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HomeMy WebLinkAbout1984 Task Force for Economic DevelopmentCITY OF ITHACA 1OB EAST GREEN STREET ITHACA, NEW YORK 1 4850 ' OFFICE OF MAYOR December 28, 1984 Mr. Gerald C. Hartman President Morse Industrial Corporation 620 S. Aurora Street Ithaca, New York 14850 Mr. Lawrence Siany Labor Industrial Relations Coordinator Morse Industrial Corporation 620 S. Aurora Street Ithaca, New York 14850 Mr. Richard Sullivan Business Agent Cayuga Machinist Lodge No. 1607 638 Elmira Road Ithaca, New York 14850 Mr. Noel Desch Supervisor Town of Ithaca 126 E. Seneca Street Ithaca, New York 14850 TELEPHONE: 272-1713 CODE 607 Mr. Harris Dates Chairman Tompkins County Board of Representa- tives Ithaca, New York 14850 Mr. Raymond VanHoutte Tompkins County Trust Company The Commons Ithaca, New York 14850 Mr. Robert Dowd New York State Department of Commerce State of New York - Associate Business Consultant State Office Building Binghamton, New York 13901 Mr. John B. McGuire, C I.D Regional Director State of New York Department of Commerce Southern Tier Regional Office State Office Building Binghamton, New York 13901 Gentlemen: Thank you for meeting at the Ramada Inn, for what 1 feel was a very productive discussion. I am enclosing the three reports I mentioned concerning: I. Economic development strategies of some other communities. 2. Import substitution analysis. 3. Printing "leakage" analysis. "An Equal Opportunity Employer with an Affirmative Action Program" c Decemter 28, 1984 Page Two • These reports are not in depth, by any means, but I believe they offer a good basis for discussion and suggest an area of possible concentration of effort. I know you all have enough paper going across your desks but I hope you can find a few minutes to review this material. Again, thank you for meeting and 1 look forward to getting together again. HAPPY NEW YEAR! Sincerely, John C. Gutenberger Mayor ENC. (3) TO: Task Force for Economic Development in Ithaca. FROM: Randall Wilson INTRODUCTION . MEMORANDUM Date: July 3, 1984 Subj'.: Interim Report Mayor John Gutenberger convened the Task Force for Economic Development -in Ithaca (TEDI) in the spring 01..19414 to address the ".human.side" of the local economy. At.the first two meetings of •-TEDI, and in conversations with members.of the Task Force, it became. clear that examples.of relevant practice, in other cities. would.be helpful. Consequently, I.have focused my activities as part time research analyst on .a survey of such examples. I have 1 .reviewed numerous documents collected as part of my studies in Corne.11'Is Department of. City :and Regional Plannin•g-, I have made -:perhaps 25.teiephone calls to officials.and experts in .,various cities, and I have spoken to members TEDI and various officials and community people in Ithaca to see what themes in the: experiences of other cities and in the literature seem: most .relevant to TEDI's -mission. Aside from such general objectives as "improving the 2 business climate," expanding job opportunities, and "coordinating the actions of public and private actors," my conversations suggest several specific approaches to local economic development that TEDI has a particular interest in: (1) Ways to exert a greater degree of community control over -the course of economic development--e.g. keep local wealth in the 'Community through, perhaps,. import substitution strategies; take more advantage of certain strengths such as ,the . 'alternative" businesses now oPerating• and :the locally generated food production and distribution networks. (2) Ways to improve the structure of neighborhood and other 'participation in local economic development programs. (3) Introduce the concept of a "social' infrastructure" -.--as exemplified in current day care proposals-- as equally important. as such "capital infrastructure" as roads, utilities and public financing subsidies im creating a.good business climate: -This interim report begins to address the background to' ~these Ithaca -concerns by summarizing examples from selec_te'd-other cities. The five .cities presented below are -St. Paul,- MN.., Eugene, .OR. , Hartford, CT., S-anta- Monica, CA. , and _Burling=ton, 3 VT. I have to emphasize that this is only the barest summary. Persons who wish to pursue any of these examples in more depth shouldcontact me, as I am beginning to accumulate an extensive and useful. bibliography. - SUMMARIES St. Paul, MN. The city of St. Paul has initiated a ."Homegrown Economy Project." Despite its rural -sounding title, the program promotes the growth of light industry. Its goals are to diversify the local economy and reduce the amount of goods and services imported from elsewhere. Through its Planning and. Economic Development agency (PED), the city identifies promising local businesses. and "grows" them -- through its incubator building and a variety of other support mechanisms. The accent is on small businesses, acknowledging their large contribution to job creation and new technologies. Larger local firms also receive assistance, such as financing and technical help. The idea is to nurture new businesses along until .they are self- -supporting, as well as to maintain businesses with problems. In either case the goal is to retain jobs and income within the community. According to a staff member, "We identify strengths and build on them."(1) - The centerpiece of St. Paul's program is its business incubator, which offers low cost space and services to eight new enterprises. The city developed a unique arrangement to obtain Rather than owning the building outright, it financed the space. a low interest' mortgage for a local developer, who agreed to offer incubator space and use the profits to renovate other • .properties in the area. Among the tenants are a jewelry maker, a food distributor and a maker of energy-saving carburetors for .boilers'(2) St. -Paul's PED has aggressively sought out grants and revenue bonding. In 1981 they ranked first nationally for revitalization grants to small businesses-. A tax-exempt revenue bond program assists low income housing development and revitalization of neighborhood businesses. In 1983, a "Neighborhood Partnership Program" program was established, drawing on Community Development.Block Grants and"i city taxes to create'a self-help fund. Residents, businesses and neighborhood groups present their own plans for an area (renovation, public works orbother improvements). The program extenaFs technical assistance and funding to realize such projects. (3) 'Eugene, OR. `In 1981, Eugene officials called attention to -the =area's vulner-ability .to global .and national events. In particular,.'high interest rates for home.mortgages have :deva-sta.t-ed :the area's mains, -bay, the timber industry. .An early 5 `leader in "growth management" and environmental. regulation, Eugene was also perceived as a "bad business town._" In response, the city adopted a Six Point Program to diversify..the economy. :The plan calls for a balance of outside'recruitment and the creation and growth of local firms, with special emphasis on small and medium-sized enterprise. It argued that diversifica- tion will largely occur through the expansion of existing local -firms. (4) The plan also called for a close partnership between the, public and private sectors. .A major'vehicle for cooperation is the Joint Committee on Economic Diversification (JCED). The Committee links city staff, the Chamber of Commerce and local schools and universities. Its "action arm," the -Business Assistance Team, is staffed by city employees and Chamber volunteers. Their partnership, according to a.city staffer, has been "excellent." (5) The "BATeam" has extended help to 500 local businesses on.city regulation, land use, low interest loans and other programs. of assistance. .It acts a'one stop'sho.p" for prospective (and existing) business; BAT also acts'as.. om.bud.sperson and :.advocate .when necessary. Their efforts. -:are closely. coordinated -with job tra-i-n-ing e-f-f.o.fts .-au.d,.o_ther development'programs. Their,"action•plans" call for provision of 'affordable daycare, flexible work hours and adaptation.of workplaces to employ disabled people. (6) Under-considexation'is a finance program which would assist local firms who employ s with particular needs, or provide other public benefit. grou p An aggressive outside recruiter, Eugene offers incentives to " h rowth, labor intensive and non-polluting.` firms which are hig g The state offers'tax breaks to pollution control facilities, energy -conserving fuel';production andyaste' recovery)• other approach to development grew from Eugene's,. 2. An ' Whiteaker, the city's poorest grassroots. During the 1970 s, neighborhood,• fought displacement from highway construction and. other developments.The strategy of local groups slowly shifted from "defense of the neighborhood" to "affirmative planning," based on.communityrcontrolled and environmentally appropriate development. Plans were developed by the Whiteaker Community Council, which created a non-profit organization, the. jleighborhood Economic Development Corporation, or NEDCO. Economic and.physical development would be guided by'lecal -preferences for local_ needs," ,focused' on basic necessities (health,l housing, energy and. food)... (8) .Whiteaker activists received planning assistance from city • -staff, ;who ..also supported zoning changes to allow urban' farming -and to keep the area affordableto residents. Other help 'came from a local =bank ,and a -realt,or, as w.e.-ll as ..the. office of the local Congressperson. Federal support -came "from the Community Development Block Grant program, among others. , . 7 Aided by a .neighborhood task force, NEDCO and the city developed an energy conservation ordinance for Eugene. The laW provided for low income, rental households to be weatherized. The corporation also spawned a community business, Whiteaker Energy, to carry out weatherization and alternative energy retrofitting. The firm was incorporated'as a democratic. enterprise, governed jointly by employees, community members and.. • investors. NEDCO also acquired land'aUd buildings to house enterprises serving the area: hardware and grocery stores, a bakery and = other services; a low-income, scattered -site housing cooperative, and other efforts in food, health care and recycling. These developments have helped revitalize Whiteaker's Blair area, a delapidated commercial strip bordering run-down housing. Some of these enterprises •failed, due to undercapitalization, among other problems. Community participation in Whiteaker remained strong into the%1980's, however. Hartford, CT. Hartford shares with Eugene a focus on -food and agriculture in.Strategie6 for low income neighborhoods. These cities-iinked.pla-uner.s, neighborhood.groups and regionallarmers % via urban farm markets and other means. (9) Hartford's foodplan was part of a broader atrategy to.cut tjle, cUat.cif-basic 8 food, energy, transportation and health care -- and free_ up :purchasing power for other local goods (e.g. housing, or patronage of local retail and service businesses). (10) It .shared with Eugene an accent on self-help, local self reliance and cooperation; also emphasized was job training applicable to private sector employment. Founded as a non-profit corporation in 1978, the Hartford Food System sought to reduce the cost of food, improve the quality of food available, and increase the amount grown within -:the region.:(11) Based.in five low income neighborhoods, the Food System combined the resources of 14 community groups. it includes' • five food-buying'clubs, farm markets and market councils,. -commercial and community food -producing greenhouses, city-wide composting, a community cannery and technical .assistance to help neighborhoods develop and control their own food system. Each of these elements was planned to complement the others. (12)• i Recent assessments acknowledge that the Hartfoo.d Food System has not solved the food problems of residents; it has been a help. to the large nu:mbex. of households ,us-in:g it. (13) The System holds out the .potential to reduce ::the cost. 'df energy expended in: 'trucking•.food in from long distance (a cost which makes Hartford .,;p.ay six to ten .times the national average for its -food). With greater .awareness (and coordination) of who buys food in the - area, H.artf.ord' co.uld-.rais:e the demand. for regional produce -- 9 'keeping money in the area and creating jobs in agriculture. Several reports,.for instance, urge the city's Board of Education to send its $2 million annual food budget on local produce. (14). P Another Hartford theme ie the "linkage" policy. - In December of 1983 Hartford's city council adopted a new -downtown development plan which emphasized office and retail development and,.ase result,;met.with sustained opposition from the city's - well organized base of activists in poor and ettnic • nei hborhoods. They pointed out that 'the tax deferrals to. office g development have generally not'provided many -jobs to residents of the city's lower income neighborhoods. .The groups called for "linkage" policies to direct a share of the galas of downtown developers to the neighborhoods. They requested that all projects total project costs of a to a certain size contribute five percent of a neighborhood and economic development finance low income housing or rehabilitation, training for the neighborhoods'. Al]. projects would-be asked to provide free space for affordable fund. The fund would enp:loyment and job over a certain size (15) day care. The present'discussion of a linkage policy had its; antecedents in the policies of an. earlier city rouncil'`in•. Hartfor=d, led -by '-N.ichola=s Garbon:e from 1969-7-9. ` Under .°his leadership; the city aggressively developed lanil with the objective of >employing local residents _and '-increasing their 10 income. Hartford, despite a soft market fordevelopment, was able to trade off immediate tax deferrals for developer concessions that would mainly accrue over longer period. The city took equity holdings in buildings and land, leasing them back to developers with these conditions: employ localcontractors and construction crews, employ minorities, provide space in buildings for minority businesses and help finance small business. The largest, example was Hartford's co -ownership of the Civic Center. The city also took over an abandoned department store, leasing it to American Airlines for a reservations center under the condition that the first two floors be set aside to create small businesses. The "deal" provided 1000 jobs for t&e city. (16) Santa Monica, CA. Santa Monica's city government has successfully pursued "linkage" policies for several years.. Developers are required to construct and mainta .n•one unit of low and moderate income family housing for every 35DV square feet of. commercial office space. City manager -John Alschmler argues that this policy is 'not a "tax" but .an "exaction",' a request' for payment equal to the cost created by private. development this case, the loss of housing due to office'development. `Tradi'tionally., ' suburban -communities have asked •=developers to bear 'the incremental costs of services and infrastructure required for projects. Use of this me.thod'in Santa Monica.has not driven out potential investors. The city has success'fully,`ne=gotiated. agreements with a series of•developers. 11 Santa Monica policy calls for. linking downtown and oceanfront development to the creation of businesses with an. emphasis on small scale, retail uses. .The accent on tourism and service sector work has been criticized, given the low wages and seasonal nature of much of the work. However, in a 1982 policy paper, it was defended as the best way to bring tax revenues into the city; the paper also suggests that commercial and retail jobs provide, themost entry level opportunities for women' --.close to 60 percent of Santa Monica's households below the poverty line are female -headed. (17) ,Other groups in need -- minorities -and.. youth -- will receive job assistance through the city's community development department, which has begun to work directly with community groups to identify needs and toproviie.advocacy and. training. Burlington, VT. Burlington's programs for the local economy. bear the of its activist mayor, Barnard.Sanders. Elected in t a.ferment of neighborhood politics, Sanders has sought to make city .government both equ,ita:ble.and efficient. Se.sides . traditional reforms of administration, he ;has used his p.owets 'to widen participation and increase .popular contro11 over the c.ity'.s resources. He has also strengthened the city's rapacity in economic development, creating:a new office-d-evDted to:that..end. 12 "Participation" has been a watchword from the first days- of the Sander's administration. A variety of task forces and" advisory councils were created to define problems and offer recommendatio"ns., They afforded a way to develop new programs and services which built"citizen expertise, without expanding:th.e city's. bureaucracy. Task Forces were formed on. women, youth, the:, arts and the elderly. The Council on Women researched the economic, safety and health needs of Burlington women. At their urging, the city surveyed the economic status off women, and worked for the,creation of a downtown daycare center, funded by block grants. Burlington's most elaborated form of participation has been its Neighborhood Planning Assemblies. These were adopted to provide a community voice in the Community'Devello"pment Block Grant decisions, and to..open communication between citizens and • the various city departments. Seven of the warts have adopted .assemblies, drafting their own by -.laws and, at ttii:mes; setting their own agenda. In the founding meetings, participants assessed theix own needs and priorities,then worked "on applying'.. them .to actual project requests and distribution of grant monies. •Concer.n,s have included housing development, playgrounds and . neighborhood density. - In planning for Burlingtvn-'s waterfro,n Saunders called upon the assemblies for suggestions; over 800 citizens participated. 13 Saunder's programs for the economy have deep roots in the neighborhood politics which helped him win two elections. Community members had been mobilizing for years against new highway. construction, arguing that it'would fail to meet its professed goal -- strengthening downtown merchants.,. Instead; they emphasized housing and development of food stores and other retail serving downtown residents of moderate income. The logic- :: was that.,"if you bring people downtown" "stores (and hoarse them), would follow." (20) Activists argued for improving the city's own assets - its waterfront, its socially diverse neighborhoods, and its mix of educational and manufacturing occupations.: .:Saunders broadened this vision in 1982 by appointing a -task force on the economy. 'Its members were drawn.from .business, . labor, Community and academia. Its mission was to "stimUlate. investment and to attract,.retain and encourage the developmentof existing and new enterprises." (21). For its first task; .thegroup sought to identify labor, economid and site resources in.the city, review sources. of funding and develop plans to, promote t the city. -TM'S -m.i:ss:ion .was -f.ormali.zed in 1983 -With 'tie cr-ea.tio.n of .the Community..and Economic Development Office, or CED'O. One`of its first projects. was a .revolving loan program, -responding .to -a ::req=u:es:t . Ath-e .N•ei'gh'b:o.Xhood Planning Assembli-a?s;; the l:o'an.s . a:r'e targeted to small businesses. CEDO also.offers small enterprise 14 its technical assistance, and providaS referrals to.other's.t.ate and local programs for finance and advice. Responding to housing needs, CEDO made plans in 1983 to _negotiate with the University of Vermont on investing in new housing, given the student pressure:on the market. It has worked to upgrade and expand affordable housing, through loans, rehabilitation and a -Community Land Trust for lew income home ownership.. CEDO has also provided facade improvements in the 'city's North End, as well 'as matching vacant'conmercial and industrial space with interested businesses. W3r,ile..protecting North End housing, CEDO eased the "residential" z:on.ing restrictions there to allow for a neighborhood -controlled commercial district, with a mix of uses. .The hew is"to" encourage co-operative and locally ownedenterprises to develop,. keeping income within the community. CEDO is aIlsoexploring the prospects of broader city. assistance to employer -owned and operated businesses. FOOTNOTES 1. C.onv"ersation, 28 .June 84._ . 2. Candace Campbell, "Hatching' Small Businessem.;" -Planning, 5/84,.24. 3. .James J. Bellas, "St. Paul: .-We Kept it in City Government,". p1.a g , 10/83,-18. " 0 4.":Six Point Economic .Diversification Program„ FY 83-84 Act'ian Plan, City of Eugene,_November, 19.83. 5.. -Conversation, 27 .June 84. 15 6. City Of Eugene, Action Plan, 22. cit, 13. 7. "Business Incentives in Oregon," Eugene, Oregon Community Profile, Business Assistance Team, brochure, n.d. 8. Daniel Goldrich, "Community -Controlled Economic Development and the Transition to Economic Democracy: A Case Study," Conference paper, Midwest Political Science Association, 9/81, abstract. 9. Harry Boyte, The Backyard Revolution, Temple University Press: Philadelphia, 1980, 183. 10. Pierre Clavel, Progressive Politics in Five Cities:. Planning and Participation, 1969-1984, mss, 69. 11. "Hartford Unveils New Food System," Waw affid'Means, Conference on Alternate State and Local Pullic Policies, May -June 1978,11. _ 12. Mark Winne, "Grassroots Nutrition Planning„' pamphlet, n.d. 13. Seedling,•Hartford Food System, Newsletter„ Spring 1982. 14. Winne, .2_2_ cit. 15. Pereira and Maine, Ad Hoc Committee.`for a Maighborhood . Development Policy, "Development'-- For a ?rice," position paper, 9/83. 16. Nicholas Carbone, Eve Bach, Pierre Clavel, "'Progressive Planning,.A Report from Berkeley and Hartfmnd," Working Paper in Planning #51, Program in Urban anii Regional 'Studies, Department of. City and -Regional PILa•nning, Cornell University, 7/81, 14. •• 17. David Smith, "Municipal Development Policy: A Working Paper," Santa Monica, 1982, 6. 18. Renee Jakobs, Planning.and Politics:. A .Case Study -of Progressive Administration in Burlington, V.rmont, 1981-- 1983, -MRP thesis, Department of City andREgiona.l Planning, 90. 19. Clavel, 1984, 22 cit, 307. 20. Joan=ne Beauchemin, cited in Clavel, 1984,.E cit, 283. 21. .Jakobs, 22. cit, 146. • MEMORANDUM TQ} Task Force for Ecotiomic Development in Ithaca FROM: Randall Wilson INTRODUCTION On July 16, 1984, TEDI membe -discussed-my interimreport, which .presented exampiii of economic development from -other cities. This discussion raised a number of themes and °problems. Date: August 2, 1984 Subj.: Second 'Report One question was the applicability of these strategies .(incubation, linkage, import ; substitution, internal development and .public/priv- ate partnership) to the scale and conditions present in Ithaca. A number of questions were raised about "incubation" of new enter- prises: space availability, °conflicts over city ownership, possi- ble feasibility studies and proper organizational structure. Other strategies of interest: an economic development "umbrella organi- zation, or the creation of "one stop shop" capabilities in present or..potential -agencies. There was broad agreement that increased .Local control was a ;desireable goal for the task force to pursue. In .particular, members expressed interest in the prospects for import ;substitu- tion as a means to -greater local control of • the economy. . • This requires making an inventory of the goods that an area imports, and exploring. whether any of them could be. supplied . or °produced -1- locally. • It was suggested that an "import inventory" might be part of a larger economic profile of the area -- one that surveyed the needs, capacities and problems of employers, the unemployed and underemployed residents. This data could help TEDI choose policies which furthered local control, by increasing our understanding of how the local economy "works," as well as how it could work better. Such data could prove usefulfor developing new enterprise and for maintaining present ones. ' To begin developing such a profile, I have done a very brief survey of major employers in Ithaca. The aim of these interviews was to explore theprospectsfor further research on local control of the economy, particularly through import substitution. I also "tested out" possible survey questions for future use. Given that these conversations were exploratory and fairly unstructured, the e . report should not be taken as final. It is impressionistic; it suggests guideposts for further study and discussion. A further aim of these interviews -- which included business people who are quite active in local development efforts -- was to asseible er ceptions about the local economy: what hinders expansion or new . development? What .are the gaps, if any, in the economy? What are the area's major strengths and weaknesses as a place to do business? I will comment on some of the responses below. The ,strangest' conclusion I can •draw from this study is that more data is needed. For this reason I have suggested further directions which research could take; how wecan learn more about imports and .:exports, what else we should know about the local _econ- omy , other research questions for "local control" and a set of questions about TEDI's place in future developments. EMPLOYER SURVEY In selecting employers to contact, I sought out those who appeared -to taploy the greatest number, expend the largest dollar value in sales and purchases or otherwise make up the "base" of the local economy. By "base" I refer to those firms whose sales are made primarily outside of the local area.. Students of the - development process consider "exporting" firms to be the prime movers of local economic growth. When such firms close down or relocate, employers serving Dobai demand (retail, commercial, and certain.services)-are hard hit, as local employees haveless • 1 to spend., Base firms'in'the Ithaca area would include Cornell and ••.•. • . Ithaca College, as well as a variety of manufacturing enterprises. Ey survey also included some large Organizations which mainly serve local demand -- for health and utility services. Bach 0±' these imports a great volume of goods from outside. 'PERCEPTIONS • Over-all climate: respondants roundly acknowledged the stabil- ity and strength of the local economy, given the presence of higher educational institutions. A president of a growing electronics firm characterized Ithaca as a good "incubator" area for hatching new, small businesses based on science and technological innovation. I is no accident, given the educational facilities locally. Others criticized the community for being too "inward -looking," "complacent," or "apathetic" towards development and change. There is a perception that :residents, particularly those in higher education, take the state of things for granted. It was pointed ,out •that Ithaca's pattern of development has been a great success -- for Cornell, if not for local industry. -Personnel: Several -employers remarked that Ithaca was blessed -3- with a generally high -skilled, well-educated work force. Others Pointed to the lack of "good electronic technicians" and the lack of workers skilled for specialized computer applications. One noted that the scarcity of_;enginesring technicians, cited by several as a problem,. was a nationwide issue, not unique to Ithaca. Overa11, in the words of one respondant, there is a lack of "linkage between skills and need" of area industry. He called for closer coordina- tion of education with commercial and industrial advances in tech- nology. Organization: The theme of "linking" people with potential projects was emphasized. Several employers called for "one stop shopping" functions in local economic development. One director noted that developmentprojects succeed or fail on the talents of able individuals;, while such people are vital catalysts to develop- ment, dependence on them may lead to a lack of continuity when their role ends. There 'is no `,"critical mass" of people working together towards unif iedhgoals in economic development, or so it is perceived. A related problem was the perceived -lack of linkage between Cornell University and the community. Several people thought Cornell could be a better resource for business and skill develop- ment, as well as continuing education opportunities. On this last point, the lack of evening graduate education -- i.e., for MBA degrees -- was singl=ed out. Overall, respondants .observed the wealth of local talent and brainpower which goes untapped. Space: Several employers put forth the lack of space forex- pansion as -a-problem. There=were.:•sugg.estions that ;West Hill be opened up for residential (and in one case), industrial uses. Other =employers felt that their _space needs were met. Services: Most respondants considered the level of business „services here to be ._adequate to their ,needs. One ,employer felt hindered by the absence of major banks, such as Marine Midland. Another. .complained that local banks do not. offer quotations for foreign currency exchange rates. The president of a large indus- trial firm complained that salaries for business service, particularly attorneys, were "unrealistically high.* -The lack of a'health main- tenance organization for local employees was noted.asa serious O gap in nnn-business services. Others noted the lackof health in- surance programs for small businesspeople.. Transportation: Predictably, almost every respondant found local transportation to be an obstacle to new or expanding bus- iness. The lack of adequate road, rail and air links was highlighted. Several called for upgrading Routes 96B, 13 and the "Octopus" in the west end. Quality of Life/Community: The natural beauty and personal quality of the area were widely cited as local strenths. Most felt that these amenities counter -balanced the perceived heavy tax burden. The presence of cultural attractions and higher educa- tion was cited as a source of quality of life. The smallness of the community was seen as both virtue and vice. .One employer, for instance, .complained .of the lack of other. similar manufacturers; in the same breath, he described this asa "plus," since it meant, Tess price competition. IMPORTS AND 1EXPORTS To "test the waters" for future research, I. asked the follow- ing questions of both presidents and purchasing directors of local: employers, in the course of broader conversations about the economy. -What .is your product or service? -Are your •products sold primarily outside of this area? -If so, where d6 you_, export .to? -What goods doyou import in greatest quantity from outside? -Other imports? -Volume .of imports? What roods and s ervices do you pur-chase locally? -5- -Do you import because of better price, availibility or volume elsewhere? -Other reasons for importing? -Is there potential to supply any of these goods locally?, -Why or why not? -Are there services lacking locally which you would use? -What is the potential for providing them here? Most of the detailed questions here went unanswered; the responses. supplied -- primarily about local purchases and imports -- were generally; sketchy and off-the-cuff. I have organized the responses. into sector and export product. In the case of two sectors -- health and utilities -- the product or service remains in the region, but the bulk of their "inputs" are imported. The other major sectors studied were manufacturing and education. The following is a dist of manufacturing exports: mini -computers micro -computers and components data input andoutput terminals. software ^.sue control systems for space craft components for spacecraft control industrial control systems data acquisition and logging systems scientific measurement and control instruments electronic instruments automative1ower drive chains and components coatings for scientific and optical instruments precision machine tools automatic scales shotguns structural steel fabrication 0 • metal fabrication tool and die work 0 corrugated pipe, reinforcing rods, mesh steel joints Imports . ma j oar outside purchases by, the health sector locally include medical and surgical supplies. The local utility imports transformers Nand other .electrical transmission equipment. Other . sectors' imports: Educat iciri . . Office .furniture (desks, chairs, metal files) Filing cabinets, book shelves. Dormitory furniture Carpeting „Drapery Food -service Paper (basic and fine, including computer paper) . (Educational sector imports) Maintenance supply items Paper towels, toilet tissue Janitorial supplies, cleaning agents Office supplies Computers Energy (coal and fuel oil.) Printing (certain larger jobs Manufacturing Steel Computers`. Computer components, parts, supplies (semiconductors, microprocessors, printed circuit boards) Industrial control supplies Plastic frames (for computer goods) Wire Cabinets Aluminum Machining instruments Metal -working Tubing Auditing services Office supplies Machine testing Other electronic devices. Other machine parts Local Purchases The`following.goods and services were listed by respondents. as itnos:` bf:.-.major purchase locally. . • Education Agricultural feedstock and seeds (some) Office supplies Pest control Food (vending machine concession Groundskeeping supplies Computers Business "forms Paving/sealing/marking (parking lot improvement) Teaching equipment Typewriter repair 'Manufacturing `:Viaint enan ce mechanical -electrical" -vehicle Hardware "(smaller tools, light bulbs,"etc.) Welding supplies -(Some) electronic components Electrical devices `B,e * r ° s e ry i -c e Printing Advertising, circulars Plastic parts Janitorial supplies Office supplies Wire Cabinets. Car leasing Accounting Attorneys Analysis It is not clear from this brief survey whether Ithaca is amenalle to"`�import.mubstitution, narrowly understood. ,This is not to say. that there is notpotential for decreasing imports, or other strat- egies for increased local control. Rather, it suggests that many of the goods mentioned iri the survey -- which is by no means all goods nor all employers -- have limited potential for being produced and purchased locally. Interviewees suggested certain items which may have potential: -manufacture of printed circuit boards. Several other employers were skeptical of this, although all of them saw a need for it in the local economy. Some were not convinced that local demand could sustain this product, which is used in electronic machinery. They also noted that outside distributors and producers, dealing in very v�er high volume, already competitivelylow prices. Many of them are located "offshore," primarily in Asia, and offer very low wages, -cabinet-making. A number of major manufacturers in the area would benefit from increased local production of this good. It might possibly be done _contractually, through a job shop. Again, questions were raised about the adequacy of local demand to support it. Several respondents suggested. that :there were. potential oppor- tunities for distribution of certain goods in the area, if not • -actual o-proau-al on : . -furntiure (for offices or dormitories) -paper microelectronic components With regards to this last item, it was suggested that a local supplier could provide the small start-up firm with . specialty:';, components. suited to building a simple prototype model of the product. Food Suggestions were made to encourage more local food production,. as well as more aggressive marketing of local produce to area re- tailersand other buyers. Several people felt that the area might, support processing of the region's produce. Others noted the real problems of scale, price competition and seasonal availability of food processing industry_o'- A further idea worthy of research: im- proving the linkages between the institutions who purchase food (schools, restaurants, nursing homes and others) and those who grow it in the region. This may require a broker or other organized means to connect buyer with seller and insure volume.and coordin- ation. Further research The next step is to determine whether further study of import substitution is desireable. If this is the case, .then research should proceed 6n several fronts. First, it should elaborate and formalize the work 1 have begun with -my "straw" survey. The objective would be a more reliable and rigoroustest of the feasibility of import substitution, and the creation of a "bank" of product aridservice ideas which might be initiated by 'local entrepreneurs. - Second, research should offer us a more detailed picture of the local economy. It woul-d draw -on forthcoming . unemployed :and employer survey data. It would help us clarify gaps -- `missed opportunities and underutilized skills -- as wellas to help identify systematic problems which TEDI and others could begin. addressing. Elaborating the "Imports" Survey We need a comprehensive "roadmap" of the local economy: a detailed listing of firms by industrial sector and Standard Indus- trial Classification (SIC. code); product or service; numbers em- ployed; dollar volume of sales and purchases; and specification of goods exported and imported. Exact information on employment and total sales is often unavailable for small areas such as ours. At the start we can eliminate from discussion ,certain import • items which Ithaca has no clear comparative advantage in making -- steel, for instance. Then, we should assess what are Ithaca's com- parative ' advantages, its' highly educated population, for example.. The next step would be to clarify the relevant area for research. This can be difficult, as statistics are collected for municipalities and counties -- units of government -- while "economies" operate in a broader, less -defined area. Given that the "economic area" is wider than the city of Ithaca proper, what is the proper scale of study?. The answermay be different for each focus of research: industries, agriculture, labor market, and so on. To formalize our study of imports and exports, we need tth look at transactions or "flows" within the area economy and between local employers and outside enterprises. This information is often organ- ized into a tool called the "input-output table." It shows, in matrix form, the relationships between producing sectors .("purthases from") and purchasing sectors ("sell to"). Imports and exports from the region are arranged.on the margins of the table. In =their most elaborated form, input-output tables help econ- omists to -predict the impact of changes : in the economy -of an area, for both firms and .ibis to use the table in simplified form - particular -sectors on -households. It is pass- - filling in only for im- ports and exports, for example. There are -several ways this can be • done. One • is by direct survey -- personal interviews or written :request. Another method is to draw upon secondary sources of -. formation, where available, and explore the relationships mathe- matically. A final technique -- not exclusive of the other two -- would be to bring majoremployers together from particular indus- tries in a conference setting. The aim would be to get them to specify their sales and purchases, as well as to learn more about 2 one another. Each of these methods pose benefits and drawbacks. All of them suggest questions for TEDI regarding the scale, complexity and aims of future research. Consultations with trained economists from Cornell's departments of City and Regional Planning and Agricultural Economics would help clarify these issues. OTHER RESEARCH STRATEGIES If we are to understand how the local economy "works", we should explore other relationships alongside the sale and purchase of goods. I have outlined three methods for thinking about such relationships. Flow analysis One way to work towards "local control" is to identify various flows in the economy, including imports and exports. Three flows vital to economic development are capital, labor and energy. Capital: -explore the degree of outside vs. local ownership of enterprises, including banks and services. Changes over time, impactsoon management, stability, employment. -lending=practices ..of _Finance institutions. Capital availabilityfor different groups and business sectors. Specific problems for minorities, small business; etc. -evidence of disinvestment (if any) for particular firms; redlining (neighborhood disinvestment), if any. Labor: -propDrt..i:on _of "imported labor" in local industries -11- due to relocation of firms bringing in their own workfouce; due to scarcity of needed skills locally, or due to growth in in -commuters for local jobs. The last case is of special importance to development efforts keyed to keeping income within they local economy. If a large part of the salaries generated leave the areaevery day at quitting time, there is not going to be much extra income for local residents, nor :additional multipliers for other local business. Energy: Energy is a key source of "leakage" to local economies.. This occurs both through the dollar cost expended on fuels, when goods • are shipped over long distance, and through waste of energy which could have been conserved. A "flow" analysis would take inventory of energy use in Ithaca, particularly by business and government. As many communities have found, energy conserving methods and technologies can be a source of job creation, through weatheriza-. tion, energy auditing, or product development and marketing. Many energy-related businessed can be started on a small scale with a low initial capital investment. Such efforts can provide income and job training as well as conservation. Structural analysis We can picture the structure of the economy? clarifying which industries are basis, which services and industries support them, and whether there are important gaps between . potential buyers and suppliers. This also means identifying missing services which would have a potential market locally. A :.related question As the .-structure .of opportunities ,for employment; how do different sectors (service, professional and technical work, skilled and unskilled production, sales) - compare in terms of skill, income and job growth? What is the contribution of each to total ,employment? This should be studied over time to see whether certain occupations, -such as 'skilled blue collar work, .12- are increasing or declining relative to others How do these occupa- tions compare with counterpart figures for the state, the nation, and cities of comparable size? A final issue -- already being explored by TEDI members -- is that of unemployment and underemployment. Close coordination with other research suggested here might help,to explain some of the • reasons why workers' skills are underused. Resource analysis Up to this point, 1 have only described the economic base in narrow terms, as industries which export goods and bring income into a region. •A strategy for local control, however, must search for a balance between investments in export production and locally directed efforts which sustain the community. The latter requires taking inventory of local resources and finding out how tocultivate them better. We can envision Ithaca's resources as a series of concentric circles or rings, radiating outward from the most basic ofresources, the natural environment. Natural resources: an inventory at this level would help us determine whether development strategies could be sustained by the local environment, and . what limits, if any, might be necessary. Given the importance of scenic resources locally, there maybe trade-offs called for between future growth and sustenance of the• Environment. As noted above, energy and local agriculture suggest future research on ways to keep income "circulating" within the community., Other :environmentally -based businesses, such as recycling or com- posting, deserve further thought. Physical infrastructure: In addition to the. traditional -planning •coneerns with transportation, was.t•e and •water treatment, :there- could be rstudy ,'and .inventory _of `b.0 ldfrig space for p0ssIble Incubator "strategies to promote new business. Social infrastructure: Present and prospective efforts in daycare, worker re-training and other employment education should be evaluated with issues of "local control" in 'mind. For instance, are training programs geared to areas with significant openings? If there is potential for such programs to hblp initiate new .bus- inesses , it should be explored further. Human resources: the most pressing concern here, as noted, is. to assess the extent and causes of unemployment and underemployment, as well as the skills of these workers. Organizational capacity: This category draws together various Means of "making things happen." They' include entrepreneurship, finance, economic development activities, community organizing, volunteer organizations and consensus -building forums (such as TEDI). It would also include less formal networks, such as the group of educators and businesspeople meeting to discuss. science and technical education. Ithaca has a. unique organizational resource in its "cooperative" business sector and its "alternatives" commun- ity. A serious resource inventory would look for ways to better mesh their activities with other development initiatives. A closer inventory of each level may reveal missed opportunities for developing income, skills, products oroverall: quality of life. We may also identify .-gaps (or "m-issing linkages") by studyingthe connections between different types of resources. CONCLUSION I am not suggesting that TEDI undertake all of the research strategies :outlined above. They <ae offered: as .alternative ways to -make sense of -the local economy .;and to aid TEDI in thinking about what to do next. In closing, I wish to pose some questions for the -group's ,.consideration. -What is TEDI's mission or role in local development? This breaks down to three kinds of questions. What are its long term goals and purpose? Who, is`"trying to help, above all? What is its relationship to official government? to quasi -official agencies (such as TCAD)? This last question is of special importance in our area, given the crowded field of players claiming to do "economic development. We need to be sensitive toturf issues, yet have a clear sense of exactly what TEDI is empowered to do. On the question of power -Can TEDI create a new development organization -- such as a community development oorporation, or a "one stop shop" to coordinate development activities? Is _ a new development organization needed locally -- or simply better targeting of present programs and functions to people in greatest need? Are these functions being carried out adequately by existing organizations? ., Finally, we need to examine our 'relationship to our constituencis, however we define them to be. Are they represented adequately by TEDI's present form and membership? If not, who else should be represented? How else might we give voice, in a broader way, to members of concerned communities? If TEDI seeks to have a more visible public role, perhaps it should engage membersoof the .community in forums, workshops or public hearings. This might also . help. 'define some of the .issues and problems which need clarifying. .Tiebout, •Charles, -"The Community Economic Base Study," Supplementary Paper #16, Committee for Economic D:evelopmerit, 1962, p. 14. 2 Ebert, 'Paul, "An Action :Research •Program -for Enh n.cing,Locality, Regional and State Economic Development," manuscript, no date, Department of Rural Sociology, Cornell University, pp. 4-5. MEMORANDUM TO: TEDI RE: PRINTING RESEARCH FROM: RANDALL WILSON DATE: 19 November 84 PURPOSE. In August, I reported to TEDI about imports, exports and local buying patternsof area employers. A subcommittee was then formed to fur- ther explore "local economic initiatives" -- areas where Ithaca was missing opportunities to provide jobs, income and ventures for its residents. The subcommittee has been exploring several areas of "leakage" in the local econ- omy: contract construction, food and agriculture, venture capital and print- ing. My assignment was to find out whether Ithaca was losing potential income through "imports" of printing services from out of town. This report sum- marizes my findings from a brief survey of printing customers and suppliers. MAJOR FINDINGS. Printing is an important and growing industry in the Ithaca area. Ithaca's economy specializes in education, manufacturing and service industries which cater to both of these sectors. It is also the region's "service center" -- home to banks, insurance firms, utilities and other func- tions serving the region. All of these industries generate reams of paper- work and rely on printed matter to do their business. Much of the printing for these activities is done locally. However, there is a perception that printing jobs are "leaving town" which could be perfomed locally. The institutions seeking outside service do so for several reasons: traditional customer networks, low costs and a perception that local shops lack the capcity.or equipment to meet specialized needs. These differ- ences of perception suggest a possible need for face-to-face_ discussion among buyers and sellers of printing services. OVERVIEW OF THE INDUSTRY. According to County Business Patterns, 180 people were employed in Tompkins County in the printing industry, as of 1982. Some twenty firms offer printing press services; this does not include shops re- stricted to photocopying. These firms rely primarily on offset, sheetfed presses. Some retain traditional letterpresses; others have moved into the newest "web press" technology. All firms with upgraded equipment originally began as small printing or copying shops. The local industry can be divided into three sectors. The first would include copy and duplication shops, as well as firms which specialize -1- in services to printers, such as typesetting and camera. work. This sector will not be considered here. .The second sector. is made up of firms serving a local market, and not planning expansion. The third sector is filled by those firms serving an export market, local and exports, or expanding to serve a. larger market. As some firms enter the third sector, those with a local focus oftenincreasetheir market share by picking upclientele formerly served by "exporting" firms. Industry respondents claimed that 'printing is growing currently; most of them "are busier than they've been in awhile," as one owner noted. .Others observed that,.ingeneral, it is hard "to stay above water" in this. business. SURVEY FOCUS. For this report I will focus on the most informative interviews: six printing firms and four large customers. The.printing firms are labeled 1-6;,the customers, A -D. Printer l has the area's largest export shipment in printing, serving national :customersin.New York, Rochester and elsewhere. Their customers- in- clude book publishers periodicals', -tabloid supplements and trade journals. They have the most extensive equipment in the area. Printer 2 is in the "expansion" stage. Their market includes large local institutions and numerous smaller jobs. Printer 3 has a large local clientele. They have moved from being a small copy shop to four color magazine printing and a range of other sophis- ticated jobs, including trade union material., Printer 4 is a long-established firm supplying local enterprises. They have recently increased their share of business from the area colleges. Printer 5 is a fairly small, family -run firm with a set of long-time customers, including professional offices and manufacturing plants. They do their own camera work and typesetting in-house. Printer 6 is a well-respected shop with local industrial customers. Customers surveyed were two area colleges (College A, -College B); a branch of a manufacturing firm (Industry C) and a local utility.(Utility D).. All fourof these institutions fill a"portion of their printing needs from in-house print shops. College A prints about 50% of its jobs; College B,. 5%; Industry C (no 'figure); Utility D, (no figure). SERVICES PURCHASED LOCALLY. This varies greatly, both within firms and be- tween them. It ranges from calling cards, shipping labels and business en- velopes to alumni magazines and industrial product catalogues. and brochures. -2- • SERVICES PURCHASED NON -LOCALLY. This is also extremely wide-ranging.. It in- cludes product catalogues, admission and collegecatalogues, brochures, for- matted pages, computer tape, museum books, various teaching materials requir- ing precision color and 'graphics. GENERAL PERCEPTIONS. Four of the six.firms (1, 2, 5, 6) percieved that "College A" purchases printing services out -.of -town which could be performed locally. Printer 5 assigned this to the college's favoring of particular firms, rather than to competitive bidding. Printer 6 complained that College A does not do*enough to get bid infor- mation to local printers.. He..would like the colleges to send this information directly -to the local shops, rather than relying on the printers to come to them. Printer 2 noted that local enterprises should be given treater considera- tion for purchase of"all services; printing included. He recommends that firms work cooperatively with the city to amend this problem. Printer 3 believed that "everything that can stay in town, does." He believes that the colleges seek services out-of-town because of real techni- cal limitations of :the local printers. Printer 4 observed that College A has begun to buy more of its printing services locally. REASONS FOR. NON -LOCAL PURCHASES. All four customers percieved that local firms lacked the technological sophistication to meet their standards. This includes special color require- ments, as in museum materials or agricultural illustration. Promotional. materials for education and industry place a high premium on aesthetic per- fection. Customers 1, 2 and 3 all cited product quality as a motivation for using non -local printers. All .four looked outside for lower-cost services;, the colleges, in particular, were bound to competitive bidding arrangements. College B noted that the one local firm with needed technical capacity had prices geared to its export market; their longer runs --.also based on export work for national publication -- kept them from taking on "rush jobs" from the college. Colleges A and B both cited the faster turn -around time provided by outside firms. The colleges also look outside for specialized services, including color work, writing, etc. College B has its prospectus and -3- A admissions packages done by one firm. which oversees the entire process: de- sign, writing, graphics; photograpy and printing. Centralized service insures better quality control.. All four customers percieve that local firms lack the capacity for certain jobs, due to limitation of staff, skills, space and hours of work. Outside firms, facing larger and more constant demands for long runs, have developed these capacities. This also allows them to underbid local firms. College And Utility D stay with certain outside suppliers because of theirhistory.of good customer relations with them. As D put it, "you find a good source and you stick with it." Locations of outside suppliers include Binghamton, Buffalo, Rochester, Pittsburgh, Atlanta, Michigan and Illinois. REASONS FOR LOCAL. PURCHASE. College B buys some services locally because of the personal quality of the service. At certain local shops, one-shot and rush jobs are handled with- out delay. One local firm stopped its presses to insert a biography of a de- ceased student into the alumni news. Technology and staff are seen as suffic- ient formany of the smaller jobs required by the institutions and industries. Several customers cited community pride and support for'local business as a motive, along with a desire to keep income within the community. One observed that local purchases cut down on transportation costs incurred with outside vendors. CONSTRAINTS ON LOCAL PRINTING Five out of six firms cited capital (and related finance problems) as a constraint on business and expansion. High interest rates in particular were noted. Printers 1 and 6 found that transportation - i.e., for getting paper from the mill shipped in - was a constraint. Ithaca's isolation and its . poor highway, rail and air links were also singled out. Firm 4 underlined the problem of taxation, -especially the state's cap- ital gross value tax. All firms except Printer 1 lacked an additional work shift to handle additional demands. Printer 6 pointed out that demand for local printing decreases when local customers close down, such as GLF, or come under outside ownership (as with Ithaca First Bank and Norstar). -4- Printers''5 and 6 were not expanding their business or equipment because they.are content with their "niche" of traditional customers. Printer 5 neither advertises nor uses a sales force. FACTORS FAVORING EXPANSION As Printer 2 noted, these vary as much between firms as they do in any industry._. Those localfirms, which have expanded -- or are contemplating such a move — .tend to have an aggressive sales force and a keen perception of new opportunities and markets. Adequate space and facilities are also condu- cive to expansion.., DIVERGENT PERCEPTIONS The common perception of customers, as noted above, was the lack of technology in local firms. College B, for example, perceived that no Ithaca firms have capacity for more than two color presses. Yet Printer 3 has four color press; while Printers 1 and 2 were not as specific about their equip- ment, the demands of .their export market require them to have better techni- cal capacity than is often perceived. College A observed the lack of "specialty work" among local printers, yet Printer.4 (and others) do perform certain. specialty jobs. Many firms see the colleges as primarily shopping out-of-town, yet College A has increased its amount of printing purchased locally (roughly 16% of all of their printing needs). College B sees itself as using "local services whenever possible." Customers claim that local firms lack fast turn -around time and the ability to do long runs and high-quality jobs; several firms do have these capacities, or claim to. RECOMMENDATIONS Enlist. interested suppliers and customers of printing in informal dis- cussions, sponsored by local government. Supply both sides with information about divergent perceptions. Attempt to get better information,fr.om both sides about capacities, needs and untapped markets. Encourage sharing of this information. - If discussions warrant expansion of local printing services, or creation. of new ventures, help link investors or owners with technical assistance, capital and other needs. Develop goals for'local.hiring, perhaps targeted to groups with special needs. Coordinate with local employment/training-efforts. Results of Day Care Needs Assessment The design of this day care needs assessment called for the collection of information from employees of the City and all businesses, offices and banks in the downtown area (as defined by the TEDI Day Care Subcommittee). In spite of safeguards, some establishments may have been omitted or not have been able to participate for some internal reasons. Therefore, the expression of need for additional day care in the downtown may be somewhat deflated. Number of Respondents (individuals with children 11 or younger) 261 Number of children in day care 268 Origin of Businesse Banks City Breakdown 1 in day care 185 2 in day care 68 3 in day care 13 4 in day care 2 5 in day care 1 Type of Day Care Relatives or Spouse Hired Sitter in Home Day Care Center Hired Provider Nursery School Nursery School and Hired Provider Other Combinations Other 47 17 34 130 12 16 25 8 Total Weekly Hours in Day Care. per 1-9 10-20 21-31 32-41 42-55 -77 104 - _57- --Z7- Respondents 2 9 Total Weekly $0-8 $9-20, $21-34 �7 83 50 Before 9 A.M. 2-5 P.M. After 5 P.M. Weekends Combinations Respondent Resppondents s 186 53 20 Family Costs per Respondent Family $35-40 $41-50 $51-60 $60+ Hours Needing Additional Coverage 2 5 20 12 10 Satisfaction with Day Care A total of 54 individuals expressed themselves as "not very satisfied" with either the reliability, cost, quality, convenience (location, access, parking) or physical arrangements in the child 1 care setting') or with more than one of these aspects of their day care arrangments. Satisfaction Ratings of All Respondents Reliability Cost Qualit (,onv. hys. Setting Not Very Sat. 6 29 16- -79--- 15 Satisfied 47 68 57 50 83 Very Satis. 187 145 168 160 139 Breakdown of Respondents Who Were "Not Very Satisfied" by Type of Care Type of Care Reliability Lost Quality Cony. Phys. Arrang. Relative or Spouse 2 4 1 4 1 Hired (in home) 0 4 3 4 3 Day Care Center 0 10 0 3 1 Private Provider 3 8 4 9 6 Nursery School 0 0 0 2 0 Nurs. School plus Private provider 0 1 2 3 2 Other combinations 1 2 2 3 2 Income of Respondents Who Were "Not Very Satisfied" With Cost Income Number of Respondents Under $7000 4 $7000-9999 5 $10000-11,999 3 $12000-14999 5 $15000-19999 3 $20000-29999 5 $30000+ 5 Special Situations Needing and Lacking Day Care Snow days 56 Vacations 65 When Child is Sick 116 Other: Provider vacations 5 Sickness of Provider 6 Drop-in Center 2 Interest in Day Care in Downtown Area Yes 119 Maybe 30 No 103 2 Kind of Day Care Center 84 Private 33 Either 18 Other 6 L-= y Who is interested? Income Yes -Maybe #of children Yes Maybe 7000 3 U 3 (1 single parent)* 7-9999 8 6 13 6 (5 " ) '10-11999 9 1 11 1 (4,1 " " ) 12-14999 19 1 31 1 (2 " ) 15-19999 15 1 24 3 (1 single II) 20-29999 34 12 61 16 30000+ 20 9 28 12 TOTALS 108 30 168 42 Currently Having No Children in Day Care and Interested in Day Care in the Downtown Area Interest e— 20 respondents with 28 children Maybe 6 respondents with 7 children General Comments: 1. Would like to see older people involved in day care. 2. Many statements of gratitude and support for the project. 3. Encourage businesses to provide day care. 4. It would be helpful if children could be brought to work in emergencies. 5. Two individuals expressed desire for day care at place of employment (banks). 6. Employers should be encouraged to provide more "shared" job, opportunities 7. A multi -cultural staff would be desirable. *The numbers of single parents are a conservative estimate. OFFICE OF MAYOR CITY OF ITHACA 1OB EAST GREEN STREET ITHACA, NEW YORK 14850 December 27, 1984 Mr. William Herbster Senior Vice President 314 Day Hall Cornell University Ithaca, New York 14853 TELEPHONE: 272-1713 CODE 607 Dear Bill: Enclosed please find the "printing survey" I mentioned to you. 1 think the report is valid and is a good starting point for discussions. Feel free to share the information with any of your folks. Best regards. Sincerely, John C. Gutenberger Mayor ENC. "An Equal Opportunity Employer with an Affirmative Action Program" MEMORANDUM TO: TEDI RE:` PRINTING RESEARCH FROM: RANDALL WILSON DATE: 19 November 84 PURPOSE. In August, I reported to TEDI about imports, exports and local buying patterns of area employers. A subcommittee was then formed to fur- ther explore "local economic initiatives" -- areas where Ithaca was missing opportunities to provide jobs, income and ventures for its residents. The subcommittee has been exploring several areas of "leakage in the local econ- omy: contract construction, food and agriculture, venture capital and print- ing. My assignment was to find out whether Ithaca was losing potential income through "imports" of printing services from out of town. This report sum- . marl zes my i nd1 ngs` from a ;bre ofsurey of ��rinti ng customers. and 'suppl;j ers MAJOR FINDINGS. Printing is an important and growing industry in the Ithaca area. Ithaca's economy specializes in education, manufacturing and service industries which cater to both of these sectors. 'It is also the region's "service center" -- home to banks, insurance firms, utilities and other func- tions serving the region. All of these industries generate reams of paper- work and rely on printed matter to do their business. Much of the printing for these activities is done locally. However, there is a perception that printing jobs are "leaving town" which could be perfomed locally. . The institutions seeking outside service do so for several reasons: traditional customer networks, low costs and a perception that local shops lack the capcity or equipment to meet specialized needs.es;e.F;ffeM eac f e -epfA ug egeg sty Wpos ib7re- red f �� �5 pr-�-fia�e to dace=�ilsc°ii�s�nn�amr�rr� .hhuyernd ers sof Pri t.gAervices. OVERVIEW OF THE INDUSTRY. According to County Business Patterns, 180 people were employed in Tompkins County in the printing industry, as of 1982. Some twenty firms offer printing press services; this does not include shops re- stricted to photocopying. These firms rely primarily on offset, sheetfed presses. Some retain traditional letterpresses; others have moved into the newest "web press" technology. All firms with upgraded equipment originally began as small printing or copying shops. The local industry can be divided into three sectors. The first would include copy and duplication shops, as well as firms which specialize -1- n services to printers, such as typesetting and camera work. This sector will not be considered here. The second sector: is made up of firms serving a local market, and not planning expansion. The third sector is filled by those -firms' serving an export market, local and exports, or expanding to serve a larger market. As some firms enter the third sector, those with a'.1-ocal focus often increase their market share by picking up clientele ,formerly served by "exporting" firms. Industry respondents claimed that printing is growing currently; most of them "are busier than they've been in awhile," as one owner noted. Others observed that, in general, it is hard "to stay above water" in this business. SURVEY FOCUS. For this report iwillagggs on the most informative interviews: """°"`o aarecustomeD. The printing firms -are labeled 1-6; the customers, A -D. Printer.1 has the area's largest export shipment in printing, serving national customersin New York, Rochester and elsewhere. Their customers in- clude book publishers, periodicals, tabloid supplements and trade journals. They have the most extensive equipment in the area. Printer 2 is in the "expansion" stage. Their market includes large local institutions and numerous smaller jobs. Printer 3 has a large local clientele. They have moved from being a small copy shop to four color magazine printing and a range of other sophis- ticated jobs, including trade union material. Printer 4 is a long-established firm supplying local enterprises. They have recently increased their share of business from the area colleges. Printer 5 is .a fairly small, family -run firm with a set of long-time customers, including professional offices and manufacturing plants. They do their own camera work and typesetting in-house. Printer 6 is a well-respected shop with local industrial customers. Customers surveyed were two area colleges (College A, College B); a branch of a manufacturing firm (Industry C) and a local utility (Utility D). All four of these institutions fill a portion of their printing needs from in-house print shops. College A prints about 50% of its jobs; College B, 5%; Industry C (no figure); Utility D, (no figure). SERVICES PURCHASED LOCALLY. This varies greatly, both within firms and be- tween them. It ranges -from calling cards,'shipping labels and business en- velopes to alumni magazines and industrial product catalogues and brochures. -2- ~`SERVICES PURCHASED NON -LOCALLY. This is also extremely wide. -ranging. It in- cludes product catalogues, admission and.college catalogues, brochures, for- mattedpages, computer tape, museum books, various teaching materials requir- ing precision color and graphics. PN -Se Four of the six firms (1, 2, 5, 6) percieved that "College A" purchases printing services out-of-town which could.be performed locally. Printer 5 assigned this to the college's favoring of particular firms, rather than to competitive bidding. Printer 6 complained that College A does not do enough to get bid infor- mation to local printers. He would like the colleges to send this information directly to the local shops, rather than relying on the printers to come to them. Printer 2 noted that local enterprises should be given 9:reater considera- tion for purchase of all services, printing included. He rjommends that firms work cooperatively with the city to amend this problem. Printer 3 believed that "everything that can stay in town, does." He believes that the colleges seek services out-of-town because of real techni- cal limitations of the local printers. Printer 4 observed that College A has begun to buy more of its printing services locally. .--�.;......-^ ,......-.-.r-•..4,�..., •_-..._,-may _.REASONS:.:.FOR.:NON_LOCAL PURCHASES All four customers percieved that local firms lacked the technological sophistication to meet their standards. This includes special color require- ments, as in museum materials or agricultural illustration. Promotional materials for education and industry place a high premium on aesthetic per- fection. Customers 1, 2 and 3 all cited product quality as a motivation for using non -local printers. A11 four looked outside for lower-cost services; the colleges, in particular, were bound to competitive bidding arrangements. College B noted that the one local firm with needed technical capacity had prices geared to its export market; their longer runs -- also based on export work for national publication -- kept them from taking on "rush jobs" from the college. Colleges A and B both cited the faster turn -around time provided by outside firms. The colleges also look outside for specialized services, including color work, writing, etc. College B .has its prospectus and -3- admissions packages done by one firm which.oversees the entire process: de- sign, writing, graphics,hoto ra P 9 Py and printing. Centralized service insures better quality control. All four customers percieve that local firms lack the capacity for certain jobs, due to limitation of staff, skills, space and hours of work. Outside firms, facing larger and more constant demands for long runs, have developed these capacities. This also allows them to underbid local firms. College A mnd Utility D stay with certain outside suppliers because of their history of good customer relations with them. As D.put it, "you find a good source and you stick with it." Locations of outside suppliers include Binghamton, Buffalo, Rochester, Pittsburgh, Atlanta, Michigan and Illinois. REASONS FOR LOCAL PURCHASE. College B buys some services locally because of the personal quality of the service. At certain local shops, one-shot and rush jobs are handled with- out delay. One local firm stopped its presses to insert a biography of a de- ceased student into the alumni news. Technology and staff are seen as suffic- ient for many of the smaller jobs required by the institutions and industries. Several customers cited community pride and support for local business as a motive, along with a desire to keep income within the community.. One observed that local purchases cut down on transportation costs incurred with outside vendors. CONSTRAINTS ON LOCAL PRINTING Five out of six firms cited capital (and related finance problems) as a constraint on business and expansion. High interest rates in particular were noted. Printers 1 and 6 found that transportation - i.e., for getting paper from the mill shipped in - was a constraint. Ithaca's isolation and its poor highway, rail and air links were also singled out. Firm 4 underlined the problem of taxation, especially the state's cap- ital gross value tax. All firms except Printer 1 lacked an additional work shift to handle additional demands. (/—- Printer 6 pointed out that demand for local printing decreases when local customers close down, such as GLF, or come under outside ownership (as with Ithaca First Bank and Norstar). -4- Printers 5 and 6 were not expanding their business or equipment because they are content with their"niche" of traditional customers. Printer 5 neither advertises nor uses a sales force. FACTORS FAVORING EXPANSION As Printer 2 noted, these vary as much between firms as they do in any industry. Those local firms which have expanded -- or are contemplating such a move --..tend to have an aggressive sales force and a keen perception of new opportunities and markets. Adequate space and facilities are also condu- cive to expansion. The common perception of customers, as noted above, was the lack of technology in local firms. College B, for example, perceived that no Ithaca firms have capacity for more than two color presses. Yet Printer 3 has four color press; while Printers 1 and 2 were not as specific about their equip- ment, the demands of their export market require them to have better techni- cal capacity than is often perceived. . College A observed the lack of "specialty work" among local printers, yet Printer 4 (and others) do perform certain specialty jobs. Many firms see the colleges as primarily shopping out-of-town, yet College A has increased its amount of printing purchased locally (roughly 16% of all of their printing needs). College B sees itself as using "local services whenever possible." Customers claim that local firms lack fast turn -around time and the ability to do long runs and high-quality jobs; several firms do have these capacities, or claim to. €COMMfN N Enlist interested suppliers and customers of printing in informal dis- cussions, sponsored by local government. Supply both sides with information about divergent perceptions. Attempt to get better information from both sides about capacities, needs and untapped markets. Encourage sharing of this information. If discussions warrant expansion of local printing services, or creation of new ventures, help link investors or owners with technical assistance, capital and other needs. Develop goals for local hiring, perhaps targeted to groups with special needs. Coordinate with local employment/training efforts. -5- MEMO December 21, 1984 TO: Participants in meeting on minority training and employment; TEDI; Mayor Gutenberger FROM: Judy Green, TEDI Subcommittee on Local Economic Inititives RE: First meeting on minority training and employment On December 7th members of TEDI met with members of Ithaca's Black Community to discuss obstacles to minority job training and employment in Ithaca. Many problems were identified, some with very long-term solutions and some which can be addressed more immediately. These include: - Ineffective outreach and publicity - Intimidating interview procedures - Inappropriate requirements - Perception that unions don't serve minority interests - School system does not serve minority or blue-collar interests - Employers not truly committed to affirmative action goals Several needs were identified: - Identify employment trends for Ithaca area (Randy Wilson will present his findings at next meeting) - Establish a "minority employment corporation:, funded by employers, to assist both minority job seekers and employers attempting to meet affirmative action goals. - Ithaca school system must make a commitment to turn around its dismal performance in minority education (60% Black drop-out rate??), and begin strong effort to meet needs of non -college bound students at the Junior and Senior High level. As a first step the group decided to organize an "Affirmative Action Summit", bringing together representatives from employers, job training programs, schools, BOCES, unions, economic development agencies, community groups, etc. to develop a concerted strategy for increased economic participation among minorities in Ithaca. The following organ- izations and possible representatives were identified: Black Task Force on Education Civic Development Foundation Moving Up Ithaca Schools City Personnel Cornell - Ray Davis - Horace Bradshaw - Erlene Car - Beverly Martin - Hazel Best Shaw - Don Johnson School Board Private Industry Council BOCES Building Trades Council U.A.W. Cornell Construction Coordinator Human Rights Commission Ithaca College Personnel Association TCAD Chamber of Commerce - Dawn Cross - Betsy Snyder, Randy - Betsy Snyder - Charlie French - Al Davidoff - Ruben Rogers - Bill Gilmore - ? - ? ? - ? - Bill Bennet Additional suggestions are most welcome. Participants in the 1st meeting were: Henry Richardson 325 N. Albany St. 272-4161 (0) Nancy Tresner 211 Pleasant St. 272-6872 (h) Al Davidoff Arzeymah Raquib Judy Green Kirby Edmonds Charlie French Abraham Lee U.A.W. 701 W. State 272-4108 (0) 209 S. Plain St. 272-1520 (o) 312 First St. 277-4094 (h) 411 Esty St. 277-3401 (o) 701 W. State St. 272-2809 (o) 411 N. Albany 277-0533 (h) Harmon (Civic Development Foundatio] (TEDI, Unemployed Council) St4TEDI, U.A.W.) (Civic Development Foundatio] and Displaced Homemakers) (TEDI, Alternatives Fund) (Traning for Change Associat( (TEDI, Building Trades Counc: (Civic Development Foundatio] 'inutes, TEDI, Dec. 1984, 11 AM, Common Council Chambers. Present: Judy Green, Carl Sgrecci, Charles French, Al Davidof, M. Van Cort, Helen Jones, Cathy Wood, Bruce Courtright, Randall Wilson, Mayor Gutenberger, Irene Stein. Guests: Wanda Correa, IC student, members of the press. The Mayor announced that Common Council Chamber was now a non-smoking area. Minutes. The minutes were accepted with one proviso: Bruce Courtright pointed out that the report presented at TCAD stating that the Lt. Governor was helpful in the Morse Emerson strike would have been more accurate had it stated that the Lt. Gov. was very interested in the situation; he did not actually get involved in the settlement efforts. Mayor's Report. The Mayor' reported that he and Charles French had met and were sending a letter to relevant employers stressing hiring local residents. TEDI has picked up an ally in the Chamber of Commerce which may be setting up a small groupto make.contracts about this problem. The mayor suggested that TEDI bas. en an influence by airing this problem. Day Care Subcommittee. Irene Stein reported that the Day Care survey was being distributed, but that there is a shortage of volunteers. She is still hopeful of completion of the survey by the end of the year. Subcommittee on Local Economic Initiatives. Judy Green reported that at the last meeting of the Subcommittee, the problem of minority training and hiring had emerged. She will be meeting with some TEDI people and some community residents to gain some insights into this problem. She would hope to facilitate this group initially, but then that it would set a chairman and do its own work drawing upon help form the consituencies of those involved. Randy Wilson distributed his summary on the local printing industry. The Mayor and he will arrange a meeting of printers and companies to discuss his findings. Randy al -so gave an interim report on his findings to date on local economic statistics. The Ithaca economy is fairly stable, with this stability related to a large number of low-payng service jobs. Some high growth areas have not added many jobs. Bruce Courtright pointed out that heavy manufacturing is a declining industry in the County paying fairly high wages; however, 40% of the employees live outside the County. Randy will present a report at the next TEDI meeting. Judy Green reported that she presented the local foods project idea at the recent hearing regarding a permanent site for the Farmer's Market. Steve Jackson, representative to the Farmer's 1 LMarket from the Planning Board will call together a group to discuss future directions for --the Market in roles and functions. Charlie French reported that the contractors at the Reconstruction Home project will be hiring locally, and this may be a result of TEDI's efforts. He is also hoping to get a fair share of local jobs on the sewer project. He al -so reported that the affirmative action plan to fill minority employment quotas on State financed projects and that this relates to the group Judy is setting up. Carl Sgrecci reported on Venture Capital. As a result of discussions with Tom Mailey and others, he has an idea for local provision of venture-capital which he will be pursuing. -He and Jim Sanderson will be attending a small venture capital seminar sponssored by TCAD. Bruce Courtright reported that a comparison of the 1984 and 1969 telepone books revealed insurance and lawyers as having grown 90%, doctors 497, grocers 11%, public accountants 117%, ad. agencies 300°I. The population growth in 15 years is about 15%. Ithaca is a service-oriented vs. a manufacturing community. His findings reflect those of Randy Wilson. A basic problem lies in what can he done to raise people from low scale jobs to those better paying jobs that are available. Status of TEDI. Al Davidoff wondered whether there was a pattern of poor attendance by representatives of some constituencies which would suggest replacement of individuals• and whether there should be additional constituencies represented as well. Judy Green wondered whether there should he some statement defining goals and priorities as well as process of decision-making,and suggested members' coming in with some suggestions. Perhaps there should also he a process of reporting and gaining input from constituency groups. The Mayor suggested, that decision-making process might differ in different situations and, therefore, might he hest handled on a case-by-case basis. Irene Stein pointed out that TEDI has a good record of accomplishment for a group of less than six months old: a day care needs assessment out in the field, some effect on local hiring, beginning efforts in a local foods venture, research on local printing, first steps in relation to venture capital, minority hiring problems and a study of economic demographics. 2 Minutes of TEDI meeting, November 5, 1984 I. Minutes. The minutes of the October 1 meeting were accepted with the addition of the word "site" to the next to last paragraph on Page 1. II. Mayor's Report. A. Southern Tier Regional Economic Development Council. The Mayor distributed the organizational chart tor the Council. Tompkins County is well represented with Ray Van Houtte serving on the Executive Board as well as Secretary; Dave Call, on the Education Committee; Mayor Gutenberger on the Legislative Committee. A list of issues raised by various counties was also distributed. B. Community Developments Groundbreaking for the Performing Arts Center in C -town Granting of HODAG loan for Travis Collegtown project State government financial support for Cornell Biotech and Graduate Business programs Settlement of strike at Morse -Emerson. Lt. Gov. Del Bello was involved in helping keep Morse -Emerson in the community; Labor, management and public official were involved in that situation. It is hoped that a model of cooperation might evolve to support keeping industry in the community. Plans for Cayuga Press to construct new facilities at Cherry Street are ready to go pending only public hearing and approval of Urban Renewal Agency and Common Council approval. The City is working with another small firm to join Cherry Street; if this effort is successful the Park will he just about full. Accordingly, work on the Cherry Street brochure has been halted. III. Day Care Subcommittee. Irene Stein reported that the needs assessment survey is now being distributed in the downtown area. The subcomittee has been kept informed by Carolyn Peterson as to the County projected needs assessment, and has suggested questions asking where people live, where they work, and whether they prefer day care near home or work be included. Irene pointed out the importance of working cooperatively with the County as much as possible if we ever hope to solve the more controversial day care problems. IV. Subcommittee on Local Initiatives. Judy Green reported that members of the Subcommittee have each taken specific projects. Carl Sgrecci is working on venture capital. Charlie French is working on the problem of maximizing chances for local construction contractors and workers. He will be getting together with the Mayor on this shortly. Charlie also reported that legislation is coming up to mandate more minority hiring, and that locally, his apprentice program has had serious problems enrolling minority candiates. The subcommittee may look into this problem 'which it was felt may relate to the school system in Ithaca, to failure to adequately publicize the apprentice program, etc. Randy Wilson will present a written summary of the findings on local printing at the next meeting. He also circulated a paper describing his intention to gather statistics giving an overview z of employment, occupation and income for 1970 and 1980, looking for indicators of economic development and effects on various population subgroups. He intends to outline preliminary findings in December and submit a final report at the January meeting. Judy reported that Bruce Courtright will be going over the yellow pages of the '69 and '84 telephone books to compare changes in businesses and services. Hopefully, he will report at the December TEDI meeting. Judy is working on the local food industry project with the Farmer's Market and with Steve Jackson, the Planning Board's liaison to the Farmers' Market. There will be a public hearing relating to a site for the Market in December. The Mayor pointed out the Sept. message from the Governor which included some financial opportunities through Ag and Markets and suggested Judy look into them. V. Old and New Business. Carl Sgrecci reported on the recent meeting of TCAD. More than 30 organizations were represented in this group. The goal is to have it serve as a one stop shopping place for businesmen;it is planned to have a 75,000 budget with a staff. The Mayor attended a subsequent Executive Comm. of this group and reported that they were dividing up to solicit funds. It was suggested that some TEDI members might wish to help with this fund-raising. Al Davidoff reported that the Labor Coalition was working on a report on plant -closing legislation, and that it will be presented to the City and TEDI. It was suggested that the role of TEDI in relation to this legislation, if any, be explored after the report is made available. Carolyn Peterson distributed a statistical report from the Information and Referral Service. 55% of the inquiries came from the City. The report is for three of the four quarters of '84. Nancy Tresner announced that the Unemployed Council will be holding a Conference together with Coop. Extension on Dec. 13 on unemployment to provide support, informational workshops on benefits, services, debt counseling, considerations of actions that can be taken, etc. Al Davidoff wondered whether the new Community magazine was being printed locally. Judy Green suggested that at the appropriate time, some of the activities of TEDI might be described in that magazine. 4 c tJ co eft DAY CARE AND CHILD DEVELOPMENT COUNCIL OP TOMPKINS COUNTY. INC To Whom It May Concern: 306 N. AURORA STREET. iTHACA. NEW YORK 14850 1607) 273-0259 November 27, 1984 y84 The "childcare community in Ithaca supports the efforts by_ .the Drop -In Center to secure'funding for'future operating costs. The Drop-In"Center, a parent cooperative which offers child care for up' to three .(3'), hours on a drop-in basis, is primarily used' by parents as they go job hunting;. have"appointments with doctors and dentists,etc. or to temporarily -relieve parental stress. Because the "student -body" of a drop-in center is so fluid, it is very difficult. to keep a strong parent board involved with the center. .The Ithaca Drop -In Center has worked very hard on this and .also on having a dedicated, capable group' of volunteers to help run..the center. To use a cliche', "every community needs one"! The special services provided by the Drop -In Center are presently not available anywhere else in Ithaca. Children attend the sessions from age 6 months to 5 years; they can come on a drop-in basis with no prior arrangements made, and their parents can meet other parents to exchange ideas and share child rearing expertise with them. .The city .plan to. renovate and expand .the. Drop -In* Center as part of .the GIAC'complex renovations is.a good one and hopefully this will happen soon. If. the Center -doesn't have the:funds to operate a quality program, the up to date, expanded space won't be used"to its full potential. There is no doubt that the Drop -In Center fills. an important day care need in'Ithaca and .that it should have the support of the community to operate a quality program. ... A UNITED WAY AGENCY Sincerely, n Eva B. Cochran Executive Director W. StattSt UAW — Ithaca Office 4>itax.)N xAmec Ithaca, NY 14850 (607) 272-4108 December 3, 1984 Dear Mayor Gutenburger: In keeping with your original plan to include three representatives of organized labor on your T.E.D.I. I'd like to suggest the following trade unionists as possible candidates to fill the current opening: Haralyn Kuckes, or another teacher representative Marnie Kirchgessner, CSEA Both of these individuals are highly regarded by the Labor Coalition, and both have shown a keen interest in local issues relevant to T.E.D.I. I am particularly interested in seeing a teacher leader on T.E.D.I. because of the importance primary and secondary education plays in many of our economic development ideas. Thank you for your concern for adequate representation from the labor community. I continue to enjoy being a part of T.E.D.I. and look forward to making tangible progress in the near future. cc JimMorrissette, Labor Coalition Respectful1 'Al Davi off President, Local U.A.W. International Union, United Automobile, Aerospace and Agricultural Implement Workers of America ACTION DN UNEPfrLOYMENT - AN AcriaN-OR1EgrE0 CONFiREOCA FD R6Ceor Amp lo0C-TER m ON 1rL.o'/1ry WOR IMGs - OR4s&i;Eo QY TMwuCiNS Cou. w unsmruovev C000cAL FLfn, SPEAKERS & WORKSHOPS - H E AI.TN iZiwat nee Q cti O., J w V4s Gveti ta.1) k, CARE poa`lN` W'T"i (4i4 less r•urns oda N S- - c L1� 6sf•Sh%s. 11414$01071/11414$01071/ Ego g �ar., -THE Poem OP UNG l LbY rAIWT Cora hAskk, 44- rg ss . - ElIrh1N ATIN4 S4r& les 'hof lath/4•+o CreI D S • u Nom+ 110, oc werkufieftylayak w+. * ;'Ree C141I.0 COWL ckll 272.-6172. Rares)letverek Pr maeh - $ c\# growl. 61 Lua m *Tuns k oma: Tirn*sov, DECEMBER, 13" G - 3iptin * Pukcs ; CooPettirrhig LxveitS s_- Aar' S. F Von CF 4onsem. S, Minutes, TEDI, Dec. 3, 1984, 11 AM, Common Council Chambers. Present: Judy Green, Carl Sgrecci, Charles French, Al Davidof, M. Van Cort, Helen Jones, Cathy Wood, Bruce Courtright, Randall Wilson, Mayor Gutenberger, Irene Stein. Guests: Wanda Correa, IC student, members of the press. The Mayor announced that Common Council Chamber was now a non-smoking area. Minutes. The minutes were accepted with one proviso: Bruce Courtright pointed out that the report presented at TCAD stating that the Lt. Governor was helpful in the Morse Emerson strike would have been more accurate had it stated that the Lt. Gov. was very interested in the situation; he did not actually get involved in the settlement efforts. Mayor's Report. The Mayor reported that he and Charles French had met and were sending a letter to relevant employers stressing hiring local residents. TEDI has picked up an ally in the Chamber of Commerce which may be setting up a small group to mase1contacts about this problem. The mayor suggested that TEDI Kasen an influence by airing this problem. Day Care Subcommittee. Irene Stein reported that the Day Care survey was being distributed, but that there is a shortage of volunteers. She is still hopeful of completion of the survey by the end of the year. Subcommittee on Local Economic Initiatives. Judy Green reported that at the last meeting of the Subcommittee, the problem of minority training and hiring had emerged. She will be meeting with some TEDI people and some community residents to gain some insights into this problem. She would hope to facilitate this group initially, but then that it would set a chairman and do its own work drawing upon help form the consituencies of those involved. Randy Wilson distributed his summary on the local printing industry. The Mayor and he will arrange a meeting of printers and companies to discuss his findings. Randy also gave an interim report on his findings to date on local economic statistics. The Ithaca economy is fairly stable, with this stability related to a large number of low-payng service jobs. Some high growth areas have not added many jobs. Bruce Courtright pointed out that heavy manufacturing is a declining industry in the County paying fairly high wages; however, 40% of the employees live outside the County. Randy will present a report at the next TEDI meeting. Judy Green reported that she presented the local foods project idea at the recent hearing regarding a permanent site for the Farmer's Market. Steve Jackson, representative to the Farmer's 1 Market from the Planning Board will call together a group to discuss future directions for the Market in roles and functions. Charlie French reported that the contractors at the Reconstruction Home project will be hiring locally, and this may be a result of TEDI's efforts. He is also hoping to get a fair share of local jobs on the sewer project. He also reported that the affirmative action plan to fill minority employment quotas on State financed projects and that this relates to the group Judy is setting up. Carl Sgrecci reported on Venture Capital. As a result of discussions with Tom Mailey and others, he has an idea for local provision of venture capital which he will be pursuing. He and Jim Sanderson will be attending a small venture capital seminar sponssored by TCAD. Bruce Courtright reported that a comparison of the 1984 and 1969 telepone books revealed insurance and lawyers as having grown 90%, doctors 4970, grocers 11%, public accountants 1177, ad. agencies 300%. The population growth in 15 years is about 15%. Ithaca is a service-oriented vs. a manufacturing community. His findings reflect those of Randy Wilson. A basic problem lies in what can be done to raise people from low scale jobs to those better paying jobs that are available. Status of TEDI. Al Davidoff wondered whether there was a pattern of poor attendance by representatives of some constituencies which would suggest replacement of individuals and whether there should be additional constituencies represented as well. Judy Green wondered whether there should be some statement defining goals and priorities as well as process of decision-making,and suggested members' coming in with some suggestions. Perhaps there should also be a process of reporting and gaining input from constituency groups. The Mayor suggested that decision-making process might differ in different situations and, therefore, might be best handled on a case-by-case basis. Irene Stein pointed out that TEDI has a good record of accomplishment for a group of less than six months old: a day care needs assessment out in the field, some effect on local hiring, beginning efforts in a local foods venture, research on local printing, first steps in relation to venture capital, minority hiring problems and a study of economic demographics. MEMORANDUM TO: TEDI RE: PRINTING RESEARCH FROM: RANDALL WILSON DATE: 19 November 84 PURPOSE. In August, I reported to TEDI about imports, exports and local buying patterns of area employers. A subcommittee was then formed to fur- ther explore "local economic initiatives" -- areas where Ithaca was missing opportunities to provide jobs, income and ventures for its residents. The subcommittee has been exploring several areas of "leakage" in the local econ- omy: contract construction, food and agriculture, venture capital and print- ing. My assignment was to find out whether Ithaca was losing potential income through "imports" of printing services from out of town. This report sum- marizes my findings from a brief survey of printing customers and suppliers. MAJOR FINDINGS. Printing is an important and growing industry in the Ithaca area. Ithaca's economy specializes in education, manufacturing and service industries which cater to both of these sectors. It is also the region's "service center" -- home to banks, insurance firms, utilities and other func- tions serving the region. All of these industries generate reams of paper- work and rely on printed matter to do their business. Much of the printing for these activities is done locally. However, there is a perception that printing jobs are "leaving town" which could be perfomed locally. The institutions seeking outside service do so for several reasons: traditional customer networks, low costs and a perception that local shops lack the capcity or equipment to meet specialized needs. These differ- ences of perception suggest a possible need for face-to-face discussion among buyers and sellers of printing services. OVERVIEW OF THE INDUSTRY. According to County Business Patterns, 180 people were employed in Tompkins County in the printing industry, as of 1982. Some twenty firms offer printing press services; this does notinclude shops re- stricted to photocopying. These firms rely primarily on offset, sheetfed presses. Some retain traditional letterpresses; others have moved into the newest "web press" technology. All firms with upgraded equipment originally began as small printing or copying shops. The local industry can be divided into three sectors. The first would include copy and duplication shops, as well as firms which specialize -1- „in services to printers, such as typesetting and camera work. This sector will not be considered here. The second sector is made up of firrns serving a local market, and not planning expansion. The third sector is filled by those firms serving an export market, local and exports, or expanding to serve a larger market. As some firrns enter the third sector, those with a local focus often increase their market share by picking up clientele formerly served by "exporting” firms. Industry respondents claimed that printing is growing currently; most of them "are busier than they've been in awhile," as one owner noted. Others observed that, in general, it is hard "to stay above water" in this business. SURVEY FOCUS. For this report I will focus on the most informative interviews: six printing firms and four large customers. The printing firrns are labeled 1-6; the customers, A -D. Printer 1.has the area's largest export shipment in printing, serving national customersin New York, Rochester and elsewhere. Their customers in- clude book publishers, periodicals, tabloid supplements and trade journals. They have the most extensive equipment in the area. Printer 2 is in the "expansion" stage. Their market includes large local institutions and numerous smaller jobs. Printer 3 has a large local clientele. They have moved from being a small copy shop to four color magazine printing and a range of other sophis- ticated jobs, including trade union material. Printer 4 is a long-established firm supplying local enterprises. They have recently increased their share of business from the area colleges. Printer 5 is a fairly small, family -run firm with a set of long-time customers, including professional offices and manufacturing plants. They do their own camera work and typesetting in-house. Printer 6 is a well-respected shop with local industrial customers. Customers surveyed were two area colleges (College A, College B); a branch of a manufacturing firm (Industry C) and a local utility (Utility D). All four of these institutions fill a portion of their printing needs from in-house, print shops. College A prints about 50% of its jobs; College B, 5%; Industry C (no figure); Utility D, (no figure). SERVICES PURCHASED LOCALLY. This varies greatly, both within firrns and be- tween them. It ranges from calling cards, shipping labels and business en- velopes to alumni magazines and industrial product catalogues and brochures. -2- -"SERVICES PURCHASED NON -LOCALLY. This is also extremely wide-ranging. It in- cludes product catalogues, admission and college catalogues, brochures, for, matted pages, computer tape, museum books, various teaching materials requir- ing precision color and graphics. GENERAL PERCEPTIONS. Four of the six firms (1, 2, 5, 6) percieved that "College A" purchases printing services out-of-town which could be performed locally. Printer 5 assigned this to the college's favoring of particular firms, rather than to competitive bidding. Printer 6 complained that College A does not do enough to get bid infor- mation to local printers. He. would like the colleges to send this information directly to the local .shops, rather than relying on the printers to come to them. Printer 2 noted that local enterprises should be given treater considera- tion for purchase of all services, printing included. He recommends that firms work cooperatively with the city to amend this problem. Printer 3 believed that "everything that can stay in town, does." He believes that the colleges seek services out-of-town because of real techni- cal limitations of the local printers. Printer 4 observed that College A has begun to buy more of its printing services locally. REASONS FOR NON -LOCAL PURCHASES. All four customers percieved that local firms lacked the technological sophistication to meet their standards. This includes special color require- ments, as in museum materials or agricultural illustration. Promotional materials for education and industry place a high premium on aesthetic per- fection. Customers 1., 2 and 3 all cited product quality as a motivation for using non -local printers. All .four looked outside for lower-cost services; the colleges, in particular, were bound to competitive bidding arrangements. College B noted that the one local firm with needed technical capacity had prices geared to its export market; their longer runs -- also based on export work for national publication -- kept them from taking on "rush jobs" from the college. Colleges A and B both cited the faster turn -around time provided by outside firms. The colleges also look outside for specialized services, including color work, writing, etc. College B has its prospectus and • admissions packages done by one firm which oversees the entire process: de- sign, writing, graphics, photograpy and printing. Centralized service insures better quality control. A11 four customers percieve that local firms lack the capacity for certain jobs, due to limitation of staff, skills, space and hours of work. Outside firms, facing larger and more constant demands for long runs, have developed these capacities. This also allows them to underbid local firms. College A .nd Utility D stay with certain outside suppliers because of their history of good customer relations with them. As D put it, "you find a good source and you stick with it." Locations of outside suppliers include Binghamton, Buffalo, Rochester, Pittsburgh, Atlanta, Michigan and Illinois. REASONS FOR LOCAL PURCHASE. College B buys some services locally because of the personal quality of the service. At certain local shops, one-shot and rush jobs are handled with- out delay. One local firm stopped its presses to insert a biography of a de- ceased student into the alumni news. Technology and staff are seen as suffic- ient for many of the smaller jobs required by the institutions and industries. Several customers cited community pride and 'support for local business as a motive, along with a desire to keep income within the community. One observed that local purchases cut down on transportation costs incurred with outside vendors. CONSTRAINTS ON LOCAL PRINTING Five out of six firms cited capital (and related finance problems) as a constraint on business and expansion. High interest rates in particular were noted. Printers 1 and 6 found that transportation - i.e., for getting paper from the mill shipped in - was a constraint. Ithaca's isolation and its poor highway, rail and air links were also singled out. Firm 4 underlined the problem of taxation, especially the state's cap- ital gross value tax. All firms except Printer 1 lacked an additional work shift to handle additional demands. Printer 6 pointed out that demand for local printing decreases when local customers close down, such as GLF, or come under outside ownership (as with Ithaca First Bank and Norstar). -4- • - Printers 5 and 6 were not expanding their business or equipment because they are content with their "niche" of traditional customers. neither advertises nor uses a sales force. FACTORS FAVORING EXPANSION - As Printer 2 noted, these vary as much between firms as they do in any industry. Those local firms which have expanded -- or are contemplating such a move -- tend to have an aggressive sales force and a keen perception of new opportunities and markets. Adequate space and facilities are also condu- cive to expansion. Printer 5 DIVERGENT PERCEPTIONS The common perception of customers, as noted above, was the lack of technology in local firms. College B, for example, perceived that no Ithaca firms have capacity for more than two color presses. Yet Printer 3 has four color press; while Printers 1 and 2 were not as specific about their equip- ment, the demands of their export market require them to have better techni- cal capacity than is often perceived. College A observed the lack of "specialty work" among local printers, yet Printer 4 (and others) do perform certain specialty jobs. Many firms see the colleges as primarily shopping out-of-town, yet College A has increased its amount of printing purchased locally (roughly 16% of all of their printing needs). College B sees itself as using "local services whenever possible." Customers claim that local firms lack fast turn -around time and the ability to do long runs and high-quality jobs; several firms do have these capacities, or claim to. RECOMMENDATIONS Enlist interested suppliers and customers of printing in informal dis- cussions, sponsored by local government. Supply both sides with information about divergent perceptions. Attempt to get better information from both sides about capacities, needs and untapped markets. Encourage sharing of this information. If discussions warrant expansion of local printing services, or creation of new ventures, help link investors or owners with technical assistance, capital and other needs. Develop goals for'local.hiring,.perhaps targeted to groups with special needs. Coordinate with local employment/training efforts. -5- ( U From the Governor 4' This month's message presents excerpts of the Gov- ernor's speech to the Greater Syracuse Chamber of Commerce on the occasion of this years State Fair. Every trip across this State is a startling reminder of what God has given us in New York, the precious trust he has put in our hands, the clean water, and open skies, and good earth. This afternoon, at the State Fair, that rich diversi- ty was even more apparent. You can't walk those grounds without appreciating the work of the farm- ers who turn the earth's richness into the bounty which makes New York an agricultural center in this nation. Farming is the most productive part of the Amer- ican economy, and the most efficient. It is the most responsive to technological and scientific change, outstripping every sector of the economy in its ratio of workers to products. The August edition of New York Agriculture, reviewing the 1984 legislative session, had this to say: "From the standpoint of the number of bills passed, the diversity of subjects addressed by the bills, and their projected overall impact on the agricultural in- dustry, this was an exceptional year." I won't take exception to that assessment. Neither will the dairy farmers of New York who now have better protection of their financial security thanks to legislation that accelerates the rebuilding of the milk producers security fund and strengthens it. The default last year of a large milk dealer provid- ed a convincing lesson on how important the milk producers security fund is to dairy farmers. With this legislation, assessments on milk dealers will be tem- porarily increased and the existing cap on the fund will be raised so that the fund may provide the full protection it should. Some of the grape growers and winery owners in New York, working against stiff competition from foreign and domestic producers and faced with a glutted grape market, found themselves on the edge of bankruptcy. At least part of the problem lay with overly restrictive provisions of state law. This year we began to remove unfair restrictions. The sale of wine coolers — made exclusively from New York State grapes — is now permitted in gro- cery stores that sell beer. This measure alone will relieve much of the severe economic pressure on growers by expanding the market for their grapes by an estimated 20,000 tons. Another bill removes some of the present restric- tions on the marketing of New York State wines. It allows wineries to sell wine by the bottle at the State Fair, county fairs, and not-for-profit farmers mar- kets. It also permits winery owners to engage in another business, such as a restaurant, on winery grounds. Finally, it eases restrictions on solicitation of sales and distribution procedures for New York State wines. In addition, wineries may now conduct tastings at liquor stores. Other bills signed this year will benefit the entire agricultural community. For the first time in our history, agricultural pro- ducers now have a statutory lien against buyers until they are paid for their produce. In the event of a ,':s //`, `/7 r% �`—�' � `n �-� 1 _ r %_)'(/ r t_;tr' - =' / / August/September 1984/STATE & LOCAL/3 r =� buyer's bankruptcy, the farmers' interests will not be subordinated to those of banks, or other creditors who are normally in a secured position. The State itself is a major buyer of food products. Under a new law the State Office of General Services may require, in its bid specifications, provisions re- quiring that food products it buys be grown or proc- essed in New York. The "Loans to Lenders" program will encourage small rural banks to increase their agricultural loans. This legislation will strengthen the agricultural in- frastructure — the suppliers of farm machinery, feed, seed, fertilizer, fuel and chemicals — that sup- ports farmers and provides jobs in hundreds of rural areas across the State. I signed legislation to increase interest in, and rev- enues from, horse racing — an activity we thing of too often as just a sport. It isn't. It's big business. It's a $2.5 billion industry that employs more than 40,000 people and provides more than $175 million in annual tax revenues — far more than any other state realizes from racing. Thoroughbred breeding has reclaimed thousands of acres of farmland in Columbia County and Greene County and other areas of the State, and it's still growing. And apart from legislation, there have been other advances. The Department of Agriculture and Markets has begun its "Agriculture2000" project wit1F- region tal_conferences=planned=for=1=984That project will t"..? give us a strategic, rational, long-range agricultural plan for New York State. This year's budget contains $5.1 million for con- struction of a'food=seience-laboratoiy at the College of Agriculture and Life Sciences at'Cornell. This`` laboratory will expand the university's capability to conduct research into new methods of food produc- tion. $200,000 was appropriated to the Department of Agriculture and Markets to develop'-stiategies=forte ^�1 rural ==development and-to:increase mar-keting=of-New » Yorks -agricultural=products. The department was'? given another $82,000 for contracts with Cornell -� University to establish an educational program o� forming farmer cooperatives. The Department of Transportation has begun a project to identify rural roads and bridges essential to the movement of products and supplies to and from farms in New York State. The department will— use the survey results to target work on upgrading roads and bridges identified as deficient. All this activity in New York has not gone un- noticed. I'm happy to announce today that I've accepted the invitation of the National Governors Association to serve on its agricultural committee. I plan to be ac- tive on that committee and look forward to working with the farm bureau and all the northeastern farmer organizations in getting the hearing we deserve in the 1985 farm bill discussions. Here at home, we'll continue the work we've begun — preserving the wonderfully rich agricultural resources of New York, protecting the interests of farmers, and in so doing enriching the lives of the whole family of New York. Mario M. Cuomo 4/STATE & LOCAL/August/September 1984 Office of Fire Prevention and Control Basic training conducted at Fire Academy Contact: DOS Office of Fire Prevention and Control 162 Washington Avenue Albany, NY 12231 (518) 474-6746 Graduates applaud as Lt. Bob Sloan receives Basic Certificate from Fire Administrator Francis McGarry. On June 15th the first basic firefighting train- ing class graduated from The Senator Frederick L. Warder Academy of Fire Science. This six- week program was designed to meet the re- quirements for 229 hours of basic training for paid and part -paid firefighter recruits contain- ed in the Minimum Firefighting Training Stan- dards. Nine municipalities sent 21 firefighters to be trained in this program. Students represented the fire departments of Auburn, Elmira, Ful- ton, Gloversville, Garden City, Hornell; Onei- da, Peekskill, Rensselaer and West Seneca De- velopmental Center. The program was developed in response to requests by some of the smaller municipalities in the State. These communities felt the addi- tional training alternative would be more cost- effective for them than one-on-one training for a long duration. In addition, a relatively rapid but uniform training program would enable them to begin work sooner. The course was taught by full-time staff members of the Department of State's Office of Fire Prevention and Control and part-time State Fire Instructors, with assistance from out- side agencies in areas such as CPR and first aid. Beginning with firefighting essentials, the stu- dents progressed through the following phases, all of which are required by the minimum stan- dards: pumper and aerial apparatus operation; accident victim extrication and heavy rescue; hazardous materials and radiation safety; air- craft rescue and natural cover firefighting; fire inspection and prevention; and fireapparatus service and maintenance. Training included 1(left to right) Deputy Fire Administrator Jack Przekop, State;Fire Administrator Francis McGarry, student Firefighter Teresa Perger and Honorable Francis J. Quinlan, Mayor of Cortland. hands-on and classroom activities. Those firefighters graduating were: Frank Abbott, Daniel Abell, John Fisher and An- thony Squitieri of Fulton; Charles Bauer, Sr. of Rensselaer; Joseph Cieslewicz and Thomas Stoerger of Garden City; Douglas Edwards, Michael Furman and Marcus Putnam, Jr. of Gloversville; David Engel and James Ferris of Peekskill; Charles Johnson, Leroy Lewis and Gregory Tsibulsky of Hornell; James Latti- more, Robert J. Sloan and Robert Tinti of Au- burn; Teresa Perger from West Seneca Devel- opmental Center; and Jeffrey Salerno of Oneida. In addressing the graduates, State Fire Ad- ministrator Francis A. McGarry stated, "This occasion would not have been possible without the joint cooperation of both the State and local jurisdictions. It also shows the Statewide Minimum Firefighting Training Standards are continuing to produce more proficient person- nel and better protection for the public." Since March 1981, 54 of the nearly 90 munic- ipalities in New York State employing paid per- sonnel have developed certified basic training programs. The standards program outlines spe- cific subject criteria and training duration, allowing for flexibility in terms of departmental approach. While cities such as New York, Rochester, Syracuse and Yonkers conduct their own programs, other cities use the State train- ing programs with delivery being made by their own instructors. Still other municipalities use the State field training program or take ad- vantage of the expertise and programs available in other communities. da SOUTHERN TIER REGIONAL ECONOMIC DEVELOPMENT COUNCIL Proposed Organization _. Advisory Council Open Chairperson J. Brooks Vice President J. M. Barrick Secretary R. VanHoutte _egisiative Committee :hairperson Education Committee Chairperson Economic/ Finance Committee Chairperson Commerce Committee Chairperson Task Tak Task Task' Force Force Force Force 1 2 3 • 4. 1r )n /rni Executive Committee Treasurer Open J. Murray, Broome County J. Brooks, Chenango County S. Kruger, Delaware County A. Seward, Otsego County R. VanHoutte, Tompkins County S. Lounsberry, Tioga County J. Barrick, Schuyler County J. Gough, Chemung County D. Baker, Steuben County NYS. Government Support Entire Council 42 Members Jack McGuire Bob Dowd Brian Dooling;, SOUTHERN TIER REGIONAL ECONOMIC DEVELOPMENT COUNCIL OVERALL ISSUES (FROM VARIOUS COUNTIES) I. Public Service Comm. make up (should it be changed) 2. Government policy on employee benefits ie. unemployment status for strikers 3. New York State Financing T competitiveness 4. New York State wine grape growing decline 5. Taxes - priority for taxes ie. personal income and property 6. New Y ork State Regulatory Compliance. 7. Environmental Protection 8. Product Liabilities 9. Government Communication Channels 10. Tax incentives "enterprise zones" II. Skills training Instructions. I. Stop at every business or office in area. 2. Ask for manager or proprietor. 3. Message. "My name is . You may have heard or read about the day care survey that is being carried out by the Mayor's Task Force on Economic Development. The purpose of the survey is to assess needs for day care in the downtown business area. The questionnaire is very brief and is addressed to individuals with one or more children under eleven or who are expecting a child in '84-'85." 4. If there are only a few people completing the survey at an establishment, try to pick up completed forms on same trip. If you have to come back another day, set a specific date. Be sure to pick up all blanks. 5. Use the form to keep track of your work. 2. 3. 4. 5. 6. 7. 8. 9. 10. 12. Your name . Telephone No. Name of Office or Establishment Address Number of Forms Left Number of Forms Completed Date forms are to be picked up MEMORANDUM TO: TEDI RE: PRINTING RESEARCH FROM: RANDALL WILSON DATE: 19 November 84 PURPOSE. In August, I reported to TEDI about imports, exports and local buying patterns of area employers. A subcommittee was then formed to fur- ther explore "local economic initiatives" -- areas where Ithaca was missing opportunities to provide jobs, income and: ventures for its residents. The subcommittee has been exploring several areas of "leakage" in the local econ- omy: contract construction, food and agriculture, venture capital and print- ing. My assignment was to find out whether Ithaca was losing potential income through "imports" of printing services from out of town. This report sum- marizes my findings from a brief suf'Vey of printing customers and suppliers. MAJOR FINDINGS. Printing is an important and growing industry in the Ithaca area. Ithaca's economy specializes in education, manufacturing and service industries which cater to both of these sectors. It is also the region's "service center" -- home to banks, insurance firms, utilities and other func- tions serving the region. All of these industries generate reams of paper- work and rely on printed matter to do their business. Much of the printing for these activities is done locally. However, there is a perception that printing jobs are "leaving town" which could be perfomed locally. The institutions seeking outside service do so for several reasons: traditional customer networks, low costs and a perception that local shops lack the capcity or equipment to meet specialized needs. These differ- ences of perception suggest a possible need for face-to-face discussion among . 'c buyers and sellers of printing services. OVERVIEW OF THE INDUSTRY. According to County Business Patterns, 180 people were employed in Tompkins County in the printing industry, as of 1982. Some twenty firms offer printing press services; this does not include shops re- stricted to photocopying. These firms rely primarily on offset, sheetfed presses. Some retain traditional letterpresses; others have moved into the newest "web press" technology. All firms with upgraded equipment originally began as small printing or copying shops. The local industry can be divided into three sectors. The first would include copy and duplication shops, as well as firms which specialize -1- in services to printers, such as typesetting and camera work. This sector . will not be considered here. The second sector is made up of firms serving a local market, and not planning expansion. The third sector is filled by those firms serving an export market, local'and exports, or expanding to serve.a larger market. As some firms enter the third sector, those with a local focus often increase their market share by picking up. clientele ;formerly served by "exporting" firms. Industry respondentsclaimed that printing is growing currently; most. of them ":are busier.thanthey've been in awhile," as one owner noted. .Others observed that,.in general, it is hard "to stay above water" in this business. SURVEY FOCUS. For this report I will focus on the most informative interviews, six printing firms and .four large customers. The printing firms are labeled 1-6; the customers, A -D. 'Printer 1.has.the area's largest export shipment in printing, serving national customersin.New York; Rochester and elsewhere. Their customers in- clude book publishers,.periodicals,"tabloid supplements and trade journals. They have themost extensive equipment in the area. Printer 2 is in the "expansion" stage. Their market includes large local institutions and numerous smaller jobs. Printer 3 has a large local clientele. They have moved from being a small copy shop to four color magazine printing and a range of other sophis- ticated jobs, including trade union material. Printer 4 is a long-established firm supplying local enterprises. They have recently increased their share of business from the area colleges. Printer 5 is a fairly small, family -run firm with a set of long-time customers, including professional offices and manufacturing plants. They do their own camera work and typesetting in-house. Printer 6 is a well-respected shop with local industrial customers. Customers surveyed were two area colleges (College A, College B); a branch of a manufacturing firm (Industry C) and a local utility (Utility D). All four of these institutions fill a portion of their printing needs from in-house, print shops. College A prints about 50% of its jobs; College B,: 5%; Industry C (no figure); Utility D, (no figure). SERVICES PURCHASED LOCALLY. .This varies greatly, both within firms and be- tween them. It ranges from calling cards, shipping labels and business en- velopes to alumni magazines and industrial product catalogues and brochures. -2- SERVICES PURCHASED NON -LOCALLY. This is also extremely wide-ranging. It in- cludes product catalogues, admission and college catalogues, brochures, for- matted pages, computer tape, museum books, various teaching materials requir- ing precision color and graphics. GENERAL PERCEPTIONS. Four of the six firms (1, 2, 5, 6) percieved that "College A" purchases printing services out -.of -town which could be performed locally. Printer5 assigned this to the college's favoring of particular firms, rather than to competitive bidding. Printer 6 complained that College A does not do enough to get bid infor- mation to local printers. He, would like the colleges to send this information directly to the local shops, rather than relying on the printers to come to them. Printer 2 noted that localenterprises should be given treater considera- tion for purchase of all services, printing included. He recommends that firms work cooperatively with the city to amend this problem. Printer 3 believed that "everything. that can stay in town, does." He believes that the colleges seek services out-of-town because of real techni- cal limitations of the local printers. Printer 4 observed that College A has begun to buy more of its printing services locally. REASONS FOR NON -LOCAL PURCHASES. All four customers percieved that local firms lacked the technological sophistication to meet their standards. This includes special color require- ments, as in museum materials or agricultural illustration. Promotional materials for education and industry place a high premium on aesthetic per- fection. Customers 1, 2 and 3 all cited product quality as a motivation for using non -local printers. All four looked outside for lower-cost services; the colleges, in particular, were bound to competitive bidding arrangements. College B noted that the one local firm with needed technical capacity had prices geared to its export market; their longer runs -- also based on export work for national publication -- kept them from taking on "rush jobs" from the college. Colleges A and B both cited the faster turn -around time provided by outside firms. The colleges also look outside for specialized services, including color work, writing, etc. • College B has its prospectus and -3-. admissions packages done by one firm. which oversees the entire process: de- sign, writing, graphics, photograpy and printing. Centralized service insures better quality control. All four customers percieve that local firms lack the capacity for certain jobs, due to limitation of staff, skills, space and hours of work. Outside firms, facing larger and more constant demands for long runs, have developed these capacities. This also allows them to underbid local firms. College A.mnd.Utility D stay with certain outside suppliers because of their history of good customer relations with them. As D put it, "you find a good source and you stick with it.". Locations of outside suppliers include Binghamton, Buffalo, Rochester, Pittsburgh, Atlanta, Michigan and Illinois. REASONS FOR LOCAL PURCHASE. College B buys some services locally because of the personal quality of the service. At certain local shops, one-shot and rush jobs are handled with- out delay. One local firm stopped its presses to insert a biography of a de- ceased student into the alumni news. Technology and staff are seen as suffic- ient for many of the smaller jobs required by the institutions and industries. Several customers cited community pride and 'support for local business as a motive, along with a desire to keep income within the community. One observed that local purchases cut down on transportation costs incurred with outside vendors. CONSTRAINTS ON LOCAL PRINTING Five out of six firms cited capital (and related finance problems) as a constraint on business and expansion. High interest rates in particular were noted. Printers 1 and 6 found that transportation - i.e., for getting paper from the mill shipped in - was a constraint. Ithaca's isolation and its poor highway, rail and air links were also singled out. Firm 4 underlined the problem of taxation,.especially the state's cap- ital gross value tax. All firms. except Printer 1 lacked an additional work shift to handle additional demands. Printer 6 pointed out that demand for local printing decreases when local customers close down, such as GLF, or come under outside ownership (as with Ithaca First Bank and Norstar). -4- Printers 5 and 6 were not expanding their business or equipment because they.are content with their "niche" of traditional customers. Printer 5 neither advertises nor uses a sales force. • FACTORS FAVORING EXPANSION As Printer 2 noted, these vary as much between firms as they do in any industry. Those localfirms which have expanded --.or are contemplating such a move •--•tend to have an aggressive sales force and a keen perception of new opportunities and markets. Adequate space and facilities are also condu- cive to expansion. . DIVERGENT PERCEPTIONS The common perception of customers, as noted above, was the lack of technology in local firms. College B, for example, perceived that no Ithaca firms have capacity for more than two color presses. Yet Printer 3 has four color press; while Printers 1 and 2 were not as specific about their equip- ment, the demands of their export market require them to have better techni- cal capacity than is often perceived. College A observed the lack of "specialty work" among local printers, yet Printer 4 (and others) do perform certain specialty jobs. Many firms see the colleges as primarily shopping out-of-town, yet College A has increased its amount of printing purchased locally (roughly 16% of all of their printing needs). College B sees itself as using "local services whenever possible." Customers claim that local firms lack fast turn -around time and the ability to do long runs and high-quality jobs; several firms do have these capacities, or claim to. RECOMMENDATIONS Enlist interested suppliers and customers of printing in informal dis- cussions, sponsored by local government. Supply both sides with information about divergent perceptions. Attempt to get better information from both sides about capacities, needs and untapped markets. Encourage sharing of this information. If discussions warrant expansion of local printing services, or creation of new ventures, help link investors or owners with technical assistance, capital andother needs. Develop goals for'local.hiring, perhaps targeted to groups with special needs. Coordinate with local employment/training efforts. -5- MEMORANDUM V TO: TEDI FROM: RANDALL WILSON RE: WORK IN PROGRESS DATE: 5 NOVEMBER 84 This memo is offered as a way of setting out my current research for TEDI, and to show how it fits into the larger work of the task force. My research starts from the follow- ing observation: most traditional economic development efforts focus on activities. Growth in activities -- whether by attracting :_ firms _ or performing projects -- is presumed to improve a community's: standard of living. In many places, however, this growth does not benefit local residents equally. The jobs may go to non -local people,for example. Required skills may not be available locally. Specific groups in the population may not participate in the benefits of growth. TEDI was formed to provide a new focus for local economic development: a focus on area residents and their needs. This is reflected in the group's broad representation and its focus on problems such as daycare and local control. This focus does not mean that we neglect activities. It suggests that we find out how our residents are doing, and try to better match our activities to their needs. At the first meeting of TEDI, for instance, it was suggested that we begin seeking data on the local population, its occupational skills and possible barriers to employment. My current research helps address these questions. My report will provide an overview of changing patterns of employment, occupation and income for city and county, 1970 and 1980. These :will be further broken down by sex and race, where data is available. I will seek out other indicators of local development: rates of unemployment and labor force participation. poverty status and household income levels. These will be analyzed by population groups where possible. There is a possibility that this research could be continued by Cornell planning students in the spring, but this is not certain at present. My aim here is to do more than simply gather data. I will make every effort to mesh this background research with the needs of task force members and their specific projects. For my own project -- on printing -- I will submit a short memo describing the findings from my interviews. My broader purpose is to help TEDI members bring community problems and opportunities to the surface -- to see who is gaining and who is losing from local activities. This will help insure that our specific projects benefit those who need help, whether they be daycare mothers, budding business people or minority youth. Recent discussions about minority employment provide one example of how we might proceed. The problem can be seen as a mismatch between activities -- employer needs -- and resid- ents -- youth skills, motivation and educational attainment. To address this, TEDI would need contact with minorities, edu- cators and business people, and information about the scope of the problem and its causes. TEDI's members can help provide the contacts; my background research could offer details about the problem, putting it into the larger picture of the local economy. My intention is to submit a final report at the January TEDI meeting. I will outline preliminary findings in December. I welcome any suggestions or additions to this proposal from task force members. I.CC.!+.L ,FCOiis INITIATIVES TEDI Oct. 1'84 1) Agriculture and food -related enterprises will have increasing significance in the economic development of communities in upstate New York: - Probable decline in agricultural productivity of other regions - Increasing role of New York State as breadbasketfor the Northeast - Recent dramatic increase in # small farms, most producing well below capacity - Stagnation/decline in employment opportunities in other sectors 2) Ithaca community has strong interest in promoting ag. and food related developments - Reduce vulnerability of community to disruption of food supply. (Community and urban gardening, food and nutrition education, food buying cooperatives, food relief programs, emergency food storage and planning) - New business/employment opportunities, including many jobs suit- able for those with minimal training/education. (Farming, processing, trucking, food handling, marketing, sales, support services...) - Agriculture has the highest "economic multiplier effect" of all industries (greatest return on investment to local economy) 3) Now is an excellent time to push local food and agriculture on the develop- ment agenda: - Both the Ithaca Farmers Market and the I+haca Community Gardens are seeking permanent sites. They are the natural cornerstones of an integrated local food economy. There is interest in considering the Farmers Market site question in .the context of a broader plan to foster agricultural economic development. - Opportunities for marketing in New York City are. wide open now, while procrastination may close some doors. There is tremendous potential for exporting food from the Finger Lakes to NYC. 4) A modest proposal: - Use IFM as foundation stone in 5 yr plan to develop one or more profitable local food businesses, combining Community Development Corporation structure (?) local retail sale 6 days/week local wholesale deliveries and pickups 6 days/week storage warehouse (doubling as emergency food reserve) coordinated marketing and promotion distribution to NY City canning enterprise (combining community -access and commercial canning) 5) - Gather input of participants on preferred ownership/membership st:ructure;rd.egree of independence of -elements Iisted_above;_ etc. - Mobilize capital for start. -up: private, city, state, federal. NY State Dept. of Ag. and Markets would assist. Also bill pending in NYS Legislature would provide $$ for pilotmarketing projects in 4 target counties incl. Tompkins. Additional notes: - Most local institutions very receptive to buying local. Major obstacle is lack of centralized ordering/delivery system. SUMMARY OF INQUIRIES (,z ToBER Month l �B Year INFORMATION AND REFERRAL SERVICES 313 North Aurora Street Ithaca, N.Y. 14850 607/272-9331 I. Incoming Calls Recorded: a. I&R Phone b. Human Services Coalition c. Walk-ins d. Mail TOTAL II. Type of Call: • Type A: directory call for phone, address, etc. Type B: where to obtain information and/or service, I&R identifies in initial contact Type C: Where to obtain information and/or service, -requires I&R research, multiple contacts Type D: I&R provides information - no referral Type E: call inappropriate for I&R Type F: information accepted by I&R from caller; no referral or information given TOTAL III. Relation of callers to individual requiring service: a. Individual calling for self b. Individual calling for other c. Facility/agency calling for client d. Facility/agency calling for general information TOTAL IV. Gender of Person in Need of Service M - Male F - Female TOTAL NA - Not Applicable V. Age of Person in Need of Service 1. Under 18 2. Between 18-60 3. 60 and over TOTAL 4. Age Not Applicable Inquiries Received Percent 4— £3,t'? —91, 2 70 11 1' 593 jiri 7o 0272 1/5:87 19 /-gip 105- .6'93 055.6'93 111-41- ll () 9/ _Lol°70 9, pq.7 /;31, a /0. 7, 3,7070 f{ I I y T. �6 0 A Program of the Human Services Coalition of Tompkins County, Inc. 00:7-60ER IX. Summary of General Services Areas in Which Inquiries were Received: 1. Food and Clothing rho - Year Inquiries Received Percent MI _,.;10. 2. Housing and Household Needs 4/7 (x,51 // f 3. Financial Resources IN (o�5 e 4. Employment 2f 1, /.3 �o 5. Education .27 *,297, 6. Health J1'1 g, 2570 7. Developmental Disabilities 47' Os (#3'7o 8. Social/Emotional Development & Adjustment /6 ILA /'-I2??? 9. Protection from Abuse and Neglect /0 V. lC7' 10. Homemaking 5 di77 , 11. Daycare 0 All J 12.- Family Planning & Pregnancy ... IC 02,38 JD 13. Adoption / 6, I6 14. Substitute Living Arrangements 6 Q,95- 15. Consumer Protection 0117 `T TT 71 16. Environmental Protection & Sanitation /5 4 ✓D 71 17. Community Safety and Justice N 5,71 7 18a. Community Information and Organization 55 g,73 76 18b. Local, State & Federal Government - 54 65-7'r ,r '7S2019. Transportation // /.15- 20a. a. Administration and Management 7'. . (o,GT 7 20b. Human Services Resource Directory I/ ITC 7s 21. Outreach 0,312`1 22. Volunteer Guide c.20 2,17 (o 23. -Other TOTAL 630°�o. OFFICE OF MAYOR CITY F O HA A 1OB EAST GREEN STREET ITHACA, NEW YORK 14850 MEMO TO: TEDI Members FROM: Mayor John C. Gutenberger DATE: October 23, 1984 SUBJEC.T: MEETING TO BE HELD NOVEMBER 5, 1984 MONDAY - - 11:00 A.M. - 1:00 P.M. COMMON COUNCIL CHAMBERS PLEASE BE SURE TO CALENDAR THEABOVE ENTITLED MEETING. I LOOK FORWARD TO SEEING YOU THERE! "An Equal Opportunity Employer with an Affirmative Action Program" TELEPHONE: 272-1713 CODE 607 '7 '- Summmary of TEDI meeting, October 1, 11 AM. After a few brief announcements by the Mayor, Irene Stein reported for the Day Care Subcommittee. The needs assessment summary has been finalized. The subcommittee will be meeting to decide on who the sample will include and on the logistics for distribution. Carolyn Peterson reported that the planning for the County Needs Assessment was starting. On behalf of Tedi, she is exploring whether the County can help out in computerizing our survey data. Irene Stein also reported that the Subcommittee on Employer Needs had met and changed its name to the Subcommittee on Local Initiatives to better reflect its concerns. Judy Green will serve as Chairman. The subcommittee decided to focus on a number of projects; Judy Green is looking into the local food economy; Randy Wilson, into printing; Chas. French will be looking into what can be done in relation to encouraging employment of local workers in construction; Carl Sgrecci into venture capital. Randy will also look into a project that will meet his academic needs as well as those of TEDI. Randall Wilson then reported on his findings in relation to the local printing industry. He has conducted about 15 interviews, and is basically trying to find out whether and how much printing income is leaving the community and whether we can get it back. These interviews reflected perceptions that were at times contradictory. It was suggested that it might be beneficial to get printers and purchases of printing together to discuss these issues. There might also be a need for a brochure to present what is available locally. One problem which was mentioned related to the isolation of Ithaca. This generated a discussion about transportation. Matthys Van Cort stated that the Chamber of Commerce is looking into this issue. Report on Food Project. Judy Green presented the results of some work she had done tour years ago. Nearly every institutional buyer was receptive to the ideal of local products at that time; however, marketing was the basic problem. A centralized distribution system and warehous is needed. Judy feels there has not been much change since then, but her data need to be updated. She will be looking into the long-range potential of the Farmer's Market. It was pointed out that with the question of the site for the Market a current issue,it might be an opportune time to talk about possible new roles for the Market as well. The Mayor has asked the. lannning Board to make recommendations in regard to a permanentt�ifor the Farmer's Market. Judy's subcommittee could work with the Farmer's Market on an overall plan for site, structure, function, etc. Randall Wilson reported that he is interested in getting a handle on the local economy, its problems, assests and effects of various factors on various groups of local residents. He will be working with the subcommittee on local intiatives. - 1 - Helen Jones presented a listing of agencies involved with economic development in Tompkins County and discussed their respective functions with the group. She also circulated a County brochure on economic and industrial development opportunities in the County which included a section on the Cherry Street Industrial Park. The next meeting of TEDI will be November 5. CITY DF ITHACA 1OB EAST GREEN STREET ITHACA, NEW YORK 14850 OFFICE OF MAYOR September 27; 1984 TELEPHONE: 272-1713 CODE 607 As you may be aware, the Day Care Subcommittee of the Task Force for Economic Development in Ithaca (TEDI). is looking into what the City can do in its role as a supporter and facilitator of Day Care. As a first step., the Subcommittee is conducting an assessment of day care needs in the downtown area. I believe that adequate day care contributes heavily to improved employee atten- dance, lower employer insurance costs, increased employee productivity, and improved employee job satisfaction and is, therefore, an important factor in economic development. Any recommendations that might emerge, however, must be based upon a sound needs assessment. The needs assessment is being implemented through a very brief survey which will be distributed to you some time within the next few weeks. I would very much appreciate your support in this endeavor. If you have any questions, please do not hesitate to get in touch with Irene Stein (272-3167) who is the Coordinator for the Task Force, or with me (272-1713 Ext. 231) . Thank you for your attention and for your commitment to economic development in Ithaca. Sincerely, John C. Gutenberger Mayor "An Equal Opportunity Employer with an A"'.rmative Action Program" ECONOMIC & INDUSTRIAL DEVELOPMENT OPPORTUNITIES TOMPKINS COUNTY ITHACA, NEW YORK Therm, Inc. Ithaca College Ithaca Intersystems Bio Research Boyce Thompson Institute Wolfdata American Demographics ISA Babcock Evaporated Metal Filrns Corp. Ithaca Gun Co. Kolar Machine, Inc. Finger Lakes Fabricating Eastern Artificial Insemination Morse Chain Div./Borg Warner Precision Filters NCR, Inc. ITL Inc. Sage Action, Inc. Hi -Speed Checkweigher Cornell University DigiComp Research Corporation Ithaco, Inc. Gathering Winds Natural Foods Markets within, 750 Miles of Ithaca PROVIDENCE Percent of Total U.S. and Canadian Markets within 750 miles of Ithaca: 54% of total population 54% of total income 65% of value added by manufacture Tompkins County is situated at the heart of the beautiful Finger Lakes region of New York State. The City of Ithaca lies on the southern shores of Cayuga Lake, the largest of the area's lakes. This is an idyllic land— for living, working, and playing. It's more than just a pleasure to live here though; Ithaca and Tompkins Coun- ty exemplify the state of the art in high technology in New York State. The lake and the rolling hills provide the natural beauty while well educated and highly trained individuals provide the technical capabil- ity. Cornell University and Ithaca College, with a combined enrollment of 22,000 students, excel in programs in engineering, computer science, com- munications, the performing arts, biological sciences, veterinary medicine, law and many other academic disciplines. These programs each year produce hundreds of young men and women with graduate and undergrad- uate degrees in fields vital to the success of high technology firms. Scientists and researchers at Cornell are currently pursuing basic investigations into hundreds of different projects in these fields—projects which lead to innovative products, processes, and techniques. The business and industrial community in Tompkins County includes several large well-established firms affiliated with multi -national companies such as Borg Warner, NCR, and SCM Corporation. But almost more importantly, the Ithaca area is home for more than twenty small, high technology companies with product lines in micro -electronics, sophisticated computer technology, agricultural chemistry, biological re- search and more. Many of these firms are home grown, as local graduates and other entrepreneurs have found the resources with which to put their ideas to work available locally. The location of Tompkins County, with one -day delivery service to New York City, Boston, Philadelphia, Washing- ton, Detroit, Toronto, Pittsburgh and several other major population and business centers, provides a strong marketing advantage. This favorable business setting, when combined with the superb quality of life found here, makes Ithaca and Tompkins County the right place for your company and your people. Come and live the good life...the high (tech) life in Tompkins County. From Ithaca to its surrounding villages and suburbs, there's a great spot for you and your business. Even if you're not a company now, gather your ideas and come talk with us anyway. We've got the resources to help you get started and to keep you going. We're doing it for others every day. New York State has traditionally been recog- nized as the financial capital of the nation. It's no coincidence that nearly all of the major industries have their headquarters or a branch in New York. We understand the factors which are important to business health and vitality. We've worked hard to create the best environment for business location and prosperity. Our New York State legislators have taken some dramatic actions in the past few years to even further strengthen the state's eco- nomic health. Below are many reasons why you can prosper in New York State. State ❑ Personal income tax rates have been reduced by one third Incentives ❑ There is no tax on tangible property ❑ No sales or use tax on parts and supplies used in the manu- facturing process in New York State ❑ Total personal and business tax cuts exceed $2 billion in the past three years ❑ Labor and management work together, resulting in one of the nation's lowest rates of time lost due to work stoppages ❑ New York State spent nearly $32 per capita on vocational training in 1980, 4th highest in the country, showing the hard dollar commitment to providing a well trained work force for new and existing industry ❑ The state university system, together with the vast network of private colleges and universities in New York State, is the finest collection of post secondary institutions in the United States ❑ Public and private transportation systems are constantly upgraded with state support so that raw materials can be received and finished goods shipped to almost 75% of the population of this country in a matter of hours from upstate New York State In addition, New York State offers a wide range of fi- Programs nancing assistance and tax relief programs for businesses. ❑ Job Development Authority - long term second mortgage financing for construction and capital equipment ❑ Corporation for Innovation Development - venture capital for new high technology businesses for product development and construction. Start-up financing is available. Economic etldvantages ❑ Job Incentive Program - special tax benefits for companies locating or expanding in New York State 0 And more programs like On The Job Training Assistance, Targeted Jobs Tax Credit, Small Business Investment Corpo- rations, and the Commerce Department Import/Export Assistance to meet the needs of your firm Central New York, including Ithaca and Tompkins County, enjoys many significant advantages over the rest of the/country which enable business firms to prosper. The costs of doing business in this area compare quite favorably with the costs throughout the nation. The tables below compare two key indus- trial indices, value added by production workers and average monthly power costs, in Central New York with representative areas in the United States. VALUE ADDED FOR PRODUCTION WORKER Value added by manufacture in the Central New York area was $4.72 for each $1.00 paid (per production wage dollar). That's 26.9% higher than the national average. SOURCE: U.S. Dept. of Commerce Bureau of the Census Geographic Area Series October/November 1980 CENTRAL NEW YORK MICHIGAN ILLINOIS NEW JERSEY OHIO NEW YORK CONNECTICUT U.S. AVERAGE MASSACHUSETTS PENNSYLVANIA VIRGINIA GEORGIA NORTH CAROLINA SOUTH CAROLINA AVERAGE MONTHLY ELECTRIC COSTS Based on 1,000 kw demand and 400,000 kwh use, January 1981. SOURCE: Edison Electric Institute Typical Residential, Commercial and Industrial Bills -Investor Owned Utilities Winter, 1981 NEW YORK STATE ELECTRIC AND GAS VIRGINIA MICHIGAN OHIO ILLINOIS U.S. AVERAGE GEORGIA PENNSYLVANIA FLORIDA CALIFORNIA CONNECTICUT NEW JERSEY NEW YORK MASSACHUSETTS NEW HAMPSHIRE riftlearag 1.1 $51,300 $47,600 $47,000 $46,700 $46,600 $46,000 $42,800 $42,700 $40,100 $38,600 $36,000 $33,400 $29,800 $27,300 $15,284 $15,768 $16,137 $16,545 "I $16,740 $17,368 I $17,996 �.- $18,217 $19,096 $23,315 $25,971 $26,175 $26,299 E 1 $26,792 $27,933 1.414filegal Scenic `Beauty Quality of Life eAcademic Envifonment Many industries have chosen Ithaca and Tompkins County as their home, and why not? Few places can offer the combination of scenic beauty, quality of life, positive academic environ- ment, viable business climate and economic in- centives that Ithaca and Tompkins County can. ❑ Beautiful Cayuga Lake, largest of the Finger Lakes, a great place for recreation D Three New York State parks encompassing breathtaking waterfalls and magnificent gorges ❑ Many local and regional recreational areas ❑ Exciting changes of season ❑ Outstanding secondary school system, consistently ranked at the top in New York State ❑ Vast opportunities for continuing and higher education at Cornell University, Ithaca College, Tompkins -Cortland Community College, as well as seven other institutions in the immediate region ❑ Performing arts productions sponsored by Cornell University, Ithaca College, and several local organizations o A new, totally modern County hospital ❑ A revitalized downtown pedestrian shopping mall ❑ Numerous restored historic buildings and districts, with many mid -19th century homes ❑ Seasonal recreational opportunities, from back packing and sailing to skiing and ice hockey. o Three prominent institutions of higher education in immedi- ate area, training more than 22,000 students per year o Strong academic research in electronics, engineering, chem- istry, sub -molecular composition, agriculture and agricultural science, micro -biology and many other fields ❑ Continuous supply of highly educated workers interested in remaining in the Ithaca area o Significant contribution to the community in terms of cultural and performing arts, professional advice, volunteers, student projects and more. Business Climate Economic Incentives sounding Out ❑ City Council and County Board of Representatives eager to assist local businesses in getting started and prospering ❑ Tompkins County Chamber of Commerce to promote and assist local industries o Tompkins County Area Development Corporation to assist in financing and solving business related problems ❑ Large local banks willing and interested in making sound business investments o An active Private Industry Council and a state -supported BOCES to train the workers you need for your business o Tompkins County Industrial Development Authority ready to authorize low-interest Industrial Revenue Bonds o Knowledgeable City, County, and Cornell staff to assist in securing other forms of financing, such as Urban Develop- ment Action Grants, and CID o Property tax abatement programs in some areas of Tompkins County to reduce amount of property taxes paid during first ten years a Well -sounded Program Tompkins County draws on a regional labor pool that includes six counties around Ithaca. Some Cornell and Ithaca College faculty acting as consultants further enhance the labor pool. A well-maintained road net- work and public transportation system make commuting into and out of the area a practical matter. Scheduled airlines operating out of Tompkins County Airport provide service to many eastern cities and to the rest of the country through easy connections in New York City and Pittsburgh. Rail freight service is furnished by Conrail. Reasonably priced electric power and natural gas are readily available in our area for new business or new facilities. The other critical services, including water and sewer, are on site in almost every property zoned for industry in Tompkins County. Housing is the variety and spice of life in Tompkins County. Because we have a very cosmopolitan population, there is a great mix of housing opportunities—from luxury apartments downtown to historic farmhouses in the rolling hills to beautiful lakeside bungalows with sailing and swimming. Urban, suburban, or rural, buy or build, your choice is here. We're not just dreaming about Camelot when we talk about our area. We have facts and figures to back us up. Tell us what is most important in your site selection and venture start-up criteria, and we'll help you see why Tompkins County is the place for you and your organization. ORDER OF INDUSTRIAL SITES 1. Cherry Street Industrial Park 2. Cornell Research Industrial Park/County Airport 3. Commercial Avenue Industrial Park 4. U-Fair Industrial Property 5. Goddard -Cotterill Industrial Property 6. Weiner Industrial Property 7. Cascadilla Street Industrial Park 8. Guild Commercial Park CHERRY STREET INDUSTRIAL PARK DEVELOPER Ithaca Urban Renewal Agency City of Ithaca 108 East Green Street Ithaca, NY 14850 ZONING I-1, Industrial SITES AVAILABLE Two parcels, 2.15 and 4.2 acres, which will be further subdivided if so desired by company. All sites are ready for immediate construction. UTILITIES Electricity: New York State Electric and Gas Water: City of Ithaca system Sewer: City of Ithaca system Gas: New York State Electric and Gas Telephone: New York Telephone All utilities currently in place. TRANSPORTATION Highway: 1/4 -mile access to Routes 13, 79 and 96 Rail: Conrail branchline on east side of park Air: County airport, 4 miles TERMS Long-term lease, option to purchase Lease price negotiable Purchase price will be 1980 price, between $15,000 and $18,000 per acre INFORMATION Contact: Department of Planning & Development City Hall 108 East Green Street Ithaca, NY 14850 (607) 272-1713 Owner willing to subdivide remaining parcels *shaded areas indicate occupied parcels CORNELL INDUSTRY 2 RESEARCH PARK AIRPORT I HANGAR PARK 1 Tompkins County Airport 0 17 DEVELOPER Cornell University ZONING Light manufacturing SITES AVAILABLE 200 acres plus Lot sizes vary from 1 to 10 acres UTILITIES Electricity: New York State Electric and Gas Water: Village of Lansing Sewer: Village of Lansing Gas: New York State Electric and Gas Telephone: New York Telephone All utilities are at curb side. TRANSPORTATION Highway: adjacent to Route 13 Routes 79 and 96 are nearby Rail: 5 miles _ t. Air: County airport is adjacent to the Park TERMS L= _ - Some lots are for lease only and the other lots are for sale or lease. INFORMATION Contact: Director of the Research Park Building #1, Brown Road Ithaca, NY 14850 (607) 257-2423 COMMERCIAL AVENUE INDUSTRIAL PARK 3 DEVELOPER Robert Marion 1463 Slaterville Road Ithaca, NY 14850 ZONING I-1, Industrial SITES AVAILABLE Large, 24.7 acre site which can be subdivided according to occupant's desires UTILITIES Electricity: New York State Electric and Gas Water: City of Ithaca system Sewer: City of Ithaca system Gas: New York State Electric and Gas Telephone: New York Telephone Water and sewer currently in place; other utilities available at property boundary TRANSPORTATION Highway: adjacent to Routes 13, 34 and 96 Rail: Conrail branch line within 1 mile Air: County airport, 5 miles TERMS Land purchase or lease Price negotiable INFORMATION Contact: Robert Marion 1463 Slaterville Road Ithaca, NY 14850 (607) 277-0228 Owner willing to subdivide existing parcel U -FAIR INDUSTRIAL PROPERTY West Clinton Street DEVELOPER U -Fair Realty Corporation Cornell University Real Estate 104 Maple Avenue Ithaca, NY 14853 ZONING I-1, Industrial SITES AVAILABLE Large parcel (22.04 acres) UTILITIES Electricity: New York State Electric and Gas Water: City of Ithaca system Sewer: City of Ithaca system Gas: New York State Electric and Gas Telephone: New York Telephone All utilities available at property boundary TRANSPORTATION Highway: adjacent to Routes 13, 34 and 96 Rail: Conrail branchline, I/4 -mile Air: County airport, 4 miles TERMS Land purchase Price negotiable INFORMATION Contact: Cornell University Real Estate 104 Maple Avenue Ithaca, NY 14853 (607) 256-5341 GODDARD•COTTERILL 5 INDUSTRIAL PROPERTY DEVELOPER Dryden Enterprise, Inc. c/o Paul Perkins 55 West Main Street Dryden, NY 13053 ZONING Industrial SITES AVAILABLE 35 acres May be divided into small parcels UTILITIES Electricity: New York State Electric and Gas Water: Town and Village of Dryden Sewer: Town and Village of Dryden Gas: New York State Electric and Gas Telephone: Iriquois Telephone TRANSPORTATION Highway: Located on Rt. 38 and Rt. 13 Rail: 5 miles (Harford) Air: 11 miles TERMS Will sell or lease INFORMATION Contact: Clyde Cotterill RD 1 Dryden, NY 13053 00 M s Owner willing to subdivide existing parcel . There are a number of other potential industrial sites in Ithaca and Tompkins County: Weine(Irtdustrial Property Cscadilla Street Industrial Park Quild Commercial Park This 11.9 -acre site is located immediately adjacent to the Cherry Street Industrial Park. The site is zoned 1-1, Industrial, with all util- ities available at the property boundary. Highway access and rail access are available from the site. The land is currently wooded. This series of industrial parcels in the City of Ithaca offers manu- facturing and office space in existing buildings as well as space for new construction. The three -block area is zoned I-1, Industrial, with all utilities currently in place. A four -lane highway is one block away. This site in the Village of Lansing offers a variety of parcels in a beautiful natural wooded setting. The land is zoned commercial, and all utilities are in place. A major County highway is adjacent to the park, while the County airport is less than a mile away. In addition, there are a large number of scattered urban and suburban sites suitable for your company. For information on these as well as the above sites, please contact either the City of Ithaca Department of Planning and Development, the Tompkins County Area Development Corporation, or the Tompkins County Chamber of Commerce. We'll be glad to assist you in your comparison and evaluation of possible sites. AGENCIES INVOLVED WITH ECONOMIC DEVELOPMENT IN TOMPKINS COUNTY ORGANIZATION* FUNCTION * Agencies listed are those most visible in the public sphere. Other groups may be involved in this activity on a less obvious basis. Tompkins County Area Development Corporation (TCAD) Provision and coordination of infor- mation, referrals, lead agency on job development authority applications, as local development corporation can set up loan program, buy and sell property, etc. Tompkins County Industrial Development Agency (TCIDA) Development authority with power to issue tax-exempt bonds, acquire and sell property, certify firms for sales tax abatement Chamber of Commerce Promotion of business and assets of Ithaca area, provision of information, referrals, guidance to entrepreneurs. City Planning and Development Information and referral, project packaging, assistance with processing of applications for incentive and funding programs; grantsmanship: UDAG, ARC, EDA, etc. Tompkins County Department of Planning Information and referral; coordination with state and other local agencies; grantmanship b * Agencies listed are those most visible in the public sphere. Other groups may be involved in this activity on a less obvious basis. This brochure has been funded by the follow- ing organizations: 1. City of Ithaca 2. Tompkins County 3. Tompkins County Chamber of Commerce 4. Cornell University 5. Tompkins County Area Development Corporation 6. Tompkins/Schuyler County Private Industry Council Funded in part, by the Private Sector Initiative Program (Title VII) of the Comprehensive Employment & Training Act. Tompkins County IDA County Court House Ithaca, NY 14850 (607) 274-5286 City of Ithaca Department of Planning 108 East Green Street Ithaca, NY 14850 (607) 272-1713 Chamber of Commerce Tompkins County 122 West Court Street Ithaca, NY 14850 (607) 273-7080 Tompkins County Area Development Corp. Bldg. 1, Brown Road Ithaca, NY 14850 (607) 257-2423 Summary of TEDI meeting, Sept. 9, 1984 New Member. The Mayor opened the meeting with a welcome to Bruce Courtright, Vice -President for Finance, Emerson -Morse Industrial. Mayor's Report. Nearly every county participating in the Governor's Regional Economic Development Council has identified the following as main problems: shortage of industrial sites, lack of adequate road and air transportation and a shortage of hi -tech skills in the labor force. The next full meeting of the Council (of which the Mayor is a member) will be September 18 and 19. The Mayor has been meeting with individuals interested in setting up business in Ithaca. Lack of venture capital has been identified as a major problem, with prospective business people having to go as far afield as Boston and Florida. The mayor expressed the need for discussions on this problem with local financial people. Correction in Summary of JULY 16 TEDI meeting. The second paragraph on Page 2 should read: It was also suggested that a subcommittee o f TEDI be set up to look into employer and potential employer needs, and also that statistics on the unemployed be gathered from the Unemployment Office and the Unemployment Council - also from Kirby Edmonds who is developing a survery of skilled employee needs. Paul Eberts' report on an action plan for local economic development was then mentioned and will be circulated to members of TEDI. Appointment of Employer Need Subcommittee. Charles French, Bruce Courtright, Carl Sgrecci and Judy Green have agreed to serve. Randall Wilson will provide technical assistance. Day Care Subcommittee. Irene Stein reported that the subcommittee had further revised the earlier draft circulated to TEDI members. The latest draft is now being tried out. The subcommittee will meet this week to discuss who will be surveyed, who will do the work, etc. Plans for the survey were presented at a meeting of the DIBA, and were enthusiastically received. Members will be alerted to expect the survey through the DIBA Newsletter. In addition, the DIBA will help circulate the survey when it is completed. Proposal for Day Care at Ithaca College. Discussion raised questions about the appropriateness of such a proposal for the Task Force. The Mayor felt that the Task Force welcomes all ideas and suggestions. The group felt that the proposal should be referred to the Tompkins County Day Care Council for study and comment. Cherry Street Development. M. Van Cort reported that the brochure is in the final design stage, and that bids have been put out on a sign. = -Randall Wilson's Reports. After Randall Wilson. summarized his reports in a general way, discussion ensued as to future directions for his work in the Fall term. Some suggestions were to look into food production, printing and construction in terms of import substitution. Discussion highlighted the fact that local construction often is not open to bid for local firms. The Mayor will discuss this further with Charles French. It was also suggested that the Mayor send a letter from him and from TEDI asking for information on any new construction projects as soon as various departments become aware of. any - i.e., Building and Planning Departments)so that chances for local firms bidding can be supported. Randall will meet with the newly established subcommittee as well as with his academic committee to define the precise focus of his work. Date of next meeting. The first Monday of each month from 11 to 1 continues to the be TEDI meeting time. Next meeting. Monday, Oct. 1, 11-1, Common Council Chambers The Day Care Subcommittee of Mayor Gutenberger's Task Force on Economic Development in Ithaca (TEDI) is looking into the needs of employees regarding day care in the downtown area. It would be greatly appreciated if you would fill out this brief questionnaire. There is no need to sign your name. Thank you very much. DO NOT WRITE IN THIS COLUMN 1. How many children eleven years old or younger do you have? (5) (Include any child expected during '84-'85) (6) (7) (8) (9) (10) (11) (12) (13) If you have no children eleven or younger and are not expecting a child in '84-'85, write in "0" and return the questionnaire. You are finished at this point. 2. Please complete the following for each child referred to above: Child #1 Child #2 Child' #3 Child #4 Currently in Day Care* (Yes or No) Currently in Day Care (Yes or No) Currently in Day Care (Yes or No) Currently in Day Care (Yes or No) *Include child care during any, hours when you are working. Please complete the following question for each child currently in day care: Type of Care: I. relative or spouse 2. hired sitter in your home 3. day care center 4. private day care provided (provider's home) 5. nursery school 6. nursery school and day care provider 7. other (be specific) Child #1 Child #2 Child' #3 Child #4 DO NOT WRITE _ .:DO NOT WRITE IN THIS COLUMN IN THIS COLUMN Hours of Chiild.Care.Provided Weekly Cost of Care Child #I $ (14-15) Child) #2 $ (16-17) (27-31) (22-26) Child#3 $ (32-36) Child #4 $ (20-21) (37-41) (42) 4. Are there hours when you need additional coverage? If soli/Mat hours? 5. Place an "x" at the point along each line that expresses how satisfied you feel about the following aspects of your child care arrangement(s). Child Care Arrangement #I Not Very Very Satisified Satisfied Satisfied a. Reliaibility. (-43-45) b. Cost (46-48) c. Quality of Care (49-51) d. Convenience (location, (52-54) access, parking) e. Physical arrangements (55-57) in child care setting (58-60) (61-63) (64-66) (67-69) (iu--it) Child Care Arrangement #2 a. Reliability b. Cost c . Quality of Care d. Convenience (location, access, parking) e. Physical arrangements in child care setting Not Very . Very .. . Satisfied. Satisfied Satisfied DO NOT WRITE IN THIS COLUMN (73) (74) (74, 76) (77) 6. Are there special situations when you need and don't have child care coverage? If so, which of the following situations do you have in mind? 1. School snow days 2. School vacations 3., When child is sick 4. Other (please be specific) 7. How many wage earners are there in your household including yourself? 8. How many people are there in your household including yourself? 9. Please indicate which category your gross total family income falls: 1. Under $7,000 per year 2. $7,000 - $9, 999 per year 3. $10,000_- $11,999 per year 4. $12,000 $14,999 per year 5. $15,000 - $19,999 per year 6. $20,000 -. $29,999 per year 7. $30,000 and over per year 10. If additional day care were available in the downtown area, would (78) you be interested in it for this child or children? (79) 11. If you answered "yes" to question 10;would you prefer I. Center based care 2. Private day care providers (their homes) 3. 'Other (be specific) THANK YOU. VERY MUCH. OFFICE OF MAYOR MEMO TO: CETY DF ETEr ACIt 108 EAST GREEN STREET ITHACA, NEW YORK 'r 4950 Ms. Maureen Troy TrafficNiolations Department , %��li FROM: Mayor John C. Gutenberger v b• DATE: August 21, 1984 SUBJECT: Day Care for City EnThloyees Thank you for your note regarding day care for City employees. TELEPHONE: 272-1713 CODE 607 The Task Force for Economic Development in Ithaca has set up a sub -committee on Day Care. They are developing a survey of day care needs and resources in the downtown area. However, I am sorry to say that the sub -committee will not have completed its work in time to meet your Fall needs. Perhaps the Tompkins County Day Care Council,- 306 No. Aurora Street, 273-0259, will be able to assist in locating child care for you. Hopefully, the City will be of more service in the not too distant future. J C G : r - "An Equal Opportunity Employer with an Aftrrmstive Action Program" P - e a, - PrCEillf F.) F Mayor Gutenburger, Just a note to let you know that both of the employees of Traffic Violations Bureau are VERY interested in day care for children of city employees. We are eagerly awaiting news 'of progress on the matter and any information you have would be welcome. Tha,nks1 -77U5t/U/K-te4- TV ( I personally have three girls ages 3, 20 months, and 5 months and will be needing new child care starting September lst.) Pt. -Cto.N,AKS._ \-+- CEtVED MJG 1 1a84 PROPOSAL' FOR THE CREATION OF A DAYCARE CENTER • AT ITHACA COLLEGE bARRY__ D RFr:L PROPOSAL SUhMARY This proposal weals witn the feasibility ot creating a. daycare facility at Itnaca College. lt.snows tnat tnere is an overwnelminy demand from tne faculty ana staff ot ltnaca College for a. facility to care for their children uliaer the aye of five. Also, this proposal snows tnat tnis essential service can be financially capable ot operating itself once it has been established. in oraer to-yet-tnis daycare center started, we are asking the colleye'to donate one room ( 35' x 25° ), an area outside in wnicn tne cnilaren may safely play, and X2,000 to help purchase tne initial equipment. I. INTRODUCTION This research project was,unaertaken because many people who work for the colleye have continually expressed a need for a daycare facility at ltnaca College. Tnere are now many students, faculty, staff, and administrative personel wno have children under five. Tnese people feel that the colleye should provide adequate facilities to care for tneir cnildren. As there are currently fifteen colleyes in upstate New York which provide this service to their students and employees, it is not a unique situation without preciaent. Cornell University and TC3 are two such colleyes.wnicn provide daycare facilities for their respective colleye communities. Numerous departments and oryanizations at ltnaca colleye support the idea of startiny a daycare facility on campus. . These include: The Anthropoloyy ., The Politics'Dept., The Sociology Dept., ICFAA, and I:C:FF C . -Furthermore, There .are many community leaders in support of .this proposal. These include the TC3 daycare center staff, the Cornell University daycare personel, and the Trumafsbery daycare staff.. At the back of-this.proposal there are letters of support which various people }n the community have written in order to show that there is widespread belief that this facility is needed. II. ASSESSMENT OF NEED. There is an extremely high demand for a daycare center on campus.. A randomely distributed questionaire given to 200 workers at Ithaca.Colleye yielded 41 responses. Of those 41, thirty people expressed a great need for childcare on campus. Also, thirty five of the people believe that Ithaca college has a responsibility to provide the space for this center.Even people without children responded by, saying. that this facility.is long overdue. They citedthe fact that other institutions in Tompkins. County provide this*. service to their employees because it is such an essential, need. Judging from: the responses of the people who were polled, this daycare center would be .greatly welcomed by` the people who would use it .as well as those who would have no need to. There is also a need for this type of center from the . students Who study the field of .child development. This educational demand stems from the need for students involved in child -related studies to have practical experience working with children. For Ithaca College graduates who are applying • for jobs in this field, such a. facility would provide them with invaluable working experience. Because Ithaca College is an institution of higher education, it._is important that such educational opportunities not be denied its stuaents. III. PROGRAM OBJECTIVES The purpose of this proposal is to create a daycare center at Ithaca College which will satisfy the demands of the workers for a facility to care for their children between the ages of 18 months..arid- f iye years. Once beyun, this daycare center will continue to provide the workers and students at Ithaca College with a necessary and invaluable service. it will care for the children of many of the .faculty, staff and administrators,,as well as providing important practical experience for students involved with child -related studies. The creation of a -daycare center will also improve relations between the workers and administration at the college. As of now, many of the workers are dissatisfied because they feel that this service should be provided for them. Many of the major corporations in America have stated that the introduction of such facilities_ has greatly enhanced worker - management relations. Also, relations between the community and the college will be greatly enhanced because many community leaders feel that this service is essential. TC3 has been widely praised for having provided this service for many years. Thus, the creation of a daycare center will satisfy the demands of the workers and students who attend it. It will provide vital educational opportunities • • • •to many of the college's students. Internal relations between the administration and employees will benefit, and public relations between the college and its surrounding community will be improved. IV. BUDGET AND FUTURE FUNDING An analysis of daycare centers within Tompkins County shows that the major source of income for such facilities is through fees paid by the parents of enrolled children. The average price paid in the Ithaca area is fifty dollars per week for a fulltime participant in a daycare program. For one full year, a daycare center collecting fees from thirty parents would gross seventy-eight thousand dollars. This is sufficient to cover salary costs, meal costs, and insurance costs. The following is a sample budget for a daycare center which would care for thiry children.': A. Personel (1) full-time director 5.20,000 (3) full-time staff @ $9,000 $ 27,000 (2)volunteer students $ TOTAL = 47-F000 • B. Non Personnel 1. Space costs will have to be met in the form of a donation of one room and a designated outside • play area by the college. 2. Initial equipment : $TOTA Tables, adjustable height 6 x $ 50.00 300.0 • Chairs, 30 x 14.95 450.0 Sand and water table Solid Blocks Hollow Blocks Pound - a - peg See - through - blocks Muppet hand puppets. Magnetic alphabet puzzles. . double sided easel scissors AMF trike Bigwheel wagon excersise mats foam balls x 142.00 2 x. 7.80 2 x 15.50. 1 x 24.00 1 x.142.85 3 x 6.60. 1 x .12.95 '1 x .33.50 .1-x 49.00 3o. x 1.15 . 2 x 36.75 2 x 25.75. 1 . x 43.60 10 x 24.50 3 x 8.50 142.00 15.60 31.00 24.00 142.85' 19.80 12.95 33.50 49.00 34.50 73.50 :51.50 43.6Q 245.00 25.50 $ TOTAL : 1695. This sum of Money is also being requested in -the form of a donation from Ithaca College. Supplies such as paints and paper will bring the total to about 2,000.dollars. After this, the center will be self sustaining. 3. The total cost: .for initial equipment would be donated by Ithaca College. :This moneycannot be collected from parental fees because that money will be used.to cover salaries,. food '. costs, and -insurance. The rent cost must be assumed from the college in the form of a donation of one room 35' x 25'.. Also a special area outsidemust be designated for daycare. use. Finally, the parental fees willbring in_an annual sum of $ 78,000. After paying out $ 47,000 in salaries, this will leave the remaining $ 31,000 for insurance and food costs. In this manner, the daycare center will be financially self- sufficient after it has gotten under way. We askiny the College to provide space and .$ 2,000. This will allow for the introduction of a vital service to the students and workers at Ithaca College. It will bring widespread community support from Tompkins County to the Ithaca College institution as well as greatly enhance the internal relations at the college itself. SOUTHERN TIER REGIONAL ECONOMIC DEVELOPMENT COUNCIL OVERALL ISSUES (FROM VARIOUS COUNTIES) 1. Public Service Comm. makeup (should it be changed) 2. Government policy on employee benefits ie. unemployment status for strikers 3. New York State Financing t competitiveness 4. New York State wine grape growing decline 5. Taxes - priority for taxes ie. personal income and property 6. New York State Regulatory Compliance 7. Environmental Protection 8. Product Liabilities 9. Government Communication Channels 10. Tax incentives "enterprise zones" 11. Skills training SOUTHERN TIER REGIONAL ECONOMIC DEVELOPMENT COUNCIL Proposed Organization Advisory Council Open • Chairperson J. Brooks Vice President J. M. Barrick. Secretary R. VanHoutte _egislative Committee :hair•erson Education Committee Chairperson Economic/ Finance Committee Chairperson Commerce Committee Chairperson • • Tall K 4z, . Talk. �.i-Fo�rcfi; Force Task • . Task' Force . Force -3 4 Executive Committee Treasurer Open J. Murray, Broome County J. Brooks, Chenango County S. Kruger, Delaware County A. Seward, Otsego County R. VanHoutte, Tompkins County S. Lounsberry, Tioga County J. Barrick, Schuyler County J. Gough, Chemung County D. Baker, Steuben County NYS. Government P_ Su port = Entire Council 42 Members Jack McGuire Bob Dowd Brian Dooling CENTER FOR LOCAL FOOD AND AGRICULTURE Summary of Institutional Surveysk - A sample of thirty (30) Ithaca area institutional produce buyers were interviewed during the Fall of*1980 to determine present produce purchasing patterns and policies and to assess the potential for these markets to increase their purchase of local produce. This survey only i_ncluded.institutions such as restaurants, schools, hospitals which, actually. prepare, meals.. (see additional pages for intformation regarding other-wholesale,buye.r.$).. I. VOLUME: --A total of 233 , 5.37 . meals per week are being.served. ranging from 200 to .-105,, 000 per week. - -OVER $12,000 PER WEEK IS 'BEING SPENT ON JUST 15 OF THE MAJOR PRODUCE ITEMS MENTIONED (all of which can be grown locally).- - -:(See additional sheet for detailed produce totals) II. *FRESH PRODUCE DEMAND: - -.13 of the institutions, representing.over $4,700.per week in volume^Ig. use over 90% fresh produce. • --another 5, representing over $6,000 per week:in volume,use more than 50% fresh produce. --8 institutions have considerably less total demand during the summer months (although they tend to increase purchases of seasonal.produce). --over half buy particular produce items only when they are in season. III. PURCHASING: Wholesalers -(The majority of institutions buy .from more than one wholesaler) --23 buy -from two local Ithaca wholesalers. --remainder buy from 7 wholesalers based in Binghamton,,Cortiand, Elmira,, Rochester. ---none of the institutions. has formal contracts with any suppliers. Ordering Methods ---22 phone in orders to wholesalers. --3 buy directly from wholesalers. --5 are called regularly by wholesalers. • --of the above groups, L receive weekly produce price sheets from several wholesalers. and base. purchase on. price and quality comparisons. Delivery Frey uency --13 get deliveries 5-6 times/week. --3.get deliveries 4 times/week. --10 get deliveries 2 times/week. - -2 get a delivery 1 time/week. Reasons for Choosing Suppliers - -All said that quality was very important. --Most said that reliability and consistency was important: --17 said that price was most important IV. LOCAL PRODUCE. PURCHASING: Interest sir --29.WOULD CONSIDER BUYING AT LEAST A PART OF THEIR PRODUCE FROM A LOCAL GROUP OF PRODUCERS AND WOULD BE WILLING TO DISCUSS WORKING OUT SUCH A SYSTEM. --19, representing $10,000 per week in volume would pay a higher price for local produce provided that -the quality were very high. Standards --All mentioned that produce must be of high :quality. - -9 require at least some washing (particularly of lettuce). ----Several require large •sizes (potatoes, onions; car_rbts, etc.). --3 require small fruits (schools). - -.1 requires deliveries to individual -members of group (fraternities, etc.) P.essible Problems With Purchase of Local Produce "(as mentioned by buYers) --Consistency of quality and availability. - -Ability to deliver adequate quantities. - -Problems with wholesalers (loyalty) - -Unreliable delivery times. . --Lengthy payment periods (primarily with _school systems), - -Small quantity.orders not worth delivering- --Increased labor for preparation of fresh produce. Institutional Survey - Major Produce Items Item # Institutions Quantity/week $/week (approx.) Apples 24 208 bu. $ 2;200 Broccoli (18) 10 .23 cs. (more in season) 250 Cabbage (12) 9 32 cs. 250 Carrots 18 3060 lbs. 735' Cauliflower (12) 10 16 es. (more in season) 160 Celery 13 26 cs. 160 Cucumbers 14 - 45 cs. (more in season) 400 Garlic 4 56 lbs. 700 Leeks 6 - 270 lbs. 100 Lettuce (12) 27 493 cs. 2,980 Mushrooms . 8 550 lbs. 650 Onions, spanish 20 - 3370 lbs. 675 Peppers, green 15 40 cs. 450 Potatoes 16 1750 lbs. 250 Spinach 7 120 cs. 480 Squash - 10 15 cs. (in season) 120 Tomatoes 22 2870 lbs. 860 $11,420 Additional items - listed by several institutions 'included: -asparagus, beans, beets, chili peppers, corn, eggplant, endive,, • escarole, parsley, peas, peaches, pears,, Tickles, plums, scallions turnips. *Volume amounts are based on only produce items which can be -grown -locally and which were listed by institutions as -constituting a large portion of their regular order. vveekY *These figures do not include the $12,000+ ofvol.ume of Ithaca's two consumer cooperatives, both of. which have made priorities of buying local produce when possible. Center for Local. Food and Agriculture - Preliminary survey report - Sept. 1980. Producer Surveys.: Our work over the summer has concentrated on a survey of local food producers. Ninety names and addresses were obtained from the Farmers` Market membership list. Eighty-seven letters were sent explaining the purposes of our survey and fifty postcards were returned expressing willingness to participate. Eighteen farmers have been interviewed in person, ten will be interviewed over the next month and.questionairres have been mailed to the rest. Selected Survey Results * Number of farmers sampled 18 farms Number of towns 12 towns Average years on same farm 9.8 years Average yrs. of farming experience 17 years Average farm size 93 acres Crops 37 acres Pasture 5 acres Timber 25 acres -- Almost all of those farmers interviewed are .strongly committed to local marketing and to supporting a stronger local food system. -- All eighteen expressed interest in expanding production if more . markets were developed or if consumer groups could provide regular- - demand. -- Seventeen of those interviewed would be interested in joining a cooperative of growers if one were to form.(Two groups have already begun to market cooperatively on a small scale) -- The growers tended to see the lack of marketing possibilities, lack of committments from buyers and lack of. Meal processing and storage facilities as major.barriers to farm expansion and an increase in farm income. * A detailed summary of survey responses' is. available at the Center for Local Food and Agriculture office. Purchaser. Surveys: With the understanding that a major barrier faced by local farmers is access to markets, we have drawn up a comprehensive survey to be given this Fall to local institutions including schools, nursing homes, rest- aurants. These surveys will assess the food buying patterns of these institutions i.ncluding.quantiti.es and items purchased,. ordering methods and the potential for increasing the purchase of locally produced foods (particularly produce). We are also continuing work with the two local food buying cooperatives in this area, both of which have adopted policies encouraging the purchase of local produce, MEMORANDUM TOF ": Task Force for Economic Development in Ithaca FROM: Randall Wilson Date: August 2, 1984 Subj.: Second Report INTRODUCTION On July 16, 1984, TEDI membec, discussed my interim report, which presented examples of economic development from other cities. This discussion raised a number of themes and problems. One question was the applicability of these strategies (incubation, linkage, import substitution, internal development and public/priv- ate partnership) to the scale and conditions present in Ithaca. A number of questions were raised about "incubation" of new enter- prises: space availability, conflicts over city ownership, possi- ble feasibility studies and proper organizational structure. Other strategies of interest: an economic development "umbrella organi- zation," or the creation of "one stop shop" capabilities in present or potential agencies. _ There was broad agreement that increased local control was a desireable goal for the task force to pursue. In particular, members expressed interest in the prospects for import substitu- tion as a means to greater local control of the economy. This requires making an inventory of the goods that an area imports, and exploring whether any of them could be supplied or produced -1- locally. It was suggested that an "import inventory" might be part of a larger economic profile of the area -- one that surveyed the needs, capacities and problems of employers, the unemployed and underemployed residents. This data could help TEDI choose policies which furthered local control, by increasing our understanding of how the local economy "works," as well as how it could work better. Such data could prove useful for developing new enterprise and for maintaining present ones. To begin developing such a profile, I have done a very brief survey of major employers in Ithaca. The aim of these interviews was to explore the prospects for further research on local control of the economy, particularly through import substitution. I also "tested out" possible survey questions for future use. Given that these conversations were exploratory and fairly unstructured, the report should not be taken as final. It is impressionistic; it suggests guideposts for further study and discussion. A further aim of these interviews -- which included business people who are quite active in local development efforts -- was to assemble per--_ ceptions about the local economy; what hinders expansion or new development? What are the gaps, if any, in the economy? What are the area's major strengths and weaknesses as aplace to do business? I will comment on some of the responses below. The -stsingesb:aonclusion I can draw from this study is that more data is needed. For this reason I have suggested further directions which research could take: how we can learn more about imports and exports, what else we should know about the local econ- omy, other research questions for "local control" and a set of questions about TEDI's place in future developments.. .EMPLOYER SURVEY In selecting employers to contact, I sought out those who appeared -to fgriploy the greatest number, expend the .largest dollar value in sales and purchases or otherwise make up the "base'° of the local economy. By "base" I refer to those firms whose sales are made primarily outside of the local area. Students of the development process consider "exporting" firms to be the prime movers of local economic growth. When such firms close down or relocate, employers serving l.bcal demand (retail, commercial, and certain services) -are hard hit, as local employees have less 1 to spend. Base firms in the Ithaca area would include Cornell and Ithaca College, as well as a variety of manufacturing enterprises. My survey also included some large organizations which mainly serve local demand -- for health and utility services. imports a great volume of goods from outside. •PERCEPTIONS Over --all climate: Each of these respondants roundly acknowledged the stabil- ity and strength of the local economy, given the presence of higher educational institutions. A president of a growing electronics firm characterized Ithaca as a good "incubator" area for hatching new, small businesses based on science and technological innovation® It is no accident, given the educational facilities locally® Others criticized the community for being too "inward -looking," "complacent," or "apathetic" towards development and change. There is a perception that residents, particularly those in higher education, take the state of things for granted. It was pointed out that Ithaca's pattern of development has been a great success -- for Cornell, if not for local industry, Personnel: Several employers remarked that Ithaca was blessed -with a generally high-skilled, well-educated work force. Others pointed to the lack of "good electronic technicians" and .the lack of workers skilled for specialized computer applications. One noted that the scarcity of engineering technicians, cited by several as a problem, was a nationwide issue, not unique to Ithaca. Overall, in the words of one respondant, there is a lack of "linkage between skills and need" of area industry. He called for closer coordina- tion of education with commercial and industrial advances in tech- nology. Organization: The theme of "linking" people with potential projects was emphasized. Several employers called for "one stop shopping" functions in local economic development. One director noted that development projects succeed orfail on the talents of able individuals; while such people are vital catalysts to develop- ment, dependence on them may lead to a lack of continuity when their role ends. There is no "critical mass" of people working together towards unified,goals in economic development, or so it is perceived. A related problem was the perceived lack of linkage between Cornell University and the community. Several people thought Cornell could be a better resource for business and skill develop- ment, as well as continuing education opportunities. On this last point, the lack of evening graduate education -- i.e., f!ar MBA degrees -- was singled out. Overall, respondants observed the wealth of local talent and brainpower which goes untapped. S ace: Several employers put forth the lack of space for ex- pansion as a problem. There werersuggestions that West Hill be opened up for residential (and in one case), industrial uses. Other employers felt that their space needs were met. Services: Most respondants considered the level of business services here to be adequate to their needs. One employer felt •hindered by the absence of major banks, such as Marine Midland. Another complained that local banks do not offer quotations for foreign currency exchange rates. The president of a large indus- trial firm complained that salaries for business service, particularly attorneys, were "unrealistLslly high." The lack of a health main- tenance organization for local employees was noted asa serious gap in nnn-business services. Others noted the lack of health in- surance programs for small businesspeople.• Transportation: Predictably, almost every respondant found local transportation to be an obstacle to new or expanding bus- iness. The lack of adequate road, rail and air links was highlighted. Several called for upgrading Routes 96B, 13 and the "Octopus" in the west end. Quality of Life/Community: The natural beauty and personal quality of the area were widely cited as local strenths. Most felt that these amenities counter -balanced -the perceived heavy tax burden. The presence of cultural attractions and higher educa- tion was cited as a source of quality of life. The smallness of the community was seen as both virtue and vice. One employer, for instance, complained of the lack of other, similar manufacturers; in the same breath, he described this as a "plus," since it meant Tess price competition. IMPORTS AND EXPORTS To "test the waters" for future research, I asked the follow- ing questions of both presidents and purchasing directors of local employers, in the course of broader conversations about the economy. - What is your product or service?. -Are your products sold primarily outside of this area? - If so, where do you export to? - What goods do you import in greatest quantity from outside? -Other imports? - Volume of imports? - What goods and services do you purchase locally? - Do you import because of better price, availibility or volume elsewhere? -Other reasons for importing? -Is there potential to supply any of these goods locally?, - Why or why not? - Are there services lacking locally which you would use? - What is the potential for providing them here? Most of the detailed questions here went unanswered; the responses supplied -- primarily about local purchases and imports -- were generally sketchy and off-the-cuff. I have organized the responses into sector and export product. In the case of two sectors -- health and utilities -- the product or service remains in the region, but the bulk of their "inputs" are imported. The other major sectors studied were manufacturing and education. The following is a list of manufacturing exports: mini-computers micro-computers and components data input and output terminals software r..)J, control systems for space craft components for spacecraft control industrial control systems data acquisition and logging systems scientific measurement and control instruments electronic instruments automative1ower drive chains and components coatings f'or scientific and optical instruments precision machine tools automatic scales shotguns structural steel fabrication metal fabrication tool and die work corrugated pipe, reinforcing rods, mesh steel joints Imports Majot outside purchases by, the health sector locally include medical and surgical supplies. The local utility imports transformers and other electrical transmission equipment. Other sectors' imports: Eth cat idri Office furniture (desks, chairs, metal files) Filing cabinets, book shelves. Dormitory furniture Carpeting Drapery Food service Paper (basic and fine, including computer paper) (Educational sector imports) Maintenance supply items Paper towels, toilet tissue Janitorial supplies, cleaning agents Office supplies Computers Energy (coal and fuel oil) Printing (certain larger jobs) Manufacturing Steel Computers Computer components, parts, supplies (semiconductors, microprocessors, printed circuit boards) Industrial control supplies Plastic frames (for computer goods) Wire Cabinets Aluminum Machining instruments Metal -working Tubing Auditing services Office supplies Machine testing Other electronic devices Other machine parts Local Purchases The following goods and services were listed by respondants as itamsa.of-major purchase locally. Education Agricultural feedstock and seeds (some) Office supplies Pest control Food (vending machine concession) Groundskeeping supplies Computers Business forms Paving/sealing/marking (parking lot improvement) Teaching equipm'eiht Typewriter repair Manufacturing Maintenance mechanical electrical vehicle Hardware (smaller tools, light bulbs, etc.) Welding supplies (Some) electronic components Electrical devices Repair service Printing Advertising, circulars Plastic parts Janitorial supplies Office supplies Wire Cabinets Car leasing Accounting Attorneys Analysis It is not clear from this brief survey whether Ithaca is amenalble to "import substitution, narrowly understood. This is not to say that there is notpotential for decreasing imports, or other strat- egies for increased local control. Rather, it suggests that many of the goods mentioned in the survey -- which is by no means all goods nor all employers -- have limited potential for being produced and purchased locally. Interviewees suggested certain items which may have potential: -manufacture of printed circuit boards. Several other employers were skeptical of this, although all of them saw a need for it in the local economy. Some were not convinced that local demand could sustain this product, which is used in electronic machinery. They also noted that outside distributors and producers, dealing in very o fFer high volume, already competitively low prices. Many of thmm are located "offshore," primarily in Asia, and offer very low wages; -cabinet-making. A number of major manufacturers in the area would benefit from increased local production of this good. It might possibly be done contractually, through a job shop. Again, questions were raised about the adequacy of local demand to support it. Several respondents suggested that there were potential oppor- tunities for distribution of certain goods in the area, if not actual production: -furniture (for offices or dormitories) -paper -microelectronic components With regards to this last item, it was suggested that a local supplier could provide the small start-up firm with specialty components suited to building a simple prototype model of the product. Food Suggestions were made to encourage more local food production, as well as more aggressive marketing of local produce to area re- tailers and other buyers. Several people felt that the area might support processing of the region's produce. Others noted the real problems of scale, price competition and seasonal availability of food processing industry A further idea worthy of research: im- proving the linkages between the institutions who purchase food (schools, restaurants, nursing homes and others) and those who grow it in the region. This may require a broker or other organized means to connect buyer with seller and insure volume,and coordin- ation. Further research The next step is to determine whether further study of import substitution is desireable. If this is the case, then research should proceed epn several fronts. First, it should elaborate and formalize the work I have begun with my "straw" survey. The objective would be a more reliable and rigorous.. test of the feasibility of import substitution, and the creation of a "bank" of product and service ideas which might be initiated by local entrepreneurs. Second, research should offer us a more detailed picture of the local economy. It would draw on forthcoming unemployed and employer survey data. It would help us clarify gaps -- missed opportunities and underutilized skills -- as well as to help identify .systematic problems which TEDI and others could begin addressing. Elaborating the "Imports" Survey We need a comprehensive "roadmap" of the local economy: a detailed listing of firms by industrial sector and Standard Indus- trial Classification (SIC code); product or service; numbers em- ployed; dollar volume of sales and purchases; and specification of goods exported and imported. Exact information on employment and total sales is often unavailable for small areas such as ours. At the start we can eliminate from discussion certain import items which Ithaca has no clear comparative advantage in making -- steel, for instance. Then, we should assess what are Ithaca's com- parative advantages, its highly educated population, for example. The next step would be to clarify the relevant area for research. This can be difficult, as statistics are collected for municipalities and counties -- units of government -- while "economies" operate in a broader, less-defined area. Given that the "economic area" is wider than the city of Ithaca proper, what is the proper scale of study? The answer may be different for each focus of research: industries, agriculture, labor market, and so on. To formalize our study of imports and exports, we need -bd look at transactions or "flows" within the area economy and between local employers and outside enterprises. This information :iQ often organ- ized into a tool called the "input-output table." It shows, in matrix form, the relationships between producing sectors ("purchases from") and purchasing sectors ("sell td"). Imports and exports from the region are arranged on the margins of the table. In their most elaborated form, input-output tables help econ- omists to predict the impact of changes in particular sectors on the economy of an area, for both firms and households. It is poss- ible to use the table in simplified form -- filling in only for im- ports and exports, for example. There are several ways this can be done. One is by direct survey -- personal interviews or written request. Another method is to draw upon secondary sources of in- formation, where available, and explore the relationships mathe- matically. A final technique -- not exclusive of the other two -- would be to bring major employers together from particular indus- tries in a conference setting. The aim would be to get them to specify their sales and purchases, as well as to learn more about 2 one another. Each of these methods pose benefits and drawbacks. All of them suggest questions for TEDI regarding the scale, complexity and aims of future research. Consultations with trained economists from Cornell's departments of City and Regional Planning and Agricultural Economics would help clarify these issues. OTHER RESEARCH STRATEGIES If we are to understand how the local economy "works", we should explore other relationships alongside the sale and purchase of goods. I have outlined three methods for thinking about such relationships. Flow analysis One way to work towards "local control" is to identify various flows in the economy, including imports and exports. Three flows vital to economic development are capital, labor and energy. Capital: -explore the degree of outside vs. local ownership of enterprises, including banks and services. Changes over time, impactsoon management, stability, employment. -lending practices of finance .institutions. Capital availability for different groups and business sectors. Specific problems for minorities, small business, etc. -evidence of disinvestment (if any) for particular firms; redlining (neighborhood disinvestment), if any. Labor: -proportion of "imported labor" in local industries -11- due to relocation of firms bringing in their own workfouce; due to scarcity of needed skills locally, or due to growth in in -commuters for local jobs. The last case is of special importance to development efforts keyed to keeping income within thp..local economy. If a large part of the salaries generated leave the area every day at quitting time, there is not going to be much extra income for local residents, nor additional multipliers for other local business. Energy: Energy is a key source of "leakage" to local economies. This occurs both through the dollar cost expended on fuels, when goods are shipped over long distance, and through waste of energy which could have been conserved. A "flow" analysis would take inventory of energy use in Ithaca, particularly by business and government. As many communities have found, energy conserving methods and technologies can be a source of job creation, through weatherize - tion, energy auditing, or product development and marketing. Many energy-related businesses can be started on a small scale with a low initial capital investment. Such efforts can provide income and job training as well as conservation. Structural analysis We can picture the structure of the economy clarifying which industries are basin, which services and industries support them, and whether there are important gaps between potential buyers and suppliers. This also means identifying missing services which would have a potential market locally. A related question is the structure of opportunities for employment: how do different sectors (service, professional and technical work, skilled and unskilled production, sales) compare in terms of skill, income and job growth? What is the contribution of each to total employment? This should be studied over time to see whether certain occupations, such as skilled blue collar work, -12- are increasing or declining relative to others. How do these occupa- tions compare with counterpart figures for the state, the nation, and cities of comparable size? A final issue -- already being explored by TEDI members -- is that of unemployment and underemployment. Close coordination with other research suggested here might help to explain some of the reasons why workers' skills are underused. Resource analysis Up to this point, I have only described the economic base in narrow terms, as industries which export goods and bring income into a region. A strategy for local control, however, must search for a balance between investments in export production and locally directed efforts which sustain the community. The latter requires taking inventory of local resources and finding out how to cultivate them better. We can envision Ithaca's resources as a series of concentric circles or rings, radiating outward from the most basic of resources, the natural environment. Natural resources: an inventory at this leve would help us determine whether development strategies could be sustained by the local environment, and what limits, if any, might be necessary. Given the importance of scenic resources locally, there may be trade-offs called for between future growth and sustenance of the environment. As noted above, energy and local agriculture suggest future research on ways to keep income "circulating" within the community. Other environmentally -based businesses, such as recycling or com- posting, deserve further thought. Physical infrastructure: In addition to the traditional planning coneerns with transportation, waste and water treatment, there could be study and inventory of building space for possible incubator strategies to promote new business. Social infrastructure: Present and prospective efforts in daycare, worker re-training and other employment education should be evaluated with issues of "local control" in mind. For instance,. are training programs geared to areas with significant openings? If there is potential for such programs to khhlp initiate new bus- inesses, it should be explored further. Human resources: the most pressing concern here, as noted, is to assess the extent and causes of unemployment and underemployment, as well as the skills of these workers. Organizational capacity: This category draws together various means of "making things happen.' They include entrepreneurship, finance, economic development activities, community organizing, volunteer organizations and consmnsus-building forums (such as TEDI). It would also include less formal networks, such as the group of educators and businesspeople meeting to discuss science and technical education. Ithaca has a unique organizational resource in its "cooperative" business sector and its "alternatives" commun- ity. A serious resource inventory would look for ways to better mesh their activities with other development initiatives. A closer inventory of each level may reveil missed opportunities for developing income, skills, products or overall quality of life. We may also identify gaps (or "missing linkages") by studyingthe connections between different types of resources. CONCLUSION I am not suggesting that TEDI undertake all of the research strategies outlined above. They afe offered as alternative ways to make sense of the local economy and to aid TEDI in thinking about what to do next. In closing, I wish to pose some questions for the group's consideration. -What is TEDI's mission or role in local devOlopment? This breaks down to three kinds of questions. What are its long term goals and purpose? Who is-Xtrying to help, above all? What is its relationship to official government? to quasi -official agencies (such as TOAD)? This last question is of special importance in our area, given the crowded field of players claiming to do "economic development." We need to be sensitive to turf issues, yet have a clear sense of exactly what TEDI is empowered to do. On the question of power, -Can TEDI create a new development organization -- such as a community development oorporation, or a "one stop shop" to coordinate development activities? Is a new development organization needed locally -- or simply better targeting of present programs and functions to people in greatest need? Are these functions being carried out adequately by existing organizations? Finally, we need to examine our relationship to our const.ituenc; tbs, however we define them to be. Are they represented adequately by TEDI's present form and membership? If not, who else should be represented? How else might we give voice, in a broader way, to members of concerned communities? If TEDI seeks to have a more visible public role, perhaps it should engage members -of the community in forums, workshops or public hearings. This might also help define some of the issues and problems which need clarifying. 1 Tiebout, Charles, "The Community Economic Base Study," Supplementary Paper #16, Committee for Economic Development, 1962, p. 14. 2 Ebert, Paul, "An Action Research Program for Enhancing Locality, Regional and State Economic Development," manuscript, no date, Department of Rural Sociology, Cornell University, pp. 4-5. CEIVEDAU6 1 4 MA PROPOSAL FOR THE CREATION OF A DAYCARE CENTER AT ITHACA COLLEGE By PROPOSAL SU!•iI*1fus This proposal deals witn the feasibility of creating a daycare facility at Itnaca Colleye. It snows that tnere is an overwhelming demand from tne faculty ana staff of ltnaca College for a facility to care for their children utiaer the aye of five. Also, this proposal snows that tnis essential service can be financially capable of operating itself once it has been established. in oraer to yet this daycare center started,. we are askiny tne college to donate One room ( 35' x 25' ),.an area outsiae in wnicn tne cnildren may safely play, and $2,000 to help purcnase tne initial equipment. I. INTRODUCTION This research project was, undertaken because many people who work for the college have continually expressed a need for a daycare facility at Ithaca Colleye. Tnere are now many students, faculty, staff, and administrative per.sonel wno have children under five. These people feel that the colleye should provide adequate facilities to care for tneir cnildren. As there are currently fifteen colleges in upstate Aew York which provide this service to their students ana employees, it is not a unique situation without preciaent. Cornell University and TC3 are two such colleyes.wnicn proviae•aaycare facilities for their respective colleye communities. Numerous departments and oryanizations at ltnaca coileye support the idea of startiny a daycare facility on campus. These include: The Anthropology Dec., The Politics Dept., The Sociology Dept., ICFAA, and ICFFC. "Furthermore, There are manycommunity leaders in support of this proposal. These include the TC3 daycare•center staff, the •Cornell University daycare personel, and the Trumansbery daycare staff. At the back of -this proposal there are letters of support which various people 4.n the community have written in order to show that there is widespread belief that this facility is needed. II. ASSESSMENT OF NEED. There is an extremely high demand for a daycare center on campus. A randomely distributed questionaire given to 200 workers at Ithaca College yielded 41 responses. Of those 41, thirty people expressed a great need for childcare on campus. Also, thirty five of the people believe that Ithaca college has a responsibility to provide the space for this center.Even people without children responded by saying that this facility is long overdue. They cited"the fact that other institutions in Tompkins County provide this service to their employees because it is such an essential need. Judging from the responses of the people who were polled, this daycare center would be greatly welcomed by the people who would use it as well as those who would have no need to. There is also a need for this type of center from the students %aho study the field of child development. This educational demand stems -.from the need for students involved in child -related studies to have practical experience working with children.. For Ithaca College graduates, who are applying for jobs in this field, such a facility would provide them with invaluable working experience. Because Ithaca College is an institution of higher education, itis important that such educational opportunities not be denied its students. III. -PROGRAM OBJECTIVES - : The purpose of this proposal is to create a daycare center at Ithaca College which will satisfy.the demands of the workers for a facility to care for their children between the ages of 18 months�:.and-.-five: years. Once begun, this daycare center will continue to provide the workers and students at.Ithaca College with a necessary and invaluable service. It will care for the children of many of the faculty, staff and administrators,,as well as providing important practical experience for students involved with child -related studies. The creation of a:_daycare center will also improve relations between the workers and administration at the college. As of now, many.of the workers are dissatisfied because they feel that this service should be provided'for them. Many of.the major corporations in America have stated that the introduction of such facilities- has greatly enhanced r Worker -_management relations. Also, relations between the community .and the college will be greatly enhanced because many community leaders feel that this service is essential. TC3 has been widely praised for having provided this service for many years. Thus, the creation of a daycare center will satisfy the demands of the workers and students who attend it. It will provide vital educational opportunities to many of the college's students. Internal relations between the administration and employees will benefit, and public relations between 'the college and its surrounding community will be improved. IV. BUDGET AND FUTURE FUNDING An analysis of daycare centers within Tompkins County shows that the major source of income for such facilities is through fees paid by the parents of enrolled children. The average price paid in the Ithaca area is fifty dollars per week for a fulltime participant in a daycare program. For one full year, a daycare center collecting fees from. thirty parents would gross seventy-eight thousand dollars. This is sufficient to cover salary costs, meal costs, and insurance costs. The following is a sample budget for a daycare center which would care for thiry children. : A. Personel (1) full-time director $.20,000 (3) full-time staff @ $9,000 $ 27,000 (2Y volunteer students $ TOTAL = 477000 B. Non Personnel 1. Space costs will have to be met in the form of a donation of one room and a designated outside play area by the college.. 2. Initial equipment : $ TOTAL Tables, adjustable height 6 x $ 50.00 300.00 Chairs, 30 x 14.95 450.00 Sand and water table Solid Blocks Hollow Blocks Pound - a - peg See - through - blocks Muppethand puppets Magnetic alphabet puzzles double sided easel scissors AMF trike Bigwheel wagon excersise mats foam balls 1 x 142.00 2 x 7.80.. 2 x 15.50 1 x 24.00 1 x 142.85 3 x 6.60 1 x :12.95 1 x 33.50 1 x 49.00 3o x 1.15 2 x 36.75 "2 x. 25.75 1 . x 43.60 10 x 24.50 3 x 8.50 142.00 15.60 31.00 24.00 142.85 19.80 12.95 33.50 49".00 34.50 73.50 51.50 43.60 245.00- 25.50 $ TOTAL : 1695.1( This sum of money is also: being requested in -the form of a donation from Ithaca College. Supplies such as paints and paper will bring the total to about 2,000dollars. After this, the center will be self sustaining. 3. The total costs .for initial by Ithaca College. This moneycannot fees because that money will be used costs, and insurance. The rent cost college in the form of a donation of equipment would be donated be collected from parental to cover salaries•,food must be assumed from the one room 35' x 25'.. Also a special area outside must be designated for daycare use. Finally, the parental fees will bring in_an annual sum of $ 78,000. After paying out $ 47,000 in salaries, this will leavetheremaining $ 31,000 for insurance and food cosils. In this manner, the daycare center will be financially self- sufficient after it has gotten under way. We are asking the College to provide space and $ 2,000. This will allow for the introduction of a vital service to the students and workers at Ithaca College. It will bring widespread community support from Tompkins County to the Ithaca College institution as well as greatly enhance the internal relations at the college itself. MEMORANDUM T91- Task Force for Economic Development in Ithaca FROM: Randall Wilson Date: August 2, 1984 Subj.: Second Report INTRODUCTION On July 16, 1984, TEDI member discussed my interim report, which presented example of economic development from other cities. This discussion raised a number of themes and problems. One question was the applicability of these strategies . (incubation, linkage, import substitution, internal development and public/priv- ate partnership) to the scale and conditions present in Ithaca. I number of questions were raised about "incubation" of new enter- prises: space availability, conflicts over city ownersl_"p, possi- ble feasibility studies and proper organizational structure. Other strategies of interest: an economic development "umbrella organi- zation," or the creation of "one stop shop" capabilities in present or potential agencies. There was broad agreement that increased local control was a desireable goal for the task force to pursue. In particular, members expressed interest in the prospects for import substitu- tion as a means to greater local control of the economy. This requires making an inventory of the goods that an area imports, and exploring whether any of them could be supplied or produced -1- 11 locally. It was suggested that an "import inventory" might be part of a larger economic profile of the arra -- one that surveyed the needs, capacities and problems of employers, the unemployed and underemployed residents. This data could help TEDI choose policies which furthered local control, by increasing our understanding of how the local economy "works," as well as how it could work better. Such data could prove useful for developing new enterprise and for maintaining present ones. To begin developing such a profile, I have done a very brief survey of. major employers in Ithaca. The aim of these interviews was to explore the prospects for further research on local control of the economy, particularly through import substitution. I also "tested out" possible survey questions for future use. Given that these conversations were exploratory and fairly unstructured, the report should not be taken as final. It is impressionistic; it suggests guideposts for further study and discussion. A further aim of these interviews -- which included business people who are quite active in local development efforts -- was to assemble Per- ceptions about the local economy: what hinders expansion or new development? What are the gaps, if any, in the economy? What are the area's major strengths and weaknesses as a place to do business? I will comment on some of the responses below. The stEtngest conclusion I can draw from this study is that more data is needed. For this reason I have suggested further directions which research could takes how we can learn more about imports and exports, what else we should know about the local econ- omy, other research questions for "local control" and a set of questions about TEDI's place in future developments. EMPLOYER SURVEY In selecting employers to contact, I sought out those who appeared to WiPloy the greatest number, expend the largest dollar value in sales and purchases or otherwise make up the "base" of the local economy. By "base" I refer to those firms whose sales are made primarily outside of the local area. Students of the development process consider "exporting" firms to be the prime movers of local economic growth. When such firms close down or relocate, employers serving l.bcal demand (retail, commercial, and certain services) are hard hit, as local employees have less 1 to spend. Base firms in the Ithaca area would include Cornell and Ithaca College, as well as a variety of manufacturing enterprises. My survey also included some large organizations which mainly serve local demand -- for health and utility services. Each of these imports a great volume of goods from outside. • PERCEPTIONS Over-all climate: respondants roundly acknowledged the stabil- ity and strength of the local economy, given the presence of higher educational institutions. A president of a growing electronics firm characterized Ithaca as a good "incubator" area for hatching new, small businesses based on science and technological innovation. It is no accident, given the educational facilities locally. Others criticized the community for being too "inward -looking," "complacent," or "apathetic" towards development and change. There is a perception that residents, particularly those in higher education, take the state of things for granted. It was pointed out that Ithaca's pattern of development has been a great success -- for Cornell, if not for local industry. Personnel: Several employers remarked that Ithaca was blessed - 3- with a generally high -skilled, well-educated work force. Others pointed to the lack of "good electronic technicians" and the lack of workers skilled for specialized computer applications. One noted that the scarcity af_;enginesring technicians, cited by several as a problem, was a nationwide issue, not unique to Ithaca. Overall, in the words of one respondant, there is a lack of "linkage between skills and need" of area industry. He .called for closer coordina- tion of education with commercial and industrial advances in tech- nology. Organization: The theme of "linking" people with potential projects was emphasized. Several employers called for "one stop shopping" functions in local economic development. One director noted that development projects succeed or fail on the talents of able individuals; while such people are vital catalysts to develop- ment, dependence on them may lead to a lack of continuity when their role ends. There is no "critical mass" of people working together towards unified,goals in economic development, or so it is perceived. A related problem was the perceived lack of linkage between Cornell University and the community. Several people thought Cornell could be a better resource for business and skill develop- ment, as well as continuing education opportunities. On this last point, the lack of evening graduate education -- i.e., for MBA degrees -- was singled out. Overall, respondants observed the wealth of local talent and brainpower which goes untapped. Space: Several employers put forth the lack of space for ex- pansion as a problem. There were 'suggestions that West Hill be opened up for residential (and in one case), industrial uses. Other employers felt that their space needs were met. Services: Most respondants considered the level of business services here to be adequate to their needs. One employer felt hindered by the absence of major banks, such as Marine Midland. Another complained that local banks do notoffer quotations for foreign currenOY exchange rates. The president of a large indus- trial firm complained that salaries for business service, particularly attorneys, were "unrealistically high.' The lack of a health main- tenance organization for local employees was noted as„a serious gap in nnr-business services. Others noted the lack of health in- surance programs for small businesspeople. Transportations Predictably, almost every respondant found local transportation to be an obstacle to new or expanding bus- iness. The lack of adequate road, rail and air links was highlighted. Several called for upgrading Routes the west end. Quality of Life/Community: The 96B, 13 and the "Octopus” in natural beauty and personal quality of the area were widely cited as local strenths. Most felt that these amenities counter -balanced the perceived heavy tax burden. The presence of cultural attractions and higher educa- tion was cited as a source of quality of life. The smallness of the community was seen as both virtue and vice. One employer, for instance, complained of the lack of other, similar manufacturers; in the same breath, he described this as a "plus," since it meant less price competition. IMPORTS AND EXPORTS To "test the waters" for future research, I asked the follow- ing questions of both presidents and purchasing directors of local employers, in the course of broader conversations about the economy. - What is your product or service? - Are your products sold primarily outside of this area? -If so, where da you_export to? - What goods do you import in greatest quantity from outside? - Other imports? -Volume of imports? -What goods and services do you purchase locally? - Do you import because of better price, availibility or volume elsewhere? -Other reasons for importing? - Is there potential to supply any of these goods locally?- - Why or why not? - Are there services lacking locally which you would use? -What is the potential for providing them here? Most of the detailed questions here wentunanswered; the responses supplied -- primarily about local purchases and imports -- were generally sketchy and off-the-cuff. I have organized the responses into sector and export product. In the case of two sectors -- health and utilities -- the product or service remains in the region, but the bulk of their "inputs" are imported. The other major sectors studied were manufacturing and education. The following is a list of manufacturing exports: Mini -computers micro -computers and oomponents data input and output terminals software r control systems for space craft components for spacecraft control industrial control systems data acquisition and logging systems scientific measurement and control instruments electronic instruments autom�3tivePower drive chains and components coatings for scientific and optical instruments precision machine tools automatic scales shotguns structural steel fabrication metal fabrication tool and die work corrugated pipe, reinforcing rods, mesh steel joints Imports Major outside purchases by, the health sector locally include medical and surgical supplies. The local utility imports transformers and other electrical transmission equipment. Other sectors' imports: Education Office furniture (desks, chairs, metal files) Filing cabinets, book shelves. Dormitory furniture Carpeting Drapery Food service Paper (basic and fine, including computer paper) -6- (Educational sector imports) Maintenance supply items Paper towels, toilet tissue Janitorial supplies, cleaning agents Office supplies Computers Energy (coal and fuel oil.) Printing (certain larger jobs) Manufacturing Steel Computers Computer components, parts; supplies (semiconductors, microprocessors, printed circuit boards) Industrial control supplies Plastic frames (for computer goods) Wire Cabinets Aluminum Machining instruments Metal -working Tubing 'Auditing services Office supplies Machine testing Other electronic devices Other machine parts Local Purchases The following goods and services were listed by respondants as items of major purchase locally. Education Agricultural feedstock and seeds (some) Office supplies Pest control Food (vending machine concession) Groundskeeping supplies Computers Business forms Paving/sealing/marking (parking lot improvement) Teaching equipmeiht Typewriter repair Manufa cturing Maintenance mechanical electrical vehicle Hardware (smaller tools, light bulbs, etc.) Welding supplies (Some) electronic components Electrical devices Repair service Printing Advertising, circulars Plastic parts Janitorial supplies Office supplies Wire Cabinets Car leasing Accounting Attorneys Analysis It is not clear from this brief survey whether Ithaca is amenable to "import substitution, narrowly understood. This is not to say that there is noTpotential for decreasing imports, or other strat- egies for increased local control. Rather, it suggests that many of the goods mentioned in the survey -- which is by no means all goods nor all employers -- have limited potential for being produced and purchased locally. Interviewees suggested certain items which may have potential: -manufacture of printed circuit boards. Several other employers were skeptical of this, although all of them saw a need for it in the local economy. Some were not convinced that local demand could sustain this product, which is used. in electronic machinery. They also noted that outside distributors and producers, dealing in very • p {'�c high volume, already competitively low prices. Many of thmm are located "offshore," primarily in Asia, and offer very low wages; -cabinet-making. A number of major manufacturers in the area would benefit from increased local production of this good. It might possibly be done contractually, through a job shop. Again, questions were raised about the adequacy of local demand to support it. Several respondents suggested that there were potential oppor- tunities for distribution of certain goods in the area, if not actual production: -- • -furniture (for offices or dormitories) -paper -microelectronic components With regards to this last item, it was suggested that a local supplier could provide the small start-up firm with specialty components suited to building a simple prototype model of the product. Food Suggestions were made to encourage more local food production, as well as more aggressive marketing of local produce to area re- tailers and other buyers. Several people felt that the area might support processing of the region's produce. Others noted the real problems of scale, price competition and seasonal availability of food processing industry. A further idea worthy of research: im- proving the linkages between the institutions who purchase food (schools, restaurants, nursing homes and others) and those who grow it in the region. This may require a broker or other organized means to connect buyer with seller and insure volume and coordin- ation. Further research The next step is to determine whether further study of import substitution . is desireable. If this is the case, then research should proceed do several fronts. First, it should elaborate and formalize the work I have begun with my "straw" survey. The objective would be a more reliable and rigorous test of the feasibility of import substitution, and the creation of a "bank" of product and service ideas which might be initiated by local entrepreneurs. Second, research should offer us a more detailed picture of the local economy. It would draw on forthcoming unemployed and employer survey data. It would help us clarify gaps -- missed opportunities and underutilized skills -- as well as to help identify systematic problems which TEDI and others could begin addressing. Elaborating the "Imports" Survey We need a comprehensive "roadmap" of the local economy: a detailed listing of firms by industrial sector and Standard Indus- trial Classification (SIC code); prod&-ct or service; numbers em- ployed; dollar volume of sales and purchases; and specificati:on of goods exported and imported. Exact information on employment and total sales is often unavailable for small areas such as ours. At the start we can eliminate from discussion certain import items which Ithaca has no clear comparative advantage in making -- steel, for instance. Then, we should assess what are Ithaca's com- parative advantages, its highly educated population, for example. The next step would be to clarify the relevant area for research. This can be difficult, as statistics are collected for municipalities and counties -- units of government -- while "economies" operate in a broader, less -defined area. Given that the "economic area" is wider than the city of Ithaca proper, what is the proper scale of study? The answer may be different for each focus of research: industries, agriculture, labor market, and so on. • To formalize our study of imports and exports, we need to look at transactions or "flows" within the area economy and between local employers and outside enterprises. This information i often organ- ized into a tool called the "input-output table." It shows, in matrix form, the relationships between producing sectors ("purchases from") and purchasing sectors ("sell to"). Imports and exports from the region are arranged on the margins of the table. In their most elaborated form, input-output tables help econ- omists to predict the impact of changes in particular sectors on the economy of an area, for bothfirms and households. It is poss- ible to use the table in simplified form -- filling in only for im- ports and exports, for example. There are several ways this can be done. One is by direct survey -- personal interviews or written request. Another method is to draw upon secondary sources of in- formation, where available, and explore the relationships mathe- matically. A final technique -- not exclusive of the other two -- would be to bring major employers together from particular indus- tries in a conference setting. The aim would be to get them to specify their sales and purchases, as well as to learn more about 2 one another. Each of these methods pose benefits and drawbacks. All of them suggest questions for TEDI regarding the scale, complexity and aims of future research. Consultations with trained economists from. Cornell ° s departments of City and Regional Planning and Agricultural Economics would help clarify these issues. OTHER RESEARCH STRATEGIES If we are to understand how the local economy "works", we should explore other relationships alongside the sale and purchase of goods. I have outlined three methods for thinking about such relationships. Flow analysis One way to work towards "local control" is to identify various flows in the economy, including imports and exports. Three flows vital to economic development are capital, labor and energy. Capital: -explore the degree of outside vs. local ownership of enterprises, including banks and services. Changes over time, impactsoon management, stability, employment. -lending practices of finance institutions. Capital availability for different groups and business sectors. Specific problems for minorities, small business, etc. -evidence of disinvestment (if any) for particular firms; redlining (neighborhood disinvestment), if any. proportion of "imported labor" in local industries -11- due to relocation of firms bringing in their own workforce; due to scarcity of needed skills locally, or due to growth in in -commuters for local jobs. The last case is of special importance to development efforts keyed to keeping income within the_ local economy. If a large part of the salaries generated leave the area every day at quitting time, there is not going to be much extra income for local residents, nor additional multipliers for other local business. Energy: Energy is a key source of "leakage" to local economies. This occurs both through the dollar cost expended on fuels, when goods are shipped over long distance, and through waste of energy which could have been conserved. A "flow" analysis would take inventory of energy use in Ithaca, particularly by business and government. As many communities have found, energy conserving methods and technologies can be a source of job creation, through weatheriza- tion, energy auditing, orproduct development and marketing. Many energy-related businesses can be started on a small scale with a low initial capital investment. Such efforts can provide income and job training as well as conservation. Structural analysis We can picture the structure of the economy, clarifying which industries are basic, which services and industries support them, and whether there are important gaps between potential buyers and suppliers. This also means identifying missing services which would have a potential market locally. A related question is the structure of opportunities for employment: how do different sectors (service, professional and technical work, skilled and unskilled production, sales) compare in terms of skill, income and job growth? What is the contribution of each to total employment? This should be studied over time to see whether certain occupations, such as skilled blue collar work, -12- are increasing or declining relative to others. How do these occupa- tions compare with counterpart figures for the state, the nation, and cities of comparable size? A final issue -- already being explored by TEDI members -- is that of unemployment and underemployment. Close coordination with other research suggested here might help to explain some of the reasons why workers' skills are underused. Resource analysis Up to this point, I have only described the economic base in narrow terms, as industries which export goods and bring income into a region. A strategy for local control, however, must search for a balance between investments in export production and locally directed efforts which sustain the community. The latter requires taking inventory of local resources and finding out how to cultivate them better. We can envision Ithaca's resources as a series of concentric circles or rings, radiating outward from the most basic of resources, the natural environment. Natural resources: an inventory at this level: would help us determine whether development strategies could be sustained by the local environment, and what limits, if any, might be necessary. Given the importance of scenic resources locally, there may be trade-offs called for between future growth and sustenance of the environment. As noted above, energy and local agriculture suggest future research on ways to keep income "circulating" within the community. Other environmentally -based businesses, such as recycling or com- posting, deserve further thought. Physical infrastructure: In addition to the traditional planning coneerns with transportation, waste and water treatment, there could be study and inventory of building space for possible incubator strategies to promote new business. Social infrastructure: Present and prospective efforts in worker re-training and other employment education should be evaluated with issues of "local control" in mind. For instance, are training programs geared to areas with significant openings? If there is potential for such programs to help initiate new bus- inesses, it should be explored further. Human resources: the most pressing concern here, as noted, is daycare, to assess the extent and causes of unemployment and underemployment, as well as the skills of these workers. Organizational capacity: This category draws together various means of "making things happen.' They include entrepreneurship, finance, economic development activities, community organizing, volunteer organizations and consensus -building forums (such as TEDI). It would also include less formal networks, such as the group of educators and businesspeople meeting to discuss science and technical education. Ithaca has in its "cooperative" business sector a unique organizational resource and its "alternatives" commun- ity. A serious resource inventory would look for ways to better mesh their activities with other development initiatives. A closer inventory of each level may reveal missed opportunities for developing income, skills, products or overall quality of life. We may also identify gaps (or "missing linkages") by studyingthe connections between different types of resources. CONCLUSION I am not suggesting that TEDI undertake all of the research strategies outlined above. They ar"e offered as alternative ways to make sense of the local economy and to aid TEDI in thinking about what to do next. In closing, Iwish to pose some questions for the group's consideration. -14- -What is TEDI's mission or role in local development? This breaks down to three kinds of questions. What are its long term goals and purpose? W o is trying to help, above all? What is its relationship to official government? to quasi -official agencies (such as TOAD)? This last question is of special importance in our area, given the crowded field of players claiming to do "economic development." We need to be sensitive to turf issues, yet have a clear sense of exactly what TEDI is empowered to do. Onthe question of power, -Can TEDI create a new development organization -- such as a community development corporation, or a "one stop shop" to coordinate development activities? Is a new development organization needed locally -- or simply better targeting of pesent programs and functions to people in greatest need? Are these functions being carried out adequately by existing organizations. Finally,.we need to examine our relationship to our constituenc:is, however we define them to be. Are they represented adequately by TEDI's present form and membership? If not, who else should be represented? How else might we give voice, in a broader way, to members of concerned communities? If TEDI seeks to have a more visible public role, perhaps it should engage members of the community in forums, workshops or public hearings. This might also help define some of the issues and problems which need clarifying. 1 Tiebout, Charles, "The Community Economic Base Study,." Supplementary Paper #16, Committee for Economic Development, 1962, p. 14. 2 Ebert, Paul, "An Action Research Program for Enhancing Locality, Regional and State Economic Development," manuscript, no date, Department of Rural Sociology, Cornell University, pp. 4-5.