Community Development Overview

Michigan City's location at the southern end of Lake Michigan where Trail Creek enters the Lake provided a stimulus for its growth and development.  Construction of roads and railroads combined with the supply of fresh water and boat navigation advantages provided competitive industrial sites.  Expansion of the Metropolitan Chicago Area economy provided job opportunities for Michigan City Area residents.  Jobs were plentiful and people came to the Michigan City Area for them and to share its quality of life.  Early manufacturing jobs were in the steel, heating and transportation equipment, textiles, instrumentation, printing, and construction industries.  The Indiana State Prison has been a significant employer for many years.

The Area's location between Detroit and Toledo to the east and Chicago to the west resulted in a superior east-west ground transportation system.  Interstate highways 80, 90, and 94, U.S. highways 12, 20, 35, and 421, and several state routes make automobile and truck access within the area relatively speedy and safe.  The Chicago South Shore and South Bend and CSX railroads serve freight, and to a lesser extent, passenger needs.  Waterborne freight and passenger movements are no longer served, however, large numbers of pleasure boats ply the creek and lake during periods of favorable weather.

Development Patterns

To a large extent, Michigan City's development patterns have followed these transportation corridors.  Industries initially located on the waterfront, then followed the railroads and then major highway intersections.  In more recent years the waterfront has become more competitive for residential and recreational uses.  Manufacturing and other industries remain important users of railway corridor land.  Commercial office and retail development line U.S. and major state highways.  Residential development commingled with other uses and located in homogeneous subdivisions is found throughout the area.

Principal Industries

In 1987 there were 84 manufacturing establishments employing approximately 6,500 people of whom 4,200 were wage-earning production workers located in the study area.  The average manufacturing plant employed 77 persons of whom 65 percent were production workers making an average annual wage of $19,286.  They range in size from three employees at Crismar Screen Printing, which prints personal identification items, to 1,150 employees at Anco, a manufacturer of automotive accessories.  In addition to these items, industries located in the area manufacture a wide range of products and provide diverse job opportunities requiring a wide range of skills.  Among these products are air compressors, hydronic heating equipment, building materials, textile products, and audio-visual equipment.
 
 

Employment and Population Trends

LaPorte County competed effectively for employment and population growth during the 1960's and 1970's by providing relatively inexpensive sites, good highway and railway access, a beautiful waterfront setting, and small town atmosphere where people could afford a better quality of life than they could in nearby urbanized areas.  However, during the past 11 years the non-manufacturing jobs created in the County have been offset by job loses in the manufacturing sector.  Because the fastest growing sectors of the local economy -- services and trade -- generally pay less than the manufacturing jobs they replace, their purchasing power is also less.

During the 1980's La Porte County's population declined 1.4 percent, or by 1,566 people.  The principal contrast was between Michigan City which lost 3,011 people and the portion of the County located outside the strategic planning area which gained 3,174 people.  This outmigration trend resulted from households choosing an alternative school district, seeking a different housing style, being replaced by other inner city land uses, and a variety of other reasons.

Whereas La Porte County's population shows similar age characteristics, its distribution by race is not uniform.  While the total population declined during the 1980's, the Black population increased by 11 percent.  Nearly all of this increase took place outside the strategic planning study area.  Therefore, Blacks as well as whites found suburban housing opportunities.  The largest concentration of Black residents was found in Michigan City in 1990 just as it had been in 1980.  According to U.S. Census data, some 80 percent of the County's Black residents lived in Michigan City in 1990.

Even with a population decline, La Porte County experienced an increase in the housing stock in response to the increase in the number of households during the 1980's.  The 10-year period saw an increase of 2,181 housing units in the County of which 1,620, or 74 percent, were located outside the strategic planning study area.  Michigan City realized a net increase of 354 housing units during the same period.  Thus, in 1990 the City embraced 32 percent of the County's population and 33 percent of its housing.  Despite the increase in housing units, a relatively high 10.2 percent were vacant in 1990.  When compared to a more typical six to seven percent vacancy rate the data suggests some housing abandonment, some seasonal units along Lake Michigan, and some unmarketable units.

Construction of multi-family units in Michigan City has occurred at 3.8 times more than single family units during the past 11 years.  As a result the supply of units for rent has increased significantly as average household size and the ability to purchase a house have decreased in recent years.  As a result, Michigan City's average rents have increased by over seven percent as owner housing values fell over 12 percent during the 1980's.  Comparable housing value changes occurred for the entire of La Porte County.  Some of the City's lowest valued housing units are located in the UEZ.  The City provides assisted housing at Harborside, Merihill Manor, and Boulevard Gardens and through scattered site programs.  Fully seven percent of the City's housing stock does not have one or more sanitary systems.

Services Delivery Systems

Municipal services are generally delivered somewhat equally throughout the City.  At the same time the relative ease of access of some services varies with one's residential location.  With schools scattered across the Michigan City Area, access to them varies.  More than enough physical plant capacity exists and consideration is being given to closing five public elementary schools by the Michigan City Area School District.

Demand for Michigan City services and those provided by a wide spectrum of health and social services agencies varies by neighborhood.  Three hospitals provide 381 beds for the treatment of physical and mental illnesses.  Religious and other care providers have a broad range of programs, although demand for affordable care is greater than its supply.  This has become a problem for some center city residents whose average household incomes are lower than those elsewhere in the City and County.  For example, of the 140-person sample of UEZ residents who responded to the 1991 public day care survey, 50 percent earned less than $15,000 annually and 50 percent were unemployed.  The survey indicates UEZ residents have a disproportionate share of social, health, education, and housing problems.

Summary

Michigan City's location overlooking Lake Michigan, superior east-west highway and railroad service capacities, and accessibility to nearby Chicago have given it a competitive advantage resulting in growth and development.  Manufacturing industries located along these transportation corridors and along Trail Creek.  Principal industries include steel, heating and transportation equipment, textiles, instrumentation, printing, and construction.  During the 1980's, the increase in services and trade jobs was offset by the loss of manufacturing jobs.

During the 1980's Michigan City lost 8.2 percent of its population.  As the average household size declined, the number of the City's households and housing units increased in spite of the loss of population.  The preponderance of this increase was of multi-family units as demand for them increased and drove rents up over seven percent while homeowner values fell by over 12 percent.  In general, services are equally available throughout the area.  Disparities in their delivery are most often attributable to variations in demand and in accessibility like in any other city.  However, because of relatively low incomes and education levels, UEZ residents have a disproportionate share of social, health, and housing problems.