,609, has also lost residents.

A declining population is not a good sign, but it is in line with most of Indiana’s 92 counties. Almost all of the state’s growth is centered on its large urban areas, such as Indianapolis.

However, even with a shrinking population there is still room for development and new opportunities, especially since the recession has receded and the economy is slowly growing again.

There are 813 commercial and industrial businesses in the City of Frankfort, according to the Indiana Department of Workforce Development (IDWD). This list includes everything from FederalMogul Corp with 400 employees, to Bradley’s Locksmith Shop, with one.

There are 105 retail establishments spread throughout the city, according to IDWD. Most of these are small businesses, but there are large national chains such as Walmart Supercenter with 220 employees.

Downtown has plenty of competition for customers. For example, there are much heavier concentrations of restaurants and retail stores along Wabash Street/U.S. 421 east of downtown, and other major arteries. To stand out, the central business district needs to build upon its distinct identity and offer shops, services and a pedestrian experience not found elsewhere in the city.

Cultural And Social Resources

The central business district is still the cultural center of the community, with attractions including the Clinton County Civic Theater. Some of the annual downtown events include:

• Farmer’s Market

• Fire and Ice Festival

• First Friday Gallery Walks

• Animal Art on Canvas

• Hot Dog Festival

• Thursday Thunder Car Show and Main Street Concerts

• Oktoberfest, Ghost Tours, Trick or Treat on the Square

• Christmas Parade, Santa’s House, Santa Express & TPA Park Light Tours

Existing Economic Development Plans

There is no shortage of plans about restoring downtown Frankfort, as shown in the following list. Plans and reports reviewed for this study include:

• 2013 Economic Development Plan

• 2012 Ivy Tech Feasibility Study

• 2012 Urban Land Institute - TAP Study

• 2012 Comprehensive Plan Update

• 2011 Railroad Roundhouse Study

• 2007 Comprehensive Plan

Current Image

During the steering committee and public meetings, there was recognition that downtown has untapped potential, but that a concerted effort was needed because many residents – especially young people – don’t see the community as vibrant or a good bet for a prosperous future.

Some of the goals given for this plan include:

• Combat the culture of leaving Frankfort; give kids a reason to stay.

• There’s potential for a common culture of learning – with Ivy Tech.

• Create an aggressive approach to revitalization.

• Entice employees who work at the industrial park to live here.

ECONOMY: EXISTING CONDITIONS

Economic Development Tools

A community of Frankfort’s size needs every advantage to build its economy, including local organizations with a vested interest in downtown. Many of the foundational groups needed to promote growth are already in place, including:

• Frankfort Main Street

• Clinton County Chamber of Commerce, which oversees: o Partners in Progress for Clinton County, the county’s economic development organization o Clinton County Economic Advancement Foundation, which is set up to support local efforts o Clinton County Tourism Bureau, which is funded with a countywide innkeepers’ tax.

• Frankfort Redevelopment Commission (FRC), which oversees the TIF district.

• Clinton County Community Foundation

• Historic Preservation Commission

• An engaged mayor

• A supportive city council

• A good working relationship with Clinton County government

To be effective at attracting and expanding businesses, these groups require economic development tools. Following is a list of those tools and the city’s preparedness.

1. Support programs for entrepreneurs and existing businesses

2. A tax increment financing district

3. A Revolving Loan Fund Program

4. Design guidelines and standards

5. A downtown investment group

Entrepreneurial Support Programs: Frankfort Main Street runs many of these programs including a recent course on marketing in conjunction with Purdue University, which was completed by 21 businesses including three located downtown. The Purdue University Extension Office (located by the fairgrounds) also offers businessrelated classes.

Tax increment financing (TIF) districts are essential because they generate money needed to fund downtown infrastructure repairs, façade programs, etc.

The Frankfort Redevelopment Commission (FRC), oversees the TIF district, which originates at the city industrial park but also encompasses downtown. The commission has made $75,000 available for a façade program aimed at downtown buildings. Frankfort Main Street has also approached the commission about funding future sidewalk and lighting improvements.

Low-Interest Loan Program: There is a revolving loan fund with approximately $400,000 for people needing assistance for business start-ups and expansion.

Design Guidelines and Standards: The city is making considerable investments in improving downtown, and has a right to protect its investment by indicating to the private sector what it expects in downtown development.

Design guidelines or design standards can be put in place to direct future streetscape or building work so that it creates an attractive setting for businesses and for the many diverse uses of the downtown. The rules can be very specific, covering building materials, colors, use of awnings, etc., or very general, such as specifying that all new buildings align with existing ones (to discourage parking lots in the front of downtown businesses).

Opponents claim standards discourage investment because they involve local government bureaucracy and can add costs for compliance. Supporters claim that without the standards one slipshod building owner can cheapen the look of an entire city block, despite the work that the rest of the community has put into it.

ECONOMY: EXISTING CONDITIONS

In Frankfort, the Historic Preservation Commission, a new group, is working on design guidelines for downtown buildings to accompany the façade grant program. However, the city council may also want to consider some design regulations for key areas downtown, such as the courthouse square.

A downtown investment group can be the most potent engine of change. With such an organization, local leaders can target areas and even specific buildings for revitalization. They do not have to wait for the marketplace to determine when and if a site is ready for reuse.

For example, the City of Dunkirk in Jay County has the Dunkirk Investment Group (DIG), which restored several buildings and created a public-private partnership with local government. In one restored building DIG recruited a new downtown medical practice. They also bought Dunkirk’s grandest structure – a 1930, three-story masterpiece – and are restoring it.

Traffic Counts

The amount of traffic moving through a commercial area is a key indicator of how many customers can be enticed to pull over to shop or look around. People looking to open new businesses can study traffic counts for promising locations.

In Frankfort, local traffic counts are done on state and U.S. roads by the Indiana Department of Transportation (INDOT). They use a system called Annual Average Daily Traffic (AADT), which is the average of all daily traffic that would use the road over a year. The number indicates the total vehicles moving in both directions.

State roads 28 and 39 both run through downtown Frankfort, along with U.S. 421. Some of the highest traffic counts are on East Walnut Street just south of the square, with 14,180 vehicles per day counted just before U.S. 421 turns north on Jackson Street, according to an INDOT report from 2013.

Many vehicles continue along that east-west road, but 7,619 were counted on Jackson Street just south of the square, according to the 2013 study. It is encouraging to note (for businesses, anyway) that traffic has gone up since an INDOT count in 2011.

Another promising statistic is the 39,000 or so vehicles passing nearby at the I-65/SR 28 exit. With better signage and new destination shops and services, some of those drivers could be lured downtown.