Hi, I'm Jeff Rea, your host for Economic Outlook.

And I want to welcome you to our show.

Thank you for joining us each week as we discuss the people, the companies and the projects driving the region's economic growth, The Indiana General Assembly has appropriated $500 million for the READI 2.0 program in order to strengthen the state's talent, attraction and retention efforts.

The South Bend Elkhart region will soon compete for a portion of those funds.

We'll dive deeper into that effort and tell you what you should expect coming up on economic outlook, Indiana's laser focus on talent attraction and retention and the quality of place improvements necessary to drive key investments in our communities.

At the same time, the state recognizes the value of collaboration as encouraged and incentivized regional cooperative efforts.

Our region is busy planning for ready 2.0 grant application that could bring some $75 million of state money to our region.

We're diving deeper into READI 2.0 program, talking more about the regional plans being put in place and helping you better understand how it might benefit our region.

Joining me for that discussion are Bethany Hartley, the President and chief executive officer of the South and Elkhart Regional Partnership, and Terry MacFarlane, the vice president of regional issues at the South Bend Elkhart Regional Partnership.

Ladies, welcome.

Thank you for being here.

Thank you.

We've had you on before.

We've talked a lot over the years about regional cities and READI, but it's such important transformation stuff for our community.

So we thought we'd have you back for a little update because we're right in the middle of some fun stuff.

So before we get to the Bethany, remind folks, for folks not familiar with the South Bend Elkhart Regional Partnership, tell us a little bit about the partnership and what it does.

Sure.

So the South Bend Elkhart Regional Partnership is a collaborative across five counties, three in Indiana, Marshall, Elkhart and Saint Joseph, and then Berrien and Cass in Michigan.

And we are really focused on advancing the region through economic prosperity.

We look at the North star of per capita personal income.

We have a great engaged group of stakeholders that are community leaders, business leaders, education leaders, really looking at how do we increase talent attraction, how do we work with the workforce that is here to improve development in their in their fields, in their careers?

Looking at how do we expand industry, increasing diversity, equity, inclusion across the region and then also spurring entrepreneurship through startup South Bend Elkhart.

So we're really grateful to have all of the engaged parties.

And right now our laser focus is on READI 2.0 Taryn come your way.

So you've been partnership a few years, led a couple of key initiatives.

Tell us about your role in the partnership.

Yeah, so my role is to think across the region, but holistically support the READI one investment that the state made into our region.

So for that particular emphasis, that's only three of the five counties St Joe Marshall and Elkhart, and it's really administering that initial award of $50 million.

Bethany let's come back your way.

And let's just talk regional collaboration a little bit like I think back years ago, regional cities we featured on here, We talked a little bit about the the bringing of folks together.

You've been you or you and the organization have been the group that has brought the region together.

So just talk to us a little about what maybe lessons we've learned.

You know, like we I think we went from years ago thinking we didn't do this very well to being kind of one of the bright, shining stars in the state.

Give us just some feedback on the regional piece.

Yeah, well, I. I love looking back to our history and looking at what you and other leaders in the community have committed to and are continuing to commit to.

And there were bumps along the way.

And lessons, many lessons learned.

But I think some of those are we are now working better than we ever have before.

And the successes not only our monetary, but also the relationships.

You know, we're seeing more of.

It's not oh I'm from Elkhart or I'm from South Bend.

Oh, I visit the whole region.

The region has amenities.

We work together a lot.

The labor shed is going across all the county lines.

Residents don't really recognize a county line when they're going to get their groceries or going to the movie theater, going to the zoo.

And so I think there's there's been a lot of opportunity to learn from those experiences.

And we're getting more strategic.

And I think some of those indicators I was just doing a little quick math on different things in our like things like our innovation index, we've outpaced the state in all of the categories.

When we look at that innovation and the patents and the venture capital and the new businesses.

And that doesn't happen by accident.

Right.

There was a plan many years ago and the plan is being put in place and executed by all of our partners and us and working alongside the Regional Development Authority.

And we recognize that if one tries to go on their own, it's very, very difficult.

And so how might we work better together?

And I think we have looked at how do we be more additive to one another and amplify one another, because there are only so many resources that go around and these awards are wonderful.

It's not as though we have $50 million sitting in a bank account to do our own thing.

It's how do we how do we leverage other funding?

How do we leverage those relationships to really be smart about what we're building for the residents here?

Turn let's go back in time and maybe just more speak holistically about the state idea.

So with regional cities, with READI 2.0, they've sought to incentivize this region collaboration.

So just give us some state perspective on why why they would put a program like regional cities already together.

Yeah, sure.

So I think from the state's perspective, they're looking at that opportunity to leverage and collaborate.

So if we're state dollars or even federal dollars, are that seed capital that's coming alongside local public investment and local philanthropic investment.

So it really unlocks the door, turns the key into, okay, as a region, here's what we can create together.

And so it's a little bit of a carrot, but in reality, it's also reflecting the vision and entrepreneurial spirit in the region to say, Yeah, we can build this, we can make this, we can create something that's going to benefit the folks who are living here and attract outside visitors and potentially residents as well.

So the state has that perspective and then our region is leveraging that, using some of those state dollars to make that happen.

Bethany, let's talk a little bit about this.

I mean, the like I think back to regional cities, for example, the planning effort that had to happen to sort of put a regional plan together and then moving forward and talk about just sort of the the preparation piece of this, the things that have to fall in place before we could seek funds like regional cities or READI 2.0 So when we looked at READI 1.0, that came out in the middle of the pandemic.

And fortunately for this region, we are a well-organized region.

We have consistent communication across all the borders.

We are engaged and we have a track record of success from regional cities with the projects that were funded through that.

And so when READI 1.0 got announced, we were quick to act and move.

We formed a steering committee, we did stakeholder engagement.

I believe our count was we did 93 different meetings across the region in about nine weeks, and that took a lot of collaboration and partners to make that happen.

And from there we penned about let's say, 250 page document that was comprised of about 170 ideas across the region of how might we invest money into capital projects, program projects.

And that plan is what led to us receiving one of the $550 million awards, which was the highest award across the state, READI 2.0 Similarly, similarly, we do have a steering committee moving us forward and giving us perspective on where we should head with this.

We are doing stakeholder engagement sessions.

We've done them and have engaged somewhere in the range of about 250 folks in these workshop sessions across our three counties.

We are meeting with officials and with our county partners and really getting the buy in from our municipalities, our counties, our partners to say what are the priorities that align with the smart Connected communities plan that we put in place?

We're READI 1.0.

The state has been very clear.

They would prefer to not have another 250 page plan.

They would like us to have lessons learned from READI 1.0.

What are we all looking forward to in the future and really looking at talent, attraction and population growth?

And so we're being very thoughtful about this process.

It is a bit different and in that it is strictly an application, it is a form that we will be putting forward and preparing, and it's universal across all the regions.

There were 17 regions that applied and READI 1.0.

There are now 15 regions for this and the part funds for this round are 500 million.

And that has about it, not about it has a 75 million cap potential, whereas last round it was about 50 million.

I don't know why I'm saying about it was 50 million.

That's right.

Yeah.

So we are in the midst of the process right now and the region, the regional partnership alongside the Regional Development Authority will be putting that plan in to the IDC on behalf of the entire region and that will happen in early February.

So there are questions out there about projects getting awarded, funds and and that will not happen until about a year out from now.

We have to know what we're getting as a region before we can allocate anything on a regional level to any specific project for now.

So Taryn take a step back on me on READI 1.0, a little bit.

So so I think we've talked briefly about some of the projects before, but maybe it's to remind our viewers about what those funds helped us do.

What were some of the key projects and in READI 1.0 that people would be familiar with?

Yeah, sure.

So that, as Bethany mentioned, the purpose is talent, attraction and retention.

So that's amenities.

So there was a set of projects that were trails, parks, sort of public goods, and so there was some park upgrades going in in Elkhart County, Marshall County.

Then there our regional attractions like the Zoo, Wellfield and Morris are all three examples of projects where there was READI vision for growth and RDA investment.

The READI investment came alongside that.

Another pretty significant project that's coming online is a regional sports complex into the Mishawaka area and that will continue to attract and grow regional youth teams, the tournaments and tourism, hotel nights, things like that.

And that's pretty exciting.

It's new for our region and I would say another one, two more one.

And over in Elkhart is the continued growth of the downtown.

So the river district there.

And then in South Bend there's a pretty big vision to reduce two city blocks just below Memorial Hospital campus.

Yeah.

Yes, I'm pretty exciting things.

Some you've seen pieces of it, some still yet to come.

But projects that would have happened without your efforts to help secure these funds on behalf of the region, but also without the local participation and the private philanthropic stuff.

So it's really a true partnership.

I think that's phenomenal as we're as we're thinking in the next piece and I'll maybe I'll stay with you for a second.

So these all sound the same to me, right?

Are regional cities READI?

READI?

I think they're different.

They evolve a little bit.

What's different about 2.0 than 1.0?

So I think a lot of 2.0 is building on the success of 1.0, continuing to emphasize parks housing, amenities 2.0.

I think there's some interest or there is across the state to make sure those dollars are addressing investments in rural communities as well.

So that was true in READI one.

But now there's a little more of a spotlight on that, some guardrails around.

Let's make sure across the state that's happening.

And I think there's continued emphasis on how do projects stack into our longer term plan.

You were talking earlier about that.

What's the region's vision for itself in five or ten years so that those projects are truly transformational and truly change either the landscape or people's perception and engagement in the region?

So even Howard Park is an example for regional cities that redevelopment, you know, years later, we're still seeing interest reverberation.

It's the sight of fusion fest.

And even in Marshall County with the revitalization downtown Plymouth, that housing was, you know, a marker of here's our future.

I think it's been fun for us here.

We've had a chance to feature many of those projects on our show, and it's been exciting to do that.

We're taking a quick break here in the studio.

I'm going out to the field.

George Lepeniotis.

My co-host is out to with an interview.

George, let me toss it to you.

Thanks, Jeff.

I'm downtown South Bend in the old Studebaker building, number 84, which has been redeveloped into an awesome office space.

We've been here before and we've also been joined by our guest before, John Desalle.

John, thanks for being with us.

Thank you, George.

Thanks for having me, John.

The last time we were together, we were talking about some some propelling the airport forward and working with community partners to help that that facility and that community resource really move forward and become get to the next level.

Today, we're talking about a little something different.

And before we get there, though, I want to talk about you because you've kind of had a little change of path.

The last time we talked, you were president and CEO of Hoosier Tire.

Now you're in a different role.

Tell us a little bit about what you're doing now.

Since my retirement, quite frankly, I joined the University of Notre Dame in a role as executive engineer in residence in a group called Industry Labs and Notre Dame.

So really, quite frankly, the role of industry labs is to help our regional manufacturers become more productive, more resilient and grow and attract talent.

And so that initiative is not only being supported by the University of Notre Dame, but you told me before we went on the air that there's also some grant money that's really focusing on that.

The goal is to help regional manufacturers, which which how do you define regional?

How far is regional?

So the region, the South Bend, Elkhart region.

Whenever we say regional, we're talking about the counties in Saint Joe, Elkhart and Marshall County.

Got it.

And so that program is designed to help businesses, manufacturing businesses in that region become more efficient and use some of the knowledge that your group has.

Has has it accessible?

Exactly.

I mean, the university obviously has tremendous amount of resources.

We partner with a lot of organizations in South Bend, Elkhart Regional Partnership, the enfocus Fellows.

We take advantage of the researchers on campus.

The labs are on campus, and we're helping regional manufacturers.

We introduce them to automation, data analytics, you know, new product development.

We do student applied projects.

So in addition to that small task in your retirement working for the University of Notre Dame, you also are the chairman of the board for what we call the Regional Development Authority of Saint Joseph, Elkhart and Marshall County, and that RDA, as we'll call it for short, has a real unique role in Indiana's economic development system.

What would you describe the RDA's role?

Well, you know, I we're we're convener.

So in our three county region, there's a lot of great things that are going on.

We're definitely a region in the upswing.

We've we were part of the organization eight years ago now that won the Regional Cities Initiative 42 million.

And we were one of three regions in the state, were fortunate enough to win that.

We allocated that money, identified projects throughout the region.

Then in the really intended to address a number of key roles.

Right.

Our North Star, as they say, would be to grow per capita income, per capita GDP.

It's population growth, talent, attraction, retention.

We educate a lot of students in this region.

40,000 students are in these three counties.

And but unfortunately, too many of them leave to pursue other opportunities.

We got to make this region more compelling for them to work, live and play here.

And so regional cities was the first of those programs sponsored by the state, but administered in part by the RDA.

The RDA is the local body comprised of members from the three counties, including yourself and other prominent individuals who help identify projects that would be worthy of the funds.

So regional Cities was the first.

Then there was something called READI 1.0, we're now calling it.

Tell us a little bit about READI 1.0.

So READI 1.0 was really a continuation of this theme of regional cities.

How do you get regions in the in the state of Indiana to pursue those those goals?

Population growth, per capita income, talent attraction, retention and so on.

So the state legislation put together a $500 million package and 17 regions in our state competed.

Now, fortunately, we were one of the five regions who got the maximum award of $50 million.

Got it.

So we're in the process right now of administering those $50 million grants to two or three counties.

And I know one of those big projects is an expansion of the neighborhood around Beacons Memorial Hospital here in South Bend, and we'll call it the the Beacon Development District.

The Madison Lifestyle District, there you go.

And that is really to help grow around that community resource.

And now as as you've distributed 1.0 the state has come through with 2.0.

Correct.

Right.

And so now you're in the process of trying to compete for even more dollars.

Exactly.

So, again, the total award is 500 million for the state, but now the maximum award per region is 75 million.

And I think we've got a really proven track record of being thoughtful about the award money, how we're administering it.

We've really proven ourselves, I believe, to IDC, to the state of Indiana.

You know, quite frankly, I think we're a role model the way our region is really collaborative and come together in identified needs and pursuing those North Stars.

That's awesome.

Well, John, thanks for being with us.

Thanks for giving us a little bit of an overview about it.

I know we could talk for hours about how these programs work and how you and others have helped bring that investment in.

So thanks for what you're doing.

Jeff, back to you in the studio.

I know you've got more to talk about.

READI 2.0, READI 1.0 and how the RDA through the state of Indiana is coming up with hundreds of millions of dollars to reinvest right here in our Michiana community.

George, thank you.

Appreciate it.

Was good to hear from you out in the field.

Bethany, let me come back here.

We keep talking a little bit about I'm kind of READI.

You mentioned like these information sessions, right?

You have brought stakeholders from every corner of the region to sit partly in pursuit of this grant, but more importantly, to imagine or vision the region, what it looks like in the future, just not necessarily the specifics that came from those.

But but as much as sort of what you were hoping to accomplish with with those stakeholders in the room.

So I think when we looked at READI 2.0, one of the other differences is that one that allowed for programing dollars.

And so with that piece, the approach we took with stakeholder engagement was working through the Regional Partnerships Committees.

This go round, ready to Narrow is focused solely on capital expenditures and infrastructure.

And so we felt it was important to engage a deeper stroke of community members to look at what are they, what are they paying attention to, what are they proud of?

You know, that is a big piece of this is creating community pride and really looking at what are those pieces that you could look at and say, I am so honored that that is a part of our community and our region.

And so what we've been hearing from different folks, you know, the River District, Taryn mentioned this in downtown Elkhart, totally different from ten years ago.

It's a different place.

The landscape, literally the horizon is different because of the structures that are going up or coming back online.

And so we're hearing more interest in pursuing how are we leveraging our rivers in most of our major city areas?

You know, South Bend has a beautiful river and with Howard Park are two being developed on one side.

What are the future opportunities for the whole area?

We're looking at two with training in these sorts of things.

How are we how are we building infrastructure to support more career opportunities and workforce opportunities?

And really thinking about the infrastructure that we know is necessary for a growing population.

I just visited a city that they grew so fast the infrastructure could not support it.

And so I think as fast as they've grown, they may decline just as quickly because it's challenging.

And so as we're thinking, we have all these forward thinking community members and really buying into what they want the vision to be, we actually ask each participant to come up with a headline for the South Bend Elkhart region, you know, in five years.

What do you want the headline to read about this region?

And that has been so informative and so encouraging because people really do have a belief in what is some call a renaissance in this region, all of us call it.

We've been putting in the work and it's coming to fruition and you in particular.

And so it's just really exciting to get more community buy in in that process.

Yeah, Taryn certainly as as this is going, people have their own interest too, right?

They all have projects on their mind.

There's probably way more projects than we possibly would have funding for.

Talk to us a little about just sort of timing over the next year and kind of how how those will advance.

I think Bethany was talking about, you know, you guys all put application together on behalf of the region.

But walk us through kind of maybe some timeframe associated with it.

Sure.

Yeah.

So the region, all regions are applying to the state that's doing that in February of next year.

I would anticipate in Q2 regions will know what their allocation is.

And from there the Regional Development Authority will then run a process to solicit specific project applications.

Right?

Right now we're really talking vision, big picture.

When we come to next summer, we'll be looking at what is a specific project, what is an individual effort, what would that look like?

Those will come, but for the RDA, they will use a process to then select those individual projects for awards and they should complete that process.

We're anticipating end of Q3 into Q4 of next year.

And then the READI dollars and this has been true in ready one and ready to those awards are actually reimbursement based, right?

So projects are incurring those costs and then drawing down those funds.

So that would flow through at least 25 and 26, maybe into 27.

And so that's the overall timeline that we're anticipating at this point.

I think the state has been pleased with the progress so far.

Our region is certainly fast on getting dollars out the door, I think.

And so there's an interest to continue to fund and spend down READI one at the same time that folks are going after that ready to dollar.

So both things are happening simultaneously.

Bethany come back your way because like two things popped into my mind when you mentioned the like the Elkhart River District, for example, which we highlighted many years ago, which was just a concept on paper which now has made some generational type changes.

And if you went to Culver or Plymouth or South Bend or Mishawaka, you know, similar story.

I forgot where I was going with a question on that.

But but, but just talk about I mean, this is kind of this unique opportunity we sit on the cusp of.

Right.

That that we that that we've made some important change we've still got some work to do.

Speak a little bit to the chance to influence the next ten years in the community.

Yeah well if you are you probably have noticed this.

The IDC Indiana Economic Development Corporation has changed their tagline that Indiana is for the Bold, and so they are sharing that with us, to tell us to be bold, be bolder than we've ever been.

And so when we're looking at things like READI 2.0 and the word transformative often gets thrown around and it can mean different things in different sized communities.

But truly, what will change this region?

What are those unique opportunities that but not for READI may not be possible.

And again, thinking about we educate we have nine higher ed excuse me, nine higher education institutes in our in our three counties.

And we educate 30 to 40000 students a year.

We want them to stay here and keep that education here.

And so what do we need to do to make that happen?

And I think, again, as we look at per capita personal income that is directly correlated to that.

And so I think there are bold ideas out there, and I think there are there are bold plans, and we want to be a part of supporting those as much as we can and helping those come to fruition and not thinking, oh, we just want to do one one off project out in the middle of nowhere that may not have the impact that it would as a part of a cohesive plan.

And so we're really excited about all the things that are happening across the region, the development, the new jobs that are being created, the new smart jobs that are being created.

And again, how can this funding serve as a catalyst to support that growth and encourage more of it?

Taryn, as we get to our like our last minute or so, we we recently were with the Secretary of Commerce where he commented, Indiana is the only state doing some of this.

Just speak to how helpful the state is in sort of sort of recognizing this big thing and and and being this active partner for local communities.

Yeah.

I mean, as as Bethany said, I mean, the state you listen to the secretary, let's go get the economy that we want, right?

So in some ways, READI is both a reflection of an aspiration.

Here's where we expect ourselves to be and then executing against that.

So the speed of partnership and the closeness of the partnership, we have direct staff and support ready at the state level who've been here multiple times now assisting us in looking at projects, execution and project selection and just the overall sort of can do spirit of like we're going to make this happen I think is decisive and success builds success, right?

So we're proud of what we've already accomplished and we know that should we get that kind of dollar investment again, we'll make it happen.

One thing I would say about READI is it's it's a 20% or less dollar into any one project, right?

So it's that catalyst.

What that really means is our region is coming up with the other 80%.

So we are building our own future alongside the state.

And to me that is pretty exciting.

Great.

Well, thank you both for being here.

Bethany, real quick, if people want to track or follow what's going on READI what's the best place for them to keep up with what's happening if they can go to our website, southbendelkhart.org and there is a ramp up ready.

That's our new tagline for READI 2.0 landing page.

Awesome.

Thank you, guys.

Thanks for the conversation today.

That's it for our show today on behalf of the entire team here at PDS Machina, thank you for watching or listening to our podcast to watch this episode again or any of our past episodes.

You can find economic Outlook at wnit.org or find our podcast on most major podcast platforms.

We also encourage you to like us on Facebook or follow us on X. I'm Jeff Rea I'll see you next time.

This WNIT local production has been made possible in part by viewers like you.

Thank you.