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Economic Development Opportunities in Shabbona

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Economic Development Opportunities in Shabbona Economic Development Opportunities in the Shabbona, IL Area Economic Development Opportunities in the Shabbona IL Area Prepared by Norman Walzer, Mim Evans, Brian Harger and Andy Blanke Financial support for this project was provided by the DeKalb County Community Foundation, the Shabbona Village Board, and Resource Bank. Any comments or suggestions in this report belong solely to the authors and do not necessarily reflect the views of the NIU Board of Trustees, members of the Shabbona Village Board, or those interviewed for this project. The authors thank Kathy Siebrasse, CGS, for assistance in preparing the report. Table of Contents Executive Summary...…………………………………………………………………………………………………….……………........3 Chapter 1. Introduction and Purposes of Study ....………………………………..………………………………………….…7 Organization of Report …………………………………….…………………………………………………………..….……………8 Chapter 2. Current Conditions in the Shabbona Area......................................................................... 10 Who lives in Shabbona? ............................................................................................................... 10 What financial resources do residents have? ................................................................................. 10 Where do Shabbona residents work? ............................................................................................ 11 Number of businesses. ................................................................................................................. 13 For which industries do residents leave Shabbona? ....................................................................... 13 The Shabbona Housing Market ..................................................................................................... 14 Local Tourism and Outdoor Recreation ......................................................................................... 16 Chapter 3. Survey Findings ............................................................................................................... 20 Chapter 4. Potential Strategies and Tasks to Consider ....................................................................... 27 Broaden Appeal of Shabbona Lake State Park and the Surrounding Area ....................................... 31 Attracting and Retaining Resident and Visitor Spending ................................................................ 38 Tasks to Consider ..................................................................................................................... 40 Stimulate Business Formation Through Entrepreneurship ............................................................. 42 Tasks to Consider ................................................................................................................................ 43 Create and Promote a Regional Identity to Attract Visitors ............................................................ 44 Tasks to Consider ...................................................................................................................... 45 Increase and Upgrade Housing Stock ............................................................................................ 46 Potential for Other Business and Industrial Employment ................................................................... 46 Chapter 5. A Path Forward ............................................................................................................... 50 Organizing for Progress ................................................................................................................ 50 Next Steps....................................................................................................................................52 Appendices ......................................................................................................................................54 Project Scope of Work .................................................................................................................. 54 Interviewed in Person or by Phone ............................................................................................... 56 Shabbona Area Lodging Sites ........................................................................................................ 57 1 Figures Figure 1. Population Change by Age, 2010-2016 & 2016-2021 Projections ......................................... 10 Figure 2. % of Households by Income ............................................................................................... 11 Figure 3. Cities Where Shabbona Residents Work ............................................................................. 12 Figure 4. Shabbona Commuting Patterns .......................................................................................... 12 Figure 5. Employment by Industry .................................................................................................... 13 Figure 6. Housing Costs in Shabbona and Surrounding Cities ............................................................. 15 Figure 7. Percentage of Housing Units by Year Built .......................................................................... 15 Figure 8. Houses Sold in Shabbona, June 2016-June 2017 .................................................................. 16 Figure 9. Average Daily Traffic Counts for Shabbona & Shabbona Lake State Park .............................. 17 Figure 10. Shabbona Area Lodging Sites ............................................................................................ 19 Figure 11. Location of Visitor Survey Respondents ............................................................................ 20 Figure 12. Visitor Interest & Likelihood of Use for Potential Park Activities/Improvements ................ 24 Figure 13. Potential Site for Development (if land available for purchase) ......................................... 48 2 Executive Summary The Shabbona, IL, area has many assets on which to build a prosperous future, some of which have not been fully developed. Thus, local leaders and the DeKalb County Community Foundation asked the Center for Governmental Studies at Northern Illinois University (NIU) to help shape local development approaches. This report examines these assets and presents several regional and local strategies, along with examples of specific approaches community leaders could implement. The Village of Shabbona, like many small communities, does not have access to staff with expertise and experience in dealing with local development issues. So it must rely on local groups and residents to organize and pursue these efforts. Thus, rather than focus on one or two main approaches, the CGS team examines local assets that can be enhanced, reviews efforts underway in other communities that might guide local efforts, and presents a set of strategies with possible tasks to address them. The next steps will involve organizing community groups to consider alternative strategies and tasks, prioritize them, and determine an action plan based on interests and capacities of each group. Complete market analyses, economic impact analyses, and/or feasibility studies might be undertaken to determine the potential of the ideas presented in this report in more detail. Assets and Potential The Shabbona area can follow several paths in building a development plan. Key among these is Shabbona Lake State Park (SLSP) with nearly 500,000 visitors annually, most from the Chicago Metro Area. In addition to its proximity to a large natural recreation area, Shabbona also offers high performing schools in a safe, small-town living environment with moderate-price housing and relatively close proximity to employment opportunities in Aurora, Naperville, DeKalb-Sycamore, and Rockford, among other centers. This region also benefits from a rich pre- Civil War history, most notably with Chief Shabbona living in Shabbona Grove. While many people visit the Shabbona area, their expenditures are limited by the availability of goods and services to purchase. This limitation results because a vast majority of Shabbona residents commute to other cities to work and make purchases. There also are wide swings in seasonal traffic patterns that limit the year-round potential for retail development. Thus, retail stores must depend on patronage by both residents and tourists or they must carry a broad range of merchandise that appeals to area residents. At the same time, there are several unique locally-produced items, including apples, candles, purses, wooden toys, wine, whiskey, painted gourds, turkeys, and other items that could be marketed more intensely to attract and expand tourism. A primary goal in a development plan is to create and market an “experience,” whether for a day trip or a weekend or longer, for both tourists and residents within the broader region, recognizing that families have multiple interests. Thus, bundling activities that appeal to various age groups can be important to expanding not only the potential of the Shabbona area but also its ability to capture or retain spending in the area. 3 Current Conditions and Status During the past decade or so, the population in Shabbona has remained stable with relatively little signs of future increases, which can limit the potential for development. At the same time, respondents in the residents’ survey conducted for this project seemed satisfied with the community and relatively few indicate an intention to relocate and, if so, it was
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