Cornerstone Alliance
38 W. Wall Steet, P.O. Box 428
Benton Harbor, MI 49023-0428
269.925.6100
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RESULTS OF STUDIES UNVEILED

Benton Harbor, MI— Monday, February 02, 2009— Cornerstone Alliance unveiled the results of two studies funded by USDA Rural Development at a media roundtable session held today. Both studies were commissioned to aid in the organization’s efforts to plan for the future based upon the expected demand generated by the Harbor Shores development.

Cornerstone Alliance is a partner along with Whirlpool Corporation, The Alliance for World-Class Communities, the Cities of Benton Harbor and St. Joseph, Benton Charter Township, Berrien County and the State of Michigan in a multi-million dollar 530 acre mixed-use development known as Harbor Shores. The Harbor Shores development is expected to exceed $400 million over the next twelve year period.

The studies were conducted at the request for the Harbor Shores Local Business Consortium (LBC), which is staffed by Cornerstone Alliance Small Business Services. The LBC is designed to be a forum for the inclusion of local businesses into the planning and development of Harbor Shores. The LBC targets opportunities for small businesses that are located within the communities impacted by the Harbor Shores development. A special emphasis is given to minority and women-owned business enterprises.

Cornerstone Alliance President Wendy Dant Chesser said, “We are pleased with the forward vision that both studies provides to our staff. It is our role to be the conduit between area businesses and the Harbor Shores project; both studies provide us with an excellent framework upon which to build.”

Incubator Feasibility Analysis
The objective of the first study is to determine the feasibility of the Berrien County region supporting the development of a financially self-sustainable mixed-use business incubator. The goal of the potential incubator would be to develop and commercialize new start-ups to leverage the region’s resources to diversify the economy, generate wealth and ultimately create a higher tax base throughout the region. The first study was conducted by Strategic Development Services.

Strategic Development Services President Chuck Stein said, “Business incubators are a proven, successful economic development tool. Currently, there are 1,200+ Incubators in U.S. They are designed to catalyze the process of commercializing new start-up businesses and provide tailored services. The purpose of this study was to determine if the community can support development of financially self-sustaining incubator.”

In reporting the results of his research, Stein shared “At this point in time, there is not enough entrepreneurial activity to sustain a business incubator that would reasonably be financially self-sustaining within the next three to five years. However, there are many steps the community can take to become ready for an incubator.”

He shared the following recommendations: develop an early-stage investment fund; plan for downtown location; implement a virtual incubation program; implement a marketing plan to encourage entrepreneurship; and promote entrepreneurship with area colleges and high schools.

Cornerstone Alliance Senior Vice President & Chief Operating Officer Greg Vaughn said, “We are very pleased to have the results of this study. As we are planning, allocating funds, and determining how to best move forward in the future, this helps guide us. We now know where we can enhance and grow some of our current programs for area entrepreneurs. This gives us a road map to take our entrepreneur efforts to the next level.”

“Cornerstone Alliance Small Business Services has found particularly in today’s tough economy, there are an increased number of entrepreneurs looking for assistance. We are proud to be able to provide financing opportunities through our Microloan Program, one-on-one counseling, classes to prepare entrepreneurs to be business owners, our Business Resource Center, the programs of the Women’s Business Center as well as a myriad of other resources. We are here to help entrepreneurs turn their dreams of owning and operating a successful business into a reality,” added Vaughn.

Economic Impact
The goal of the second study was to create a small business economic impact development strategy focused on leveraging Harbor Shores to foster and promote economic development in the Benton Harbor area. Projections of prospective new retail spending that would be generated by Harbor Shores were also calculated. The second study was conducted by Development Strategies, Inc.

Development Strategies Principal Robert Lewis shared that early in the firm’s research it was easy to see the momentum for considerable change that has been building in the community for sometime now. He said, “As we interviewed area businesses, you could feel the enthusiasm for the efforts to dramatically improve the quality of life in the city. The potential development of the Harbor Shores project presents the area with an incredible opportunity to continue to create positive community change.”

“The potential development of Harbor Shores will increase local spending by attracting more visitors to Benton Harbor and by increasing the local tax base. Harbor Shores will also create opportunities for entrepreneurs to open a variety of business types in Downtown Benton Harbor to serve the new population, recreational visitors, and existing residents. Thus, a focused strategic framework is necessary to effectively position Downtown Benton Harbor to attract businesses, create and sustain vibrancy, and to prepare the workforce to take advantage of new opportunities,” added Lewis.

Development Strategies Senior Analyst Andrew Pfister shared the results of the SWOT (strengths, weaknesses, opportunities, and threats) analysis related to economic development in Benton Harbor:
1. Benton Harbor is located in a dynamic region known for its fruit production, recreational opportunities along the Lake Michigan shoreline, and a cooperative governmental environment.
2. The local business community is committed to improving Benton Harbor and empowering its citizens.
3. Harbor Shores has already attracted investment interest even though not one component is completed.
4. A cooperative and comprehensive organizational framework is already in place to help train the local workforce and create economic development.

Pfister said, “Based upon our research, we see Harbor Shores as having a huge potential impact on the community. Assuming that about half of the homes in Harbor Shores will be occupied by permanent (year-round) residents and the other half by seasonal or weekend residents, about $14.5 million to $22.0 million in new retail expenditures can be expected in the Benton Harbor area. This translates into up to 72,000 square feet of retail space, an amount that would fill most of the storefronts in downtown.”
He added, “All of our research has led to the development of several strategies aimed at helping local governments, Cornerstone Alliance, and local citizens maximize the local benefit of Harbor Shores in the form of workforce development and business creation and attraction.”

Following are the six goals outlined in the strategic plan.

Benton Harbor Goal Statements
GOAL 1: By 2025, Benton Harbor residents will achieve labor force characteristics that are at least equivalent to averages for the state of Michigan, including educational attainment and employment rates.
GOAL 2: By 2019, Downtown Benton Harbor will be known for its dynamic and diversified activities, cleanliness, attractive new and historic buildings, engaging street-level visual effects (windows, architecture, sculpture, fountains, etc.), and well-maintained landscaping.
GOAL 3: By 2019, Downtown Benton Harbor will achieve stable occupancy of downtown buildings, existing and to-be-constructed, for a wide range of purposes including commercial activity and residential housing.
GOAL 4: By 2014, Downtown Benton Harbor will have an exemplary way-finding and parking network for multiple modes of movement including automobiles, other motorized vehicles, bicycles, pedestrians, the disabled, and other means of transportation.
GOAL 5: By 2019, Downtown Benton Harbor will be one of the principal attractions for visitors to Southwest Michigan, complimenting other destinations.
GOAL 6: By 2014, Downtown Benton Harbor will be managed in a coordinated, business-like manner, representing all downtown interests, in order to achieve competitive status with other business centers in Southwest Michigan.


About Cornerstone Alliance and Small Business Services
Cornerstone Alliance is a non-profit, investor-driven, community and economic development organization focusing on tax and job base creation, with an emphasis on socially and economically distressed areas, facilitating change through partnerships within the communities comprised of the cities of Benton Harbor and St. Joseph, Benton Charter Township, St. Joseph Charter Township, Lincoln Charter Township and Royalton Township.

Cornerstone Alliance Small Business Services offers programs that provide business training, business planning and technical assistance, as well as a Women Business Center and SBA Microloans for small businesses in Berrien, Cass, and Van Buren counties. Cornerstone Alliance is an equal opportunity employer and provider.
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