ECONOMIC ENVIRONMENT

Economic development is necessary for a community to renew itself and grow. Many small cities, towns and rural communities are losing people, jobs, and quality of life due to economic instability. Unfortunately, small towns are not self-sustaining, and it is no easy task to maintain economic quality, good jobs, good public services, and a broad tax base.

There are disturbing trends in America making overcoming economic weakness harder and harder:

   1.   The formulation of large discount trade stores has created a steep decline in retail trade in small communities.

   2.   A new global economy has brought greater international competition for low-wage industries and many have moved their operations abroad, resulting in loss of an economic base in small town America.

   3.   The reduction of economic development grants by the federal government is resulting in communities having to foot more of the bill for their economic development efforts.

   4.   Small community banks are a critical source of financing for local residents by filtering savings into local businesses and by purchasing locally issued municipal bonds.

These trends result in small downtowns across America realizing the need of taking inventory of their economic assets and setting economic goals and objectives by creating an economic development plan as a part of their communities comprehensive development plan.

The economic setting is concerned with employment statistics and the general economic development of New Palestine. These elements relate to the residents of the planning area, how they earn a living and their living standards.

ECONOMIC STATISTICS

 

Employment Status Town of New Palestine 2010 U.S. Census
Category	Number	Percent of Total
New Palestine		New Palestine	County	State
In labor force	1,231	71.8%	66.7%	65.6%
Employed	1,128	65.8%	62.2%	60.0%
Unemployed	103	6.0%	4.4%	5.5%
Not in labor force	484	28.2%	33.3%	34.4%

 

Household Income Town of New Palestine 2010 U.S. Census
Category	Number	Percent of Total
New Palestine		New Palestine	County	State
Less than $10,000	22	2.5%	3.7%	7.2%
$10,000 to $14,999	30	3.4%	3.4%	5.6%
$15,000 to $24,999	87	10.0%	7.6%	11.7%
$25,000 to $34,999	73	8.4%	9.7%	12.0%
$35,000 to $49,999	108	12.4%	12.9%	15.6%
$50,000 to $74,999	201	23.1%	21.2%	20.1%
$75,000 to $99,999	132	15.1%	16.9%	12.5%
$100,000 to $149,999	114	13.1%	16.3%	10.3%
$150,000 to $199,999	49	5.6%	4.9%	2.8%
$200,000 or more	56	6.4%	3.5%	2.2%
Median Household Income	$66,339	100.0 %	$65,517	$47,697

 

Occupation Town of New Palestine 2010 U.S. Census
Category	Number	Percen t of Total
New Palestine		New Palestine	County	State
Management, professional and related occupations	445	39.5%	37.5%	31.3%
Service occupations	173	15.3%	15.4%	16.4%
Sales and office occupations	313	27.7%	25.0%	24.5%
Natural resources, construction, extraction and maintenance occupations	42	3.7%	9.9%	9.6%
Production, transportation and material moving occupations	155	13.7%	12.3%	18.3%

 

Commuting to Work Town of New Palestine 2010 U.S. Census
Category	Number	Percent of Total
New Palestine		New Palestine	County	State
Vehicle (travel alone)	949	86.5%	87.5%	83.2%
Vehicle (carpool)	89	8.1%	6.4%	9.0%
Public transportation	0	0.0%	0.1%	1.1%
Walked	0	0.0%	0.8%	2.1%
Other means	0	0.0%	0.7%	1.4%
Worked at home	59	5.4%	4.5%	3.3%
Mean travel time to work (minutes)	27.9		25.8	23.3
Worked inside county	34.2%		37.5%	na
Worked outside county	65.8%		61.7%	na

 

CURRENT ECONOMIC DEVELOPMENT

In the past few years, the U.S. economy as well as the world economy has been recovering from a recession which the likes have not been seen since the Great Depression of the 1930's. Unemployment rates at the height of this recession were 9.5% in Hancock County and 10.6 in Indiana. The US economy has since recovered and the unemployment rate in Hancock County for 2015 was only 3.9% and the State was 4.5%.

The majority of the workforce in New Palestine since the 1990's has been primarily in the management, professional industries. This is reflected in the higher rate of household income which is higher than that of Hancock County and the State.

New Palestine is a true "bedroom community". Over 65% of the workforce goes to employment outside of Hancock County, the majority working in Indianapolis/Marion County. Travel time from New Palestine to downtown Indianapolis is a mere 20-30 minutes.

New Palestine's visibility along State Route 52 through the heart of the Town and an active railroad running east/west makes it attractive to commercial businesses. It is also only approximately 8 miles east of an I-465 interchange. It has the added advantage of being located approximately half way between Interstates I-70 and I-74.

New Palestine has had a Chamber of Commerce since the 1990's. Their Chamber not only serves the Town, but also includes businesses in the Sugar Creek township area.

Commercial Use Overview

A community's commercial land uses provide employment, goods and services, recreation, tax revenue, and many other amenities and necessities. The features of commercial areas reflect the economic vitality of a community as well as local character. The location and characteristics of commercial areas directly affect local transportation and growth management.

Existing Conditions

The main commercial areas in New Palestine run along US 52 basically from Bittner Road to areas just west of the US 52/CR S 500 W. Historically this has been the heart of commercial activity for the citizens of New Palestine since the 1800's. This area makes up the Town's Main Street organizations boundaries as well. Currently, the businesses/services in this downtown district consist of government services (Chamber, Town offices, post office, police, library, personal services, food services (restaurants/cafes) and specialty stores. A few of the buildings in the downtown district are historic in nature.

Another commercial area is centered at the intersection of US 52 and CR S 600 W and stretches west to CR W 650 N. The commercial businesses and retailers are scattered and stretch mainly along the southern side of US 52.

Downtown Overview

In July of 2014, New Palestine was recognized as a Main Street organization through the Indiana Office of Community and Rural Affairs. Main Street organizations are a unique preservation-based organizing framework that enables communities to revitalize downtown and neighborhood business districts by leveraging local assets from historic, cultural, and architectural resources to local enterprises and community pride. It is a comprehensive strategy that addresses the variety of issues and problems that challenge traditional commercial districts. By using their four point approach of organization, promotion, design and economic restructuring, the New Palestine organization hopes to revitalize their original downtown.

New Palestine Main Street started out as the Chamber of Commerce Beautification Committee some 15 years previous. The New Palestine Main Street program area encompasses the area along US 52 from the creek on the east end of town to CR W 500 S.

Existing Conditions

Unfortunately, many historic buildings have been lost over the decades due some from neglect, but most were lost from fires. There are very few historic buildings left in the original downtown area which poses a challenge to the organization. Of the 28 historic structures (see Section 3 Community Profile - Historic Structures) inventory published in 1981, 4 structures have been demolished and only 5 structures are commercial buildings.

The New Palestine Main Street organization is in its beginning stages. Currently its duties are those items that the previous beautification committee oversaw such as landscaping along US 52 corridor, managing the banners on the streetlights and the annual car show held in conjunction with the 4th of July festival.

Industrial Use Overview

Industrial land uses in a community provide employment and contribute positively to the local tax base. These uses however do have the potential to promote transportation conflicts, pollution, and the reduction of aesthetic quality. Industrial land uses are commonly in conflict with other community uses as they can negatively affect residential and commercial quality. The traffic from adjacent commercial and/or residential uses often imposes on industrial vitality.

Existing Conditions

New Palestine is unique in that it has no industrial businesses. It also does not have an industrial zoning designation. It does however have a Heavy Business district zone designation in which manufacturing, fabricating, processing, extracting, repairing, dismantling, storing or disposing of equipment, raw materials, manufactured products or wastes which is conducted entirely within enclosed buildings of any size is allowable. There is only one parcel of land zoned for this use and is occupied by a self storage facility.

FUTURE ECONOMIC DEVELOPMENT

New Palestine is poised to embrace new economic development opportunities. The Chamber of Commerce, Economic Development commission, the Redevelopment Commission and the newly formed Main Street organization should be dedicated to the future growth and economic development of the community.

Communities must take advantage of local resources such as their location, physical setting, financial resources and citizens. This includes the readiness on the part of local banks, businesses, and private citizens to donate their time and money. A strong comprehensive planning effort must be implemented to guide growth and to improve the community. Local responsibility and problem solving are the foundations of long-term success.

As New Palestine will continue to grow as a "bedroom community" in the Indianapolis metro area, the community will still need some commercial and professional services growth for the general population. The local Chamber of Commerce has good communication with the Hancock County EDC and should continue to work with them as well as the local business owners to develop and retain a healthy economic atmosphere in New Palestine.

General

The Chamber of Commerce office in conjunction with the New Palestine Economic Development and Redevelopment Commissions would be wise to develop an economic development plan which will help the community:

   •   Identify the stakeholders and get them to participate in the planning process;

   •   Determine the community's current condition providing information on community setting, trends, issues and factors affecting economic development;

   •   Identify and map businesses that currently make up the economy;

   •   Define economic development options and document the analysis conducted in determining how to manage future economic development efforts;

   •   Identify community concerns and goals for economic development; and

   •   Develop policies that translate community concerns and goals into clear statement.

Commercial Use

As New Palestine continues to grow, it will attract more commercial opportunities in both retail and professional services. The survey results garnered needs for more services as seen below:

What type of service businesses would you like to have in New Palestine?
Answer Options	Response Percent	Response Count
Grocery (Kroger, Whole Foods, etc.)	26.4%	23
Gas station/Convenience store	19.5%	17
Exercise (YMCA, club, etc.)	17.2%	15
Dry cleaners	13.8%	12
Car wash	10.3%	9
Bakery	4.6%	4
Drug store	3.4%	3
Electronics	2.3%	2
Bank	1.1%	1
Automotive	1.1%	1
	Answered question	87

 

What type of retail businesses would you like to have in New Palestine?
Answer Options	Response Percent	Response Count
Clothing (Kohl's, JCPenney's, etc.)	24.3%	18
Big Box (Target, Walmart, etc.)	24.3%	18
Specialty/Boutique	21.6%	16
General	20.3%	15
Mall	6.8%	5
Household (Lowe's, Home Depot, etc.)	2.7%	2
	Answered question	74

 

What type of food businesses would you like to have in New Palestine?
Answer Options	Response Percent	Response Count
Sit down restaurant	61.4%	145
Specialty food	17.4%	41
Fast food restaurant	14.8%	35
Ethnic food	3.8%	9
Healthy food	2.5%	6
	Answered question	236

 

What type of professional services would you like to have in New Palestine?
Answer Options	Response Percent	Response Count
Doctor	40.4%	23
Medical facility (Drs. office, 24 Hr clinic, etc.)	24.6%	14
Therapist (Physical, Health, Occupational, etc.)	8.8%	5
Tech business	7.0%	4
Daycare	5.3%	3
Eye Care	3.5%	2
Legal	3.5%	2
Accounting	3.5%	2
Dentist	1.8%	1
Insurance	1.8%	1
	Answered question	57

 

Since New Palestine is a small "bedroom community" it is accepted that certain larger "big box" retailers would probably not locate in the community. These commercial facilities are already located in nearby locations (Greenfield, Indianapolis). What the community would like to see are more upscale retail and dining businesses to cater to the growing population.

The Hancock County Comprehensive Plan calls for commercial growth to occur along the US 52 corridor from New Palestine west to the county line. The Steering Committee determined that they would prefer any new commercial growth to stop at CR W 700 S instead and preferably be established on the north side between US 52 and the railroad corridor.

Downtown

As the New Palestine Main Street organization continues to grow, it would be pertinent to develop a Downtown Revitalization Plan. Grant monies can be procured from the Indiana Office of Community and Rural Affairs to undertake this study.

Such a plan can include such items as a profile of existing conditions, an extensive downtown market assessment, analysis and implementation plan, public participation, building inventory and analysis for facade improvements, historic preservation design standards, project options with design standards and cost estimates including a mix of grant funding opportunities, and an evaluation of funding opportunities.

Industrial Use

While there are currently no plans for any type of industrial development in the Town, it was agreed that in the future, it would be wise to revisit the discussion of the possibility of light industrial uses in the Sugar Creek township area. There is a light industrial zoned area to the east of the Town at the intersection of US 52 and CR W 300 S that has yet to be developed.

ECONOMIC DEVELOPMENT POLICY

Goal:

Provide sufficient planning and marketing that encourages growth and retention while retaining a balance between residential neighborhoods and commercial centers.

Objectives:

   •   Encourage commercial growth that attracts new retail and services to the community.

   •   Support local businesses encouraging growth and retention in the community.

   •   Encourage progressive technologies to serve the community.

   •   Enhance and expand the Main Street program.

   •   Continue partnerships with county and state economic development agencies to promote the retention, expansion and new development of business opportunities for the Town.

   •   Develop an Economic Development Plan to attract and guide future growth.