Comprehensive Economic Development Strategy

COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY

WESTERN UPPER PENINSULA, MI ECONOMIC DEVELOPMENT DISTRICT PLANNING & DEVELOPMENT REGION 13

2017-2022

Table of Contents

Chapter Page 1. Introduction 1 2. Background 3 3. Regional Profile 8 4. Infrastructure, Facilities, and Services 34 5. The Economy 51 6. Planning/Economic Development Network 64 7. Issue Identification 68 8. Goals and Objectives 71 9. Implementation Plan 74 Chapter 1| Introduction

PURPOSE

The Western Upper Peninsula Planning and Development Region Commission (WUPPDR or “Western Region” ) has served as an Economic Development District under the United States Economic Development Administration (EDA) since 1970. Since then, WUPPDR has worked closely with EDA to monitor and plan economic development initiatives. A comprehensive economic development strategy, or CEDS, serves as one of our region’s primary economic development plans (supplemented by the Regional Prosperity Plan described later in this document). EDA, in its 2015 Content Guidelines, describes the CEDS as follows:

Simply put, a CEDS is a strategy-driven plan for regional economic development. A CEDS is the result of a regionally owned planning process designed to build capacity and guide the economic prosperity and resiliency of an area or region. It is a key component in establishing and maintaining a robust economic ecosystem by helping to build regional capacity (through hard and soft infrastructure) that contributes to individual, firm, and community success. The CEDS provides a vehicle for individuals, organizations, local governments, institutes of learning, and private industry to engage in a meaningful conversation and debate about what capacity building efforts would best serve economic development in the region. The CEDS should take into account and, where appropriate, integrate or leverage other regional planning efforts, including the use of other available federal funds, private sector resources, and state support which can advance a region's CEDS goals and objectives.

Initially created as a planning document for EDA-funded projects, the CEDS has since evolved into a multi-purpose and comprehensive planning tool. Along with its original purpose, the CEDS is used as a reference in developing projects across many of WUPPDR’s program areas. THE CEDS PROCESS

The CEDS is prepared by WUPPDR staff based on planning and input from the CEDS Committee under oversight of the WUPPDR Commission. For this update, the WUPPDR Commission designated the Western Upper Peninsula (U.P.) Regional Prosperity Collaborative, discussed in later chapters, as the CEDS Committee. WUPPDR staff drafted the CEDS background relying on existing information and data that have become available since the previous CEDS update. Later chapters, beginning with the SWOT analysis, were based largely on committee input. The CEDS draft was released for a 30-day public review period on March 17, 2017, posted on the WUPPDR website, and publicized through social and traditional media. The final CEDS was adopted by the WUPPDR Commission on April 17 with amendments to address feedback received and necessary updates identified during review.

Major updates to the CEDS are completed every five years, with annual performance updates in the intermediate years. The five-year CEDS and its annual updates include a list of potential projects submitted by municipalities and engineering firms. The five-year CEDS and annual updates are available on WUPPDR’s website at http://www.wuppdr.org . ECONOMIC DEVELOPMENT ACCOMPLISHMENTS

In the last 13 years, WUPPDR has collaborated with area municipalities, organizations and universities on the development of several EDA- and Michigan Economic Development Corporation (MEDC)-funded planning and construction projects in the region. Some highlights include:

1 Chapter 1| Introduction

2004 : WUPPDR facilitated an $800,000 EDA grant to renovate three floors of the Jutila Center for Global Design and Business in Hancock (previously the Portage View Hospital). The Jutila Center, part of the campus of Finlandia University in Hancock, houses classrooms, studios, and a business incubator along with a Michigan Tech Enterprise Corporation (MTEC) SmartZone incubator. Both provide vibrant work spaces and operating support to new and emerging businesses. This renovation was made successful through an innovative plan to combine high-tech business with art and design.

2005: WUPPDR authored an EDA grant for $1 million to assist Michigan Technological University (Michigan Tech) in constructing its Advanced Technology Development Complex (ATDC) in Houghton. The ATDC provides space for high-tech business start-ups, prototyping, research, testing laboratories, and conference space, in addition to business support services offered through Michigan Tech’s Corporate Services and MTEC SmartZone.

2007 : MEDC funded $1 million to renovate MTEC SmartZone’s Powerhouse facility in Houghton with WUPPDR authoring and administering the grant. The Powerhouse incubator renovation tripled the square footage with the creation of two new floors. Subsequently the building has housed satellite operations of various large companies.

2008 : The largest EDA grant WUPPDR has applied for and administered was $3.2 million to benefit the City of Houghton, Michigan Tech, and SmartZone. The project provided complete refurbishment of the three-story former Upper Peninsula Power Company building now named the Lakeshore Center. The building houses university offices and is MTEC SmartZone’s flagship facility providing high -tech office and laboratory spaces for several established businesses and new start-ups. WUPPDR secured $500,000 from MEDC allowing MTEC SmartZone to lease the first floor of the Lakeshore Center for 20 years. This wa s EDA’s first LEED -certified building funded by the Global Climate Change Mitigation Incentive Fund.

2012 : EDA provided $35,000 for Baraga County for development of an economic development strategy. Entitled "Go! Baraga County," the strategy identified several opportunities for new or expanded industries to improve and diversify the county's economy. One of these was to supply infrastructure to an industrial park later funded by EDA. In 2009, in the depths of the Great Recession, Baraga County at one time had the highest county unemployment rate in the nation.

2014: WUPPDR assisted the Village of L'Anse in Baraga County in securing $1.3 million dollars toward expansion of sewer and road infrastructure to serve the mostly undeveloped Lambert Road Industrial Park. Industrial park space with a lease-to-own option is highly in demand in the county. Though construction has been delayed by environmental factors, it is still expected to be completed.

2016 : WUPPDR assisted Keweenaw County in obtaining $20,000 from MEDC and $25,000 from EDA toward a commercial appraisal and Best Use Study for the beleaguered Keweenaw Mountain Lodge resort and conference facility located near the northern tip of the Keweenaw Peninsula.

In addition to these economic development projects, WUPPDR also runs a variety of programs which provide broad support to the region. Some other areas of work include transportation planning, housing rehabilitation, master/comprehensive planning, recreation planning, asset management, emergency management, and geographic information systems (GIS) services.

Over the next five years, WUPPDR looks forward to continued collaborative support from its funding partners to create economic development and regional support opportunities in the Western U.P. More details on current and future projects can be found in Chapter 9: Implementation Plan .

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REGIONAL PLANNING ORGANIZATIONS

A regional planning organization is a multi-service entity with State and locally-defined boundaries that delivers a variety of Federal, State, and local programs, and acts as a technical assistance provider and “visionary” to its member local governments. As such, they are accountable to local units of government and are effective partners for State and Federal governments.

Regional planning organizations (regions) in Michigan were first conceived in the 1960s with the perspective that local governments must work together regionally to provide important services to their communities, including comprehensive and transportation planning, economic development, workforce development, the environment, services for the elderly, and clearinghouse functions. Most of the 14 planning regions in Michigan are also EDA economic development districts. In this capacity and others, the three regions of the Upper Peninsula —regions 11, 12, and 13 —often work beyond their boundaries to provide cross-regional opportunities for development.

Planning at the regional level is different from the municipal, township, or county levels. Regional planners respond to region-wide problems in a single integrated area, but they usually report back to a variety of governments rather than to just one. Since they are not usually responsible to a single unit of government, regional planning organizations encourage independent governments to act in concert if regional objectives are to be attained.

With all governments facing budget reductions, the importance of regionalism and collaboration is becoming apparent in order to provide programs and services to a larger geographic boundary. Regional organizations would benefit from more stable financial resources, along with more consistent support from a wide variety of Federal aid programs and strong support from and linkage to State governments.

Regional problems and needs occur everywhere, and regional planning and regional organizations are likely to become even more important and more effective in the decades ahead. WUPPDR's Organization and Management

WUPPDR was first formed as the Western Upper Peninsula Economic Development District (EDD) under the auspices of the Michigan Department of Commerce and the EDA. The organization was constituted in 1968 through Michigan Public Act 46, the County or Regional Economic Development Act of 1966, and Michigan Public Act 281, the Regional Planning Act of 1945. In 1970, the organization changed its name to Western Upper Peninsula Planning and Development Region Commission and reconstituted itself to operate under sole authority of Public Act 281, to which it still adheres today. WUPPDR's mission is to foster stable and diversified economies in the Western Upper Peninsula.

Executive Directive No. 1968-1 established official and uniform Planning and Development Regions to be used by principal departments, agencies and instrumentalities of State government. The overall objective of this action was to better coordinate State programs with one another and with Federal, regional, local, and private-sector programs. Other Executive Directives reaffirmed the precepts of No. 1968-1 and modified the regional configurations that would best facilitate continued progress toward its objectives. The six counties of WUPPDR conformed to the sub-state regional boundaries established b y the Governor and became Planning Region 13. See Map 2-I.

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Map 2-I: Michigan Planning Regions

Governance

The regional planning commission’s membership is composed of organizations who are primarily minor civil divisions of local government. Currently these members include the counties of Baraga, Gogebic, Houghton, Iron, Keweenaw and Ontonagon; the cities of Hancock and Houghton; the Village of Ontonagon; and the charter townships of Calumet and Portage.

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WUPPDR's governing body is an approximately 30-member commission composed mainly of public elected officials. Commissioners are appointed to the WUPPDR Commission by participating members and represent a diverse group of public and private interests. The full Commission meets quarterly.

The officers of the Commission are elected every two years. Each of five counties is represented by one officer. The five officers, plus one representative of a sixth county that rotates each year as not being represented by an officer, comprise the Executive Committee. The Executive Committee acts in lieu of the Full Commission in interim months several times a year. The current members (2017) are as follows:

. Sandra Gayk, Keweenaw County – Chair . Jim Oliver, Gogebic County – Treasurer . Albert Koskela, Houghton County – 1 st Vice Chair . Patti Peretto, Iron County – Secretary . David Nykanen, Ontonagon County – 2 nd Vice . Mike Koskinen, Baraga County – Member Chair

Michigan's Regional Prosperity Initiative

In 2013 the State of Michigan began the Regional Prosperity Initiative (RPI), a grant program to build and improve collaboration among a wide range of organizations within regions throughout the state. RPI made funding available, on a voluntary competitive basis, to planning regions and metropolitan planning organizations "to encourage local private, public and non-profit partners to create vibrant regional economies." This included a planning and stakeholder engagement process with regular meetings to include, at minimum, representatives of the following focus areas: economic, workforce, and later community development; adult and higher education; and transportation. Another major goal of RPI at the state level was to align disparate service areas of state agencies.

RPI funding was available at three tiers: 1) regional prosperity collaborative , which required development of a regional prosperity plan (RPP) with a "5-year economic development blueprint"; 2) regional prosperity council , which was to develop a 10-year blueprint and identify opportunities for shared administrative services and decision-making among participating entities; and 3) regional prosperity board , which was to consolidate various boards along with federal economic development district(s) (thus highly relevant to EDA) and to develop a report examining state-funded services and programs and potential state-regional partnerships. The tiers had progressively higher levels of funding and organizational structure.

For purposes of RPI, the 14 state designated planning regions were re-designated, and in some areas realigned and/or combined, into 10 prosperity regions. See Map 2-II . The 3 planning regions of the Upper Peninsula were designated the "Upper Peninsula Prosperity Alliance," composed of regions 1a (west), 1b (central), and 1c (east), which remained separate for service delivery and funding eligibility purposes. (Service delivery areas were similarly designated within two of the Lower Peninsula prosperity regions.) In 2014, all planning regions were funded at the collaborative level except for one region in the Lower Peninsula that was awarded as a regional prosperity board.

RPI entered its second year in 2015. Most regions were again funded at tier 1 (collaborative) level, the exceptions being Central Upper Peninsula Planning and Development (region 1b), which was funded as a council, and the single Lower Peninsula board. Funding in 2015 was used primarily to implement projects identified in the individual regional prosperity plans. Implementation continued in 2016 and now 2017, and guidelines for attaining each tier level changed.

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RPI has produced positive outcomes throughout the state. The program has become a major focus of activity and funding in the state's planning regions. In some regions, the RPI process has been directly connected with EDA planning, including the plans and strategy documents themselves; thus, RPI is an essential consideration in this CEDS.

Operations and Finances Figure 2-I: Funding Sources Currently a staff of five full- and part-time Other TA/Local , $21,342 , 5% persons, supplemented by occasional MEDC , $11,220 , 3% interns, assists the WUPPDR Commission Member in management of its business and Dues , $52,956 , program implementation. MSHDA , $61,936 , 11% 13% EDA , In 2017, WUPPDR's budget is $85,000 , approximately $464,000. Grants and 18% programs provide 84.3% of revenues, membership dues 11.4%, and technical MI RPI , assistance (TA) programs 4.3%. Revenues $130,000 , are shown in these categories, and 28% MDOT , $101,867 , separately categorized by funding sources, 22% in Figure 2-I . From time to time WUPPDR calculates a return on investment for its members, demonstrating the revenues returned for every dollar provided through membership dues. From 2010 through 2015, WUPPDR returned $39.44 in revenues for every dollar contributed by member governments.

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Map 2-II: Michigan Prosperity Regions

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AREA AND BOUNDARIES

The Western Region is bounded to the north and west by Lake Superior. The southern boundary is formed by the Montreal River, the Michigan-Wisconsin boundary line, and the Brule and Menominee Rivers. The east side of the region is defined by the eastern boundaries of Baraga and Iron counties. The region also includes the Isle Royale archipelago located approximately 40 miles northwest of the mainland.

The region contains Michigan's counties with the smallest population (Keweenaw) and lowest population density (Ontonagon, which also has the third-largest land area). Five of the counties in the region (the exception being Iron) border Lake Superior and thus have relatively high percentages of water area in their jurisdictions. Keweenaw and Ontonagon counties both have larger water areas than land areas. Table 3-I shows the land and water areas of each county and the region as a whole.

Table 3-I: Land and Water Areas by County Square Miles Acres County Land Water Total Land Baraga 898 171 1,069 574,720 Gogebic 1,102 374 1,476 705,280 Houghton 1,009 492 1,501 645,760 Iron 1,166 45 1,211 746,240 Keweenaw 540 5,426 5,966 345,600 Ontonagon 1,311 2,430 3,741 839,040 TOTALS 6,026 8,938 14,964 3,856,640

MINOR CIVIL DIVISIONS

There are 73 minor civil divisions within the Western Upper Peninsula, most of which are shown in Map 3-I (villages were omitted for clarity). Besides the six counties, which include Baraga, Gogebic, Houghton, Iron, Keweenaw, and Ontonagon, there are 48 townships, 10 incorporated villages and nine incorporated cities. Two of the cities—Houghton and Hancock—are the core of a Census-designated micropolitan statistical area comprised of Houghton and Keweenaw counties. The other cities are generally distributed over the southern corners of the region. Three Indian reservations and a number of Census-designated places (CDPs) also exist. STATE AND FEDERAL DESIGNATIONS

Besides the corporate and other municipal civil divisions outlined above, the Western Region contains a large number of State- and Federal-designated sites, routes, facilities, and other subdivisions. Some are preserved for public access, recreation, or environmental quality; others are utilized for promotion of tourism; and still others are set aside for targeted economic development. Federal designations also include the Indian reservations, which are defined as domestic dependent sovereign nations within the United States, and North American Free Trade Agreement (NAFTA) Distressed Areas, which receive economic revitalization benefits. Tables 3-II and 3-III and Maps 3-II and 3-III display the major State and Federal designations in our region, including designations significant to recreation, forestry, economy, and transportation.

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Map 3-I: Civil Divisions in the Western U.P.

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Table 3-II: State Designations in the Western U.P. Designator Designation Name County Notes Department of Underwater Keweenaw Great Lakes Houghton, A 243 square mile area of Lake Environmental Preserve Superior bottomland designated as Bottomland Preserve Keweenaw Quality Program an area of significance for divers. Agate Falls Scenic Site Ontonagon Facilities: Hiking, Picnic Area Baraga State Park Baraga See also: michigan.gov/baraga Bewabic State Park Iron See also: michigan.gov/bewabic Bond Falls Scenic Site Ontonagon See also: michigan.gov/bondfalls Craig Lake State Park Baraga See also: michigan.gov/craiglake State Parks Fort Wilkins State Park Keweenaw See also: michigan.gov/ftwilkins Lake Gogebic State Park Gogebic See also: michigan.gov/lakegogebic McLain State Park Houghton See also: michigan.gov/mclain Porcupine Mountains Ontonagon, See also: michigan.gov/porkies Wilderness State Park Gogebic Twin Lakes State Park Houghton See also: michigan.gov/twinlakes Baraga State Forest Baraga Department of State Forests Copper Country State Forest Baraga See Map 3-II for locations. Natural Keweenaw Point State Forest Keweenaw Resources Beaufort Lake Baraga All MI State forest campgrounds are Big Lake Baraga located on a river or lake, providing State Forest Deer Lake Iron excellent access to fishing, boating Campgrounds Emily Lake Houghton and canoeing. Other recreation Big Eric’s Bridge Baraga opportunities include picnicking, Glidden Lake Iron mushroom gathering, berry picking, cross country skiing and hunting. King Lake Baraga State Forest Path Lake Mary Plains Iron Iron Belle Trail (Bicycle Mainly concurrent with U.S. Highway/ Gogebic, Iron Route) Bicycle Route 2 State Trails Baraga, Gogebic Iron Belle Trail (Hiking Route) Houghton, Concurrent with North Country Trail Ontonagon Copper Country Trail Houghton, Pure Michigan National Scenic Byway Keweenaw Byways Iron County Heritage Trail Iron Department of Baraga, Gogebic, Transportation Marinas and Harbors and Harbors of Houghton, See Map 3-II for locations. Harbors Refuge Keweenaw, Ontonagon City of Bessemer Gogebic City of Ironwood Gogebic Core Communities designations City of Wakefield Gogebic provide communities with three Core City of Houghton Houghton economic development tools: Brownfield Redevelopment Communities City of Caspian Iron Incentives; Neighborhood Enterprise Michigan City of Crystal Falls Iron Zones; and Obsolete Property Economic City of Gaastra Iron Rehabilitation Exemptions. Development City of Iron River Iron Corporation Village of Ahmeek Keweenaw Low-Moderate Income Community Low- and Village of Baraga Baraga designation is a requirement for Moderate- City of Bessemer Gogebic community development block grant Income Village of Calumet Houghton (CDBG) programs that fund projects Communities City of Houghton Houghton based on the low-moderate income City of Ironwood Gogebic National Objective.

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Map 3-II: State Designations in the Western U.P.

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Table 3-III: Federal Designations in the Western U.P. Designator Designation Title County Notes Sturgeon River Baraga, Houghton National Wild Yellow Dog River Baraga, Marquette See Map 3-III for locations; and Black River Gogebic additional information is available Scenic Rivers at www.rivers.gov/michigan.php System Presque Isle River Gogebic, Ontonagon Congressional Paint River Iron Designation McCormick Baraga, Marquette National Wilderness Established by National Wilderness Wilderness Act in 1964 to Sturgeon River Gorge Preservation Baraga, Houghton preserve Federally managed land Wilderness System areas in their natural condition. Sylvania Wilderness Gogebic Baraga, Gogebic, Composed of 981,000 acres, US National Ottawa National Houghton, Iron, which cover 63% of total forested Forest Forest Department Ontonagon, Marquette land within forest boundaries. of Agriculture In cooperation with Federal National Forest Black River Scenic Gogebic Highway Administration’s Byway Scenic Byway Byway Program. Keweenaw Bay Indian Baraga and Ontonagon Indian Community See Map 3-I: Civil Divisions in the Reservations Lac Vieux Desert Western Upper Peninsula Gogebic Reservation The Park is comprised of two Keweenaw National units, located in Calumet and Houghton Historical Park north of Hancock (Quincy Mine Hoist Association site). Department Includes 132,018 acres of above- of Interior National Park water land; total boundary area is 571,790 acres. Park is also Isle Royale Keweenaw designated as a Biosphere Reserve National Park by the United Nations Educational, Scientific, and Cultural Organization (UNESCO). The North Country Trail runs National Scenic Baraga, Gogebic, through seven tates and links North Country Trail Trail Houghton, Ontonagon 4,600 miles of scenic, natural, historic and cultural areas.

HISTORIC FEATURES

The National Register of Historic Places (NRHP) is the official list of the nation’s historic places worthy of preservation. Authorized by the National Historic Preservation Act of 1966, this Federal program supports efforts to identify, evaluate, and protect America’s historic and archaeological resources. Historic Districts allow communities and property owners to take advantage of tax-credits and grants and allow for historic design guidelines and ordinances. Thirty-two sites in the Western Region listed by the United States Department of the Interior (USDI) on the NRHP are inventoried in Table 3-IV below.

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Map 3-III: Federal Designations in the Western U.P.

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Table 3-IV: Federal Historic Designations in the Western U.P. Name of District or Establishment County Assinins Baraga Herman and Anna Hanka Farm Big Traverse Bay Historic District Calumet and Hecla Industrial District Calumet Downtown Historic District Calumet Historic District East Hancock Neighborhood Historic District Lake Linden Historic District Houghton Laurium Historic District Painesdale Historic District Quincy Mining Company Historic District Quincy Mining Company Stamp Mills Historic District Quincy Street Historic District Shelden Avenue Historic District Alpha Public Building and Historic Complex Amasa Historic Business District Courthouse Residential Historic District Falls Location Historic District James Mine Historic District Mansfield Mine Location Historic District Iron Park City Historic District Triangle Ranch Headquarter Historic District Van Ornum’s Addition Historic District Van Platen-Fox Lumber Camp Historic District Hiawatha Mine Number One Complex Camp Gibbs Central Mine Historic District Eagle River Historic District Fort Wilkins Keweenaw Johns Hotel Keweenaw Mountain Lodge Minong Mine Historic District Ontonagon Harbor Piers and Historic District Ontonagon Designator: USDI (NRHP)

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POPULATION PROFILE AND TRENDS The Region’s Population History

The beginning of the nineteenth century introduced an ever increasing interest in the copper region of Lake Superior that culminated, shortly after mid-century, in the establishment of one of the greatest mining areas of the world. The territory we know as the Western Upper Peninsula of Michigan was inhabited in the early 1800s by Native Americans, primarily of the Ojibwa nation. There were also a few non-native Americans and some Europeans. These were trappers, traders, fishermen, and missionaries. Settlement of the territory did not begin, however, until the United States Government negotiated a treaty with the Ojibwa during 1842, at which they ceded their lands in the Western Upper Peninsula to the United States. The treaty helped prepare the way for opening up that part of the territory which would become known as the Lake Superior Copper District.

As the copper and tin mines in Cornwall, England fell on hard times, the Cornish miners quickly homed in on the promising reports from the northern tip of Michigan. A serious migration of Cornishmen began in the mid-1840s. In the second half of the 19th century, Finnish immigrants came to the region. Excessive tax burdens, elusive land titles, and opposition to new religious teachings joined forces with poor soil and growing seasons in their native land to stir their migratory spirits. These two groups were augmented with French Canadians, Irish and Scandinavians, again lured by the logging and mining opportunities. These were followed by Italians, Germans, Poles, Slovenians, Croats, and Scots, among others.

The population grew slowly until after the Civil War in 1865, when the region’s natural resources of copper, timber, and iron ore helped support the nation’s rapid industrialization and westward expansion. The exploitation of these resources required large labor inputs which in turn offered an opportunity to earn a livelihood. This population was composed of Americans, of course, but it also had many ethnic groups from Europe, recruited specifically to fill a manpower shortage.

The region’s population zenith was reached in 1920 and thereafter declined with each decennial census until 1970, after closure of almost all remaining mines in the 1960s. A small recovery occurred from 1970 to 1980, with a population increase of 2.0%. Thereafter, despite a regional increase of 261 in the 1990s, regional population has continued long-term decline to the year 2010. The region's population declined 46.2% from 1920 to 2010 but only 15.1% from 1960 to 2010. Thus, even though there has been a perception of severe population loss over the past few decades, losses since 1960 pale in comparison to the net loss since 1920. The regional population trend based on the Decennial Census is illustrated in Figure 3-I. In 2010, the Western U.P. accounted for under 1% of Michigan's population.

Data in the early years of Figure 3-I are influenced by two factors that warrant explanation: changes in boundaries and in Census methodology. First, in 1843 the Michigan Legislature divided the Upper Peninsula into six counties: Chippewa, Delta, Mackinac, Marquette, Ontonagon, and Schoolcraft. These original counties were subdivided by the Legislature over the years, ultimately resulting in the current 15 Upper Peninsula counties. It wasn’t until the 1880-1890 period that territorial adjustments to these counties ceased and the boundaries remained as they are found today. Second, it was not until 1860 that the Federal government counted Native Americans in the decennial census, and even then, Indians were counted only if they had left their reservations. The 1890 census was the first attempt to obtain a complete census of Native Americans throughout the country.

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Figure 3-I: Historical Population Patterns of Western U.P.

180,000 153,674 160,000 140,000 120,000

100,000 82,668 80,000

Population 60,000 40,000

20,000 1,907 0 1850 1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

Within the region, the Western U.P. counties have not uniformly partaken in the long-term population loss. Figure 3-II illustrates each county's population each 10 years from 1960 to 2010. Three counties have seen severe declines over this period: Gogebic, Iron, and Ontonagon. Keweenaw's long-term change has been minimal. Houghton and Baraga counties increased, the latter probably owing to construction of the major Baraga Correctional Facility in 1993. A correctional facility was also constructed in Gogebic County in 1971, but it is difficult to gauge what impact this may have had on the population trend at the time.

Figure 3-II: Population by County, 1960-2010 40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0 Baraga Gogebic Houghton Iron Keweenaw Ontonagon

1960 1970 1980 1990 2000 2010

Table 3-V includes total Decennial Census population figures for 1960, 1990, 2000, and 2010, along with American Community Survey (ACS) figures for 2010 and 2015, for each county. ACS 2010 figures are included to allow comparison with ACS 2015 figures, since Decennials Census and ACS data are collected in different ways, the former being an actual count and the latter based on samples.

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Table 3-V: Population by County, 1960-2015 U.S. Census (Decennial) ACS (5-Year Estimates) 1960- 2010- County 1960 1990 2000 2010 2010 2010 2015 2015 Change Change Baraga 7,151 7,954 8,746 8,860 23.9% 8,882 8,690 -2.2% Gogebic 24,370 18,052 17,370 16,427 -32.6% 16,471 15,824 -3.9% Houghton 35,654 35,446 36,016 36,628 2.7% 36,192 36,660 1.3% Iron 17,184 13,175 13,138 11,817 -31.2% 12,057 11,507 -4.6% Keweenaw 2,417 1,701 2,301 2,156 -10.8% 2,122 2,198 3.6% Ontonagon 10,584 8,854 7,818 6,780 -35.9% 6,976 6,298 -9.7% TOTALS 97,360 85,182 85,389 82,668 -15.1% 82,700 81,177 -1.8%

Gogebic, Iron, and Ontonagon counties each lost over 30 percent of population from 1960 to 2010 amid a region-wide loss of 15.1%. Total population of the region was somewhat stable from 1990 to 2000 but again substantially declined from 2000 to 2010. Population decline continued over the following five years, with Houghton County the only one to gain population from 2010 to 2015. During this period the region-wide population loss was 1.8%.

The current population projections available for Michigan were developed for the period 2010-2045 by MDOT and University of Michigan. The numbers from 2010 to 2015 do not align with other population figures used in this document, so they must be viewed as general guidelines rather than a confirmed- accurate basis for decision-making.

With those caveats, Table 3-VI shows population projections for counties in the region to the year 2045. The numbers suggest three decades of little long-term population change at the regional level. However, as with other statistics in this document, trends vary drastically across the region. Ontonagon County is expected to lose nearly one-quarter of its estimated 2017 population, continuing its current trend. Gogebic County is projected to see moderate loss, Baraga and Houghton moderate growth, and the remaining two counties relatively stable.

Table 3-VI: Population Projections, 2017-2045 County 2017 2020 2025 2030 2035 2040 2045 Change Baraga 8,454 8,374 8,407 8,569 8,766 8,918 9,006 552 6.5% Gogebic 15,048 14,659 14,368 14,257 14,166 14,006 13,741 -1,307 -8.7% Houghton 36,258 36,244 36,473 36,787 37,252 38,031 39,123 2,865 7.9% Iron 11,356 11,380 11,496 11,619 11,630 11,469 11,202 -154 -1.4% Keweenaw 2,136 2,115 2,112 2,104 2,084 2,076 2,079 -57 -2.7% Ontonagon 5,763 5,487 5,173 4,954 4,800 4,633 4,440 -1,323 -23.0% TOTALS 79,015 78,259 78,029 78,290 78,698 79,133 79,591 576 0.7% SOURCE: MDOT & University of Mich. Institute for Research on Labor, Employment, and the Economy

Demographic Indicators Age Structure The aging of the Western U.P.'s population is a key factor in the region's population decline. Aging is also in some ways a result of the population decline, as young people continue to leave the region in disproportionate numbers.

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Figure 3-III shows the median age trend for each county and the State. The median age of each county other than Houghton has increased almost every decade from 1970 to 2010 and again to 2015. Based on ACS, In Houghton County, where students make up a large percentage of the population, the median age in 2015 is 32.8 years – well below the State median age of 39.5. The median age in every other county in the region is much higher than the state's. Ontonagon County's median age is 55.6 years, and two-thirds (66.9%) of residents there are 45 years or older; 30.6% are 65 or older. Region-wide 20.6% of residents are 65 or older; statewide this figure is 15.0%. Such disparities are important to consider in ongoing evaluation of regional needs and services.

Figure 3-III: Median Age by County, 1970-2015 60

20 Median Years Median Years Age in

0 Baraga Gogebic Houghton Iron Keweenaw Ontonagon State of Michigan

1970 1980 1990 2000 2010 2015 (ACS)

Racial Composition The region's population is overwhelmingly White. Among persons of one race, White persons account for 91.7% of the region's total population, Black or African American 3.3%, and American Indian & Alaska Native 1.3%. The largest minority population is in Baraga County, where 18.5% of the total population is composed of Black or African American persons of one race and 4.5% is composed of American Indian & Alaska Native persons of one race. The second-largest minority population is in Gogebic County, where those two racial groups account for 4.6% and 2.4% respectively. The largest population of minorities of other races is in Houghton County, where 2.9% of the population is composed of Asian persons of one race. The smallest minority population is in Keweenaw County, where 98.4% of the population is composed of White persons of one race. Hispanic or Latino persons of any race account for 1% of the region's population.

Table 3-VI shows the racial composition of the region and its counties in comparison to Michigan and the United States, both of which have much larger minority populations.

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Table 3-VII: Racial Composition (%) by County, 2015

Race Iron U.S. Baraga Region Gogebic Michigan Houghton Keweenaw Ontonagon One Race 97.5 98.5 98.0 98.4 99.9 98.5 98.2 97.4 97.0 White 73.8 90.9 93.6 96.6 98.4 96.3 91.7 79.0 73.6 Black or African American 18.5 4.6 0.7 0.5 0.9 0.3 3.3 14.0 12.6 American Indian & Alaska Native 4.5 2.4 0.4 0.7 0.5 1.1 1.3 0.5 0.8 Asian 0.6 0.5 2.9 0.4 0.1 0.5 1.6 2.7 5.1 Native Hawaiian & Other Pacific Islander 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.2 Some Other Race 0.1 0.1 0.2 0.3 0.0 0.4 0.2 1.1 4.7 Two or More Races (White + race indicated) 2.5 1.5 2.0 1.6 0.1 1.5 1.8 2.6 3.0 White + Black or African American 0.4 0.1 0.4 0.3 0.0 0.2 0.3 0.9 0.8 White + American Indian & Alaska Native 1.5 0.9 0.8 1.0 0.1 1.0 0.9 0.6 0.6 White + Asian 0.1 0.1 0.4 0.1 0.0 0.0 0.2 0.4 0.6 All Others 0.5 0.3 0.4 0.2 0.0 0.2 0.4 0.7 1.0 Hispanic or Latino (of any race) 1.0 0.9 1.1 1.4 0.7 0.9 1.0 4.4 16.3 Not Hispanic or Latino 99.0 99.1 98.9 98.6 99.3 99.1 99.0 95.6 83.7 SOURCE: ACS 5-Year Estimates NOTES: All subheadings are percentages of the total population, not that of the higher-level headings. Due to rounding, percentages may not equal 100% where expected.

Educational Attainment The region generally has a lower level of educational attainment among persons 25 years and older than does the state, with notable exceptions:

 The region has a slightly smaller percentage of people with less than a high school education than the State (9.2% versus 10.4% respectively).  Houghton County has a higher level of educational attainment than the State, with 31% of residents having at least a bachelor's degree compared to the State's 27% and 11.8% having a graduate or professional degree versus the State's 10.5%, and 19.2%.  Keweenaw County has approximately the same percentage of people with at least an associate's degree as the State (about 36%). (This is not true of any other county except Houghton).

Region-wide, 47.6% of people age 25 and older have achieved at least high school graduation or equivalency. Another 21.2% have attended some college, and 8.6% have received an associate's degree, 14.7% a bachelor's degree, and 7.9% a graduate or professional degree. Baraga County has the lowest level of educational attainment; Houghton and Keweenaw the highest. See Figure 3-IV.

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Figure 3-IV: Educational Attainment, Age 25 and Over, 2015

100%

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0% Baraga Gogebic Houghton Iron Keweenaw Ontonagon REGION STATE

Less than 9th grade 9th to 12th grade, no diploma High school graduate (includes equivalency) Some college, no degree Associate's degree Bachelor's degree Graduate or professional degree SOURCE: ACS 5-Year Estimates

HOUSING

As of the 2010 Census there were 52,037 housing units in the region, an increase of 2,316 units, or 4.7%, from the 2000 Census count of 49,721. The estimated number of units as of 2015 is 51,968. Table 3-VIII shows the housing stock of the region, Michigan, and United States by year built. The region's housing is extremely old, with over one-third of units having been built in 1939 or earlier. Housing built in the decade beginning in 2010 is on track to be a drastic decrease from the 2000 to 2009 construction period.

Table 3-VIII: Housing Units Year Built, 2015 Region Michigan United States % of % of % of Year Built # of Units # of Units # of Units Units Units Units Total 51,968 4,539,838 133,351,840 Built 2014 or later 25 0.1% 2,584 0.1% 143,974 0.1% Built 2010 to 2013 305 0.6% 29,943 0.7% 1,944,533 1.5% Built 2000 to 2009 4,413 8.5% 467,993 10.3% 19,861,107 14.9% Built 1990 to 1999 4,738 9.1% 589,554 13.0% 18,636,635 14.0% Built 1980 to 1989 4,459 8.6% 449,765 9.9% 18,331,828 13.7% Built 1970 to 1979 6,561 12.6% 697,381 15.4% 20,932,720 15.7% Built 1960 to 1969 4,054 7.8% 550,207 12.1% 14,589,774 10.9% Built 1950 to 1959 4,512 8.7% 695,384 15.3% 14,315,811 10.7%

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Table 3-VIII: Housing Units Year Built, 2015 Region Michigan United States % of % of % of Year Built # of Units # of Units # of Units Units Units Units Built 1940 to 1949 3,409 6.6% 365,228 8.0% 7,034,375 5.3% Built 1939 or earlier 19,492 37.5% 691,799 15.2% 17,561,083 13.2% SOURCE: ACS 5-Year Estimates

As of 2015 it is estimated that only 32,996 (63.5%) of the region's housing units are occupied, leaving 36.5% vacant. However, as Table 3-IX establishes, 72.4% of the region's units considered vacant by the U.S. Census, or 24.3% of all units, are "for seasonal, recreational, or occasional use." This reflects the very strong presence of second/vacation homes in the region, with a tendency for "snowbird" residents to live in the region for the summer season and travel to the southern U.S. for winter. Seasonal home incidence is highest in Keweenaw County, where both the economy and the population have a strong seasonal dynamic, and lowest in Houghton County, which has a stronger base of year-round employment and activity, particularly around the Houghton/Hancock micropolitan area. There is a much higher seasonal vacancy presence in the Western U.P. than in Michigan (5.8% of all units) and the U.S. (3.5%).

Table 3-IX: Housing Occupancy Seasonal/Temporary/ Total Occupied (2015) Vacant (2015) Occasional Use (2010) County Units % of % of % of % of (2015) # # # Total Total Total Vacant Baraga 5,235 2,974 56.8% 2,261 43.2% 1,383 26.2% 75.7% Gogebic 10,749 6,741 62.7% 4,008 37.3% 2,490 23.1% 66.3% Houghton 18,603 13,765 74.0% 4,838 26.0% 2,761 14.8% 62.7% Iron 9,256 5,392 58.3% 3,864 41.7% 2,814 30.6% 77.7% Keweenaw 2,473 1,040 42.1% 1,433 57.9% 1,278 51.8% 87.9% Ontonagon 5,652 3,084 54.6% 2,568 45.4% 1,932 34.1% 80.0% Region 51,968 32,996 63.5% 18,972 36.5% 12,658 24.3% 72.4% Michigan 4,539,838 3,841,148 84.6% 698,690 15.4% 263,071 5.8% 39.9% U.S. 133,351,840 116,926,305 87.7% 16,425,535 12.3% 4,649,298 3.5% 31.0% SOURCE: 2015 ACS 5-Year Estimates; 2010 Census

Table 3-X shows that the Western U.P. has a greater predominance of owner-occupied (76.6%) over renter-occupied (23.4%) units than Michigan (71% owner/29% renter) or the U.S. (63.9% owner/35.1% renter). The greatest percentage of renter-occupied units over owner-occupied units among the region's counties is in Houghton County, with nearly one-third (31.9%) renter-occupied – the primary factor likely being the large population of college students in Houghton County. The smallest percentages of renter- occupied units are in Keweenaw (11.3%) and Ontonagon (12.2%) counties.

The table also shows that among types of housing structure, 81.3% of occupied housing units in the region are single-unit detached dwellings. This compares to 72.1% in Michigan and 61.6% in the U.S. The greatest percentage of single-unit detached dwellings is in Keweenaw County (89.5%, attributable in part to the quantity of seasonal homes) and lowest in Houghton (73.8%, again likely related to the prevalence of students and renters).

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The region's strong incidences of owner-occupied and detached homes is consistent with an ingrained tradition of homeownership. And homeownership may be more financially attainable in the region than in Michigan and the U.S. overall: The region's county median home values range from $68,800 (Gogebic) and $68,900 (Ontonagon) to $102,000 in Keweenaw (the only county where the figure exceeds $100,000). The comparable figures are $122,400 statewide and $178,600 nationwide.

Table 3-X: Housing Tenure and Other Indicators, 2015 Owner-Occupied Renter-Occupied 1-Unit Occupied Median County Detached, % Units # % # % Home Value of Occupied Baraga 2,974 2,498 84.0% 476 16.0% 83.0% $88,100 Gogebic 6,741 5,247 77.8% 1,494 22.2% 84.0% $68,800 Houghton 13,765 9,373 68.1% 4,392 31.9% 73.8% $93,800 Iron 5,392 4,515 83.7% 877 16.3% 87.4% $74,400 Keweenaw 1,040 922 88.7% 118 11.3% 89.5% $102,000 Ontonagon 3,084 2,709 87.8% 375 12.2% 85.5% $68,900 Region 32,996 25,264 76.6% 7,732 23.4% 81.3% Michigan 3,841,148 2,728,815 71.0% 1,112,333 29.0% 72.1% $122,400 U.S. 116,926,305 74,712,091 63.9% 42,214,214 35.1% 61.6% $178,600 SOURCE: ACS 5-Year Estimates

Construction of residential units in the Region has been influenced by the overall economy. For many years until 2006, activity was fairly stable. A dramatic drop occurred in 2007, particularly in Houghton County, accelerating to a low point in 2011 with little recovery through 2015. Estimated building permits granted in the region from 2006 to 2015 are shown in Table 3-XI and Figure 3-V.

Table 3-XI Estimated Building Permits Issued County 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 TOTAL Baraga 24 30 9 11 6 5 10 10 12 5 122 Gogebic 65 37 22 20 18 13 22 15 8 24 244 Houghton 117 76 72 62 57 44 30 53 58 35 605 Iron 34 37 30 35 43 35 34 34 20 25 327 Keweenaw 23 18 13 10 9 0 0 0 8 12 93 Ontonagon 19 14 15 8 9 0 8 0 5 6 84 TOTAL 282 212 161 146 142 97 104 112 111 107 1,474 SOURCE: U.S. Census Building Permits Survey

Figure 3-V: Estimated Building Permits Issued

120 Baraga 100 Gogebic 80 60 Houghton 40 Iron 20 Keweenaw 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Ontonagon

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Changing Populations

As the population ages, there is a growing focus on providing living environments and infrastructure suited to the needs and preferences of today's senior citizens. Whereas in the past many seniors preferred to live out their lives in the same locations they had been accustomed to for decades, there is a renewed interest among both the young and the old in urban living environments. Development of the region's small urban centers is vital to both satisfying older adults and attracting and retaining younger ones. National trends have guided state policy to prioritize "placemaking" and targeting of services and funds to areas of concentrated development where programs can have the greatest impact.

Opportunities for creating vibrant urban environments in the region are limited, but many communities have residential areas within or adjacent to downtown with easy access by foot, bicycle, wheelchair, or other assistive devices to destinations such as grocery stores, banks, pharmacies, and medical offices. In such areas it is important to maximize the benefits of self-contained “one-stop” living by prioritizing development of safe and accessible pedestrian routes and by appropriately tailoring municipal regulations such as zoning to neighborhood needs. In outlying areas, both residential and commercial, improved public transit service can aid in promoting livability and integration among neighborhoods. School Districts

The region is organized into three Intermediate School Districts (ISDs). They include Copper Country ISD (which includes Baraga, Houghton, and Keweenaw counties), Gogebic-Ontonagon ISD, and Dickinson-Iron ISD (only Iron County is in the region). The ISDs provide administrative services, special education, career and technical education, continuing teacher education, and other services for local school districts and serve as liaison between the State Board of Education and the local areas. There are 23 local public school districts and three nonpublic schools in these three ISDs. The local and intermediate school districts are shown along with county designation in Table 3-XII and Map 3-IV below.

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Table 3-XII: Western Upper Peninsula School Districts Arvon Township Schools Baraga Area Schools Baraga L’Anse Area Schools L’Anse Sacred Heart School (private) Adams Township School District (crosses into Ontonagon County) Public Schools of Calumet, Laurium & Keweenaw Chassell Township Schools Dollar Bay – Tamarack Area Schools Copper Country ISD Elm River Township Schools Houghton Hancock Public Schools Houghton-Portage Township School District Lake Linden-Hubbell Public Schools Stanton Township Public Schools Horizons Alternative School BRIDGE Alternative School Copper Country Christian School (private) Keweenaw Grant Township School, District No. 2 Bessemer Area School District Ironwood Area Schools Wakefield-Marenisco School District Gogebic Watersmeet Township School District Gogebic-Ontonagon ISD Our Lady of Peace School (private) St. Sebastian School (private) Ewen-Trout Creek Consolidated School District Ontonagon (crosses into Houghton County) Ontonagon Area School District Forest Park School District Dickinson-Iron ISD Iron West Iron County School District

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Map 3-IV: Western Upper Peninsula School Districts

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PHYSICAL FEATURES The Great Lakes Ecosystem & Lake Superior Basin

The nonliving environment and all living organisms occupying and interacting in a given area are considered an ecosystem. The Western U.P. is part of the Great Lakes drainage basin, an ecosystem that encompasses 292,000 square miles and contains the largest supply, 20%, of the world’s fresh water. The five Great Lakes (Superior, Huron, Michigan, Erie and Ontario) and almost 80,000 other lakes are a key link in this fragile ecosystem, supporting the 35 million inhabitants (27 million in the U.S. and roughly 8 million in Canada) that share responsibility for its health.

Within the Great Lakes drainage basin lies the Lake Superior basin, home to the WUPPDR Region. The basin encompasses three States on the U.S. side—Minnesota, Wisconsin, and Michigan—and the province of Ontario on the Canadian side. The basin is sparsely populated with roughly 700,000 persons. Almost half of the population resides in the urban areas of Duluth, Minnesota; Thunder Bay, Ontario; and Sault Ste. Marie, Ontario. The rest is scattered in small towns mostly near the coastline of the lake. Early French traders gave it the name “Lac Superieur,” French for “Upper Lake.” Lake Superior is the largest freshwater lake in the world with 31,700 square miles of surface area and it holds 53.8% of the water in the Great Lakes. The lake is 350 miles in length and 160 miles across at its widest point. Its mean depth is 489 feet and 1,333 feet at its deepest point. It has a coastline of 1,826 miles, of which 909 miles are in the United States and 917 miles are in Canada. There are 1,525 tributaries that empty into the lake, of which 840 are in the U.S. and 685 are in Canada. Approximately 91% of the basin is forested. In Canada (Ontario) about 95% of land is in public ownership, and in the United States, about 25% is in public ownership. Regional Water Resources

The Western U.P. has 354 miles of Lake Superior coastline and another 96 miles of Keweenaw waterway. The coastline is over 50% developed—largely by small residences—and development continues. The region also has approximately 7,500 inland water bodies with well over 100,000 acres of water and 6,721 stream miles. The six counties of WUPPDR contain all or parts of seven watersheds discharging into Lake Superior, numerous small coastal watersheds, one that discharges to Lake Michigan, and one that discharges to the headwaters of the Wisconsin River as part of the Mississippi River basin.

Groundwater resources are provided via two physiographic divisions, the Superior Upland and the Central Lowlands. The Superior Upland includes most of the Western Upper Peninsula with quality ground water available but in low-yielding Precambrian glacial deposits. Central Lowland is found in the northeast quadrant of the region primarily along the Lake Superior coastline and groundwater levels differ considerably in these areas.

In the Western Upper Peninsula, 220,235 acres or approximately 5.5% of the region has been identified as wetlands. They are found in each of the six counties and range from a low of 3.0% in Ontonagon County to a high of 8% in Iron County. The wetlands acreage percentages in the remaining counties are as follows: Gogebic, 4.8%; Houghton, 5.4%; Baraga, 6.6%; and Keweenaw, 7.5%. In their natural conditions wetlands provide many benefits to the region. These include food and habitat for fish and wildlife; water quality improvement; flood protection; shoreline erosion control; natural products for human use and opportunities for recreation; and aesthetic appreciation. Each wetland works in combination with other wetlands as part of a complex, integrated system that delivers these benefits. Michigan has a very comprehensive regulatory program aimed at preserving and protecting wetland resources.

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Natural Resources

Beyond water itself, the economic foundation of the region has been shaped by its people and natural resources—particularly native copper, iron ore, timber, and fisheries. Since at least 3000 B.C. Lake Superior copper has played a significant role in the lives of Native American societies throughout eastern North America. By the mid-1800s both the copper and iron ore deposits had attracted a large European population who settled parts of the region around these mines. Large-scale commercial harvesting of the region’s timber and Great Lakes fish stock came after profitable minerals were exhausted. Forestlands

History Following the mining booms of the mid-1800s, the eastern part of the forest in the Western Region was composed primarily of white and red pine while the western part had pine interspersed with hardwood and hemlock. The first logging occurred in the pine stands near settlements established around mining areas. Here, timber companies produced mine and building timbers, flat lumber for surface construction, and cordwood for fuel.

By the end of the 19th century the peak of the pine lumber era in Michigan had passed and by 1910 hardwood logging replaced it. Raw stumps, tangles of tree wastes, and ghost towns replaced the pine stands. In order to divest themselves of these cutover lands, the railroads, large landowners, and governments promoted the settlement possibilities of these former pine lands. However, once settlers moved onto the land it was clear that potential prosperity was a myth. Credit on reasonable terms was difficult to obtain, startup capital was very high, and the price of retail goods was inflated due to dispersed settlement patterns.

Due to tax homestead laws and land abandonment, these lands changed hands continually between the public and private domains until the 1920s when the State acquired title to almost two million acres of abandoned land and kept it. This broke the cycle of parcels being acquired, exploited and eventually reverting to the State. The forestlands were in poor condition, and keeping them in the public domain contributed towards the national conservation movement. The combination of these factors eventually produced several State forests, a county forest, and three national forests in the Upper Peninsula that were dedicated in 1931.

Characteristics Today the Ottawa National Forest is located in the Western Upper Peninsula, as are the Copper Country State Forest and Gogebic County Forest. These conservation measures have, over many decades, created new forests which again are contributing significantly to the economic development and diversification of the region’s economy. While a source of solid wood and wood fiber products, forests have also come to be valued for their recreational and environmental attributes as evidenced by the designation of wilderness areas and wildlife refuges. The forests and their associated recreation activities provided the foundation for a strong and growing tourism industry.

Currently forestlands in the Western Upper Peninsula constitute a complex set of natural resources which supply the basic sectors of the regional economy including travel and tourism. These forestlands include approximately 3,552,952 acres and account for over 90% of the region’s land base. The forests are dominated by Northern Hardwoods, a maple-birch forest type which covers 51% of the region. This is twice the area of Aspen, the second most extensive forest cover type. Other important forest cover

Chapter 3| Regional Profile types ranked by coverage area include Pine (White, Red and Jack), Swamp Conifers (Balsam Fir, Spruce, Cedar and Tamarack), and Lowland Hardwoods (Ash and Red Maple.)

In resource utilization, hardwoods have historically taken second place to softwoods. The softwoods have been generally more useful due in part to their long length fibers and usefulness in construction. High- quality hardwoods used in furniture manufacture have been an exception to this overall pattern. Breakthroughs in utilization and marketing of hardwoods have taken place in recent decades. The developments through technology have increased the usefulness of a considerable number of hardwood species. This technology includes the press-drying process for paper production and the saw-dry-rip process used in making lumber.

Hardwood forest types comprise approximately 95% of these totals with the remainder in softwood forest types. The surplus is interpreted as being able to produce greater volumes in the short-term by catching up on accumulated over-mature acreages. In the long term, greater volumes will be available as increased harvests will decrease mortality rates and increase net growth rates. Overcutting has been occurring in pine forests as well as in the other softwood types, which makes it imperative that softwood regeneration regimes be put into place to accommodate future demand.

The region’s forests are a source of industrial raw materials and are important to the regional economy, particularly in providing employment opportunities in forest products primary and secondary industries. Over 50% of the region's manufacturing establishments are associated with these industries. The establishments produce such products as dimension lumber, furniture and furniture components, hardwood flooring, railroad ties, shingles and paper products.

Sustainability and Ownership Forest stewardship is becoming more important in order to provide diversified uses, which include a variety of habitats for wildlife, recreational opportunities, scenic landscapes, jobs which support a rural lifestyle, clean air, stable soil, high quality water, wood products for everyday life, and healthy trees for the future. Sustaining both ecological and economic systems is imperative to ecosystem management, since the well-being of both systems is co-dependent over time.

The Western U.P. contains approximately 2,114,000 acres of private forestland, which is well over half of all forestland in the region. The balance is included within 998,782 acres of national forest, 132,018 acres of national park (Isle Royale), and 340,494 acres of state land, the majority of which is state forest. As of March 2017, 1,204,683 acres, or 57%, of private forestland is enrolled in the Commercial Forest Act (CFA) program. The CFA program, created by Michigan Public Act 94 of 1925, promotes the establishment of commercial forests on private lands within the State that are conducive to such use. Along with providing tax benefits to landowners, it requires landowners to permit public access for hunting, trapping, and fishing.

At the time of enrollment in the program, CFA lands must carry sufficient forest growth of suitable character and assurance that a stand of merchantable timber will be developed within a reasonable time. Lands offered and approved under the CFA are not subject to ad valorem general property tax but rather to an annual specific tax. This tax is a financial incentive for which the owner agrees to develop, maintain, and actively manage the land as a commercial forest through planting, natural reproduction, and other silvicultural practices.

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The productive potential of the CFA resource base has shaped and continues to shape the land ownership of the region. CFA land ownership falls into two main categories: 1) private nonindustrial forest and 2) forest industry, which has traditionally accounted for the majority of large, homogeneous tracts. Private nonindustrial forestlands are owned by farmers, private individuals, and corporations not a part of the forest industry such as the Upper Peninsula Power Company and the We Energies. Traditionally industrial forest ownership has been by timber product companies with vested interests in managing the land for use in their company mills. More recently there have been changes in ownership patterns away from timber product companies (vertically integrated timber product companies) to large-tract forestland investors including timber investment management organizations and real estate investment trusts. This change in ownership has and is expected to continue to result in fragmentation of lands as higher-value lands are sold, leading to a loss of public access and wildlife habitat.

Sales to small landowners can result in a loss of public access and wildlife habitat. Helping to mitigate impacts on natural resources is Michigan's Qualified Forest Program (QFP). QFP provides an exemption from school operating millages on privately owned forest property that is managed sustainably for commercial harvest, habitat enhancement, and improvement of other resources, in accordance with a forest management plan. This program, unlike CFA, does not require provision of public access. Fish and Wildlife

Historic Fisheries Narrative accounts of the exploration of Lake Superior noted the existence of Native American maintenance fisheries as early as the 17th century with commercial fisheries established in 1835. Soon after, fisheries were established at many points along the Lake Superior shoreline by the first white settlers. Between the 1930s and 1950s the fishing industry yielded its greatest production of high value fish due to several technological advancements. However, this came to an end in the 1950s due to a collapsing lake trout population, which was attributed to the sea lamprey invasion of the Upper Great Lakes. The loss of the trout resource was an economic disaster for the fishing industry.

The Great Lakes Fishery Commission worked on controlling the sea lamprey population and restocking the lake trout in the 1950s, and in the 1960s Michigan Department of Natural Resources (DNR) began planting hundreds of thousands of Chinook and Coho salmon. Additionally, DNR began heavily regulating the commercial fishing industry, which in turn contributed to its demise. These restrictions were challenged by Native Americans who claimed the regulations violated their treaty rights, an argument which was won in Federal court. In 1979 it was ruled that the State could not regulate or restrict those tribes whose treaty rights include the right to fish in ceded Michigan waters of lakes Huron, Michigan and Superior. The ruling caused considerable controversy, and in 1985 the tribes, the State of Michigan, the US Department of Interior and various fishing organizations negotiated an Entry of Consent order. Today, the small number of commercial fishermen is in sharp contrast to the 1940s and 50s when there were 50 or more operators fishing in the waters of the Western Upper Peninsula.

Current Wildlife Management Fish and wildlife in the region are primarily the responsibility of DNR, and they constitute a valuable and desirable resource. It is the agency’s mission to maintain viable, self-sustaining species of fish and wildlife for the social and economic well-being of the people of Michigan.

In the past, before the era of conservation, these resources received scant consideration, and the various native species of fish and wildlife thrived or suffered as their habitats were altered. More

Chapter 3| Regional Profile recently, fish and wildlife biologists have focused primarily on effectively managing fish, birds and mammals of sporting or economic value to certain segments of the public. Examples of some of these wildlife species include waterfowl (ducks and geese), upland birds (woodcock, grouse, and turkey), big game (deer and bear), small game (rabbit and squirrel), and fur bearers (muskrat, beaver, fox, coyote, mink, bobcat, and raccoon). Examples of fish species include trout (brook, rainbow, brown, and lake), salmon (chinook and coho), whitefish, herring, northern pike, walleye, and perch.

Today the broad topic of fish and wildlife management runs the gamut of concerns, ranging from habitat protection to species preservation to predator control. These concerns involve activities which include fish and wildlife research, hunter education, game and fish stocking, and law enforcement. The activities, however, principally address how to facilitate and regulate fishing, hunting and trapping. The introduction of non-native plant and animal species also are a major threat to the region with numerous entities and funds being directed at invasive species control. Minerals

The western six counties of the Upper Peninsula have a rich history of mineral resource development. Some of these are still mined today, and some have potential for further development in the future. The Western Upper Peninsula has a wide variety of geological settings that are promising environments for such deposits. Some of the mineral commodities and other mineralized resources known to exist, both metallic and non-metallic, are described below.

Copper Copper mining is at the core of the region’s modern history and is currently undergoing a resurgence. Native copper occurs in nature uncombined with other elements such as silver and gold. Most of the native copper lies along a narrow belt, two to four miles wide and a hundred miles in length, along the spine of the Keweenaw Peninsula. The vast majority of native copper production—96 percent—and its associated silver came from a 28-mile stretch between Painesdale in Houghton County and Mohawk in Keweenaw County.

Modern mining of native copper deposits in the Lake Superior Copper District began in 1845 at the Cliff Mine near Eagle River in Keweenaw County. The copper mining industry then slowly moved down the Keweenaw Peninsula as well as northward from Ontonagon as new copper deposits were discovered. The Lake Superior Copper District’s popularity began to wane in the 20th Century. As the mines went deeper underground the copper content per ton of copper rock began to decline. It was only through the development of different technologies that the mining industry was able to maintain its profitability for as long as it did. The war years of both the First and Second World Wars gave a reprieve to the industry, but retrenchment followed the peace.

As profitable operation became more difficult, the assets of smaller mining companies were acquired by the large ones until there were only three firms left: Quincy Mining Company, Calumet & Hecla Consolidated Copper Mining Company (C&H), and Copper Range Company. The Quincy Mining Company operated until the Second World War then ceased in 1945. C&H survived into the 1960s, but insurmountable labor/management problems in 1968 closed the company down after 125 years of operation. Through its history (1845-1968) the native copper district produced over 11 billion pounds of refined copper and 10 million ounces of silver.

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Copper Range Company had ceased mining native copper in the 1930s but had turned its attention to developing its copper sulfide (Cu2S) deposits in the Nonesuch Shales of Ontonagon County. In the 1950s the United States became a net importer of copper. As the Korean War was starting, the Federal government took measures to boost domestic production of this metal. It assisted Copper Range Company in getting these deposits into production through the development of an integrated modern mine, mill, and smelter facility. It was not until fall 1995 that the White Pine Copper Mine became the last to close. The company was Canadian-owned, and several factors including environmental problems and low copper prices led to the decision to close the mine, laying off over 1,000 workers in the Region.

The White Pine Mine in Ontonagon County produced some native copper but mostly copper sulfide and silver as a by-product. The mine operated almost continuously from 1955 to 1995. Interest has been renewed in the property, especially with its acquisition by Highland Copper announced in 2017. Highland Copper has also acquired the Copperwood Mine in Gogebic County and has conducted exploration in surrounding areas and the Keweenaw Peninsula. This has created high hopes for new jobs and general economic activity amongst much of the population. Potential benefits, however, are balanced against environmental and economic sustainability concerns. The viability of renewed copper mining rests upon world copper prices, current technology, and regulations.

In Marquette County, along the eastern border of Baraga County, Lundin Minerals operates the Eagle Mine, an underground Nickel and Copper mine that employs several hundred people. The company has conducted exploration of additional deposits in Baraga County.

Iron While copper mining flourished in the 1850s through 1870s in the northern part of region, the southern part remained mostly an inaccessible wilderness until iron ore mining began in the late 1870s. Gogebic and Iron counties contain portions of two of the nation’s six principal iron ranges, the Gogebic and the Menominee Ranges. In Gogebic County in 1884 the Colby Mine in Bessemer became the first operating mine on the Gogebic Range. By 1890, 26 mines produced and shipped 2,226,000 tons of ore. However, the Great Depression closed all but five mines by 1932.

World War II caused production activity to rebound. Iron ore mining activity reached its peak in the late 1940s when there were 42 producing mines in Iron County and 96 producing mines in total on the Menominee Range. Mining on the Gogebic and Menominee Ranges declined quickly during the 1950s until Gogebic County lost its last mine in 1966 when the Peterson Mine closed ending 82 years of activity in the county. By 1967 there were only four producing mines remaining in Iron County, and by 1978 the last mine in that county closed. In the period between 1884 and 1967, over 323,000,000 tons of iron ore Map 3-V: Western U.P. Iron and Copper Ranges had been shipped from the Gogebic Iron Range.

Today there are no operating iron mines in the Western U.P. The nearest is the single remaining open- pit iron mine, the Tilden, in Marquette County. The iron ore mining industry overall has faced a number of difficulties in recent decades due to trade policies, changes in world supply, and technical changes in the mining and steel industries. Even so, just east of the Western Region, iron ore mining has remained active and today is prosperous in bordering Marquette County. Meanwhile, lack of interest and relatively low ore concentrations have contributed to stagnation of the industry in Iron and Gogebic counties since the 1970s. The Western Region’s historic iron and copper deposits are shown in Map 3-V.

Chapter 3| Regional Profile

Map 3-V: Iron and Copper Ranges of the Upper Peninsula

Graphite Some graphite was mined in Baraga County at the turn of the 20th century. In recent years these graphite slates have been studied both for their graphite content and potential uses. While large deposits are available for industrial uses, insufficient efforts have been made to entice private investment.

Manganese A small manganese deposit in the Keweenaw Peninsula was mined in the 1800s. Further exploration could reveal economic deposits for future development.

Chapter 3| Regional Profile

Diamonds There have been several explorations undertaken in the last ten years to discover diamond-bearing Kimberlite deposits in the region. While several micro-diamond-bearing Kimberlites have been found, no macro-diamonds greater than one millimeter (1/25 of an inch) have been located.

Stone At the turn of the century, red sandstone quarries furnished building stone. The potential still exists for developing a building and decorative stone industry in the Western Region. Minnesota, Wisconsin, and the province of Ontario all produce stone for the world market which is similar to some stone found in the Western U.P. Limestone is also a viable option: currently a small deposit is being quarried near Pelkie in Baraga County. Most of this stone was previously shipped to White Pine to be used as flux in the copper smelting process. Now most of it is used as agricultural lime and road building material.

Clay This mineral is an abundant substance in part of the Western Upper Peninsula, but little is known of its economic value as a raw industrial material.

Sand and Gravel Deposits of these non-metallic minerals are distributed unevenly throughout the region. Some areas have abundant supplies, and some areas are notably deficient. Agricultural Lands

Agricultural land is the third largest land cover category following forestlands and wetlands. In 2012, according to the U.S. Agricultural Census, farmlands occupied approximately 103,324 acres. This is a slight decrease from 104,555 in 2007. The largest acreage, 28.1% of all farmland in the region, is in Ontonagon County, followed by Houghton (26.3%), Iron (22.2%), Baraga (17.2%), Gogebic (5.9%), and Keweenaw (0.3%).

The region includes 528 separate farms, an increase of 8.2% from 488 in 2007. This increase may be due to subdivision of larger plots of land and a national trend towards hobby farm activities. The average farm size region-wide is 195.7 acres. The largest average size is in Baraga County (311.1 acres), followed by Ontonagon County (266.6), Iron (196.1), Houghton (153.6), Gogebic (98.0), and Keweenaw (53.0). Farm sizes may be impacted by large farms acting as outliers in some counties. Farm sizes may also be dependent on the needs and characteristics of crops grown in different parts of the region.

The potential of the agricultural lands is based primarily on physical factors such as soil, physiology, and microclimate that influence the types of agriculture undertaken. Production types include dairying, beef (cow/calf) production, potatoes, small fruits (strawberries and raspberries), cold climate vegetables, sheep, and egg production.

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INFRASTRUCTURE AND THE ECONOMY

The quality of a region’s infrastructure is a critical indicator of its economic vitality. Reliable transportation, clean water, and safe disposal of wastes are basic elements of civilized society and a productive economy. Basic infrastructure includes highways and roads, airports and airways, public transit, water supply, wastewater treatment, water resources, and solid waste and hazardous waste services. Other elements include communications and power production facilities, railroads, schools, public housing, hospitals, and public buildings. These services are the foundation for a strong economy.

Private and public investment must be balanced to support stable economic growth. Firms have some flexibility to adjust labor and capital inputs to produce desired outputs. However, this flexibility is greater in growing than in declining areas. As a result, adequate infrastructure is critical in those areas to help close the gap with private investment. Deficiencies in public investment may increase the downward spiral of a depressed area. This is of significance to the Western Region and reinforces the argument that the region needs a strong infrastructure strategy in its economic development program. HEALTHCARE INFRASTRUCTURE

The rural nature of Michigan’s Western Upper Peninsula coupled with the changing health care legislation at the federal and state levels produces real challenges for health care providers. To meet these challenges, health care networks have been established to provide complete health care services to consumers in the most cost-effective manner possible. These networks are addressing both current service issues and how future trends in health care may affect this region.

Acute and On-Demand Care There are six acute care facilities (hospitals) in the region:

. Baraga County Memorial in L’Anse . Aspirus Grand View in Ironwood . Aspirus Keweenaw in Laurium . UP Health System Portage in Hancock . Aspirus Iron River in Iron River . Aspirus Ontonagon in Ontonagon

Each facility listed provides 24-hour emergency care and walk-in clinic services. UP Health System Portage, a privately owned LifePoint Hospital, is the region's largest: a secondary level facility that is classified as a Level III ASC trauma center. All others in the region are classified as Critical Access Hospitals. Baraga County Memorial Hospital is privately owned. The remaining four are owned and operated by Aspirus, a nonprofit corporation based in Wausau, Wisconsin. Aspirus also operates a comprehensive clinic and diagnostic facility in Houghton. Walk-in clinics that are not hospital-based are located in Houghton, Lake Linden, and Watersmeet (Lac Vieux Desert Indian Reservation).

Long-Term Care This type of care is provided by medical care facilities operated by county governments, by private nursing home operators, and in two cases by hospitals. Gogebic, Houghton and Iron counties operate long-term medical care facilities, as do Portage Health and Aspirus Ontonagon hospitals. There are several other private licensed nursing home facilities in the region.

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PROTECTION SERVICES

The majority of incorporated cities and villages in the region have small police departments to handle law enforcement and provide protection to the citizens of these communities. In the townships police services are handled by the county sheriff department. The local police network is augmented by the Michigan State Police with additional road patrols and technical services such as detective investigations, the crime laboratory, canine, fire marshal, and other special units.

Fire Protection Community fire protection in the region is provided by approximately 63 fire departments. These firemen are for the most part non-paid volunteers. Fire protection costs can be a serious challenge to rural communities. To help offset some of these costs, the U.S. Department of Agriculture Rural Community Fire Protection grant program is available to local fire departments through the state foresters. The Federal Emergency Management Agency (FEMA) makes grants available to fire departments for purchase of equipment and various items used to perform duties.

Emergency Services This type of service is provided by a variety of private, local government, and non-profit organizations. They operate ambulances and transport patients between medical facilities on request. In some outlying rural areas where distance and time become critical in emergency situations, groups of volunteers have received training to act as first responders. These individuals provide initial assistance until the ambulance and the emergency medical technicians arrive on the scene.

Ambulance Services The main ambulance services in the region are Beacon Ambulance, which serves western Gogebic County; Bay Ambulance, which covers northern Baraga County; Mercy Ambulance, which serves Houghton and Keweenaw counties; Aspirus MedEvac, which serves Iron County; and Sonco Ambulance, which serves Ontonagon County. Covington Township in Baraga County and Marenisco Township in Gogebic County have their own ambulance services, and Watersmeet has a first responder service. TRANSPORTATION INFRASTRUCTURE AND SERVICES Aviation General Aviation Airports – These facilities are also referred to as utility airports and provide a basic level of air service to communities. There are two categories: paved and turf utility airports. Paved utility airports are medium to large facilities that have paved runways capable of handling approximately 95 percent of general aviation type aircraft. Turf utility airports are smaller facilities and can handle approximately 75 percent of general aviation aircraft.

There are three public-use paved utility airports in the region. Iron County operates two, the Crystal Falls Airport and the Stambaugh Airport. Ontonagon County operates the third. All three facilities are unstaffed. Both Houghton and Baraga counties operate public-use turf utility airports in the region. These are the Prickett-Grooms Field at Sidnaw in Duncan Township in Houghton County and the Baraga Airport four miles west of the village of Baraga.

Air Carrier Airports – An air carrier airport is one used by certified airlines with regularly scheduled flight service. These facilities are also classified as transport airports and are capable of handling virtually all types of general aviation aircraft. There are two such facilities in the region. One is the Houghton County

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Memorial Airport near Hancock. The other is the Gogebic County Airport near Ironwood. Another air carrier airport, Ford Airport in Iron Mountain, is located just past the southeast corner of the region. These are all highly developed and staffed facilities with paved runways capable of handling jet aircraft. They are equipped with modern terminals, hangars, navigational aids, and emergency vehicles to handle crash situations.

The air carrier airports receive commuter air service through the Federal Essential Air Service (EAS) subsidy program that was established in the mid-1970s to ensure that small communities, served by full- service airlines prior to deregulation, continued to receive a minimal level of commercial service. EAS requires at least two arrivals and two departures a day for each qualifying airport. Houghton County is served by SkyWest Airlines for United Airlines, serving O’Hare International Airport in Chicago. Gogebic- Iron County is served by Air Choice One, an independent airline with service to O'Hare and Minneapolis- St. Paul International Airport. Ford Airport is served by SkyWest Airlines operating as Delta Connection, with service to Minneapolis-St. Paul and Detroit Metropolitan Wayne County Airport.

The seven public-use airports in the region are significant to the future economic development of the region. A primary consideration, therefore, is protecting existing general aviation airports from slipping out of existence and commercial passenger service from being removed from the air carrier airports. Maintenance of adequate facilities is important to accommodate air freight as well as passengers.

See Map 4-I for the region’s airports and scheduled passenger routes along with water-based transportation facilities, ferry routes, and major roads, which are discussed below.

Marine The St. Lawrence River and the Great Lakes form a maritime transportation system extending more than 2,000 miles from the Gulf of St. Lawrence to the western end of Lake Superior. Michigan’s 3,200 miles of shoreline contains over 100 ports. About 90 of these ports can accommodate commercial activities, including cargo handling, ferry services, commercial fishing, ship building, marine contracting, and excursion services. A commercial harbor in the Great Lakes is one with commercial dock handling facilities and a minimum water depth of 18 feet.

Ports and Harbors – There are 23 Michigan ports which regularly accommodate commercial cargoes. The region has one deep-draft commercial port located at Ontonagon. Despite a lack of large-scale commercial operations, the port continues to be dredged periodically by the Army Corps of Engineers.

There are 11 recreational harbors in the region, which are part of Michigan’s recreational harbor network, located in:

 Ontonagon  City of Houghton  Keweenaw Bay  Grand Traverse  City of Hancock  Black River Harbor  Lac La Belle  Houghton County  Rock Harbor (Isle  Copper Harbor  Eagle Harbor Royale)

Inland Waterways – The Keweenaw Waterway, whose primary purpose is to facilitate waterborne commerce, is located in northern Houghton County. Today the waterway is approximately 22 miles in length and utilizes a natural river and lake along with a man-made canal to cross the Keweenaw Peninsula. The waterway’s channel averages 300 feet in width and 25 feet in depth.

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Map 4-I: Transportation Systems in the Western Upper Peninsula

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Aids to Navigation – The Coast Guard Station – Portage on the Keweenaw Waterway in Dollar Bay is responsible for placement and service of all aids to navigation in its area of Lake Superior within and near the region. These also include those at Isle Royale and those in the Keweenaw Waterway. Aids to navigation assist mariners in making landfalls, mark isolated dangers, make it possible for vessels to follow the natural and improved channels and provides a continuous chain of charted markers for coastal piloting. In all waters over which the United States has jurisdiction, these aids are designed, built and maintained by the United States Coast Guard.

Ferry Services – Ferry services are provided on three routes in the region and all connect Isle Royale National Park, located out in Lake Superior, with the mainland. There are three ferry services which operate seasonally with sailing frequencies that include one round trip daily to two and three round trips per week. The National Park Service operates a service between Houghton and Rock Harbor while the Isle Royale Ferry Service runs between Copper Harbor and Rock Harbor. The Grand Portage Isle Royale Transportation Service operates between Grand Portage, Minnesota and Windigo.

Great Lakes Shipping Services – Great Lakes waterborne commerce is predominately confined to bulk commodity movement. Sand, stone, iron ore, and coal account for the major traffic. Cement, petroleum, and chemicals account for a small percent. The vast majority of Michigan’s waterborne commerce is shipped to and from U.S. ports and Canadian ports on the Great Lakes or along the St. Lawrence River. A small percent of the cargo handled at Michigan ports travels to or from an overseas port. Most of this direct overseas traffic passes through the Port of Detroit. While Michigan business and industry generate a large volume of overseas trade, most of it is transported overland by truck or rail to coastal ports for ocean shipping.

Surface Rail Network – The active freight rail system in Michigan’s Upper Peninsula is made up to 959 miles of right-of-way. The State of Michigan owns and maintains 117.3 miles of this rail system which is leased to the Escanaba and Lake Superior Railroad. Rail service in the Western U.P. is provided by two companies: the Canadian National Railway (CN) and the Escanaba & Lake Superior Railroad (E&LS). CN is the only Class I carrier in the Upper Peninsula, linking with Wisconsin and the U.S. rail system via Chicago and with Canada at Sault Ste. Marie.

CN's operations within the Western U.P. include two routes. One is a spur from Baraga south and east to Ishpeming. Here the route connects south to Escanaba. This short line is primarily used to transport wood products: biomass to fuel the L'Anse Warden power plant as well as some timber. Research has been conducted to explore use of this line for export of manufactured goods, but data collection from potential customers has been difficult and the line is not well-equipped for access by individual customers. CN's other route runs south and west into Wisconsin from the former White Pine mine, which may restart operations at some level following recent purchase by a mining venture.

E&LS operates a line from Mass City southeast through Amasa where a sports flooring manufacturer accesses the line. The line then continues to Channing (just east of the region's eastern Iron County boundary), a junction where freight can continue east to Escanaba or south to Iron Mountain and ultimately Green Bay, Wisconsin. In 2010, E&LS requested abandonment of the segment of this line between Ontonagon and Sidnaw. Thus far only the Ontonagon-Mass City segment has successfully been abandoned and dismantled. A separate segment connecting Sidnaw east to Nestoria currently is used only for car storage.

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Rail Traffic Characteristics – All rail traffic in the Western U.P. either originates or terminates within the region, and the lines in the region are used mainly for shipment of wood products. Financial benefit of this use for Class I carriers, in particular, is minimal, and as a result, it is a relatively low priority for CN. The Northwoods Rail Transit Commission (NRTC), a consortium of 9 U.P. and 13 Northern Wisconsin counties, advocates for rail expansion and preservation in and around these counties. NRTC has communicated extensively with CN officials regarding alternative operations of its railroad lines in the NRTC area, including potential lease of tracks to short-line operators, but liability concerns and lack of initiative have been an obstacle. NRTC also applied (unsuccessfully) for federal TIGER grant funding for log car purchases.

There may be potential for greater utilization of existing rail routes if a multi-modal truck/rail "transload" facility is established, but such a facility requires a critical mass of committed customers to be viable, and advocates have been unable to establish demand thus far. A Michigan Technological University Study several years ago compared three alternative sites for a potential transload facility, including Amasa and Nestoria within the Western U.P. Due to insufficient data the study was inconclusive, but efforts for improved data collection continue as one of NRTC's priorities.

Despite the often divergent priorities of railroads and industry in the Western U.P., freight rail is not likely to leave the greater U.P. anytime soon. Besides lumber and other wood products, outbound products currently sent by rail include metal concentrates and pulp, paper, and allied products. Inbound commodities include bentonite clay (used in refining iron ore); chemicals used by the mining, pulp, and paper industries; coal; and propane gas. Waste and scrap paper reprocessed by the pulp and paper mills are also transported by rail. Commodities of these types can often be more profitably shipped by rail than by truck, standing in contrast to other types of rail exports via Class I carriers that are viable only when transported several hundred miles to reduce marginal and transaction costs. Rail service also usually provides more convenient access than shipping by boat.

The active rail service remaining in the Central U.P. in association with its mining and paper production provides potential and hope for the Western U.P. to have greater access. Whether tracks will be preserved long enough to be available for the possible reactivation of mining in the Western U.P. remains to be seen.

Roadway Network – The region’s highways, roads and streets comprise a total of 7,971 road miles. This network is composed of five separate systems operated by a hierarchy of state and local government agencies. The roadway network is well integrated and allows for efficient internal movement.

The first of the five systems is the state trunkline system (state and federal highways) which is operated by the Michigan Department of Transportation (MDOT). This system has 620 miles of roads in the region, 543 miles of which are all-season routes. This system also has 343 miles in the Priority Commercial Network (PCN). These PCN segments are considered the most important to Michigan’s economy. Routes on the PCN are selected according to their relative importance in serving agriculture, forestry, wholesale trade, manufacturing, and tourism. Within the region there are four PCN routes: US- 41 and US-141 from Houghton south to Crystal Falls and the Iron County line; M-38 from Baraga to Ontonagon; M-28 west from the Baraga-Marquette County line to Ironwood; and US-2 from Crystal Falls west to Ironwood.

The second system is made up of roads under the road commissions of each county. This system includes a total of 3,375 road miles and is responsible for moving people and goods in and out of and

Section 4| Infrastructure, Facilities, and Services between communities in the rural parts of the region. This system has two classifications. There are 1,282 miles of primary roads and 2,093 miles of secondary or local roads. Local roads have a lower priority than primary roads with regard to funding and maintenance.

The third system is made up of city streets under the jurisdictions of the various municipalities. City streets also have two classifications: There are 113 miles of major streets and 238 miles of local streets for a total of 351 miles.

The two remaining road systems comprise approximately 125 miles of seasonal roads located in the Copper Country State Forest and 3,500 miles of roads or road segments in the Ottawa National Forest. These systems are the responsibility of the Michigan Department of Natural Resources Forest Management Division and the U.S. Department of Agriculture Forest Service (USFS) respectively. These two systems provide access for harvesting and transporting forest products out of the forests as well as for wildfire suppression and recreation activities. One USFS road, Federal Forest Highway 16 through Houghton, Ontonagon, and Iron counties, is more typical of county primary roads and is maintained by the county road commissions.

Roadside Development –Thousands of travelers take advantage of the travel counseling available at state welcome centers, which inform visitors of services and activities that can be found in Michigan. MDOT operates one welcome center in the region. It is located at Ironwood on US-2, a major gateway into the State. It also maintains 14 roadside parks and scenic turnouts in the region. In addition, there are many roadside facilities provided and maintained by county, township, municipal units of government as well as the U.S. Forest Service.

Motor Carriage Service – Over-the-road trucking is the primary means of freight transport in the Western U.P. State law in Michigan regulates truck freight by weight. Along with this inherent limitation, high transport costs and inefficiencies result from long distances between supply points and markets, limitations on hours of work for drivers, and export/import imbalances that limit backhauling potential.

Intercity Bus Service – The intercity bus system in the Upper Peninsula is in need of strengthening in terms of routes and schedules as well as providing more direct service to the population centers. The Indian Trails bus system provides a vital link to most Upper Peninsula population centers and key destinations in Wisconsin and Minnesota. Indian Trails services can be accessed on two routes: 1) Ironwood  Ste. Saint Marie  St. Ignace Route, with stops in Ironwood, Wakefield, Watersmeet, Iron River, and Crystal Falls; and 2) Hancock  Marquette  Green Bay  Milwaukee  Chicago Route, with stops in Hancock, Houghton, Baraga and L’Anse. MDOT provides Indian Trails funding in the form of subsidies to offset the cost of these services.

Public Transit – Transit services need to be developed or improved (and maintained) in most Upper Peninsula counties. Public transit is essential so trips for medical, employment, and education-related activities can occur without depending on the automobile. Within the Western Upper Peninsula there are two countywide transit agencies and two city services. The county services are Gogebic County Transit Authority (a special district government dedicated to transit) and Ontonagon County Public Transit (On-Tran) (part of general county government). The cities of Houghton and Hancock each operate bus transit services within the borders of both cities. These systems receive financial assistance through Michigan’s Comprehensive Transportation Fund and Federal Section 5311 funds.

Baragaland Senior Citizens, Baraga-Houghton-Keweenaw Community Action Agency, and U.P. Community Services (for Dickinson-Iron Community Services agency) provide demand-response and

Section 4| Infrastructure, Facilities, and Services route deviation transit services to Baraga, Houghton/Keweenaw, and Iron counties, respectively, with priority given to seniors and persons with disabilities. These systems receive federal Section 5310 capital funds. The level of service in these counties, however – particularly Iron and Keweenaw, which also lack local taxi service – is relatively low.

Efforts have recently been made to improve transit in the region. In Baraga, Houghton, and Keweenaw counties, a 2012 federally standardized human services public transportation plan concluded with a multi-year step-by-step plan to create a regional transit authority for those counties. Though the action steps have not yet been undertaken, interest in implementation by various interest groups has periodically ignited. Transit was made a priority statewide in 2014 by the Governor, who began a regional transit mobility initiative whereby Michigan's prosperity regions were directed to perform research, needs assessment, and action planning to improve inter-county and other transit services throughout the state. Statewide priorities included medical, senior citizen, and veteran transportation. WUPPDR submitted a final memo to MDOT for this initiative in 2017.

Bicycle Pathways – While bicycling is permitted on all highways, roads, and streets in Michigan, except on limited access freeways, an effort has been made by cyclists to ensure that all roadways in the state have paved shoulders (four feet or more in width) suitable for bicycling. Bicyclists affirm the need for direct and convenient access to every destination served by the roadway system. They believe the key to their mobility is improving the existing system through paved shoulders.

In 2004, 2009, and 2015 WUPPDR assisted MDOT in developing and updating a map highlighting on-road bicycle facilities throughout the region. In addition this map allows consumers to see shoulder widths on all US and MI highways. When MDOT is developing projects in the region, generally the agency widens paved shoulders to accommodate bicyclists. A network of federally designated U.S. Bicycle Routes formally included U.S. 2 through the Western U.P. beginning in 2015.

Other Trail Systems – In the Western Region there are a variety of trail systems, including groomed cross-country ski trails and facilities, mountain bike and hiking trail systems, off-road recreational vehicle (ORV) trails, and over 1,200 miles of groomed snowmobile trails. The region also has several segments of multipurpose trails using abandoned railroad right-of-ways connected by local roadways. Many of the trails have segments that cross private property. Permanent easements and/or acquisitions are needed to protect the Western Region’s network of recreational trails.

Trail systems represent a growing aspect of recreation access in the region. These trails serve a wide spectrum of users ranging from snowmobiles, motorcycles, and all-terrain vehicles to non-motorized cyclists, cross-country skiers, joggers, and hikers. Development and maintenance of these off-road trails varies with ownership. The bulk of the motorized systems are maintained through Michigan Department of Natural Resources programs including funding appropriations to local organizations. The volunteer organization MI-TRALE (Michigan Trails and Recreation Alliance of Land and the Environment) maintains over 520 miles of ATV, ORV, multi-use, and Equestrian trails in Baraga, Gogebic, Houghton, Iron, and Ontonagon counties.

Most non-motorized systems are built and maintained by volunteer organizations such as conservation groups, but some long-distance trails have state and national designations that afford a certain amount of higher-level support. One of these is the North Country National Scenic Trail which is a component of the National Trails System supported by the National Park Service. This 3,200 mile trail extends from Crown Point, New York to Lake Sakakawea in North Dakota. A 120 mile segment runs through the

Section 4| Infrastructure, Facilities, and Services region. Development and maintenance assistance in this region falls to USFS and three volunteer chapters of the national North Country Trail Association.

The Iron Belle Trail from Belle Isle in Detroit to Ironwood is state-designated under jurisdiction of DNR. This trail was conceived in 2014 as the flagship of the Governor's initiative to make Michigan the "Trail State." In the U.P. the trail consists of two routes: a northern hiking route, which is mainly concurrent with the North Country Trail, and a southern bicycling route, which in the region is mainly a motorized/non-motorized multi-use route concurrent with U.S. Bicycle Route and Highway 2. WATER RESOURCES

Dams – There are numerous water impoundment structures located in the region. One type creates impoundments to stabilize the flow of water for the production of hydroelectric power. Five hydroelectric systems exist in the region. These are owned and operated by Upper Peninsula Power Company (UPPCO), Wisconsin Electric (WE), Xcel Energy, and the City of Crystal Falls. The other of structure maintains water levels to promote recreational activities and to enhance fish and wildlife habitat. These structures are scattered throughout the region and are as varied as simple plank dams to much more complicated devices including pumps and fish ladders.

Water Supply – Approximately 94 percent of the region’s potable water supply is drawn from groundwater sources. The remainder is drawn from surface water sources—primarily Lake Superior. Some general reasons for not using surface water include costly construction along with operation and maintenance of treatment facilities. The distribution of the water supply is composed of many systems found primarily in cities, villages, and other population centers within townships. However, some systems found in rural areas. Examples include Covington in Baraga County, Amasa and Bates Township in Iron County, Copper Harbor in Keweenaw County, and Ewen-Trout Creek in Ontonagon County. The majority of the water systems are publicly owned and operated. An exception is Michigan-American Water Company which serves an area from the Houghton County Airport north into Keweenaw County.

A great deal of rehabilitation work has been undertaken on water systems across the region. Nevertheless, the systems can still be described as suffering from aging (often lead-based) and undersized lines, inadequate treatment facilities, a lack of secondary sources for backup, and political situations which inhibit development of intercommunity water transmission lines. ENERGY RESOURCES

With the exception of energy generated from hydroelectric facilities on some of the river systems, the region is energy-poor, lacking fossil fuels such as natural gas, oil, and coal. Isolation from fuels, low population densities, disbursement of the population, and loss of key energy loads have resulted in overall high energy costs. This particularly true for residential customers in the Keweenaw Peninsula.

Electrical Energy – Several utilities provide electrical energy to the region (Map 4-II shows services areas and major transmission lines). All transmission of electrical energy, using the large electric lines that transport electricity over long distances, is controlled by American Transition Company (ATC) with oversight from the Midcontinent Independent Service Operator (MISO), which ensures adequate supply throughout the Midwest. The investor-owned utilities that distribute electricity to residential, business, and industrial customers include Upper Peninsula Power Company (UPPCO), Xcel Energy Corporation (formerly Northern States Power Company) and the recently formed Upper Michigan Energy Resources

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Corporation (UMERC) which is assuming the Upper Peninsula assets and service obligations of Wisconsin Electric Power Company (We Energies) and Wisconsin Public Service Corporation.

Within the region, Xcel services mainly the southwest; UPPCO the north; and UMERC the southeast. Two nonprofit cooperatives also exist: Bayfield Electric Cooperative in a small part of the southwest and Ontonagon County Rural Electrification Association (OCREA) in the north. UPPCO and OCREA charge among the highest residential electrical rates in the state and nation, due in part to lack of existing local generation and long distribution distances to a disbursed customer base. The villages of Baraga and L'Anse and cities of Crystal Falls and Wakefield purchase power from the nonprofit WPPI Energy, a nonprofit organization of 51 member municipal utilities, and provide their own local distribution as municipal utilities.

With electrical rates continually rising over the past several years, and amid climate change concerns and a tightening regulatory environment, renewable energy has become a priority for the region. Publicly regulated utilities in Michigan are subject to a renewable energy standard that will require them by law to achieve a retail supply portfolio that includes at least 15 percent renewable energy by 2022.

Customers who choose to develop on-site generation projects (most commonly solar in the Western U.P.) are able to sell excess energy generated back to the utility to contribute to the power grid through a system called "net metering." Initially utilities reimbursed customers retail electric rates (the cost customers pay utilities for energy), but as participation increased many utilities chose to use wholesale rates instead. This change was justified based on the utilities’ need to cover the costs of customers’ continuing use of the distribution grid. This change to wholesale rates reduced the desirability of residential solar installations and delaying return on investment for customers who already had solar systems installed.

State law allows utilities to cap net metering participation at 1 percent of their regulated peak demand. UPPCO reached its small-scale/residential (under 20 kW) net metering participation cap in 2016, and no new small scale net metering projects are being allowed in UPPCO’s service area at this time. As of early 2017, the other regulated electric utilities in the Western Upper Peninsula have not met their net metering caps. Neither regional cooperatives nor municipal (unregulated) utilities purchasing from WPPI have such a limit.

Energy efficiency measures are another means to mitigate the impacts of high energy costs. Concerted efforts to encourage and implement energy efficiencies are underway in the region, partially through publicly funded programs facilitated by WUPPDR as well as nonprofit and volunteer organizations such as New Power Tour and the Houghton Energy Efficiency Team. State-mandated energy optimization or energy waste reduction programs are implemented by utilities in the region. The utility programs offer

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Map 4-II: Energy Resources

Section 4| Infrastructure, Facilities, and Services rebates and technical assistance to residential, commercial, and industrial programs but have been underutilized.

Lack of electricity generation in the U.P. has been cited as a threat to reliability. In summer 2016, Wisconsin Electric Power Company announced plans to build a 55 MW power plant in Baraga County. A wind generation project is also listed in MISO’s que for new generation. The project is proposed to be sited in Baraga County and is estimated to have a generation capacity of 130 MW. MISO is currently undergoing a systems impact study for the project, with service start expected in late 2020.

Natural Gas – Typically the most desirable fossil fuel for heating and other fixed-site uses, natural gas is limited mainly to large communities and major population corridors. SEMCO ENERGY services Baraga, Houghton, Iron, Keweenaw, and Ontonagon counties and the eastern half of Gogebic County. Xcel supplies the western half of Gogebic County and the communities of Bergland and Ewen in Ontonagon County. DTE provide natural gas to portions of Iron County. Utilization of natural gas is at or near capacity in parts of the region including the Keweenaw Peninsula. See Map 4-II above for pipelines.

Other Energy Resources

 Consumers without access to natural gas rely on fuel oil and liquid petroleum (LP)/propane gas for heating and other uses. These are sold by distributors throughout the region such as Krans Oil (fuel oil) and Ferrellgas (propane).  Coal is also an important energy source but used primarily for heavy industrial purposes and sees little if any use in the region.  Wood or woody biomass is an alternative to fossil fuels. Some commercial establishments and institutions have successfully converted to wood and continue utilizing it as an energy source. The L'Anse Warden Power Plant in L'Anse uses biomass to produce electricity for sale on the wholesale market. The forest products industry has used wood for years as a fuel to lower energy costs and reduce its solid waste disposal problems.  Geothermal heating and cooling is another potential energy source in the region. Studies conducted by Michigan Technological University’s Keweenaw Research Center indicates that geothermal projects that take advantage of trapped mineshaft water resources can be used to heat and cool commercial and potentially residential spaces. The economic feasibilities of these projects improve in areas with high-cost electricity. EDUCATIONAL INSTITUTIONS

Local School Districts – The region has a diverse array of educational providers at the K-12 and postsecondary levels. K-12 schools have faced declining enrollment for decades, and many consolidations of school districts have occurred over this period, though districts in the Keweenaw Peninsula remain highly fragmented. Rural school districts in the region suffer from reliance solely on base state funding, loss of students to neighboring districts through Michigan's Schools of Choice program, and a resulting inability to offer a large number and variety of courses. However, some schools in the region, including Calumet-Laurium Keweenaw, have attained state-level recognition, and local districts throughout the region are important representations of individual community identities.

Intermediate School Districts – The Copper Country, Gogebic-Ontonagon, and Dickinson-Iron Intermediate School Districts (ISDs) (CCISD, GOISD, and DIISD, respectively) fill a much needed role in the form of training to faculty and staff, internet connectivity between districts, and additional educational

Section 4| Infrastructure, Facilities, and Services opportunities for students and adults. The three ISDs in the region offer Career and Technical Education (CTE) courses for high school students that offer either credit toward a college degree or the opportunity to graduate high school with a career-oriented degree or other credential. Available programs are shown in Table 4-I. The ISDs also offer adult enrichment classes exclusive of high school.

Table 4-I: CTE Programs Offered by Western U.P. ISDs, 2016 CCISD DIISD GOISD Accounting    Agriculture    Auto Body & Collision Repair    Automotive Technology    Building/Construction Trades    Computer-Aided Drafting & Design (CADD)    Certified Nurse Assistant (CNA)    Computer Programming/Robotics    Computer Programming/Web Design    Computer Systems    Health Careers/Occupations    Medical Terminology    Marketing & Entrepreneurship    Pre-Engineering & Robotics    Welding   

Post-Secondary Institutions – The region has four post-secondary educational institutions. These include Gogebic Community College (GCC), Keweenaw Bay Ojibwa Community College (KBOCC), Michigan Technological University (Michigan Tech), and Finlandia University. Each has modern facilities and offers academic programs which prepare students for the rapidly changing environment of work in today’s global economy. However, there is a long-term trend of "brain drain," with high school graduates leaving the area for other higher educational opportunities and not returning to the area.

 GCC was formed in 1932 as Ironwood Junior College. In 1965 it became the Gogebic Community College District. The campus site was established in the city of Ironwood. The school is a two year institution with between 1,100 and 1,200 students. The school’s academic programs fall into two major categories. One category is oriented toward students planning to transfer to four-year universities or colleges. The other is oriented to students planning to enter the workforce following graduation, primarily into skilled trades using credentials from CTE programs. GCC offers a variety of certificates and associate degrees in such diverse areas as welding, nursing, business, and ski area management. Some CTE programs, such as welding, are offered to Gogebic and Ontonagon County high school students, who have the option of transitioning from high school graduation directly into credentialed CTE programs.  KBOCC was originally formed in 1975 as a non-profit educational corporation. The college closed its doors from about 1980 to 1998 and reopened that year after the Tribal Council approved the college’s revitalization. In 2014 KBOCC opened a new campus in the overhauled former Baraga County Memorial Hospital building in Downtown L'Anse, though the main campus is considered to remain in Baraga. KBOCC offers associate degrees in liberal studies, environmental science, business administration, and early childhood education. The college has also considered adding career and technical education programs such as welding.

Section 4| Infrastructure, Facilities, and Services

 Finlandia University was founded in 1896 as Suomi College. Finlandia is a private university located in the City of Hancock. It has several hundred students and approximately 180 faculty and staff. Finlandia offers approximately 30 certificate, associate, and baccalaureate programs of study in four colleges: Arts & Sciences, Art & Design, Health Sciences, and Business. Many of the programs have both liberal arts and career preparation components.  Michigan Tech was founded in 1885 as the Michigan Mining School; it became Michigan Technological University in 1964. With a faculty of approximately 400, Tech offers 125 academic program options to a student body of over 7,000. The school awards associate, baccalaureate, master, and doctor of philosophy degrees. Michigan Tech is nationally known for its engineering, technology, and science programs. In U.S. News & World Report's 2017 Best Colleges, Tech was ranked #118 (tie) in National Universities and #67 (tie) in undergraduate Engineering Programs where a doctorate is offered. Apart from its status as an educator, Michigan Tech is also the largest employer in the Western U.P. TELECOMMUNICATIONS INFRASTRUCTURE

Regional Resources – Today’s global economy depends on how well organizations move and manage information. Application of information technologies in businesses, schools, governmental, and public agencies is critical to future economic and community development in the region. These technologies are essential to rural organizations, because they can help to overcome two barriers to rural growth: geographic isolation and economic specialization. In order to take advantage of these opportunities, a public telecommunications infrastructure that is capable of supporting advanced equipment and services at affordable prices must be in place.

 The Regional Educational Media Center (REMC) collocated with CCISD serves the Western U.P., and offers a variety of services including technical support and videoconferencing for members, non-members, and commercial users for a fee.  The Upper Peninsula TeleHealth Network serves health care providers by maximizing the practical use of technologies to provide health care to residents of the Upper Peninsula and surrounding areas.  Merit Network, Inc. is a nonprofit, member owned organization formed in 1966 to design and implement a computer network between public universities in Michigan. Merit operates a network of fiber-optic broadband cables to provide rapid data transfer for these institutions.

Videoconferencing – One of the greatest opportunities offered by telecommunications is the ability to mitigate travel costs – both financial and time – through remote meetings via videoconferencing. Videoconferencing can be implemented through personal workstation applications like Zoom and GoToMeeting or through dedicated infrastructure at group meeting sites.

In 2010 the UPLink high-definition videoconferencing network was conceived to connect population centers across the Upper Peninsula and to Lansing and Wisconsin. The network has since come to fruition based primarily in Michigan Works! service centers in Hancock, Marquette, Escanaba, and Sault Ste. Marie; and in WUPPDR's office in Houghton. A multi-site "bridge" exists at the UPWARD Talent Council/Michigan Works! Escanaba service center to connect the primary UPLink sites with each other as well as a great variety of other outlets with videoconference units, including libraries, hospitals, county courtrooms, intermediate school districts, universities, and other Michigan Works! locations. Every county in the U.P. hosts at least one videoconference site. Besides Hancock and Houghton, which

Section 4| Infrastructure, Facilities, and Services collectively have at least four participating sites, communities regularly utilizing the system in the Western U.P. include Bergland, Iron River, and Ironwood.

Broadband – UPLink and other internet-based activities continue to be hindered by mediocre landline broadband internet availability in many parts of the region. Commercial and residential users in most large communities are served by cable and/or high-speed Digital Service Line (DSL) internet, but outlying areas usually rely on lower-speed fixed wireless or even dialup service, or are limited to satellite service that is comparatively costly and limited in bandwidth. Some outlying areas have no access at all. Educational institutions are directly served by the fiber optic Merit network. Currently residential fiber- optic "gig" internet (one gigabit per second download speed) is under development in Crystal Falls.

Technology action planning in coordination with the Connect Michigan organization has occurred in Gogebic, Houghton, Keweenaw, and currently Iron counties to improve availability, access, and utilization of broadband services. Since broadband service is private sector-driven, an important prerequisite of service expansion is providing comprehensive market information to broadband providers to demonstrate consumer demand and potential markets.

Cellular service is another ongoing telecommunications obstacle. As with landline broadband, cellular service is adequate in the region's large communities, most of which have access to 4G LTE data speeds as well as reliable voice and SMS/MMS text service. In outlying areas, however, even along major transportation routes, cellular service is spotty and hindered by lower data speeds. An encouraging development was passage of long-anticipated state legislation in 2015 to allow phased colocation of private provider transmitters on Michigan's 800 MHz Public Safety Communications System towers, but implementation thus far has been scarce.

Landline telephone service has been provided by AT&T in most of the region, but traditional service is set to be eliminated as a result of a 2014 state law which is intended to be fully implemented in 2017. Telephone service will continue to be available through voice over internet protocol (VOIP) where landline broadband exists, but outlying customers may be left without telephone service of any kind. INDUSTRIAL PARKS

These are tracts of land designated for specific industrial uses such as light manufacturing, research and development, or business services. Industrial parks are platted properties that have roads, water, sewer, and energy services in place or planned to be implemented when required. Site and building restrictions are established for maintaining the integrity of the facility and for the individual protection of the tenants. Industrial parks located in the region are listed in Table 4-II and Map 4-III below.

Section 4| Infrastructure, Facilities, and Services

Table 4-II: Industrial Parks Total Map Industrial Park Name Location Area Contact Key (City/Township) (acres) 1 Russell Carrier Industrial Park Baraga 40 Village of Baraga Keweenaw Bay Ojibwa Industrial Park Baraga 400+ 2 Indian Community 3 Lambert Road Industrial Park L'Anse 20 Village of L'Anse 4 Dynamite Hill Industrial Park L'Anse 20 Village of L'Anse City of Wakefield Industrial City of Wakefield 27 City of Wakefield 5 Park 6 City of Ironwood Industrial Park City of Ironwood 160 City of Ironwood Wakefield Township Industrial Wakefield Township 60 Wakefield Township 7 Park Houghton County Houghton County Air Park Hancock 202 8 Airport Manager 9 Calumet Township Calumet Township 160 Calumet Township 10 Houghton Development Park Houghton 26 City of Houghton City of Crystal Falls Industrial City of Crystal Falls 91 City of Crystal Falls 11 Park Crystal Falls Township Crystal Falls 100 Crystal Falls Township 12 Industrial Park Township City of Iron River Industrial City of Iron River 77 Iron River City Manager 13 Park 14 City of Caspian Industrial Park City of Caspian Unknown Caspian City Manager Approx. Ontonagon Village Village of Ontonagon (M-64) Village of Ontonagon 15 41.5 Manager Approx. Ontonagon Village Ontonagon Industrial Site Village of Ontonagon 16 50.9 Manager 17 White Pine Industrial Park White Pine 28 Carp Lake Township 18 McMillan Township McMillan Township 200 McMillan EDC Chair City of Bessemer Industrial City of Bessemer 100 City Manager 19 Park

Section 4| Infrastructure, Facilities, and Services

Map 4-III: Industrial Parks in the Western Upper Peninsula

Chapter 5| The Economy

ECONOMIC SETTING: A CHANGING RURAL LANDSCAPE

The Western U.P.'s economy is not known for being naturally adaptable. Following the heyday of mining and forestry, the region struggled to redefine itself and maintain strong communities. Amid the ensuing economic lull, many disused and often contaminated industrial sites remained. Today the region contends with both these physical obstacles and regional and global economic environments that are not friendly to isolated, infrastructure-lean areas.

Limited infrastructure, including electronic communications and longer-standing impediments such as the transportation network, is an ongoing problem. The region is also characterized by unfavorable measures of socioeconomic indicators such as unemployment rates, wages, poverty levels, educational attainment, and age profile. High energy costs, particularly electricity, compound socioeconomic problems. And the prospect of climate change threatens natural resources and associated recreation that have been built upon the region's distinct four seasons.

Today, most areas in the region are driven by service industries, largely through tourism, as well as institutions such as hospitals, institutions of higher learning, and government, which, despite their own external pressures, are relatively stable. There are some strong concentrations of other diverse industries: specialized fabrication in Baraga County and high-technology entrepreneurialism facilitated by Michigan Technological University and MTEC SmartZone in Houghton and Hancock, for example. These serve as examples for other parts of the region to build more fluid long-term economies.

Provided that broadband internet access is available, the new technology-based economy also has potential to support "placeless" businesses such as internet-based consulting and retail. Such enterprises reduce impediments to entrepreneurs and workers who desire to live in the region (ironically because they are looking for special "places" of their own) but traditionally would have had to live where economic activity was stronger. Internet-based services and retail have also offered more diverse options for residents of the region, who are not forced to rely on what the local market can support. The downside of consumer spending leakage from the region cannot be ignored, but internet- based business has been a net positive, reducing competitive disadvantage.

And resource extraction should not be discounted as an economic force. Large-scale timber production continues to occur, and there is ongoing consideration of opportunities for value-added uses. There also is real potential for a renewed period of mining, primarily for copper. Exploration for ore deposits is underway, and transactions of land and former mining facilities have recently occurred, with operations lying in wait for more favorable markets. The prospect of a renewed mining industry raises the problem of boom and bust, where the economy struggles with peaks and valleys of employment. Anytime a boom is on the horizon and underway, special efforts must be made to mitigate this cycle by building a resilient economic base that can sustain some of the growth and job base after mining ceases.

Economic development initiatives undertaken in recent years and planned for the foreseeable future intend to address many of these issues directly or indirectly as the region refuses to succumb to factors that sometimes seem out of its control. INTERDEPENDENT ECONOMIES

The Western U.P. is somewhat stagnant in comparison to the national economy and that of the relatively prosperous Ninth Federal Reserve District of which it is a part (the Ninth District also includes Montana,

Chapter 5| The Economy

North and South Dakota, Minnesota, and Northwestern Wisconsin). The Western U.P. shares much in common with northern parts of Wisconsin and Minnesota but stands in stark contrast to other parts of the Ninth District. For example, the Twin Cities of Minneapolis-St. Paul, Minnesota, where the Ninth District is based, are home to multiple Fortune 500 companies, many of them focused on technology- based or professional industries. Large parts of the Ninth District also heavily depend on agriculture. These industries have only a fledgling presence in the Western Region.

The Western Region also has little in common with southern parts of the Great Lakes Region, including the metropolitan areas of Wisconsin, Illinois, Indiana, Ohio, and the Lower Peninsula of Michigan. This area, part of the "Rust Belt" of the United States, has a long-declining but still significant presence of manufacturing industry. The Western Region has long been vital to these areas, however, in supplying raw materials to urban industry. The region also serves as a natural paradise for vacationers from urban areas, and this presents an opportunity for attracting new residents and a growing number of visitors.

The Western Region is just one of three planning regions in the Upper Peninsula. With the entire peninsula having only approximately three percent of Michigan’s population, it is vital for the three regions to work together to accomplish peninsula-wide goals. The peninsula’s sparse population, long distances between economic centers, and underdeveloped transportation network necessitates collaboration in order to break down barriers to efficiency. U.P. Link, a high definition videoconferencing network with common infrastructure and central scheduling throughout the U.P., has matured significantly in the last several years, making meetings at distant locations much more accessible to the U.P. The system has been used to connect to meetings across the U.P., in northern Wisconsin, and in Lansing, the state capital, which is an approximately ten-hour drive from the most distant parts of the Western Region.

FINANCIAL STATISTICS: INCOME

Per capita income is a good proxy for the wealth and spending patterns in an area. Caution must be used when analyzing per capita income measurements because they serve as a one-year gauge, and unusual circumstances, such as a bumper crop or natural disaster, could skew the measure. Table 5-I shows 2011- 2015 per capita personal income in the region, the State of Michigan, and the United States.

Table 5-I: Per Capita Personal Income 2011-2015 Area 2011 2012 2013 2014 2015 Change Baraga Co. $27,001 $28,775 $29,627 $29,667 $29,928 10.8% Gogebic Co. $29,596 $30,897 $31,396 $33,553 $35,495 19.9% Houghton Co. $29,130 $29,861 $30,425 $31,654 $32,968 13.2% Iron Co. $32,756 $33,748 $34,243 $35,834 $38,557 17.7% Keweenaw Co. $34,485 $35,661 $35,880 $37,009 $38,827 12.6% Ontonagon Co. $29,167 $30,138 $31,120 $32,389 $34,124 17.0% Western U.P. $29,658 $30,676 $31,269 $32,602 $34,169 15.2% Michigan $37,398 $38,700 $39,208 $40,940 $42,812 14.5% United States * $42,453 $44,267 $44,462 $46,414 $48,112 13.3% SOURCE: Per capita personal income, U.S. Bureau of Economic Analysis (BEA) via StatsAmerica

The region's 2015 per capita personal income reported by BEA, which includes income received by all persons from all sources, is $34,169. By far the lowest per capita income was in Baraga County, at $29,928, where there is a large institutional population. The highest per capita incomes were nearly a tie between

Chapter 5| The Economy

Keweenaw County, at $38,827, and Iron County, at $38,557. The region's 2015 per capita income is $8,643 (20.2%) below the State’s and $13,943 (29.0%) below the United States'. However, the region’s per capita income from 2011 to 2015 grew at a rate faster than the State's and United States': 15.2% versus 14.5% and 13.3%, respectively.

Household income is an indicator less skewed by institutional populations. This measure is reported by ACS and includes only a subset of income sources. This measure ranks the region's counties much differently: Baraga County has the highest 2015 median household income, at $39,803, followed by Keweenaw County at $37,813, Houghton County at $37,776, Gogebic County at $35,686, Ontonagon County at $34,459, and Iron County at $33,663. The weighted average of county median household incomes in the region, which accounts for different county population totals, is $36,551.

FINANCIAL STATISTICS: LABOR AND INDUSTRY

The labor force or workforce, the foundation of all other employment-related statistics and trends, is somewhat volatile, fluctuating with broader economic trends, age ranges, migration, and many other factors and forces both internal and external. As Table 5-II indicates, there are vast differences even within the Western U.P. Although there was a contraction of the labor force in the region from 2011 to 2015, there were increases and decreases from year to year within the individual counties, and magnitudes varied drastically.

Table 5-II: Persons in Civilian Labor Force, Annual 2011-2015 Area 2011 2012 2013 2014 2015 % Change Baraga Co. 3,661 3,543 3,571 3,481 3,306 -9.7% Gogebic Co. 6,947 6,804 6,763 6,727 6,625 -4.6% Houghton Co. 17,322 16,950 16,964 17,021 16,743 -3.3% Iron Co. 5,170 5,092 5,110 5,228 5,265 1.8% Keweenaw Co. 1,017 987 994 988 966 -5.0% Ontonagon Co. 2,777 2,586 2,466 2,392 2,317 -16.6% Western U.P. 36,894 35,962 35,868 35,837 35,222 -4.5% U.P. 145,514 143,749 144,082 143,659 141,832 -2.5% SOURCE: Michigan Department of Technology, Management and Budget (DTMB) Local Area Unemployment Statistics (LAUS)

Iron County saw a small increase in labor force during the period, but all others in the region decreased, from a drop of 3.3% in Houghton County to a drop of 16.6% in Ontonagon County. The overall decrease in the region from 2011 to 2015 was 4.5%, compared with 2.5% across the Upper Peninsula. Over the same period the labor force of the State increased by 1.5% and United States by 2.3%.

A longer-term view of the unemployment rate, shown in Table 5-III and Figure 5-I, is critical to understanding the impact of the Great Recession on the region. As with labor force size, disparities among counties within the region are extreme. At times in 2009, Baraga County's unemployment rate was at or near the highest among counties in the nation. U.P. unemployment rates in the table were invariably higher than the national rate and almost always higher than the State rate, with notable exceptions to the latter in 2009. The Michigan annual unemployment rate was higher than the U.S. rate in 2006-2014, but the gap narrowed to essentially a tie by 2015. The 2016 annual unemployment rate (not yet released for

Chapter 5| The Economy counties at the time of this document's completion) is 4.9 percent for both Michigan and the United States. Regardless of their varying degrees of severity, the Western U.P., State of Michigan, and United States unemployment rates all follow the same general trends fairly closely. Table 5-III: Annual Unemployment Rate (%) Area 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Baraga Co. 11.5 12.8 13.4 24.2 19.4 16.4 14.1 14.5 11.2 8.8 Gogebic Co. 7.7 7.8 8.4 12.9 13.1 11.9 11.1 10.9 8.9 7.0 Houghton Co. 7.1 7.2 7.7 10.8 10.8 9.6 9.0 8.9 7.7 6.0 Iron Co. 7.5 7.4 8.2 12.1 12.9 10.4 9.6 10.2 8.7 6.7 Keweenaw Co. 10.3 11.0 10.7 14.2 15.1 13.8 12.8 13.6 11.0 8.7 Ontonagon Co. 8.2 8.4 9.1 15.8 16.7 16.2 13.4 13.9 11.4 9.0 U.P. 7.5 7.6 8.1 12.3 11.9 10.5 9.6 9.7 8.2 6.5 Michigan 7.0 7.0 8.0 13.7 12.6 10.4 9.1 8.8 7.3 5.4 United States 4.6 4.6 5.8 9.3 9.6 8.9 8.1 7.4 6.2 5.3 Source: DTMB LAUS

Unemployment rates can decrease either as a result of unemployed people finding work or as a result of a drop in the number of unemployed people who are actively looking for work. Comparing Tables 5-II and 5-III reveals that the labor force size was decreasing in Western U.P. counties (except Iron) at the same time unemployment rates were dropping, suggesting that most available jobs were being preserved and filled but also that many people leaving the labor force had previously been looking for work.

Figure 5-I: Annual Unemployment Rate 25%

20%

15%

10%

0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Baraga Co. Gogebic Co. Houghton Co. Iron Co. Keweenaw Co. Ontonagon Co. Source: U.P. Michigan United States DTMB LAUS Houghton County consistently leads the region in employment, with the lowest annual unemployment rate in the region and closely following the overall rate for the U.P. from 2006 to 2015. Baraga County had by far the highest unemployment in the region until 2009, when it also had the highest county unemployment rate in Michigan. One of Baraga County’s largest industries is manufacturing, which was significantly impacted during the recession. Additionally, Terex Handlers, a major customer for many

Chapter 5| The Economy local fabricators, relocated its operations to a different state in late 2009; and Pettibone, another manufacturer, downsized its operations. These actions contributed to and compounded the high unemployment rate. Industry Structure

In a regional economy that makes up such a small part of the State economy, all economic activities are important. In Table 5-IV, nonfarm earnings (data sources classify a comparatively very small amount of farm earnings entirely separately from other industry) are separated into eleven major categories of industry. Total nonfarm earnings in the region were approximately $1.4 billion in 2015.

Table 5-IV: Earnings by Industry ($ thousands), 2015 Annual Industry Baraga Gogebic Houghton Iron Keweenaw Ontonagon Forestry, Fishing, (D) 7,198 (D) 4,553 (D) 1,345 & Related Construction 5,218 12,880 46,656 16,712 (D) 4,671 Manufacturing 28,856 42,028 35,617 17,816 (D) (D) Information 3,424 2,376 3,262 1,015 (L) (D) Wholesale Trade 1,845 (D) 10,642 2,210 659 (D) Retail Trade 6,323 19,617 49,615 22,533 557 9,394 Finance & (D) 5,630 17,899 5,908 (D) 2,554 Insurance Real Estate, (D) 3,781 6,042 1,171 (D) 608 Rental, Leasing Educational (D) 1,840 11,613 82 51 (L) Services Health Care & (D) 40,753 113,362 26,190 (D) 9,992 Social Assistance Accommodation (D) 14,294 21,574 3,995 (D) (D) & Food Services “Other Services” 4,158 15,990 25,598 20,184 (D) (D) Government 85,930 90,285 284,959 52,801 6,147 20,973 TOTAL * 160,303 280,876 689,182 200,229 18,982 65,902 SOURCE: BEA, Table CA5N (Personal Income and Earnings by Industry) (D): Not shown to avoid disclosure of confidential information; (L): less than $50,000 but is included in total * Greater than sum of above rows as it includes other categories and estimates of (D) entries

Public Sector

The proportion of earnings supplied by the region’s public sector, the "Government" industry, is perhaps the most notable characteristic of the economy. (For government earnings and employment, 2014 data is used since that is the most recent year of the Quarterly Census of Wages and Employment that provides employment numbers.) Table 5-V shows earnings and employment for Government versus all industries in each county.

Chapter 5| The Economy

Table 5-V: Government Versus Total Earnings and Employment, 2014 Earnings Employment (Annual) County Total Gov't % Gov't Total Gov't % Gov't Baraga $164,559 $84,339 51.3% 3,521 1,621 46.0% Gogebic $273,643 $89,656 32.8% 5,510 1,716 31.1% Houghton $676,366 $278,095 41.1% 11,610 3,036 26.1% Iron $184,485 $50,962 27.6% 3,592 893 24.9% Keweenaw $17,839 $5,855 32.8% 412 119 28.9% Ontonagon $64,794 $20,199 31.2% 1,365 358 26.2% TOTAL * $1,381,686 $529,106 38.3% 26,010 7,743 29.8% Earnings Source: BEA, Table CA5N (Personal Income and Earnings by Industry) Employment Source: Quarterly Census of Employment and Wages (QCEW) via DTMB

The table shows that government accounts for 38.3% of all earnings and 29.8% of all employment within the region. Within the counties, Baraga has the highest proportion of government versus total earnings and employment, and Iron the lowest. Baraga's high proportions are likely due to the presence of both the Keweenaw Bay Indian Community's L'Anse Indian Reservation and a state correctional facility.

The proportion of government versus all industries is greater in earnings than in employment; this suggests that on average government jobs pay more than non-government jobs. This is most evident in Houghton County, where government accounts for 41.1% of earnings but only 26.1% of employment. This disparity may result from a preponderance of relatively high-paying state government jobs at Michigan Technological University. In Houghton County, state government accounts for 41.2% of all government jobs versus 21.5% in the next-highest county (Baraga) and 25.3% region-wide.

These same indicators are depicted in Figure 5-II, including a breakdown of employment at various levels of government.

Figure 5-II: Government Versus Total Earnings and Employment, 2014 $800 Earnings (Millions) 14,000 Employment (Annual) $700 12,000 $600 10,000 $500 8,000 $400 6,000 $300 4,000 $200 $100 2,000 $0 0

SOURCE: Government Other QCEW Federal State Local Private SOURCE: BEA via DTMB

Based on measures of both employment and total earnings, the public sector plays a leading role in the economy. It also provides stability to an economy that has been strongly oriented toward natural

Chapter 5| The Economy resource commodities which react sharply to business cycle changes. The sector’s importance emerged during the Great Depression in the 1930s, when government at all levels increased intervention in the economy as a matter of public policy, eventually becoming the region’s dominant economic force. Over the past several years, an anti-tax mentality has pervaded the Federal Government and many state governments. This has wide-ranging implications for services and spending not only at these levels but at local levels, which suffer as a result of reductions in shared revenues for local governments. And reductions in public spending impact not only services but the staff that provide them. An industry that has historically been resilient is thus threatened as a result of higher-level forces. Private Sector

Separating private from public employees can bring out small differences between industries that might not otherwise be apparent. Table 5-VI shows number of employees, number of establishments, total wages, and average weekly wages for the 12 industries that are indicated to employ more than 400 persons in the region. (The numbers are likely higher than shown, since data is not provided for some industries in some counties.) These classifications are more specific than the earnings categories in Table 5-IV.

Table 5-VI: Industries Employing >400 Persons, Western U.P., 2015 Annual Industry Establish- Total Wages Average * Jobs (with NAICS code) ments (1,000s) Weekly Wage 722 – Food Services and Drinking 1,976 183 $26,336 $255 Places 622 – Hospitals 1,073 3 $60,742 $1,090 445 – Food and Beverage Stores 796 26 $14,990 $362 452 – General Merchandise 793 27 $17,070 $396 Stores 621 – Ambulatory Health Care 775 85 $26,586 $673 Services 541 – Professional and Technical 665 138 $31,486 $911 Services 236 – Construction of Buildings 498 111 $20,195 $783 238 – Specialty Trade Contractors 494 118 $17,796 $693 447 – Gasoline Stations 462 52 $7,435 $313 522 – Credit Intermediation and 457 39 $15,695 $663 Related Activities 721 – Accommodation 454 44 $6,966 $294 624 – Social Assistance 409 20 $7,441 $336 SOURCE: QCEW via DTMB * Calculated for each industry as follows: Average weekly wage in each county is multiplied by number of jobs in that county; the products of all counties are then added together, and the sum is divided by the total number of jobs in the region.

In number of jobs, the table shows an overwhelming dominance of retail (including food services and drinking places) and healthcare industries, which together represent the top five employing industries. Among these, there is a stark dichotomy between healthcare and the others. Food service and drinking places, the industry employing the single largest number of people in the region, has among the lowest

Chapter 5| The Economy average weekly wages of all industries. Hospitals, on the other hand, employer of the second-largest number of people, has the highest total and average weekly wages of the industries shown. In the top five industries, although healthcare has a strong workforce (1,848) and overall economic presence, it is balanced against a much larger workforce (3,565) in low-wage retail industries.

Table 5-VII shows changes in jobs numbers from 2011 to 2015 among the industries employing over 400 persons in 2015. This was a period without any major intervening economic events, although it was characterized by slow recovery from the Great Recession.

Table 5-VII: Jobs in Top-Employing Industries, Western U.P., Annual 2011 2015 Absolute Percentage Industry Jobs Jobs Change Change 722 – Food Services and Drinking 54 2.8% 1,922 1,976 Places 622 – Hospitals (X) 1,073 (X) (X) 445 – Food and Beverage Stores * 691 796 105 15.2% 452 – General Merchandise -25 -3.1% 818 793 Stores 621 – Ambulatory Health Care -764 -49.6% 1,539 775 Services 541 – Professional and Technical 13 2.0% 652 665 Services 236 – Construction of Buildings * 531 498 -33 -6.2% 238 – Specialty Trade Contractors 545 494 -51 -9.4% 447 – Gasoline Stations 341 462 121 35.5% 522 – Credit Intermediation and -5 -1.1% 462 457 Related Activities 721 – Accommodation * 424 454 30 7.1% 624 – Social Assistance 556 409 -147 -26.4% SOURCE: QCEW via DTMB Same counties are tabulated for each industry each year, except (*) indicates one county added in 2015 (X): Data not available

There was not a common trend in employment numbers among top-employing industries from 2011 to 2015, but certain highlights are immediately apparent. Declines in Ambulatory Health Care and Social Assistance employment are at first alarming, but there were considerable changes in the region's healthcare landscape over the time period, so disparities may be a result of reclassifications and shifts between economic sectors. The reporting of Hospitals data in 2015 but not 2011, for example, is likely a result of the purchase of UP Health System Portage in Hancock, the region's largest hospital, by a private company in 2014, and the decline in Ambulatory Health Care may have resulted from reclassification of an institution into the Hospitals group or from shift of a hospital from the private to the public or nonprofit sector.

There was also a small but somewhat perplexing decline in building construction jobs, even with increasing time since the construction lull of the recession and the addition of Keweenaw County data in 2015. But there were large increases in the service industries of Gasoline Stations, Food and Beverage Stores, and Accommodation (addition of Ontonagon County to the latter two of these may have been a contributing factor).

Chapter 5| The Economy

Manufacturing, although not in the region's top industries by total employment, is a highly desirable industry sector for both economic developers and the general public, largely due to its potential to produce high-wage jobs. Manufacturing has seen a tumultuous decade in the region, with extreme declines during the recession that have rebounded only somewhat. Table 5-VIII shows employment in manufacturing industries (those that have a significant ongoing presence in the region) for every three years since 2006 along with the net change in that period.

Table 5-VIII: Jobs Numbers in Manufacturing Industries, Western U.P., Annual Manufacturing Absolute Percentage 2006 2009 2012 2015 Industry Change Change 321 – Wood Product 503 353 418 396 -107 -21.3% 332 – Fabricated 317 136 204 217 -100 -31.5% Metal Product 333 – Machinery 387 168 253 284 -103 -26.6% TOTALS 1,207 657 875 897 -310 -25.7% SOURCE: QCEW via DTMB

Wood Product, Fabricated Metal Product, and Machinery were the only types of Manufacturing in the region to have a reportable number for each of the four years. From 2006 to 2009, the total jobs in these three industries dropped by 550, or 45.6%. The Fabricated Metal Product and Machinery categories each dropped by about 57%. Wood Product manufacturing saw slightly less hardship.

In 2006, two-thirds of fabrication and machinery manufacturing jobs in the region (as reported in QCEW) were based in Baraga County. Even as over 200 of those jobs were lost, by 2009 the county's share of the region's jobs in those industries increased to 80%. The same year, the Superior Suppliers Network (SSN), LLC, was formed through a formal agreement of 11 fabricators to collectively pursue new business opportunities. The group proceeded with a united front for a time, and a business development manager was hired in 2010 to represent the group's interests. However, the county managed to regain only 30 jobs in fabrication and machinery manufacturing from 2009 to 2015.

Figure 5-III makes clear that, although a significant rebound has occurred region-wide in these industries since 2009, the net loss from 2006 to 2015 remained devastating to the sector, with 310, or 25.7%, of the 2006 total jobs lost.

Figure 5-III: Manufacturing Jobs Trend, Western U.P., Annual 550 503 500 450 387 396 400 353 350 317 284

Jobs 300 250 217 200 168 150 136 100 2006 2009 2012 2015

SOURCE: Wood Product Fabricated Metal Product Machinery QCEW via DTMB

Chapter 5| The Economy

SMALL BUSINESSES

Just as levels of employment vary by industry, large differences exist among industries in the proportion of jobs supplied by firms of different sizes. These differences have clear implications for workforce development strategies, since small and large firms tend to have differing labor requirements, hiring patterns, occupational staffing, and wage rates.

Aside from public and non-profit employers such as universities and most hospitals, almost all employers in the region are small businesses. There is a single private employer classified as "large" (over 500 employees) in the region: UP Health System Portage in Hancock, with a staff of 800. Before the hospital's purchase and entry into the private sector in 2014, it had been over 20 years since another large private business existed in the region: White Pine Mine, which closed in 1995. The region’s only other employer of any kind with over 500 employees is Michigan Technological University, the largest employer in the region and one of the largest in the U.P., with a staff of 1,600. Meanwhile there are 2,040 small business establishments in the region, categorized as shown in Table 5-IX.

Table 5-IX: Small Business Establishments by County and # Employees Employees Baraga Gogebic Houghton Iron Keweenaw Ontonagon TOTAL Under 20 176 365 756 346 63 157 1,863 20 to 99 17 26 87 16 2 7 155 100 to 499 2 7 7 4 0 1 21 500 to 999 0 0 1 0 0 0 1 TOTAL 195 398 851 366 65 165 2,040 SOURCE: U.S. Census Bureau County Business Patterns, 2014

Small businesses have contributed to the regional economy by introducing new technologies and products and serving new markets; implementing better working conditions; and creating new jobs. They have also helped the economy to adapt. Small firms and opportunities for self-employment function as a safety net for employees laid-off by larger firms and have helped stabilize the economy during downturns.

EMPLOYMENT FORECASTS

There are two types of employment forecast included in this section: industry forecast and occupational forecast. The current long-term forecasts produced by Michigan DTMB range from the year 2012 (baseline) to the year 2022. DTMB produces forecasts for the Upper Peninsula (the Upper Peninsula Prosperity Alliance) as a whole – not for the three regions within it.

Table 5-X shows the employment forecast for the 10 industries projected to offer greatest employment in 2022. The rankings of the top 7 are the same for 2012 and 2022. Some divergences emerge further down the list, such as State Government (Excluding Education and Hospitals) which is projected to lose employees between 2012 and 2022. Of the top 8 nongovernmental industries in the 2012-2022 industry forecast for the U.P., 7 are included in the Western U.P.'s top 10-employing industries in 2015.

Chapter 5| The Economy

Table 5-X: 2012-2022 U.P. Employment Forecast by Industry (Top 10 Projections) Employment Industry 2012 2022 Growth Number Percent Educational Services 14,440 13,830 -610 -4.2% Local Government 13,130 12,820 -310 -2.4% Food Services & Drinking Places 9,220 9,590 370 4.0% Hospitals 8,190 8,510 320 3.9% Total Self-Employed & Unpaid 6,640 6,990 350 5.3% Family Workers Ambulatory Health Care Services 4,250 4,880 630 14.8% Religious, Grantmaking, Civic, 3,780 4,040 260 6.9% Professional, Similar Orgs. State Government 3,980 3,730 -250 -6.3% General Merchandise Stores 3,660 3,680 20 0.5% Specialty Trade Contractors 2,800 3,270 470 16.8% SOURCE: DTMB Labor Market Information & Strategic Initiatives (LMISI)

Table 5-XI shows the employment forecast for the 10 occupations projected to offer greatest employment in the U.P. in 2022. The top rankings for 2022 projected employment are primarily white-collar and skilled labor occupations. The only change in ranking of the top 10 from 2012 to 2022 is a flip of the Production category and the Education, Training, and Library category due to a projected gain in the first and loss in the second. Total occupational employment is projected to be 134,790 jobs in the year 2022 – an increase of 4,500 jobs, or 3.5%, from 2012.

Table 5-XI: 2012-2022 U.P. Employment Forecast by Occupation (Top 10 Projections) Employment Growth Occupation Major Group 2012 2022 Number Percent Office & Administrative Support 19,330 19,340 10 0.1% Sales & Related 12,330 12,750 420 3.4% Food Preparation & Serving 12,250 12,675 425 3.5% Healthcare Practitioners & 9,080 9,660 580 6.4% Technicians Production 8,805 9,190 385 4.4% Education/Training/Library 8,920 8,700 -220 -2.5% Transportation & Material Moving 7,460 7,690 230 3.1% Construction & Extraction 6,555 7,300 745 11.4% Installation/Maintenance/Repair 6,220 6,470 250 4.0% Management 6,210 6,435 225 3.6% TOTAL All Occupations 130,290 134,790 4,500 3.5% SOURCE: DTMB LMISI

Table 5-XII shows the 10 projected fastest-growing occupational titles in the U.P. This is a diverse set, including blue color and white collar, skilled and professional, from a variety of industries. Of the top 10 projected for percentage growth, two are projected to provide by far the most new jobs: Home Health Aides (230) and Market Research Analysts and Marketing Specialists (100; also the fastest-growing).

Chapter 5| The Economy

Table 5-XII: 2012-2022 Projected Fastest-Growing Occupational Titles in U.P. Employment Change Occupational Title Number Percent Market Research Analysts and Marketing Specialists 100 33.3% Veterinary Technologists and Technicians 15 30.0% Meeting, Convention, and Event Planners 15 25.0% Home Health Aides 230 24.9% Sawing Machine Setters, Operators, and Tenders, Wood 45 23.1% Brickmasons and Blockmasons 25 22.7% Diagnostic Medical Sonographers 10 22.2% Cement Masons and Concrete Finishers 20 21.1% Physical Therapist Assistants 25 20.8% Computer Systems Analysts 25 20.8% SOURCE: DTMB LMISI

In general, the projections as a show faster rates of employment growth for occupations that require moderate to high levels of education and training. Depending on the occupation, this can come in the form of a traditional college education or skilled trades/career and technical education programs.

Table 5-XIII presents annual job openings by occupation major group from 2012 to 2022 in the entire Upper Peninsula in both growth and replacement job openings. Office and Administrative Support is expected to produce the largest number of job openings during this period, but 9 in 10 of these openings will be replacement positions. Construction & Extraction is expected to see the most growth, both in absolute number and percentage, with 41.4% of job openings being new rather than replacement.

Table 5-XIII: Top 10 Occupations for Projected 2012-2022 Annual Job Openings in U.P. Occupation Major Group Total Openings Growth Replacement Office and Administrative Support 501 51 450 Food Preparation & Serving 497 49 448 Sales & Related 442 47 395 Healthcare Practitioners & Technicians 246 58 188 Production 238 62 176 Transportation & Material Moving 198 31 167 Construction & Extraction 191 79 112 Education/Training/Library 184 0 184 Installation, Maintenance, & Repair 174 28 146 Management Occupations 154 27 127 SOURCE: DTMB LMISI

REAL-TIME REPORTING

In an age when up-to-the-minute information is always in demand and even taken for granted, government can facilitate better decision-making by acting in suit. Michigan DTMB produces a monthly "Real-Time Labor Demand" Snapshot for each Prosperity Region, including the Upper Peninsula. In the following January 2017 Snapshot, 2,990 total job postings were reported for the U.P., with two of the top five-posting employers having a presence in the Western U.P.

Chapter 5| The Economy

Figure 5-IV: Real-Time Labor Demand – January 2017 Snapshot, Prosperity Region 1

Chapter 6| Planning/Economic Development Network

INTRODUCTION

WUPPDR is one of many organizations in a very large network that deals with planning and economic development activities which are focused totally or in part on the Western Upper Peninsula of Michigan. These organizations are found in the private, public, and nonprofit sectors, and each has some influence on economic development activities in the region. The territorial interests of all the organizations cover a very wide continuum, from a single community institution to the entire region or U.P. Those in the public sector represent all levels of government from federal departments to local minor civil divisions of cities, villages and townships. Those in the private for-profit and non-profit sectors can most easily be described as representing very diverse interests.

Organizations dealing with planning and economic development activities, such as WUPPDR, have continually repositioned themselves into new relationships. In these relationships terms like collaboration, partnerships, and cooperation, which were once used more rhetorically, have now gained more meaning in practice. Community and economic development organizations in the Western U.P. are not only sharing information and programs among themselves but are frequently working cooperatively with organizations in other disciplines. They have discovered in the process that cooperation can mean access to new constituents, new sources of funding and increased effectiveness. INVENTORY OF ORGANIZATIONS

The organizations listed below represent only a partial inventory of the network. WUPPDR has partnerships with many other organizations in the private for-profit, private non-profit, and public sectors. While all collaborations are important, the number of these organizations and their individual missions makes it inappropriate to discuss them all here. The following, therefore, primarily are public organizations with which WUPPDR has the direct relations in the pursuit of planning and economic development activities:

U.S. Department of Agriculture Forest Service The Forest Service is responsible for the administration and management of close to a million acres within the boundaries of the Ottawa National Forest. These lands occupy approximately 24 percent of the total area of the Western Upper Peninsula. With this amount of land and the number of different programs the Forest Service must operate to meet its mission, the agency has a significant impact on rural development in the region. It meets many of its obligations through partnership arrangements.

U.S. Department of Agriculture Natural Resources Conservation Service The Natural Resources Conservation Service works with individual property owners, non-governmental organizations, and local governments in areas involving soil and water issues. Through its Resource Conservation and Development (RC&D) Program, it provides technical and financial assistance to local RC&D councils. These councils identify problems and priorities along with setting goals to solve problems in four broad areas: land conservation, water management, community development, and environmental enhancement.

U.S. Department of Agriculture Rural Development The programs of this agency are used to support public works programs in partnership with other agencies. The agency’s housing programs have also been used effectively throughout the region, and RD is currently directing resources toward certain aspects of rural business infrastructure assistance.

64 Chapter 6| Planning/Economic Development Network

U.S. Department of the Interior National Park Service (NPS) NPS works in partnership with local organizations and local units of government that have special interests in these parks. Since the parks attract visitors that use both private and public services, addressing different user groups’ needs and how best to fulfill them requires coordinated planning to reduce possible negative impacts on both the parks and local communities. Two national parks are located within the region. Isle Royale National Park is mostly isolated on an island northwest of the Keweenaw County mainland, whereas Keweenaw National Historic Park includes partner sites across much of the peninsula’s mainland, drawing special attention to historic town sites and features.

U.S. Department of Interior Bureau of Indian Affairs This organization is represented through the two reservations that are located in the region, the L’Anse Reservation in Baraga County around the communities of L’Anse and Baraga and the Lac Vieux Desert Reservation in Gogebic County at Watersmeet. Both tribal governments are pursuing community and economic development programs and interact with adjacent local governments.

U.S. Department of Commerce Economic Development Administration (EDA) Besides operating a multi-county economic development planning program, EDA also offers a number of programs which allow for the economic development implementation through financial assistance. Since financial resources are limited, cooperative partnerships to undertake projects—particularly in public works—are commonplace.

Michigan Economic Development Corporation (MEDC) This quasi-governmental agency functions as a public-private partnership fostering community development, job creation, and economic expansion. Services in the region are offered via two separate but related entities: the Community Assistance Team (CATeam) and Business Development program. The former works with local units of government to improve community environments and opportunities, and the latter works with economic development organizations and directly with businesses, performing retention visits and identifying needs for and potential benefits from public funding. MEDC also has programs focusing on other opportunities such as foreign investment and also has purview over the Pure Michigan statewide tourism campaign.

Michigan Departments of Technology, Management and Budget; Natural Resources; Environmental Quality; and Transportation Each of these agencies has planning functions and programs which offer a wide range of rural, community, and economic development initiatives, and each is active in the region and in the network.

Michigan Works! (MW) This agency is responsible for operating the employment services within the state. MW provides recruitment, counseling, testing, training referrals, and job placement via its one-stop service centers and field offices, as well as labor market information. MW also works directly with businesses to address their workforce needs.

UPWARD Talent Council (UPWARD) The UPWARD Talent Council is a business-led policy and oversight organization responsible for creating a comprehensive, community-wide response to the challenges of building a highly skilled workforce and a competitive regional economy across the U.P. The UPWARD County Commissioner Board has representation from every county in the U.P. in the form of locally elected County Commissioners who

65 Chapter 6| Planning/Economic Development Network appoint members to the UPWARD Workforce Development Board. The business-led Workforce Board has a majority private sector membership that sets the strategic direction for workforce development tactics in the U.P. These boards work together to foster economic development, encourage and support employers, and promote full employment for U.P. residents. UPWARD delivers Michigan Works! services to the business community across the U.P. to support regional economic and workforce development.

UPWARD is administratively integrated with multiple organizations in the region other than Michigan Works! The Central U.P. Planning and Development Regional Commission, Small Business Development Center, Keweenaw Economic Development Alliance, and other local economic development partners are directly linked through the UPWARD Talent Council. This regional partnership approach increases the connectivity of local partners, raises awareness surrounding all U.P. economic development projects, and creates efficiency that leads to more successful outcomes across the U.P.

Michigan State University Extension Service Through a network of field offices, county extension directors and extension specialists, the economic and social needs of Michigan residents, particularly in rural areas, are being addressed. Focus areas include agriculture (including food processing and 4-H), product development, and planning and zoning education. The Upper Peninsula has a Government and Public Policy Educator who WUPPDR regularly works with on topics of mutual interest.

Upper Peninsula Economic Development Alliance (UPEDA) This nonprofit membership organization promotes the entire Upper Peninsula as a business location by integrating and improving on the region’s many unique qualities. UPEDA provides marketing and informational services to its private and public members. Services are funded in part through a matching grant from MEDC.

Upper Peninsula Commission on Area Progress (UPCAP) This nonprofit organization was the organizing entity for the three Upper Peninsula planning and development districts, including WUPPDR, in 1968 (at EDA’s request). Today UPCAP is responsible for development, coordination, and provision of human, social, and community resources across the Upper Peninsula. It is also designated as the U.P.’s Area Agency on Aging to advocate for and provide services to older adults.

Upper Peninsula Travel and Recreation Association (UPTRA) Upper Peninsula Travel and Recreation Association is a private non-profit organization composed of members that represents the small businesses which make up the tourism industry. Its primary mission is to promote the tourism attributes of the Upper Peninsula to other markets.

Operation Action U.P. This private non-profit organization is an advocate for industry on key issues affecting Upper Peninsula businesses. It also facilitates economic development through industrial prospecting and promotions.

Northern Initiatives This private non-profit community development corporation, once an academic department of Northern Michigan University in Marquette, provides a broad range of technical and economic development services to small businesses in Northern Michigan including lending, training, informational and efficiency consulting, and regional strategies such as tourism promotion.

66 Chapter 6| Planning/Economic Development Network

MTEC SmartZone This establishment serves as a high-technology business accelerator (a type of incubator) for connecting all types of enterprises, from private entrepreneurs to Fortune 500 companies, with Michigan Technological University student talent. MTEC provides business infrastructure systems and support along with consulting services. MTEC is one of 15 SmartZones in the state. MTEC operates as a nonprofit corporation with a board currently composed of local business leaders, educational leaders, and public administrators. It is financed through a local development finance authority through tax increment financing, with foregone local tax revenues reimbursed by the Michigan Strategic Fund.

Michigan Department of Community Health and County/Regional Health Departments These public agencies provide consultation, assistance, and service in the areas of environmental health, food service licensing and training, employee health testing, wellness education, disease prevention, and inoculation clinics.

Local Community and Economic Development and Planning Organizations There are a variety of local organizations which address planning and economic development issues. These include chambers of commerce, industrial development councils, convention and visitors bureaus, downtown development authorities, economic development corporations, and planning commissions. They are all involved in the network for planning and economic development to some degree, and they all make contributions to their local communities. These organizations work to strengthen area businesses through cooperation, association, and marketing, while also offering services to benefit tourists and the public at large.

Among these organizations, the Keweenaw Economic Development Alliance (KEDA) provides business retention, attraction, coordination of services, and technical assistance within the Keweenaw Peninsula. WUPPDR has a strong partnership with KEDA in community development and grants administration.

Regional Planning Organizations There are 14 official state regional planning organizations (RPOs) in Michigan. While each has its own particular set of issues, these organizations all pursue planning and economic development activities which address problems and seek solutions from a regional perspective. Most of Michigan's RPOs are engaged in implementing the Regional Prosperity Initiative, a state-level program to foster improved organizational collaboration and efficiencies. WUPPDR works closely and regularly with CUPPAD and the Eastern Upper Peninsula Regional Planning and Development Commission to coordinate and prevent duplicative and conflicting efforts in the Upper Peninsula.

State and National Nonprofit Organizations WUPPDR or its staff maintain strong relationships with three nonprofit membership organizations that advocate, conduct research, and provide professional development related to planning and development. The Michigan Association of Regions (MAR) is the state association for the 14 RPOs. The Michigan Association of Planning is the professional association for planners and the state chapter of the American Planning Association. The National Association of Development Organizations connects a wide range of economic development and planning organizations on the national level, including metropolitan and regional planning commissions and councils of government.

67 Chapter 7| Issue Identification

PROCESS AND LIST OF ISSUES

For this iteration of the CEDS, the WUPPDR Commission elected to designate the Western U.P. Regional Prosperity Collaborative (WUPRPC) as the CEDS Committee. WUPRPC conducted SWOT analyses over the course of three sessions in two locations in the region. The combined feedback from the SWOT analyses is compiled below. The outcome of the SWOT analyses was also included in WUPRPC's 2016 Regional Prosperity Plan amendment and was used as a basis for development of proposed 2017 RPI projects.

POSITIVE Strengths (Internal) Opportunities (External)  Natural resources  Geo -tourism and winter tourism  Water resources/freshwater  International community (attraction,  Sense of community/quality of life utilization, engagement)  Isolation/seclusion  Wireless/broadband access  Recreation opportunities  Affordable and reliable energy o Historical and cultural assets  Multi -modal transportation hubs and  Established tourism economy; geo -tourism network  Copper Peak complex (ski flying, trails,  Improvement of recreation access other recreation) infrastructure such as roads and paths  Michigan Technological University; other  Marketing, development, and universities and community colleges capitalization of/upon recreation assets  High School diploma attainment  Recreation events/facilities (e.g. fishing  Strong work ethic tournaments and Copper Peak)  Public transportation  Expansion and interconnection of water,  Low -cost housing, land, property silent, and motorized trail networks  Productive workforce  Mountain biking trails  Great Lakes ports  Engagement of U.S. Forest Service/DNR  Varied/diverse business base Good Neighbor Authority in National  Regio nal Chamber Alliance Forest counties (Bara ga, Gogebic,  Ability and willingness to collaborate Houghton, Iron, Ontonagon)  Coordinated healthcare systems  Quality affordable housing  Emergency services  "Missing middle" housing in urban areas  Attraction and retention of young people  Development and attraction of new businesses  Online business presences  Engagement of private sector  Integration of planning documents

68 Chapter 7| Issue Identification

NEGATIVE Weaknesses (Internal) Threats (External)  Wireless/broadband access  "One size fits all" regulations  Unskilled jobs  State -level focus on Lansing and Southeast  Lack of employer recognition of employee Michigan, and related attitudes skills  Outside influence – being subject to  Economic disadvantage decisions of others; lack of control/power  Lack of qualified workforce/employees  Lack of progress and responsiveness in  Lack of employee values in continued areas such as emergency repairs and learning/professional development and energy work ethic  "Single source" services/limited options in  Difficulty in recruiting professionals general; reliance on outside resources  Lack of employment opportunities for  "Status quo" mentality "trailing spouses"  Legal impediments on health care options  Low wages and affordability  High cost of living  Electrici ty supply  Seasonal workforce/mentality  Professional networks  "Status quo" mentality  Marketi ng of business  Poor customer and hospitality services  Brain drain  Transportation costs  Winter weather/climate  Perception of isolation  Lack of commercial and industrial space  Capacity of local units of government  Lack of advocacy on state level  Large amount of tax -exempt land/property  Funding Resources

OVERVIEW OF ISSUES Culture, Environment, and Lifestyle

A major attractor of current and prospective residents to the region is its unique culture and location- based amenities. The Upper Peninsula overall, and the Western Region specifically, possess a strong sense of place arising from a common heritage. A collaborative spirit arises out of necessity among the region and its many networked organizations. The region ’s physical and social properties are attractive by any measure. Housing and real estate are very affordable. Educational and healthcare opportunities abound. The natural environment is attractive and serene, having been relatively untouched in recent decades, and it offers endless recreational opportunities over the course of four distinct seasons. The region possesses a large amount of Great Lakes shoreline along with inland lakes and streams. Severe weather can be viewed as either an advantage or a disadvantage, but it allows for specialized recreational opportunities, and despite extreme precipitation events, the risk of natural disasters is low.

69 Chapter 7| Issue Identification

On the downside, t he region’s population is aging and somewhat resistant to change, and outside perceptions of the region as an eccentric, out-of-the-way place tend to exacerbate this disadvantage. Obtaining employment and conducting business operations can be a challenge, especially to people from outside the region, due to nepotism and inefficient, multi-level government and educational systems. Public policy and regulations are often based on top-down direction from state-level agencies in the Lower Peninsula. Institutional memory among staff, while advantageous in some ways, also contributes to closed-mindedness. The natural resources that are so inviting to outdoor adventurists are also attractive to extractive industry, and conflicts occasionally arise as a result. Although housing is affordable, in many cases it is low-quality. And many are driven away from the region simply because of its geographic isolation and limited access to the amenities of more populated areas. Institutions, Infrastructure, and Economy

Issues related to the economy result directly from the region’s geographic isolation. Several entities that have overcome this isolation are Michigan Technological University, a nationally renowned public university; Finlandia University, a private liberal arts college; and two community colleges. The region’s economic center is diversified with innovative companies including entrepreneurs, defense contractors, and a history of patenting. The region as a whole benefits from underutilized natural resources. Renewed mining activity is becoming more realistic due in part to increased worldwide demand for iron and copper. The region also benefits from local sourcing and manufacturing trends and a low-cost workforce. Finally, opportunities for internet business and telecommuting are increasing, opening up a new front for employment.

Unfortunately, in many ways and areas the economy is stagnant and tends to lag behind regional and national trends. Aging and limited infrastructure makes transportation of goods, services, and information difficult. Services and utilities are slow and expensive with limited coverage. Customer service is often poor. Lack of family-sustaining job opportunities causes outward migration, and much of the workforce that remains holds on to a seasonal mentality that impacts productivity. Rising costs of travel and health care have a disproportionate impact on the sparsely populated region, as do unstable commodity prices and global economics. Retail migration to “big box” (large retail) stores and the internet hurts small businesses, contributing to loss of employers. Finally, due to the predominance of the government sector, reduced government spending and grant funding limit the region’s prosperity. Summary

In many ways the Western U.P. is a region of paradoxes. Many strengths are often weaknesses when viewed in a different light. This is hardly unique to this region, as most SWOT analyses yield similar results. Still, it is important to recognize the upsides and downsides of aspects such as winter weather, isolation, natural resources extraction, opportunities for remote workplaces, and relative detachment from the global economy. The region is left to fend for itself in many respects, and the people have risen to this challenge. By necessity, collaboration is stronger in the Western U.P. than in many other areas of Michigan and nationally. With that base already established, the region has the opportunity to apply all available resources to achieve the region's goals, objectives, and strategies in the chapters to follow, always working toward the region's shared vision.

70 Chapter 8| Goals and Objectives

A VISION FOR THE WESTERN UPPER PENINSULA

In recognition of the SWOT analysis conducted in 2016 in conjunction with the Western U.P. Regional Prosperity Initiative (RPI), further informed by regular discussions of that group over the past three years, a new vision has been agreed upon for the Western U.P.:

A stable, diversified economy fostered through investments in quality built and natural environments; affordable, accessible, and robust infrastructure; a productive and resourceful populace; and an open, progressive, collaborative mindset

Regional Goals and Objectives

Goals and objectives for this iteration of the CEDS are based on two processes. First is RPI, which, in 2014, resulted in development of a five-year Regional Prosperity Plan by the Western U.P. Regional Prosperity Collaborative. The plan, which arose from a year of monthly discussions of select stakeholders focusing on economic and workforce development, adult and higher education, and transportation, evaluated regional issues and needs and identified strategies to address those needs. The strategies were narrowly tailored to projects proposed for implementation the following year. Second is a reevaluation and distillation of the broader goals and objectives of the previous five-year CEDS, subject to review by the Regional Prosperity Collaborative. Together these processes were a well- rounded and comprehensive basis for regional goals and objectives over the next five years.

GOAL I : Help support the business environment to create and expand opportunities for entrepreneurs and businesses. . Objective 1: Help provide a small business support system which will contribute to a variety of services which include the development of business plans, market feasibility studies, marketing plans, cash flow analyses, loan packaging, and export assistance. . Objective 2: Maintain WUPPDR's business assistance inquiry and case tracking system, Western U.P. Resource Connect, which serves as a single point of entry for access to multiple local and regional business support organizations.

GOAL II: Build upon the uniqueness of the region’s rural resources to leverage sustainable and diverse enterprise opportunities. . Objective 1: Support and continue the development of the tourism industry through forest recreation, fish and wildlife, and scenic and heritage-based strategies. . Objective 2: Support and seek opportunities for value-added manufacturing that utilizes commodities originating within the region. . Objective 3: Support and seek opportunities for development of the wood biofuels industry, primarily for residential, institutional, and district heating systems.

GOAL III: Mitigate natural forces that threaten the region's general and economic resiliency. . Objective 1: Incorporate climate change considerations into planning, development, and promotion of tourism and other natural resource-based industries. . Objective 2: Conduct hazard mitigation planning and project implementation for avoidance of and recovery from natural and human-based hazards.

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GOAL IV : Improve the region’s physical infrastructure to ensure the free flow of people, freight, energy, and information while improving quality of life, ensuring safety and security, and protecting the environment. . Objective 1: Support maintenance of local road networks and funding systems to facilitate resident mobility and access to natural resources and markets. . Objective 2: Provide input into the statewide transportation planning process along with support for continuing upgrades to the state trunkline system. . Objective 3: Support airport facility upgrades and efficient commercial air service and general aviation activity to permit transport of passengers and goods. . Objective 4: Participate in ongoing efforts to preserve and expand the freight rail network of Northern Wisconsin and the Upper Peninsula. . Objective 5: Support creation and maintenance of public transit systems to provide for local and regional transit mobility, particularly for persons who lack automobiles or ability to drive. . Objective 6: Preserve and continue development of multi-use recreational trails on the local, regional, and statewide levels, including the Iron Belle Trail. . Objective 7: Support expansion and improvement of broadband internet and cellular service through Connect Michigan technology action planning and plan implementation. . Objective 8: Support and undertake projects and mechanisms to provide access to affordable, efficient, and renewable energy for residences and commercial and industrial enterprises.

GOAL V : Promote a community development framework for improved design, infrastructure, preservation of assets, and general welfare to create quality places to live, work, and conduct business. . Objective 1: Promote development regulations including zoning ordinances, building codes, and historic preservation ordinances, along with associated plans, to protect the aesthetics, character, cultures, and property values of our communities. . Objective 2: Support and undertake "placemaking" projects to create attractive and engaging elements, such as parks and art features, to enhance the vibrancy of our communities. . Objective 3: Support sustainable development, modernization, and renovation of public facilities and utilities, including water, wastewater, sanitary sewer, and solid waste systems, to provide access to high-quality, safe, and sustainable public services. . Objective 4: Encourage development and rehabilitation of quality affordable housing, including mixed-use developments, consistent with residential target market analyses that evaluate market potential. . Objective 5: Support evaluation and environmental remediation to encourage the reuse and redevelopment of brownfields. . Objective 6: Foster development and enhancement of recreational and cultural facilities and programs for entertainment, recreation, wellness, and enrichment of culture and heritage. . Objective 7: Search for funding opportunities and support member governments’ efforts to preserve significant historic resources, ethnic histories, and related assets. . Objective 8: Preserve access to comprehensive medical care and community health programs. . Objective 9: Support the operations of nonprofit organizations that meet community social needs and provide resources that are not effectively supplied by the public and private sectors.

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GOAL VI: Build and enhance the region's capacity to attract, retain, and educate individuals to build their capacities, meet workforce needs, and create continuously rejuvenating communities. . Objective 1: Support growth and sustainability of, and partnerships among, our local and intermediate school districts and institutions of higher education. . Objective 2: Support growth and sustainability of career pathways and career and technical education (CTE) programs to meet the education, employment, and retraining needs of individuals and the workforce needs of our employers. . Objective 3: Support growth and sustainability of young professionals groups to provide a strong network for young adults who are vital to the future of our communities. . Objective 4: Actively seek out, and act on, input from youth and young adults regarding priorities and desires for their communities in order to encourage this population to remain.

GOAL VII: Pursue and nurture collaborative relationships within the region, across the Upper and Lower Peninsulas of Michigan, and with Wisconsin border areas. . Objective 1: Support and advocate for continuation of Michigan's Regional Prosperity Initiative as the most effective mechanism for regional communications and collaboration. . Objective 2: Foster relationships between WUPPDR, local economic development organizations (EDOs), and regional partners across the Upper Peninsula through the Region 1 Collaborative Development Council and Upper Peninsula Economic Development Alliance. . Objective 3: Support efforts to strengthen single- and multi-county EDOs, Economic Development Corporations, and chambers of commerce, as well as partnerships among them and/or consolidation where locally supported. . Objective 4: Support the Western U.P. Regional Chamber Alliance to reduce duplication of promotional efforts and create greater impacts through projects of mutual benefit. . Objective 5: Participate, through staff involvement, in the U.P. Professional Planners Group. . Objective 6: Maintain regular contact with the Central and Eastern U.P. Planning Regions to coordinate projects and priorities and to maximize use of resources to meet common goals. Objective 7: Search for and take advantage of opportunities for cross-border relationships and partnerships with Wisconsin's communities and regional organizations.

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PLANNING FOR IMPLEMENTATION

Goals and objectives are only manageable if they are focused on individual strategies, which lead to a realistic plan of action. This chapter begins by defining the various categories of operations of WUPPDR and other regional organizations through which they are equipped to implement projects – both those identified in this CEDS and any others that arise from time to time. The chapter continues by defining priority strategies and list of associated projects arrived upon through the Regional Prosperity Initiative. Supplementing this chapter is a list of specific potential projects drawn from local units of government and engineers throughout the region in response to an annual call for projects. Categories of Operations Technical Assistance WUPPDR has established a technical assistance program to respond to requests, primarily from local units of government, for addressing specific economic and community development needs. The most frequent types of assistance include local planning services such as comprehensive, recreation, and hazard mitigation planning; labor standards compliance; geographic information systems administration and mapping; research through public opinion surveys and existing information; and completion of forms and applications. By offering this assistance, WUPDPR supplements the capacity of local governments in the region, most of which do not have sufficient staffing or expertise to accomplish these tasks.

Information Services To be able to respond to technical assistance requests as well as informational inquiries from other agencies and the general public, WUPPDR has developed and maintains an extensive information network for planning and development purposes. The system includes internal electronic databases; streamlined access to public information sources, including the United States Census; and an intergovernmental liaison network. WUPPDR is regularly in contact with the full range of public agency and legislative contacts at the local, regional, state, and federal levels, as well as prominent private sector leaders within the region and across the Upper Peninsula. This allows WUPPDR to serve as a unique conduit to key individuals who have the ability to reduce impediments to regional development and offer new opportunities – funding and otherwise.

Regional, Economic, and Community Development WUPPDR continuously seeks opportunities for public-private partnership partnerships and investments within the local and regional economies. Designation and support as an EDA district organization allows WUPPDR to participate in meetings and initiatives at all levels that offer access to opportunities that might not otherwise be known or attainable. It is important that WUPPDR have this simple but vital capacity to be aware of events and opportunities within the region and beyond. This allows WUPPDR to not only to find new opportunities but to provide a regional perspective and ongoing communications to local governments that naturally are inwardly focused in their course of operations.

WUPPDR nurtures strong relationships with other public agencies focusing on economic, community, and regional development in order to take advantage of opportunities that arise. These agencies include: Michigan Economic Development Corporation; Michigan State Housing Development Authority (MSHDA); Michigan Departments of Agriculture and Rural Development, Environmental Quality, Natural Resources (DNR), and Transportation (MDOT, which represents one of WUPPDR's strongest

Chapter 9| Implementation Plan partnerships); United States Department of Agriculture – Rural Development; Michigan State University Extension; UPWARD Talent Council; local economic development corporations and organizations; chambers of commerce; and other regional planning agencies and economic development districts; as well as EDA itself.

Finally, WUPPDR maintains connections with organizations that provide direct assistance to businesses, including the Small Business Development Center, Michigan Works!, Northern Initiatives, MTEC SmartZone business accelerator, Procurement Technical Assistance Center, and Keweenaw Economic Development Alliance. In 2016 WUPPDR developed "Western U.P. Resource Connect," a mechanism utilizing a standardized form and case tracking system to provide access to these organizations and others for individuals in need of assistance (services such as business consulting and planning, site selection, workforce needs, etc.) through a single point of contact.

Grants Administration and Implementation WUPPDR staff has expertise to apply for, administer, and, in some cases, implement grants from a wide variety of state and federal agencies. WUPPDR has a long and strong history of administering grants from EDA, MEDC, MDOT, MSHDA, the Federal Emergency Management Agency, and many other agencies. WUPPDR maintains employment of at least one Certified Grant Administrator (a designation established in 2014 that few providers in the region have attained) for Community Development Block Grants from MEDC. Grants are administered through a variety of arrangements: WUPPDR may self- administer a grant as the grantee, may be reimbursed by a funding agency for a grant to another organization, or may be directly paid as a fee for service from a local government grantee.

If WUPPDR's commitment to a grant goes beyond the application and technical administration (paperwork, compliance, and related activities) stage – that is, if a project idea originates at WUPPDR and WUPPDR is eligible to apply or applies on behalf of a local government – WUPPDR may implement the project itself for the benefit of the region. This has happened in the past most recently for heritage- related marketing activities, promotion and development of the biomass fuels industry, strategic economic development planning in Baraga County (EDA short-term planning grant), and the majority of Regional Prosperity Initiative projects thus far. In other cases, WUPPDR may hire a consultant to do specialized work. Strategies and Projects for Action

The Western U.P. Regional Prosperity Collaborative, serving as the CEDS committee, revises strategies on an annual basis. The strategies are presented as a Five-Year Economic Development Blueprint to implement the Regional Prosperity Plan, which is also updated annually. Some strategies are geared toward short-term projects with clearly defined deliverables. Other strategies and implementation actions continue for multiple years. The strategies presented in this CEDS represent the priorities and projects of RPI for the year 2017. Future strategies will be included in annual Regional Prosperity Plan updates. Past strategies can be found in the original Regional Prosperity Plan and past annual updates. Progress on RPI and other WUPPDR activities will be reviewed in CEDS Annual Performance Reports.

Strategies are listed in priority order below. Strategies that currently have RPI projects underway are listed first, followed by those that are not yet being implemented. Each strategy includes implementation actions, partners or responsible parties for the strategy, and performance measures. Unless otherwise indicated, strategies are new for 2017, intended to be implemented primarily by WUPPDR, and specific to the Western U.P.

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Current Strategies for Implementation (Projects Underway) 1. Energy Efficiency and Clean Energy Outreach ^  Strategy: Conduct outreach to local businesses and governments to increase awareness of energy expenses and programs that can fund clean energy and energy efficiency upgrades.  Implementation actions  Meet with partners to develop work plan  Research existing programs  Perform field visits to consumers  Develop report on outcomes  Partners or Responsible Parties  Prosperity Region 1b  Michigan Energy Options  MTU Keweenaw Research Center  Efficiency United  Other energy planning organizations  Performance measures  Entities (businesses/local governments) visited  Uptake of funding programs by entities visited  Energy cost savings realized  Report developed

2. Brownfield & Blight Priority Database and Mapping  Strategy: Develop a database and map of potential regional brownfield and blight remediation projects; assist in identifying and implementing resources for remediation.  Implementation actions  Identify and validate existing inventory data  Survey local government officials about site locations  Explore and identify resources for remediation  Develop inventory database, including GIS  Partners or Responsible Parties  Local units of government; land banks  Local economic development organizations  Michigan Department of Environmental Quality  Michigan Economic Development Corporation  Performance measures  Local government survey response rate  Number of resources identified  Inventory developed

3. Western U.P. Trails Database  Strategy: Collect and display trail information in a standardized format for utilization by trail websites and mobile apps.  Implementation actions  Engage trail organizations and volunteers  Identify and coordinate data collection tools

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 Identify and connect with potential utilizers of database  Develop electronic database  Partners or Responsible Parties  Michigan Department of Natural Resources  United States Forest Service  Other trail organizations  Performance measures  Volunteers and organizations engaged  Number of trail systems mapped  Number of trail miles mapped  Creation of database  Number of potential utilizers of database engaged

4. Placemaking Support (continuing) *†^  Strategy: Identify high-impact placemaking projects in the region through an application process; award several matching mini-grants to communities or other organizations.  Implementation actions  Identify and explore potential projects  Engage RPI participants in selecting projects  Award and administer mini-grants  Partners or Responsible Parties  Local units of government  Nonprofit organizations  Performance measures  Projects selected, funded, and implemented  Impacts on PlaceScores (where applicable)

5. Regional Geographic Information System (GIS) ^  Strategy: Develop a regional GIS, with a framework to sustain it operationally, for managing, mapping, and increasing access to geographic data to further economic development and facilitate local government asset management.  Implementation actions  Identify and communicate with interested parties to select types of data to include  Acquire and obtain permissions to use existing datasets  Create the GIS itself with a means for users to access its data  Develop fee structure or other means of sustainability  Form agreements with those who will utilize the GIS  Partners or Responsible Parties  Local units of government  Local economic development organizations  Performance measures  Number of datasets and permissions acquired  Creation of GIS and means of access  Number of interested "customers"  Number of agreements entered into

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6. U.P.-Wide Pure Michigan National Marketing Campaign *†^  Strategy: Contribute to a Pure Michigan regional marketing campaign in conjunction with Regions 1b & 1c and other U.P. stakeholders.  Implementation actions  Deliver WUP RPI share of leveraged funds  Partners or Responsible Parties  Prosperity regions 1b & 1c  Pure Michigan/Michigan Economic Development Corporation  Pictured Rocks Boat Cruises and other tourism-oriented businesses  U.P. Travel and Recreation Association  Mackinac Bridge Authority  Convention & visitors bureaus  Chambers of commerce  Performance measures  Funding procured and distributed  Campaign continued

7. Technology Action Plan Upgrades and Certifications *†^  Strategy: Assist Connect Michigan in developing new technology action plans and achieving certification at "2.0" standard for the region's most highly engaged counties.  Implementation actions  Assist Connect Michigan with meetings and logistics  Assist in engaging service providers and other private and public stakeholders  Assist in developing upgraded technology action plans  Partners or Responsible Parties  Local units of government  Chambers of commerce  Major institutions (including education)  Performance measures  Connect Michigan services procured  Technology action plans completed  Certifications attained  Number of providers participating

Potential Future Projects 1. Talent Attraction and Retention (to supplement existing efforts) ^  Strategies: Support and expand a task force to explore and undertake projects to stem or mitigate loss of young and/or skilled workers and recent college graduates.  Implementation actions  Identify, coordinate and support existing efforts in the region  Solicit information from employers and potential emigrants to better understand the issue and its causes  Identify, and, to the extent possible, implement mitigation action items  Partners or Responsible Parties  Michigan Works!

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 Michigan Technological University  Young professionals groups  Performance measures  Number of individual and organizational partners  Number of employers and individuals providing feedback  Number of retention/attraction projects supported

2. Developer Forum and Additions to Retail Target Market Analyses *†^  Strategy: Hold one or more forums to explain the recently completed residential and retail target market analyses to developers, supplemented by information about available project funding sources; expand retail target market analyses to additional communities.  Implementation actions  Organize event in coordination with TMA consultant and partners  In consultation with partners, identify and invite developers from within and outside of the region to attend  Participate in broader housing forum arranged with partner organization(s) (tentative)  Develop work plan and agreement with TMA consultant to conduct retail TMAs for three to four additional communities  Partners or Responsible Parties  Prosperity Regions 1b and 1c  LandUse USA (TMA consultant)  Local units of government  Private developers  Human services organizations  Keweenaw Economic Development Alliance  Other local economic development organizations and chambers of commerce  Young professionals groups  State agencies (DEQ, MEDC, MSHDA, etc.)  Performance measures  Number of partners engaged  Forum(s) held; attendance at forum(s)  Evaluation score from forum participants  Actual or potential residential or retail developments resulting from TMA

3. New Technology Needs Assessment and Development  Strategy: Conduct an assessment of web- and app-based technology needs of local governments, nonprofits, and small businesses, and potentially provide technical and financial support for addressing deficiencies.  Implementation actions  Communicate with and survey local units of government about technology status and needs/opportunities  Communicate nonprofits and small businesses to assess their needs and interests  Identify implementation steps and potential projects to address needs identified  Provide technical and/or financial assistance in addressing needs as funding allows  Partners or Responsible Parties  Local governments

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 Nonprofit organizations  Local economic development organizations and chambers of commerce  Small Business Development Center and other regional economic development organizations  Performance measures  Number of organizations contacted  Number of organizations assisted  Report developed

4. Arts and Culture Development †^  Strategy: Contribute funding for further development of the existing U.P. Art & Culture Map (upartandculture.com) in order to foster cultural tourism.  Implementation actions  Distribute funding  Maintain dialogue with partner organizations responsible for implementation  Partners or Responsible Parties  Bonifas Arts Center, Escanaba  Marquette Arts & Cultural Center  Prosperity Regions 1b & 1c  Performance measures  Funding distributed  Map website further developed

* Continuing or multi-year project † Primarily to be implemented by external entities through pass-through funding ^ Project in common (past or present) with one or both other U.P. regions

Evaluation: Performance Measures In addition to performance measures attributed to each project, WUPPDR maintains a performance of general indicators of the state of community, economic, and workforce development; education; and transportation. Metrics are aggregated from reporting of multiple organizations. The dashboard, shown as Figure 9-I, is updated annually and available at www.wuppdr.org/rpi.

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Figure 9-I: Performance Dashboard