[From the U.S. Government Printing Office, www.gpo.gov]










                                                                 ECONOMIC DEVELOPMENT
















                                                                                              9 -21









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                                                          THE'l LEELANAU                                              GENERAL                               PLAN
                                                  Policy Guidelines for Managing Growth on the Ixelanau Peninsula

                                                                                          Working Paper Number 7

                                                                                                        May 7,1992




                                                                                                           This         nt i3
                                                                                                                D  'ume
                                                                                                                  or
                                                                                                       Printed on Recycled Paper










                                                        LEELANAU COUNTY
                                                  BOARD OF COMMISSIONERS


                                John D. Stanek                                             Philip E. Deering
                                Chairman                                                   Vice Chairman


                                Donald W. Mitchell                                         Rochelle Steimel
                                Gerald N. Henshaw                                          Joseph F. Brzezinski



                                                        LEELANAU COUNTY
                                                     PLANNING COMMISSION


                                                               Daniel Heinz
                                                                 Chairman


                                Merle Bredehoeft                                  Margot Power
                                Barbara Cruden                                    Lois Cole
                                Steve Kalchik                                     Daniel Heinz
                                Richard (Rick) N. Stein                           Lawrence Verdier
                                John Dozier                                       Philip E. Deering



                                                   LEELANAU GENERAL PLAN
                                                      STEERING COMMITTEE


                                                             John D. Stanek
                                                                 Chairman


                       John April                           Max Hart                             Karen Nielsen
                       John Avis                            Carl Headland                        Glen Noonan
                       Gary Bardenhagen                     Beverly Heinz                        Richard Pleva
                       Joanne Beare                         Dan Hubbell                          Margot Power
                       Sargent Begeman                      Richard Hufford                      Robert Price
                       Jack Burton                          Kalin Johnson                        Larry Price
                       Stephen Chambers                     Linda Johnson                        Ed Reinsch
                       Ross Childs                          Colleen Kalchik                      George Rosinski
                       Lois Cole                            Edward Kazenko                       Richard Sander
                       Thomas Coleman                       Ray Kimple                           Charlene Schlueter
                       Barbara Collins                      Kay Kingery                          Kimberly Schopieray
                       Shirley Cucchi                       Stu Kogge                            Chris Shafer
                       Catherine J. Cunningham              Stan Kouchnerkavich                  Ruth Shaffran
                       Walter Daniels                       Fred Lanham Jr.                      Thomas Shimek
                       Phil Deering                         Elizabeth Lafferty-Esch              Derith Smith
                       Judy Egeler                          Don Lewis                            Dennis Stavros
                       Randy Emmeot                         Dana Hoyle MacLellan                 Harry Stryker
                       Kathy Feys                           Douglas Manning                      Mitsume Takayama
                       Kathleen B. Firestone                Larry Mawby                          John VanRaalte
                       Mary Frank                           John McGettrick                      Tom VanZoeren
                       Gary Fredrickson                     Jack Mobley                          David Viskochil
                       James Frey                           James Modrall                        Midge Werner
                       Paul Gardner                         Dave Monstrey                        Ben Whitfield
                       Alex Garvin                          John Naymick                         Ruth Wilber
                       John Hardy                           Mary Newman                          Dick Wilson








                                            DRAFT







                                    Working Paper #7

                             ECONOMIC DEVELOPMENT

                         ON THE LEELANAU PENINSULA





                                           Prepared by

                               Brenda M. Moore, Community Planner


                                  Planning & Zoning Center, Inc.
                                        302 S. Waverly Rd.
                                        Lansing, MI 48917


      0
    1-10


                                    with data/assistance from


                                          Tim Dolehanty
     zff                        Leelanau County Planning Director
                                         113 Grand Ave.
                                         Leland, MI 49654
                                          616/256-9812




                                            May, 1992





                                                   DRAFT


                                      LEELANAU GENERAL PLAN
                                             PROJECT STAFF


        Timothy,J. Dolehanty                                      Duane C. Beard
        County Planning Director                                  County Administrator

        Trudy J. Galla                                            Pat Stratton
        Assistant Planner                                         Administrative Secretary

        Andrew Schmidt
        Planning Assistant

        Karen J. Gleason
        Planning Department Secretary





                                      LEELANAU       GENERALPLAN
                                   TECHNICAL ASSISTANCE STAFF


                                        Planning & Zoning Center, Inc.
                                             302 S. Waverly Road
                                              Lansing, Ml 48917
                                                (517)886-0555
                                              (517)886-0564 FAX

                                       Mark A. Wyckoff, AICP, President
                        Brenda M. Moore, Community Planner (Principal report author)
                                      Tim McCauley, Community Planner

















                                                                  Working Paper #7 - Economic Development









                                                                TABLE OF CONTENTS



                  Preface      ...............................................................................  *** ..........                    .............i
                  Executive Summary                .........................................................................................................   ii

                  Chapter 1: Population & Income                       ................................................................................... 1-1
                             Introduction          ........................................................................................................ 1-1
                             Frame of Reference                ........................................................................................... 1-1
                             Data Sources            ..................................................................................................... 1-2
                             Population         .......................................................................................................... 1-2
                             Income        ............................................................................................................... 1-4
                             Education        ............................................................................................................ 1-9
                             Occupations           ..................................................................................................... 1-10
                             Labor Force Mobility               ........................................................................................ 1-13
                             Summary          .........................................................................................................  1-14

                  Chapter 2: Labor Force & Unemployment                               .................................................................... 2-1
                             Introduction          ........................................................................................................ 2-1
                             Labor Force           ....................................................................................................... 2-1
                             Unemployment              ................................................................................................... 2-6
                             Major Employers in the County                      .......................................................................... 2-7
                             Summary          ...........................................................................................................  2-8

                  Chapter 3: Employment By Sector                          ............................................................................... 3-1
                             Introduction          ........................................................................................................ 3-1
                             Employment by Sector                  ....................................................................................... 3-1
                             Number and Size of Establishments                          .................................................................. 3-8
                             Summary          ...........................................................................................................  3-8

                  Chapter 4: Tourism               ....................................................................................................... 4-1
                             Introduction          ........................................................................................................ 4-1
                             Tourism-Related Employment                        ........................................................................... 4-1
                             Summary          .........................................................................................................  4-10

                  Chapter 5: Agriculture               ................................................................................................... 5-1
                             Introduction          ........................................................................................................ 5-1
                             Changes in Agriculture                 ...................................................................................... 5-1
                             Summary          ...........................................................................................................  5-1

                  Chapter 6: Real Estate                 ................................................................................................. 6-1
                             Introduction          ........................................................................................................ 6-1
                             Housing Starts            ................................................................................................... 6-1
                             Housing Values             .................................................................................................. 6-1
                             State Equalized Value                ........................................................................................ 6-1
                             Summary          ...........................................................................................................  6-1


                                                                                                       Working Paper #7 - Economic Development









                  Chapter 7: Economic Base & Employment Projections                                 ................................................ 7-1
                            Economic Viability         .............................................................................................. 7-1
                            Future Employees           .............................................................................................. 7-2

                  Chapter 8: Issues and Recommendations                           ................................................................... 8-1
                            Economic Development Interests                     ...................................................................... 8-1
                            Economic Development Issues                    .......................................................................... 8-1
                            Economic Development Goals                    ........................................................................... 8-4
                            Economic Development Focus and Recommendations                                     .................................... 8-4


                                                                     APPENDICES


                  Appendix A: Leelanau County Economic Development Groups                                       ................................. A-1
                  Appendix B: Literature Reviewed                  ................................................................................ B-1




































                  Working Paper #7 - Economic Development







                                                               LIST OF TABLES


              Table 1 -1        Leelanau County Population: 1860 - 2010                       ........................................................... 1-3
              Table 1-2         Personal Income Distribution by Top Three Industries 1988                                ............................... 1-4
              Table 1-3         Earnings Per Worker by Industry 1988                      ................................................................ 1-4
              Table 1-4         Earnings by Industry 1988              ................................................................................... 1-5
              Table 1-5         Per Capita Personal Income                 ................................................................................ 1-6
              Table 1-6         Poverty Levels        ...................................................................................................... 1-9
              Table 1-7         Education       ........................................................................................................... 1-10
              Table 1-8         Occupations with Largest Job Growth Northwest
                                Lower Michigan SDA 1985 - 1995                     ..................................................................... 1-11
              Table 1-9         Fastest Growing Occupations Northwest Lower
                                Michigan SDA 1985 - 1995                 ................................................................................ 1-12
              Table 1 -10 Occupations with MOST Employment Decline Northwest
                                Lower Michigan SDA 1985-1995                      ....................................................................... 1-13
              Table 2-1         Leelanau County Labor Force                   ............................................................................. 2-2
              Table 2-2         Annual Labor Force 1980-1990                    ........................................................................... 2-4
              Table 2-3         Unemployment Rates               ........................................................................................... 2-7
              Table 2-4         Local Employment Figures               ................................................................................... 2-8
              Table 2-5         Major County Employers Leelanau County                          .......................................................... 2-9
              Table 3-1         Employment by Sector for Leelanau County Between 1972 and 1989                                         ................ 3-2
              Table 3-2         Locally Recorded Employment by Sector Leelanau County                                   ................................ 3-2
              Table 3-3         Civilian Labor Force & Employment Estimates,
                                Grand Traverse-Leelanau Labor Market Area                           ..................................................... 3-7
              Table 3-4         Establishments by Trade               ...................................................................................... 3-8
              Table 4-1         Annual Number of Jobs in Tourism-Related Businesses Leelanau County                                           ......... 4-2
              Table 4-2         Annual Percentage Change in Tourism-Related Business Jobs (1977-1987)                                            ..... 4-3
              Table 4-3         Travel Expenditures, Employment, and Payroll Leelanau County                                     ....................... 4-5
              Table 4-4         Sales Tax Collections Leelanau County                       .............................................................. 4-6
              Table 4-5         Registered Watercraft Leelanau County                       .............................................................. 4-7
              Table 4-6         Annual Public Use           ................................................................................................ 4-8
              Table 4-7         Retail Sales Percentage Change                    ......................................................................... 4-9
              Table 4-8         Seasonal Population Leelanau County                       ................................................................ 4-9
              Table 5-1         Market Value of Agriculture Products Sold Leelanau County                                 .............................. 5-2
              Table 5-2         Average Size of Farms              ......................................................................................... 5-2
              Table 5-3         Number of Acres in Orchards                 ............................................................................... 5-3
              Table 5-4         Number of Trees and Vines in Fruit Production                         ................................................... 5-4
              Table 6-1         Building Activity Leelanau County                  ........................................................................ 6-3
              Table 6-2         State Equalized Valuation Percentage Change
                                by Class Between 1980 and 1991                      ....................................................................... 6-4
              Table 7-1         Location Quotients - Leelanau County - 1990                         .................................................... 7-2









                                                                                                    Working Paper #7 - Economic Development







                                                                LIST OF FIGURES


               Figure 1-1 Leelanau County Population: 1980-2010                              .............................................................. 1-3
               Figure 1-2 Per Capita Personal Income                      .................................................................................. 1-6
               Figure 1-3 Total Individuals Receiving Social Security                         ........................................................... 1-7
               Figure 1-4 Leelanau County - Total Monthly Payments to Social Security Recipients                                             ........... 1-7
               Figure 1-5 Monthly Average Number of Public Assistance Recipients in Leelanau County                                                 ... 1-8
               Figure 1-6 Total Annual Public Assistance Payments to Recipients in Leelanau County                                              ....... 1-9
               Figure 2-1 Leelanau County Labor Force Percentage Change                                     .............................................. 2-2
               Figure 2-2 Labor Force             ........................................................................................................... 2-3
               Figure 2-3 Unemployment Rates                     ............................................................................................ 2-5
               Figure 2-4 Labor Force and Employment                         ............................................................................... 2-6
               Figure 3-1 Employment by Sector for Leelanau County Between 1972 and 1989                                               ................. 3-3
               Figure 3-2 Employment by Sector for Leelanau County Between 1972 and 1989                                               ................. 3-3
               Figure 3-3 Leelanau County Establishments by Trade                             ........................................................... 3-5
               Figure 3-4 Leelanau County Establishments by Trade                             ........................................................... 3-5
               Figure 3-5 Businesses by Traffic Zone                     ................................................................................... 3-6
               Figure 4-1 Annual Average Number of Jobs in Tourism-Related
                               Businesses in Leelanau County                    ............................................................................ 4-2
               Figure 4-2 Annual Percentage Change in Tourism-Related Business Jobs (1977-1987)                                                  ...... 4-3
               Figure 4-3 Leelanau County Sales Tax Collections (1983, 1985, 1987, 1989)                                          ...................... 4-6
               Figure 4-4 Registered Watercraft Leelanau County                             ............................................................... 4-7
               Figure 4-5 Sleeping Bear Dunes National Lakeshore Annual Public Use                                         .............................. 4-8
               Figure 4-6 Seasonal Population for Leelanau County                             ............................................................ 4-9
               Figure 5-1 Average Size of Farms                    .......................................................................................... 5-2
               Figure 5-2 Number of Acres in Orchards                       ................................................................................ 5-3
               Figure 6-1 Percent Change in Housing Units Between 1970 and 1990                                         ................................. 6-2
               Figure 6-2 State Equalized Valuation Percentage Change
                               by Class Between 1980 and 1991                     ......................................................................... 6-3
               Figure 7-1 Employment by Traffic Zone                       ................................................................................. 7-3
               Figure 7-2 Future Employment by Traffic Zone                          ...................................................................... 7-4


















                                                                                                     Working Paper #7 - Economic Development






                                                       DRAFT


                                                   PREFACE

             This working paper is the third in a series          Chapter 4 - Tourism; this chapter ad-
          providing background information for the            dresses spending and employment related to
          preparation of the Leelanau General Plan:           tourism, the significance of major attractions,
          Policy Guidelines for Managing Growth               and other economic issues related to tour-
          on the Leelanau Peninsula. It is numbered           ism.
          as the seventh working paper. The first four            Chapter 5 - Agriculture; the importance
          working papers were generated to document           and value of agricultural products, changes in
          public input from countywide growth man-            the number and size of farms over time,
          agement forums, the results of citizen and lo-      amount of land in orchards over time, and
          cal officials surveys and the activities of the     production are included in this chapter.
          Citizens Advisory Committee (CAC). This                 Chapter 6 - Real Estate; trends in state
          committee studied the need for a new County         equalized value, growth in second homes,
          plan and various approaches that could be           and shifts in tax base are addressed in this
          taken in the preparation of such a plan. They       chapter.
          concluded that while a new plan was needed,             Chapter 7 - Economic Base and Em-
          it should not be simply another "County             ployment Projections. This chapter pre-
          Comprehensive Plan" prepared by the                 sents an analysis of the economic base of
          County Planning Commission. Instead, what           the County and presents projections of future
          is needed is a growth management plan for           employment.
          the Peninsula that involves the direct input            Chapter 8 - Issues & Recommenda-
          and participation of all the local units of gov-    tions. This last chapter reviews issues and
          ernment in the County. This led to the initia-      recommendations made in one recent eco-
          tion of the Leelanau General Plan. The fifth        nomic development report and one older re-
          working paper presented a report on the             port. These are supplemented with additional
          "Trend Future" facing Leelanau County.              recommendations based on newer informa-
          Working paper #six presents goals and ob-           tion presented in this report.
          jectives for the General Plan.
             This working paper addresses Leelanau
          County's Economy through the following
          Chapters:
             Chapter 1 - Population and Income; in
          addition to offering a general frame of refer-
          ence for the rest of the paper, this chapter
          touches on economically-based indicators of
          the general population. Earnings by industry,
          income, occupations and educational levels
          are among the topics addressed.
             Chapter 2 - Labor Force and Unem-
          ployment; this chapter discusses factors like
          size and location of the labor force and his-
          toric unemployment rates.
             Chapter 3 - Employment by Sector;
          dominant trade sectors, growth in employ-
          ment, and establishments over time are cov-
          ered in this chapter.


                                                                        Working Paper #7 - Economic Development
                                                                                                         Page i






                                                            DRAF7


                                            EXECUTIVE SUMMARY

              The purpose of this working paper is to                   The base, or export industries on       the
           provide an information base that becomes a                   Peninsula are in the service, retail,   ag-
           point of reference for discussing economic                   ricultural and construction sectors. All
           development issues in Leelanau County.                       other economic sectors essentially      im-
           Data and analysis is furnished to help local                 port goods and services to meet         the
           officials make better decisions when allocat-                needs of the local economy. Specifi-
           ing resources for economic development.                      cally, manufacturing, mining, transpor-
              This working paper provides: information                  tation and public utilities; finance insur-
           on select population characteristics, particu-               ance and real estate; and governmen-
           larly employment, income, and occupations;                   tal services are import, or nonbasic
           employment by sector; profiles of particular                 trades in the County.
           employment sectors including, tourism, agri-                 Leelanau businesses are generally
           Culture and real estate; and an overview of                  small with few employees. The majority
           economic development issues. The eco-                        of firms are one-person - operations.
           nomic base of the County is analyzed and a                   Many businesses are small and/or sea-
           ten year forecast of total new employment is                 sonal, and have a limited ability to pro-
           presented. The final chapter outlines objec-                 vide higher wages and benefits.
           tives, recommendations and potential future                  In 1940 the agricultural sector provided
           resource needs associated with growth in                     41% of all jobs for Leelanau County
           employers and employees in the County.                       residents. By the 1980 Census, agricul-
              Several observations are offered to give a                ture only accounted for 8.6% of all jobs.
           frame of reference for the working paper:                    Agriculture remains as a key compo-
              ï¿½  Because Leelanau county is a penin-                    nent of the local economy and local
                 sula, and there is no 'Pass-through"                   landscape, but a small year-round em-
                 travel, it is a destination location. This             ployer overall, due to automation in ag-
                 phenomena is great for tourism, but                    ricultural production and/or the use of
                 drastically limits many types of large-                migrant workers.
                 scale commercial and industrial devel-                 The top three industries, in terms of in-
                 opment.                                                come generation, for Leelanau county
              ï¿½  Common attributes that industrial de-                  were services (34.4% of all personal
                 velopers look for when sighting a facil-               income), construction (19% of all per-
                 ity include access to harbors, highways                sonal income), and retail trade (16.5%
                 and rail service, adequate utilities, a                of all personal income).
                 skilled labor force, and proximity to                  Transfer payments in the form of public
                 market. Leelanau County has limited                    assistance, pensions and social secu-
                 public facilities and is relatively isolated           rity represent a significant flow of
                 geographically. This does not make it                  money to the local economy. Between
                 attractive for many types of industry.                 1969 and 1989, the number of persons
              ï¿½  Leelanau's crown jewels are its natural                receiving social security benefits in the
                 resources. The agriculture, timber and                 County increased from 1,036 to 2,780
                 tourism industries all depend on the                   (up 168%). The amount of benefits im-
                 sound management of the area's natu-                   ported in the County went from just
                 ral resources.                                         over $60,000 to nearly $1.5 million
              Other key points made in the working pa-                  dollars-an increase of 23 times. There
           per include:                                                 is no available data on employer pen-

           Working Paper #7 - Economic Development
           Page ii






                I                                         DRAFT

                sions provided to retirees in the                   earn less than Leelanau County work-
                County, but it can be surmised that so-             ers.
                cial security payments actually repre-            * Growth occupations are going to be in
                sent a relatively low percentage of re-             the service sector.
                tiree income entering the County.                 - Between 1960 and 1990, Leelanau
                Leelanau County's population has a                  County's labor force (those 16 years or
                higher per-capita income than sur-                  over and able to work) increased
                rounding communities, yet it's workers              151%. (The population increased 77%
                tend to earn less then workers in com-              in this same time period.) In 1960,
                parable industries thoughout the state.             there were 3,319 persons in the labor
                This may be due to the significant im-              force and, by 1990, the labor force was
                portation of pension dollars into the               estimated to be 8,350.
                economy which pulls up per capita in-             - Cottages or seasonal housing are
                come even if low incomes don't                      comprising a larger segment of the
                change.                                             county's tax base, increasing in 125%
                Leelanau County businesses should                   between 1980 and 1990.
                work.to capture more of the imported              - In a ten year period, residential state
                income of the County.                               equalized value (SEV) rose 212%. In
                County residents, on the average have               that same period agricultural land val-
                higher educational attainment than sur-             ues went up 57%; commercial land
                rounding communities and the state.                 171%; and industrial land 20%. Timber
                This figure may be skewed by the influx             land values fell 54%. Nevertheless, to-
                of wealthier retirees who would tend to             tal residential SEV remains nearly ten
                be better educated.                                 times greater than commercial or agri-
                Income from workers in service, retail              cultural SEV.
                and construction sectors account for              Population growth, particularly the sea-
                the majority of income from all indus-        sonal increases, have expanded Leelanau
                tries.                                        County's economy. While this may be con-
                Average earnings by industry for work-        sidered an opportunity for business, it is also
                ers in the County  is less than the state     a responsibility to units of government to
                in all categories. Except for the con-        provide additional public services. New de-
                struction sector, workers in Grand            velopment often does not pay for the addi-
                Traverse County    earn more than their       tional expense of providing public services.
                counterparts    in   Leelanau      County,    There is also concern in the County that ad-
                Leelanau manufacturing and finance,           ditional growth will jeopardize environmental
                insurance and real estate workers on          quality-and the very amenities that attracted
                the average earn less than their coun-        people to Leelanau County in the first place.
                terparts in Grand Traverse, and Benzie        The protection of environmental quality and
                and Antrim Counties, this is not the          rural and natural amenities is a critical eco-
                case for other sectors where Benzie           nomic development objective, since tourism
                and Antrim County workers tend to             depends so much upon an uncluttered, un-
                                                              adulterated, attractive environment.








                                                                        Working Paper #7 - Economic Development
                                                                                                        Page iii





                                                             DRAFT

                                                        Chapter 1

                                          POPULATION & INCOME


          INTRODUCTION                                                    -Common attributes that industrial de-
              Leelanau County has grown rapidly in the                    velopers look for when sighting a facil-
          last several decades. Shifts in population,                     ity is access to harbors, highways and
          jobs and income have changed the economic                       rail service, adequate utilities, a skilled
          profile of the County. Rather than merely re-                   labor force, and proximity to market.
          acting to change, public sentiment is growing                   Leelanau County has limited public fa-
          to ensure future economic changes do not                        cilities and is relatively isolated geo-
          undermine existing quality of life. In order to                 graphically. This does not make it par-
          provide the foundation for economic devel-                      ticularly attractive for large-scale indus-
          opment, a community must have adequate                          try.
          public services and facilities. In turn, deci-                  However, the Leelanau Peninsula is
          sion-makers must be equipped with a broad                       not without abundant assets. Leela-
          array of information on the economic charac-                    nau's crown jewels are its natural re-
          teristics of the community. This information                    sources. The agriculture, timber and
          enables them to make better decisions when                      tourism industries all depend on the
          allocating limited resources.                                   sound management of the area's natu-
              The purpose of this working paper is to                     ral resources.
          set a foundation-a base of knowledge that                       The base, or export industries on the
          provides:                                                       Peninsula are in the service, retail, ag-
              -  A discussion of select population char-                  ricultural and construction sectors. All
                 acteristics.                                             other economic sectors essentially im-
              -  A basis for understanding Leelanau                       port goods and services to meet the
                 County's economy and how it func-                        needs of the local economy. Specifi-
                 tions.                                                   cally, manufacturing, mining, transpor-
              -  Identification of key economic devel-                    tation and public utilities; finance insur-
                 opment issues.                                           ance and real estate; and governmen-
              Once the foundation of knowledge has                        tal services are import, or nonbasic
          been laid, a meaningful course of local action                  trades in the County.
          can be plotted.                                                 Leelanau businesses are generally
                                                                          small with few employees. The majority
          FRAME OF REFERENCE                                              of firms are one-person operations.
              The data presented in       this report should              Many businesses are small and/or sea-
          be reviewed in light the following critical ob-                 sonal, and have a limited ability to pro-
          servations that affect Leelanau County's                        vide higher wages and benefits.
          economic activity and competitiveness.                          Agriculture remains as a key compo-
                 Because Leelanau county is a penin-                      nent of the local economy and local
                 sula, and there is no "pass-through"                     landscape. However, it is but a small
                 travel, it is a destination location. This               year-round employer overall, due to
                 phenomena is great for tourism, but                      automation in agricultural production
                 drastically limits many types of large-                  and/or the use of migrant workers.
                 scale commercial and industrial devel-
                 opment.


                                                                              Working Paper #7 - Economic Development
                                                                                                               Page 1-1





                                                       DRAFT

         DATA SOURCES                                         increase). Whatever actually occurs will have
             Many of the data sources used in this            a significant effect on the construction sector
         report have a considerable lag time in their         of the economy as well as on the retail
         release    because      of   compilation      and    sector. However, what remains to be seen is
         publishing schedules. The most up-to-date            how much impact there will be on the labor
         data from the majority of governmental               force composition and number of new jobs
         sources may be 2-5 or, in the case of the            created in the County to serve the higher
         decennial Census, over 10 years old. Even            population. If most new jobs continue to be
         now, some 1990 Census data, already two              available elsewhere, then the impact on
         years old, remains to be released.                   roads in some areas could become acute.
             Many of the data sources rely on differing          Shifts in population and employment
         methodologies. Some sources (e.g., Michigan          patterns are beginning to suggest that
         Employment Security Commission and Bureau            Leelanau County is becoming a bedroom
         of Labor Statistics) gather data at the              community to the Traverse City metro area.
         household level while others gather it by place      In the last couple of decades, the Traverse
         of work (e.g., County Business Patterns, and         City area has experienced a significant
         special industrial censuses). Explanations with      amount of growth in both population and
         respect to data sources are presented through-       employment. More diversified industries offer
         out the text. It is important to understand these    job opportunities that attract people to the
         differences to appreciate the limitations inher-     area. Many of these jobs are skilled and
         ent in much of the data.                             professional positions with higher average
                                                              incomes. These higher income people are
         POPULATION                                           more mobile and desire suburban or rural
            Since 1940, Leelanau County's popula-             lifestyles; thus, metro growth is beginning to
         tion has steadily increased, with the most           spill over into Leelanau. Additionally, there is
         dramatic changes coming since 1960 (see              evidence that many of Leelanau County's
         Figure 1-1 and Table 1-1). The State                 residents commute outside the municipality
         Department of Management and Budget                  they reside in for employment-many of them
         projects that Leelanau's 2010 population will        to employers in Traverse City. While
         reach approximately 21,000. This is about a          Leelanau continues to be attractive to
         25 Percent increase over the next 18 years.          retirees and tourists, the bedroom community
         Projections presented in the County's 1989           phenomenon       is yet another wave            of
         Solid Waste Plan show the population hitting         development that peninsula residents need
         20,300 by the year 2007. Straight line               to consider in formulating growth manage-
         projections based on current trends would            ment efforts, especially in the southeast
         place the population at approximately 23,000         portion of the County.
         by the year 2010 (a nearly 40 percent













         Working Paper #7 - Economic Development
         Page 1-2





                                                              DRAFT


                                                           Figure 1-1
              25,000               LEELANAU COUNTY POPULATION: 1860 - 2010*

              20,000--



              15,000--



              10,000--



                5,000--



                   0

                   1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 *1995 *2000 *2010

                                                          'projected population

                             Source: Decennial Census 1960-1990, Projections, Michigan Department of Management Budget







                                                            Table 1-1
                                   LEELANAU COUNTY POPULATION: 1860 - 2010*


                                                            Leelanau County
                                                   1860             2,158
                                                   1870             4,576
                                                   1880             7,128
                                                   1890             7,944
                                                   1900             10,556
                                                   1910             10,608
                                                   1920             9,061
                                                   1930             8,206
                                                   1940             8,436
                                                   1950             8,647
                                                   1960             9,321
                                                   1970             10,872
                                                   1980             14,007
                                                   1990             16,527
                                                   *1995            17,332
                                                   *2000            18-16-53
                                                                    20,980
                     t






























































                             Source: Decennial Census 1960-1990; Projections, Michigan Department of Management Budget



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                                                                            DRAFT

              INCOME                                                                 Table 1-3 presents the average amount of
                  The MESC Annual Planning Report for                            earnings per worker in various industrial sec-
              Northwest Lower Michigan (1991) reflects that                      tors. In 1988, for Leelanau County, construc-
              as of 1988, the top three industries, in terms of                  tion, government, and transportation/ utilities
              income generation, for Leelanau county were                        related jobs had higher average earnings than
              services (34.4% of all personal income), con-                      manufacturing and service related jobs. This is
              struction (19% of all personal income), and re-                    not the case in neighboring counties where
              tail trade (16.5% of all personal income; see                      manufacturing jobs tend to bring in more per
              Table 1-2 for regional comparisons). Kalkaska                      worker. In general, Leelanau County workers
              was the only county that did not have services                     earn less than state averages in comparable
              as one of the top three income providers in the                    industries.
              region. Leelanau County was the only county
              that did not have government as one of its top
              three income providers.

                                                                        Table 1-2
                                                 PERSONAL INCOME DISTRIBUTION BY
                                                        TOP THREE INDUSTRIES 1988


                     COUNTY               FARM. CONST. DURAB. NONDUR. GOVT.                                SERV.       RETAIL MINING
                                                                    GOODS        GOODS                                 TRADE
              Antrim                         -           -           26.1            -            19.6      21.3           -
              Benzie                         -           -              -            -            18.9      20.8          13.8
              Charlevoix                     -           -           31.9            -            14.3      14.6           -
              Emmet                          -           -              -            -            11.8      40.8          13.4
              Grand Traverse                 -           -              -            -            14.2      28.3          13.6          -
              Kalkaska                       -           -           21.2            -            11.8        -            -           28.0

                                                                    NX.,
                                                                                                                                        g
                                                     ..... . ....... ......
                                                                .......         ........ .. . .........
                                                                                ... .. ...
                                                                .... ............                              A.                     .. . .
                                                                                .......... I . . ...... .   $4            . ... ......      ..
              Manistee                       -                                      21.2          16.9      16.7
              Missaukee                      15.8                       -            -            19.9      17.0
              Wexford                        -                       28.2                         13.3      21.2


                                               Source: Bureau of Economic Analysis, U.S. Department of Commerce


                                                                        Table 1-3
                                             EARNINGS PER WORKER BY INDUSTRY 1988


                                                        Antrim          Benzie       Grand Traverse                            Michigan
               Total                                   $13,769       $13,392              $18,212                               $24,823
                                                                                                             X
               Farm & Agriculture                        2,265          6,18-4               6,276                                 8,751
               Manufacturing                            23,226          14,695             22,480                                40,752
               Mining                                   12,026          23,035             30,571                                28,061
                                                                                                        .............. ....
                                                                                                         ............
               Constniction                             17483           22,539
                                                                                           .g3,712                               29
                                                                                                                                     810
                                                                                                                 6.0
               Transport and Utilities                  28,200          12,779             31,879                                35,102
                                                                                                             X"
                                                                                                             ::4
               Trade                                    10,814          22,539             12,671                                16,316
               Finance, Ins. Real Estate                 4,951     1    6,627      1       11,471                                17,874
                                                                                                          M . @Ppj
                                                                                                         .:,.x ... ............................. .....
                    vice                                10,955          10,259             17,856                                20,683
                   ternment                             18,729          18,343             23,681                                23,704
                  (L) = Data withheld; less than 10 employees

                           Source: Michigan Rural Development Strategy Data Book, Michigan Department of Commerce, 1991, pg. 34

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                                                                DRAFT



             Total earnings by all workers in Leelanau                   income in the County; and construction, just
          County in 1988 amounted to nearly $67 million                  over 18%. Recall that in terms of number of
          dollars (see Table 1-4). As would be expected,                 jobs, services account for 47% of all employ-
          the majority of total income in the County came                ment; retail trade, 19% and construction 7.5%.
          from the service sector (nearly one-third). By                 Even through construction accounts for only
          comparison, surrounding counties and the                       7.5% of jobs in the County, it accounts for 18%
          state and nation had between 20.3% and                         of the total income. Conversely, services pro-
          28.2% of all income come from the service sec-                 vide 47% of all jobs and 33% of all income.
          tor. Trade accounted for just over 19% of all

                                                                Table 1-4
                                                 EARNINGS BY INDUSTRY 1988


                                         Antrim        Benzie         Grand                 ...  X.X Michigan        US Average
                                                                                      ... .........
                                                                    Traverse
                                                                                    . .. ....... .. ....
                                                                                           ..... . . . .
                                                                                                                               N.A.
          Total (in thousands)             $87,569       $62,379      $772,117      .....  :::X            060,839
                                                                                              _9:   $112,
                                                                                    x.
          Farm & Agriculture                1,30%         3.20%                                             0.90%           2.20%
          Manufacturing                    28.90%        17.00%          16.20%                             35.00%        20.30%
                                                                                    ................................
                                                                                    .......... ........ ........
                                                                                           A
                                            0.50%         0.20%                           .4,               0.40%           1.00%
          Minina
                                                                                      :X4.
          Constniction                      8.10%        11.70%                                             5.00%           6.40%
          Transport and Utilities           2.30%         4.20%           5.80%.:1                          5.30%           6.70%
          Trade                            13.50%        20.10%          17.50% 4;                          14.60%        16.10%
          Finance, Ins. Real Estate         2.60%         2.80%           4.30%:::::-
                                                                                    .......... :X           4.50%           7.30%
                                                                                    ::X                     21.30%
                                                                                               x
          Service                          21.20%1       20.30%          28.20%                                           24.40%
          Government                       21.50%1       20.60%          16.10%[:   ....                    13.10%        15.60%

                        Source: Michigan Rural Development Strategy Data Book, Michigan Department of Commerce, 199 1, pg. 32

              While per capita income of Leelanau                            Transfer payments in the form of public
          County is lower than the state's average, the                  assistance, pensions and social security rep-
          County (since 1968) has had a consistently                     resent a significant flow of money to the local
          higher per capita income than neighboring                      economy. Between 1969 and 1989, the
          Grand Traverse and Benzie Counties. Be-                        number of persons receiving social security
          tween 1959 and 1989, the State's per capita                    benefits in the County increased from 1,036
          incomes increased by 673% while Leelanau                       to 2,780 (up 168%). The amount of benefits
          County's increased 943%. Grand Traverse                        imported in the County went, per month, from
          and Benzie County's per capita incomes in-                     just over $60,000 to nearly $1.5 million
          creased 746% and 620%, respectively, in                        dollars-an increase of 23 times (See Figures
          that same time period. In 1989, Leelanau                       1-3 and 1-4). There is no available data on
          ranked 12th of 83 counties in per capita in-                   employer pensions provided to retirees in the
          come (see Figure 1-2 and Table 1-5). In-                       County, but it can be surmised that social se-
          creases in per capita income can be decep-                     curity payments actually represent a rela-
          tive in that an injection of wealthy people can                tively low percentage of retiree income enter-
          bring up the average, even if the native popu-                 ing the County.
          lation's income hasn't changed.





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                                                                            DRAFT

                                                                        Figure 1-2
                                                       PER CAPITA PERSONAL INCOME


                 $18,000-/                                                                                        El 1959
                 $16,000-                                                                                         01968
                 $14,000-                                                                                         EM 1978

                 $12,000-                                                                                              1989

                 $10,000-

                  $8,000-

                  $6,000-

                  $4,000-

                  $2,000

                       $0
                                     Michigan                    Leelanau                     Benzie                 Grand Traverse
                                                   Source: U.S. Dept of Commerce, Bureau of Economic Analysis










                                                                         Table 1-5
                                                       PER CAPITA PERSONAL INCOME


                                                    Michigan                               Benzie             Grand
                                                                                                            Traverse
                                                                                   `xx
                                                                                     :X:      1,839
                                      1959             $2,269                                                 $1,834
                                                                                .............
                                      1968             $3,681                              $2, 64             $2,816
                                      1978
                                                                                            $6,825
                                                       $8,738                                                 $8,066
                                                                       St
                                      1989           $17,535                              $13,236            $15,514

                                                   Source: U.S. Dept of Commerce, Bureau of Economic Analysis
                                                                                                                 @
                                                                                                                       1959


                                                                                                                       1968


                                                                                                                       19
                                                                                                                  078


                                                                                                                       1989


























































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                                                                                   DRAFT


                                                                               Figure 1-3
                                           TOTAL INDIVIDUALS RECEIVING SOCIAL SECURITY


                         3000



                         2500



                         2000
                     .a)
                     .2-
                     U
                     a)  1500
                     cc
                     to
                     '6
                         1000-11.



                          500 --
                              0 1                    i                  i                   i                  i                   i                  i
                               1969               1965               1971                1975               1980                1985               1989


                                                                    Source: Social Securihl Administration


                                                                               Figure 1-4
                                           LEELANAU COUNTY - TOTAL MONTHLY PAYMENTS
                                                          TO SOCIAL SECURITY RECIPIENTS


                         1,600,000--


                         1,400,000--


                         1,200,000--
                     (D
                     E   1,000,000--
                     0>1
                     CL
                          800,000--

                     0
                     :2   600,000--
                     a
                     0
                          400,000--
                          200,000      T
                                   0 t===.

                                    1969               1965              1971               1975               1980              1985               1989


                                                                    Source: Social Security Administration







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                                                                                                                                                     Page 1-7


					DRAFT		
Public assistance allocation to Leelanau
County recipients amounted to $1.5 million
dollars a month in 1990 (see Figuers 1-5 and
1-6).  Compared to the state and region, 
Leelanau County's poverty level is low at
7.9% (see Table 1-6).  A lower percentage of
the population below poverty levels may

have more to do with the influx of wealth,
rather than any real improvement for persons
of low income.  When 1990 Census data fig-
ures become available the numbers of per-
sons in poverty should be evaluated along
with the percentage of persons in poverty.



					Figure 1-5
			MONTHLY AVERAGE NUMBER OF PUBLIC ASSISTANCE
				RECIPIENTS IN LEELANAU COUNTY



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                                                                            DRAFT


                                                                        Figure 1-6
                                      TOTAL ANNUAL PUBLIC ASSISTANCE PAYMENTS TO
                                                    RECIPIENTS IN LEELANAU COUNTY


                    1,600,000-

                    1,400,000

                    1,200,000

                    1,000,000

                      800,000

                      600,000-

                      400,000--

                      200,000--

                              0 i
                              1982                      1984                     1986                      1988                      1990


                                                         Source: Michigan Department of Social Services



                                                                         Table 1-6
                                                                  POVERTY LEVELS


                                                                                           1979
                                                                                    Persons Below
                                                                                    Poverty Le el
                                                                                 Number               Percent
                                            Antrim                                  1700               10.50%
                                            Benzie                                  1400               12.50%
                                            Grand Traverse                          4400                8.00%


                                                                                               . . .......
                                            Michigan                    1        946,200             1-10.20% 1

                                                    Source: Michigan Rural Development Strategy Data Book,
                                                         Michigan Department of Commerce, 199 1, pg. 50

             EDUCATION                                                              state average and higher than surrounding
                  Leelanau County has a higher incidence                            counties.
             of high school graduates in the population                                In terms of spending per pupil, the
             (persons 25 years and over) than the State                             Leelanau County average was lower than the
             overall. It also has a higher percentage of                            State's. General test scores for peninsula
             high school graduates than surrounding                                 pupils are higher than the state average, but
             counties (see Table            1-7). Over 19% of the                   close to regional test scores. In the region,
             population 25 years and over has 4 or more                             Grand Traverse County has the highest
             years of college, considerably higher than the                         scores.


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                                                             DRAFT


                                                          Table 1-7
                                                         EDUCATION


                                                      Antrim Benzie           Grand                      Michigan
                                                                             Traverse
           Speiding Per Pupil SY 1987-88               $3,407 $2,915               $2,910                    $3,642
           High School Graduation Rate 1988 83.00% 82.90%                         89.80%                     74.60%
                                                                                            ....................
             i iigan Education Assessment
           Proc ram % of 1 Oth Graders in
                                                                                                     0
                                                                                                X@. 0..::;
           Hig est Classification-MATH                77.30%     64.30%           82.00%                     71.20%
                                                                                             "....-.00; 0,
           Michigan Education Assessment
                                                                                             ....... .......
           Pro Iram % of 10th Graders in
                                                                                            ...........
           Hig est Classification-READING             30.40%     31.30%           36.10      1... .................... 28.60%
           O/o of Population over 25 with High
           School Years Degree                        68.20%     67.30%           77.10%                     67.90%
                                                                                                      :X
                                                                                              . .. .......
                 Population over 25 with
                                                                                                AX. .
                more Years of College               1 11.80%1    12.20%           19.00%                     14.20%1
           SY =- School Year

                        Source: Michigan Rural Development Strategy Data Book, Michigan Department of Commerce, 1991, p. 46

           OCCUPATIONS                                            people are the top three occupations. The fast-
               Occupation statistics focus on what em-            est growing occupations are presented in Table
           ployed persons do rather than who they work            1-9. It is interesting to note that of the fastest
           for. Analysis of occupations can be significant        growing occupations, approximately three-
           in that it is more of a reflection of income and/or    fourths of them require post-secondary or spe-
           relative job security. For example, a person           cialized technical training. Additionally, each oc-
           employed by the manufacturing sector may               cupation on, both tables are service- related.
           actually have a clerical job, which would tend             Table 1 -10 presents those occupations with
           not to pay as well as a line laborers position.        the most employment decline. The majority of
               The 1980 Census reported that 25% of               these are of a manufacturing nature.
           Leelanau County's labor force had technical,               MESC used to gather detailed data on oc-
           sales and administrative support occupations.          cupations and average starting salaries at the
           Another 23% had managerial and professional            county level. Much of this information was pre-
           specialty occupations; 15%, precision produc-          sented in early Northwest Michigan Labor Mar-
           tion, craft and repair; 15% operators, fabrica-        ket Statistic publications, published by the
           tors and laborers; 8%, farming, forestry and           Grand Traverse Data Center. Unfortunately, in
           fisheries; 13%, service occupations. Again,            the late 1970's that practice was halted due to
           1990 data for comparative purposes is not yet          staffing cuts. Wage and salary information for
           available.                                             occupations and industries are currently
               Occupations with the largest anticipated job       gathered at the state level by MESC.
           growth for the 10-county region between 1985
           and 1995 are presented in Table 1-8. In terms
           of percent change, the top three occupations
           are for registered nurses, cashiers, and ac-
           countants/auditors. In terms of raw numbers of
           jobs,, cashiers, truck drivers and retails sales


           Working Paper #7 - Economic Development
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                                                                        DRAFT


                                                                       Table 1-8
                                          OCCUPATIONS WITH LARGEST JOB GROWTH
                                                 NORTHWEST LOWER MICHIGAN SDA
                                                                       1985-1995


                                                                                     EMPLOYMENT CHANGE
                   OCCUPATION                                                                     1985-95
                                                                                NUMBER                           PERCENT
                   Cashiers                                                          710                             40.4
                   Truck Drivers                                                     700                             35.1
                   Salespersons, Retail                                              640                             25.1
                   Waiters & Waitresses                                              590                             29.0
                   Registered Nurses                                                 580                             49.0
                   Janitors & Cleaners Inc. Maids.                                   470                             20.4
                   Secretaries                                                       390                             16.9
                   Teachers, Elementary                                              340                             35.3
                   Sales Agents, Real Estate                                         320                             39.0
                   Nursinq Aides & Orderlies                                         310                             24.4
                   Gardeners & Groundskeepers                                        280                             29.4
                   General Office Clerks                                             280                             17.8
                   Food Preparation Workers                                          270                             31.6
                   Bookkeeping, Acct. & Aud. Clerks                                  260                             17.2
                   Stock Clerks, Sales Floor                                         250                             24.5
                   Maint. Repair, Gen. Util.                                         230                             23.3
                   Accountants & Auditors                                            220                             40.0
                   Teachers Aides & Educ. Asst.                                      210                             35.8
                   Licensed Prac. Nurse                                              180                             24.4
                   Teachers, Secondary                                               180                             16.9


                                Source: Michigan Employment Security Commission, Annual Planning Information Report, 199 1.
                                                            Northwest Lower Michigan SDA, pg. 35.






















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                                                                        DRAFT


                                                                      Table 1-9
                                                  FASTEST GROWING OCCUPATIONS
                                                 NORTHWEST LOWER MICHIGAN SDA
                                                                       1985-1995


                                                                                    EMPLOYMENT CHANGE
                    OCCUPATION                                                                  1985-95
                                                                              NUMBER                           PERCENT
                    Securities & Fin. Serv. Sales                                   80                             114.1
                    Insurance Adj., Ex m. & Inv.                                    10                             83.0
                    .Aircraft Pilots & FIt. Engrs.                                  0                              73.7
                    .Airc. Mech. & Eng. Spec.                                       0                              71.7
                    Claims Exam. Prop. & Cas. Inx.                                  10                             70.6
                    Medical Assistance                                              90                             64.1
                  -Computer Systems Analysts, EDP                                   70                             56.8
                    Underwriters                                                    20                             56.6
                    Medical Records Tech. & Techn.                                  30                             56.4
                    Insurance Claims Clerks                                         10                             56.1
                    Teachers, Preschool & Kindg.                                    120                            53.8
                    Travel Agents                                                   30                             53.7
                  -Paralegal Personnel                                              10                             52.7
                    Electri. & Electro. Tech.                                       40                             51.1
                    Ins. Policy Processing Clerk                                    50                             50.0
                  -Registered Nurse                                                 580                            49.0
                  -Computer Programmers                                             60                             48.9
                    Prod., Direct., Actor & Other                                   10                             48.8
                  [
                    Opticians, Disp. & Meas.                                        20                             47.9
                    Dental Hygienist                                                0                              45.9
                    Dental Assistants                                               0                              45.9


                                Source: Michigan Employment Security Commission., Annual Planning Information Report, 199 1.
                                                           Northwest Lower Michigan SDA, pg. 37.























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                                                        DRAFT


                                                        Table 1 -10
                              OCCUPATIONS WITH MOST EMPLOYMENT DECLINE
                                       NORTHWEST LOWER MICHIGAN SDA
                                                        1985-1995


                                                                            PERCENT OF
                       OCCUPATION                                    EMPLOYMENT DECLINE
                                                                               1985-95
                       Station Installer & Repairers                              43.9
                       Stenographers                                              31.7
                       Comm. Equip. Mech., Inst. Rep.                             30.4
                       Forging Mach. Setter & Oper.                               29.1
                       Electrical Powerline Installers                            28.2
                       Sewing Machine Operators, Garment                          21.9
                       Extract & Draw Mach. Setter Op r.                          21. 1
                       Foundry Mold & Core Makers                                 19.4
                       Punch Machine Setter & Oper.                               16.7
                       Press Machine Setter & Oper.                               15.7
                       Derrick Oper., Oil/Gas                                     15.4
                       Roustabouts                                                15.2
                       Rotary Drill Oper., Oil/Gas                                13.6
                       Foundry Mold Assb. & Shakeout Oper.                        12.9
                       Machine Forming Oper. & Tender                             12.6
                       Furn., Kiln & Kettle Oper.                                 11.8
                       Ambulance Driver & Attd.                                   11.4
                       Air Hammer Operator                                        10.2
                       Service Unit Operator                                      10.1
                       Machine Tool Cut., Oper. & Tend                            10.0

                          Source: Michigan Employment Security Commission., Annual Planning Information Report, 1991.
                                               Northwest Lower Michigan SDA, pg. 37.

          LABOR FORCE MOBILITY                                     In a 1990 County survey of residents, a
             A significant component of Leelanau                question was presented on place of work; 32%
          County's labor force commutes outside their           of the respondents replied that they reported to
          area of residence for employment. Many work-          work in Leelanau County, 11 % in Grand Trav-
          ers travel to employers in the Grand Traverse         erse County; 11 % were retired; 4% were not
          metro area. Census data in 1980 reflected that        employed, 13% worked in other counties (as
          approximately 50% of Leelanau County's resi-          far away as Wayne, Ingham and Kalamazoo,
          dents went outside their area of residence for        which may suggest that the Leelanau County
          employment. These commuters may traverse              residence is actually a second home), and 28%
          the County or leave it entirely; regardless, there    did not reply to this question. Note that this
          is notable movement in the County's labor             survey includes respondents not in the work
          force. When data from the 1990 Census is re-          force. In Census data, only those employed are
          leased, it is anticipated that the percentage of      tabulated in "place of work" questions. Also, a
          persons leaving their place of residence for          nonresponse rate of 28% leaves out a signifi-
          employment will have risen since 1980.                cant number of survey respondents. Addition-
                                                                ally, the percentage in 1990 survey include
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                                                          DRAFT
           retired and unemployed persons and, thus, do                 County residents, on the average have
           not represent responses only from employed                   higher educational attainment than sur-
           persons.                                                     rounding communities and the state.
                ignificant impacts will likely result if this           This figure may also be skewed by the
           trend continues. Labor force mobility has                    influx of wealthier retirees who would
           ramifications on transportation systems,                     tend to be better educated.
           especially in light of the County's restricted            -  Income from workers in service, retail
           system-restricted in terms of geography,                     and construction sectors account for
           natural features (e.g., surface water) and                   the majority of income from all indus-
           condition of the roadways. Impacts on local                  tries.
           roads systems are compounded during peak                  -  Average earnings by industry for work-
           tourist season and harvest time, when the                    ers in the County   is less than the state
           County imports a sizable amount of seasonal                  in all categories. Except for the con-
           labor. Congestion on the road network will                   struction sector, workers in Grand
           increase travel time for residents, tourists                 Traverse County    earn more than their
           and commuting workers alike.                                 counterparts in Leelanau County.
                                                                        Leelanau manufacturing and finance,
           SUMMARY                                                      insurance and real estate workers on
              There are several key observations about                  the average earn less than their coun-
           Leelanau County's population that can be                     terparts in Grand Traverse, and Benzie
           made from this analysis, including:                          and Antrim Counties, this is not the
                 Leelanau County's population has a                     case for other sectors where Benzie
                 higher per-capita income than sur-                     and Antrim County workers tend to
                 rounding communities, yet it's workers                 earn less than Leelanau County work-
                 tend to earn less then workers in com-                 ers.
                 parable     industries.   This      potential       -  Growth occupations are going to be in
                 disparity may be due to the significant                the service sector.
                 importation of pension dollars into the             *  County    population     is    increasingly
                 economy.                                               commuter oriented and parts of the
                 Leelanau County businesses should                      County     are    becoming        "bedroom
                 work to capture more of the imported                   communities" to Traverse City.
                 income of the County.



















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                                                          DRAFT

                                                     Chapter 2

                             LABOR FORCE & UNEMPLOYMENT


          INTRODUCTION                                         about an 8.5% increase in its labor force over
              This chapter describes the labor force of        the ten year period (See Figure 2-2 and Ta-
          Leelanau County according to data obtained           ble 2-2). For this time frame, the population
          from the Michigan Employment Security                increased by    18%. The Michigan Employ-
          Commission and U.S. Census Bureau.                   ment Security   Commission projected an ad-
              As explained in the Data Research Cen-           ditional 7.8%   increase in Leelanau's labor
          ter's 1980 Labor Market Characteristics              force between   1990 and the end of 1992-to
          report, the labor force is composed of:              approximately   9,000. For comparative pur-
              l) people actively seeking work during the       poses, Grand    Traverse County had an esti-
                four weeks prior to an unemployment            mated 1990 labor force of 36,700; up 15.8%
                survey,                                        since 1985, and it was expected to experi-
              2) people unable to seek work because of         ence an additional 7.8% increase by the end
                illness or waiting to start work within 30     of 1992. Actual employment data currently
                days,                                          available through 1991, shows Leelanau
              3) people out of work because of labor-          County's labor force remained at 8,300.
                management disputes, and,
              4) people who are working.                       Between 1960 and 1990, Leelanau
                                                               County's labor force (those 16 years or
          LABOR FORCE                                          over and able to work) increased 151%.
              Between 1960 and 1990, Leelanau
          County's labor force (those 16 years or over            According to a 1978 survey by the North-
          and able to work) increased 151%. In 1960,           west Region Data Center, 30.1% of all
          there were 3,319 persons in the labor force          households in Leelanau County had two
          and, by 1990, the labor force was estimated          working adults. This was lower than the 10-
          to be 8,350 (see Figure 2-1 and Table 2-1).          county regional average of 37.5%. The range
          Comparatively, the population increased 77%          was from 25.3% in Benzie and Kalkaska
          in this time frame.                                  Counties to 47.3% in Charlevoix County.
              As with the state and nation, female par-        (The 10-county region consists of Antrim,
          ticipation levels in the labor force have sig-       Benzie, Charlevoix, Emmet, Grand Traverse,
          nificantly increased over time. In 1960,             Kalkaska, Leelanau, Manistee, Missaukee,
          28.3% of the labor force was women; by               and Wexford counties).
          1970, the percentage increased to nearly
          36%, and, by 1980, it was 41%. Labor force           20% of all working adults in Leelanau
          participation figures for women at the state         carried two jobs; this was much higher
          level were close to Leelanau County figures          than the 10-county average of 13.4%.
          at 30.3% and 35.9%; 52%, respectively. Data
          figures for these variables are not yet avail-          At that same time, 20% of all working
          able from the 1990 Census.
              In the last ten years, Leelanau County's         adults in Leelanau carried two jobs; this was
          average annual labor force has ranged from           much higher than the 10-county average of
          a low of 7,650 in 1985 to a high of 8,350 in         13.4%. Charlevoix County had the lowest
          both 1983 and 1990. Overall, even consider-          percentage of employed adults working two
          ing fluctuations, the County has experienced
                                                                         Working Paper #7 - Economic Development
                                                                                                        Page 2-1






                                                                           DRAFT

             jobs with 7.4 %, and Missaukee had the                              higher average number of single persons
             highest with 20.6%.                                                 who work multiple seasonal or part-time jobs
                 The incidence of one worker with two jobs                       to make ends meet. Unfortunately, more re-
             in the county is higher than the incidence of                       cent data is not available.
             two-income households. This may indicate a

                                                                          Figure 2-1
                                                      LEELANAU COUNTY LABOR FORCE
                                                               PERCENTAGE CHANGE





                                    100-

                                    90-

                                    80-

                                    70-

                                    60-

                     % Change       50-

                                    40-




                                    20-

                                    10

                                     0
                                                   1970                        1980                       1991


                                               Source: Northwestern Michigan Data Research Center and Michigan and
                                                             Michigan Employment security commission


                                                                          Table 2-1
                                                      LEELANAU COUNTY LABOR FORCE


                                                                    Labor Force          % Change
                                                        1960            3,319
                                                        1970            3,979               19.89
                                                        1980            7,725               94.14
                                                        1991     1      8,300        1       8.5


                                                      Source: Northwestern Michigan Data Research Center
                                                         and Michigan Employment Security Commission








              Working Paper #7 - Economic Development
              Page! 2-2






                                                                          DRAFT




                                                                        Figure 2-2
                                                                    LABOR FORCE


                                             Leeianau
                   40,000
                                             Grand Traverse

                                        El Benzie
                   35,000




                   30,000




                   25,000




                   20,000




                   15,000




                   10,000




                     5,000




                          0

                                1980 1981       1982 1983 1984 1985            1986    1987 1988 1989 1990 1991* 1992*

                                                        Source: Michigan Employment Security Commission
                                         @
                                             Lee'anau


                                               r
                                             G and Traverse
                                             Ben@zie









                                                                                             Working Paper #7 - Economic Development
                                                                                                                                     Page 2-3






                                                                                DRAFT



                                                                            Table 2-2
                                                        ANNUAL LABOR FORCE 1980-1990
                                                              ... . ...... ......
                                                                                   Grand Traverse              Benzie
                                                  1980
                                                                                         30,000                4,425
                                                  1981                                   31,275                4,625
                                                  1982        .. ...
                                                                                         30,550                4,575
                                                              .................... .........
                                                            . ...........
                                                  1983                                   32,050                4,875
                                                              .X@X-X,
                                                  1984                                          0              5,175
                                                                                         30,45
                                                  1985                                   31,700                5,100
                                                  1986                                   32,950                5,15
                                                  1987                                   34,650                5,150
                                                            .. ... .....
                                                  988        . . ....
                                                  1                                      35,600                5,250
                                                  1989                                   35,850                5175
                                                                         X
                                                             ..............
                                                                                         36,350
                                                                                                               5425
                                                              ............
                                                  1990
                                                  991
                                                             .............
                                                  1                                      38,100                5350
                                                  992*                                   39,575                5,575

                                                  projections

                                                          Source: Michigan Employment Security Commission









































              Working Paper #7 - Economic Development
              Page 2-4






                                                         DRAFT



         UNEMPLOYMENT                                         ployed in the area is probably low. Many
         The official unemployment rate of the labor          seeking employment for the first time do not
         force (as characterized in the introduction) is:     register with MESC (Michigan Employment
         1) people actively seeking work during the           Security Commission). It should be further
         four weeks prior to an unemployment survey           noted that because the MESC definition of
         and 2) people unable to seek work because            unemployed does not include "discouraged
         of illness or waiting to start work within 30        worker'!--that is, unemployed persons no
         days is a percentage ratio of the number of          longer actively seeking work-the unem-
         unemployed people to the total labor force.          ployment rate is not a true reflection of the
         Therefore, it should be noted that the esti-         amount of actual unemployment in the
         mate of the civilian labor force and unem-           population.



                                                      Figure 2-3
                                             UNEMPLOYMENT RATES

                 25.00 -                                                                Michigan

                                                                                        Leelanau

                 20.00                                                                  Grand Traverse
                                                                                    El Benzie

              CU
                              77
                 15.00
              E



                                                                                         7      ...


                 10.00





                   5.00






                   0.00

                          1980   1981    1982   1983   1984 1985      1986    1987   1988   1989    1990


                                           Source: Michigan Employment Security Commission
                                                                                         ichigan

                                                                                                u
                                                                                        M
                                                                                        ee @ana
                                                                                        L  I


                                                                                        Grand Traverse


                                                                                         e zi
                                                                                    E@B n e




                                                                       Working Paper #7 - Economic Development
                                                                                                      Page 2-5





                                                 DRAFT



        Labor Force and Employment*

        999   1990 Labor Force (IMESC)                        FIGURE 2-4

        999   People employed
              (Leelanau County)


              'by Township, with villages induded








                                                                            LEELANALI
                                                                              975
                                                                              607







                                                                         SLITTONS
                                                                           BAY
                                                            LELAND        1.000
                                                             res           1023
                                                             598









                                                                       BINGHAM
                                      CLEVELAND       CENTREVILLE       900
                                                                        127
                                        375               400
                GLEN ARBOR              390                33
                    400



                EMPIRE               KASSON             SOLON
                  475                 500                 600       ELMWOOD
                  277                 227                 174         1,950
                                                                       897




                               ------------







        Working Paper #7 - Economic Development
        Page,2-6





                                                                   DRAFT


                                                                 Table 2-3
                                                      UNEMPLOYMENT RATES

                                                                 X.
                                                   Michigan                       Grand          Benzie
                                                                               Traverse
                                        1980          12.40
                                                                                  8.70          15.80
                                        1981          12.30                       11.20         20.00
                                                                                                22.4
                                                                 :X.
                                        1982          15.50                       13.40               0
                                                                 .... ......
                                        1983          14.20                       13.40         24.30
                                                           0
                                        1984          11.2            . ......    11.90         16.80
                                                                 .................
                                        1985          9.90                        10.20         16.70
                                        1986          8.80                        9.00          17.10
                                        1987          8.20                        7.80          13.00
                                        1988          7.60              -X-XX;    7.00          12.40
                                                                      ............
                                                                      x
                                                                 ...     .......
                                                                 ....... . . . . .
                                        1989          7.10                        7.10          12.30
                                                                 ........ ......
                                                                 ... .... ...
                                                                 X:::::::::`6 :46n
                                        1 90          7.50                        7.00          12.70

                                                 Source: Michigan Employment Security Commission


               During the recession of the early 1980's,                  ment ratios in the 1980 Census (i.e., actual
           Leelanau County's reported unemployment                        counts of unemployment for local units are
           rates (per IVIESC) were higher than state av-                  not made). It will be interesting to see how
           erages. This was also the case for Benzie                      employment/unemployment shifts will have
           and Grand Traverse Counties. Benzie                            changed in the County's local units of gov-
           County, however, tended to have much                           ernment when detailed 1990 Census data is
           higher rates than the state, and Grand Trav-                   available.
           erse County tended to have slightly higher                         Note: Employment statistics presented in
           rates than the state, fairing better than Lee-                 this chapter are tabulated by worker's home
           lanau County in that time. Since 1987, Lee-                    address.
           lanau County has reported unemployment
           rates lower or equal to the state rates. This is               MAJOR EMPLOYERS IN THE COUNTY
           also true of Grand Traverse, but not Benzie                        The County's largest employers are pre-
           County (see Figure 2-3 and Table 2-3).                         sented in Table 2-5. Large employers are
               Figure 2-4 presents, by local jurisdiction,                dispersed throughout the County and primar-
           the number of people employed in the juris-                    ily centered in Leland, Northport and Elm-
           diction and the number of people in the labor                  wood Township. Employment estimates are
           force. Note that in some areas there are                       provided by the employer and include sea-
           many more people in the labor force than                       sonal averages. As previously noted, be-
           employed in the jurisdiction. This reinforces                  tween the casino and administrative offices,
           the fact that the Leelanau County labor force                  the Grand Traverse Band of Ottawa and
           is a commuting labor force.                                    Chippewa Indians is the single largest
                Derived unemployment rates (calculated                    employer in the County. In terms of the
           by IVIESC) for local units         of government in            nature of the business of other large
           1990 ranged from a high of 14.9% in Cen-                       employers, they are manufacturing and
           terville Township, to a low        of 3.6% in Leland           service oriented. Service establishments
           Township. (See Table 2-4). Since 1980, an-                     include resort business, the hospital and
           nual unemployment figures for local units of                   school systems. Figure 2-5 shows the traffic
           government have been based on employ-                          analysis zones in the country.


                                                                                     Working Paper #7 - Economic Development
                                                                                                                          Page 2-7









                                                                                  Table 2-4
                                                                                  LOCAL EMPLOYMENT FIGURES
                                                                                  (proportionally derived by MESC, based on 1980 census data)

               . . ........................................ ...........           . . . ........... ........... . :                                            -.
                                                                                  .........
               a       .. ...           ................ ......                   xxxx
                                                                                  ............                                                                 ........
               X.                                                                                                                                              .... ............
                                                                                                                                                               ...................
                                                                                                                                                               ...............
                                                                                                                                                               .........
                                                                                  x                                                                            ............. ..................................
                                                                                  .......... .
                                                                                  X198,16 ..................
                                                                                  ...... ...... . .. .                                                         :::::::.V................
                                                                                                                                                               ................. .................
                                                                                                                                                               ..... ... ..............................
                       ..................... . ......... ....................     . .... ........... . ... ..                                                  . .... ....
               Labor Force                                                        800 800 825                                                                  850 850 875 900
               Unemployment
               Rate                                                               7.0 5.9 4.7                                                                  4.0 3.5 3.4 3.4%
                                                                                  ............... .........................                                    .. . .. ...........
                       ....... . . . . .                                          ................... ............ ................................. ................................ ..............
                                                                                                                                                               ...........................
                                                                                  ............ ................................                                ..............................
                                                                                                                                                               a..................................................................
                                  X .                                             ................................. %'% .....................                  ........
                                                                                  ................................. **.,*,:::,*,:::::::::::::::::::::::::::::::::::::.:::.::::::.....,.,@l.,....,.'..,."...*..,..,..*..,....'..'.'.'.'.'.'."""".'.'.'.'."'.'."".""""** ...... . .........
                                                                                  .. ........ ......*........*......
                                                                                                                                                               ................ ..........
                                                                                  ............ .. ......                                                       ...... .................
                                                                                  .......... .............. ..... ......... .............                      . ............ ..
                                        x............. ................................................. .. ..                                                 .................. .......
                                        ............                                                                                                           ............. ....... ............................... ...
               X                        .............                                                                                                          .......
                                                                                  ........... .........................                                        ...:, ......................... .. . ... ...
                                  .. . ..........                                                                                                              ..... ......... ..........................
                       An .. 0* W. ... ....... .................. .....                                                                                        .............. ...................
                                                                                                                                                               ........... *** ........... ....... ......
               Labor Force                                                        400 375 375                                                                  375 375 400 400
               Unemployment
               Rate,                                                              27.1 23.6 19.6                                                               16.9 14.9 15.2 14.9
                                        ............
                                                                                                                                                               ........................... ........
                                                                                  .............................. ........................                      .................... ::::: ..........
                                                                                  ..........
                                                                                  ..... ..... .........                                                        *............................................ ....... ....... ....
               .. ....                  ................................................ .. .. .....................................                           %.............. ....... . . ... ... ................................
                                                                                                                                                               ....... ... .........
                                                                                  ...... . ........... . . .....                                               ......................
                                                                                  ....... .... ... ......... .. . ......                                       . ........................ ......... ........
                       a an
                                                                                  ...................... ... .. ... ..... .. ... ........... .. .. .............. ................. ...
                                                                                  .......... . ....................                                            ...............
               ...................................... ...................         .......................................... .. ........................
               Labor Force                                                        350 350                                                                      350 350 375 375
               Unemployment
               Rate                                                               16.1 13.7 11.2                                                               9.5 8.5 8.5 8.2
               .......... .......... .................................................... ................ ..... .....................................         ....................... .......... ... ..........................
               ..........%............ .................................................... ...................... ............................... ....... ....................................................... ................ ...........................
                                                                                                                                                               --------- ....... . ........... @.' .:.:: - ..
                                        ..............                            ........  ..... .... .                                                       . ..... ........................ ................
                                                                                  ............................... ........                                     ......... .................................................
                                        ...........                               ..... ........... ... ..                                                     .:::: ............
                                  . . ...........                                 ............. ............................                                   ........... .. ..... ....... ....
                                                                                  . -:1.    .: ..............................                                  %............. ... .......
                       MY 1                                                                                                                                    ............. .......................
                                                                                                                                                               ........................ .. ......................................................
                                                                                            ........... .........................                              ...... ......................... . .......
                                  ..w
                                                                                                                                                               .................
               Labor Force                                                        1825 1800 1825                                                               1900 1900 1950 1950
               Unemployment
               Rate                                                               10.9 9.2 7.4                                                                 6.3 5.5 5.6 5.4
                                                                                  ..................... .... ........................
                                                                                                                                                               ...........................................
                                                                                  .............. ................................ ... ..............           .................................................... .. ...... ...
                                                                                            ....                                                               ......... .. . .............
                                                                                                                                                               . ............................ .......
                                  ............................... .............. ..............                                                                . ..... ................. ....... . ............... .......
                                  ................................................%.............                                                               ...................................
                       - ": .     '. --                                                                                                                        ..........................................................
                                                                                            -: .............................
                                                                                  .....................................                                        ..........................................%. ...... . ......
                       M                ........*.......                          .................... ...............                                         ...... *'**"* ......................
                                  ..... . ...................................................................... .. ......... ................................ ......... .. ..... ...... ..................................................
               Labor Force                                                        425 425 425                                                                  450 450 450 475
               Unemployment
               Rate                                                               10.7 9.2 7.4                                                                 6.3 5.4 5.4 5A
                                  ......................................          . ...............
                                                                                  ...................................... . .... .. . .............................. ...........
                                                                                  ....... ...
                                                                                  ........... ................ . .............. ............                   . ........*....................................
                       ............... ...................*........               **** .......... . .. ...                                                     ... ..... .................. **,:,:,:,:,:**'* ..................... ......
                                  .. . ........................
                                                                                                                                                               ............
                                        ....................................................... ..........                                                     .... ......... .. ....... .. ................................. ................
                                  .. . .......................................................                                                                 ......................... ..................
                                                                                                                                                               .. . .................................................................
                                                                                  ................................................
                       hA         ......... T""*"""""""*""","","",",,,,,, -*      . . . .....*............. ...... ........................ ............... .
                                  or.
               ......................................w                                                                                                         ..... .
               Labor Force                                                        375 375 375                                                                  3755375 400
               Employment
               Rate                                                               17.1 14.6 11.7                                                               10.0 8.8 9.0 8.7
                                                                                            . ........... ..............                                       ......... ......-
               X''                .... ..                                         ...                                                                          ...
                                                                                                                                                               .......... .......... ..
                                                                                            ...........                                                        ........................................................
                                                                                  ...... .............                                                         ................... ......... ..... . ........ ........
                                                                                  ...............
                                                                                  ........ ........ .. .....
                                                                                                                                                               .................... .......... .......
                                                                                  ............... ....... ..................................                   ...................................................
                                                                                                                                                               .. .................................... . .............
                                                                                  ......... ................. ..................
                                                                                  .............
                                        . ......................                  ....................e....................:. ....................... ....     ... .. ..... .......... ......
               Labor Force                                                        500 475 475                                                                  500 500 500 500
               Employment
               Rate                                                               19.7 16.8 13.9                                                               11.9 10.4 10.5 10.2
               ..............................................                     ...................... . ...............................................,...... .. ........... ............... ..............
                                                                                  ................. ........ :::::::: -:.                                      ...
                                                                                  :' ...... X.-
                                                                                  .............                                                                ......
                                                                                  :                                                                            ........ ......... .................. .................
                                                                                  ...... ..........................................
                                                                                            ..............                                                     ........ ...........
                                  . . ....................................        . ........... . ....                                                         ............... .........................................................................
                                                                                            ...................................................
                                                                                                                                                               ........ ....... ........ .
                                        . ..................                      . . ..... .... ........................................                      ..........
               ......... ..       .....                                           .......... .....................................                             ..... .. ...
                                                                                  .................
                                                                                  .... ........ . ..... ............................                           ....................... .... .... .... .. . . ..........
               Labor Force                                                        800 800 825                                                                  850 850 875 875
               Unemployment
               Rate                                                               7.4 6.3 ... 5.0 .. . ......... :::                                           4.2 3.7 3-.8 3.-6
                                                                                  ... %. ......... -..: .........                                              -..... - , -- ......................... . .......
                                                                                  .............................................-
                                                                                  ..........
                                                                                  ...........
                                                                                                                                                               ................ ........................
                                                                                  ..... ...............                                                        .... ......
                                  ........................................... ....... .......... .... .. ................................                      ............
                                                                                  .......... ................
                                                                                                                                                               ....... ............ . .................................
                                  ....... ........ .. .......... ..... ................................... ..............                                      . ....... . ......... .... .............
               ufi` 'dim: ""'%""""""""'."*'**"'*"""""""""**"""*":,:,:,:*:,:,:* *'':,::,:,:,:,:,:*:,:,:,::",:::,::,:,:,:*:,:,:,:*:,:,: " : : : : : : : : : :*:,:,:,:,:" : :" '* : : : , : , : : : : :: :. ....... ...........*..........
                                                                                  ......... ......
               ...........                                                        ............. .......
               Labor Force                                                        800 775 775                                                                  800 800 825 825
               Unemployment
               Rate                                                               15.9 13.5 11.0                                                               9.4 8.3 8.4 8.1
               .... -  ...... . ........... . ....................................................... .........                                                .................................................................
               .................                                                                                                                               ........... *,.,.,.,.,.,............................................................................................-
                                                                                  .......................
                       .......                                                    ......................................................... .....              .......
                                                                                                                                                               ..........%.....................................................
                                                                                                                                                               ........................................ . ..............................
                                                                                                                                                               ......................................
               ...                                                                . ........ ........                                                          ......
                                                                                                                                                               ......... ........
               ...S    ... ......       ..... .. .                                          .................. .                                               .....
                                                                                                                                                               :..;m@i@@@i@@i@@:@:* . ......................... .......
                                                                                                                                                               ....... ........
                       0                                                          ... ...... . ............ ... ......... .                                    ............. ....... ..
                                                                                  .............................                                                ...................... ......... ......
                                                                                                                                                               .......................................................
                                  P'' @:`
                       .... ....... .. -":.................                       .............-....... ................................. .........
               Labor Force                                                        575 575 575                                                                  600 575 600 600
               Unemployment
               Rate                                                               16.8 14.3 11.7                                                               10.0 8.7 8.8 8.6
                                                                                  ................................ .......................
               ... ....................                                           XX                                                                           .. .... ..
                       ............ .....
                                                                                            .................................. ..                              .............. ...................................
                                                                                                                                                               .............. ........ ........ ......... .....................
                                                                                  ........ . . ............... ...........                                     . ........... ........................................................
                                                                                  ....................... ...                                                  .........
                                                                                  - , , -- - ,::::::*' '*"* ...*...............                                ......................... ......... ... %.
                                                                                  . ........ .. ...... .....                                                   .......................................... ..............
                                                                                  . ... .........%...
                       U;                                                         .......   .......                                                            .. ... .... ....................
                                                                                            ........................                                           ....... ....
                                                                                  ......................
                       ..........................                                 ............. ::`::*:`:`*:':':`:':::@
               Labor Force                                                        975 950 950                                                                  975 975 1000 1000
               Unemployment
               Rate                                                               16.6 11.2 11.5                                                               9.8 8.7 8.7 8.6

               Working Paper #7 - Economic Development
               Page 2-8







                                                                   DRAFT
                                                                Table 2-5
                                                 MAJOR COUNTY EMPLOYEES
                                                        LEELANAU COUNTY


            NAME                                       CITY                    TOTAL             CLASSIFICATION" TAZ***
                                                                          EMPLOYMENT*
            Sugar Loaf                                 Cedar                      325                    Hotel               79
            Leelanau Sands Casino                      Suttons Bay                310                  Recreation            23
            Homestead, The                             Glen Arbor                 280                    Hotel               104
            Leelanau Memorial Hospital                 Northport                  140                   Hospital             33
            Grand Traverse Band Tribe                  Suttons Bay                110            Public Administration       23
            Administration
            Grand Traverse County                      Traverse City              87             Public Administration         2
            Sleeping Bear Dunes                        Empire                     81                   Recreation            91
            Sweitzer's By The Bayre                    Traverse City              75                 Eating Place              1
            Leelanau County                            Leland                     75             Public Administration       63
            Glen Lake Community School Dst             Maple City                 75                    School               71
            Sprague Prutsman Inc                       Suttons Bay                52                  Auto Parts             17
            Northport Public School                    Northport                  52                    School               33
            Leland Public School                       Leland                     50                    School               63
            Suttons Bay Elementary School              Suttons Bay                45                    School               18
            Leelanau Center For Education              Glen Arbor                 40                    School               104
            Suttons Bay Jr Sr High School              Suttons Bay                37                    School               18
            Leelanau Industries Inc                    Traverse City              35                    Foundary             41
            E & J Supply Inc                           Traverse City              35                    Hardware               2
            Windowsmer Beach Resort                    Traverse City              35                 Eating Place              4
            Suttons Bay Public School Dist             Suttons Bay                32                    School               18
            Leeland Lodge Inc.                         Leland                     30                     Hotel               63
            Leland Township Public Library             Leland                     30                    Library              63
                 Employment Total = (estimates provided by employers, seasonal averages included)
                  Based on standard industrial classification
                 Traffic Analysis Zone - a geographically defined unit created for localized traffic, population & employment
                  analysis.

            SUMMARY                                                               probably indicates a higher than av-
               A comparison of labor force data from                              erage number of single persons who
            1960 to 1990 shows that:                                              work multiple or seasonal jobs to pro-
               ï¿½    The labor force in Leelanau County                            vide sufficient income.
                    has increased 151 % over the 30 year                      0   Unemployment rates have declined
                    period (while population increased                            from a high in 1980 of 15.2% to the
                    77%), and 8.5% over 10 years to                               current 10 year low of 6.9%.
                    8,350 (while population increased                         0   Much of the labor force commutes out
                    18%).                                                         of the County.
               ï¿½    Women in the labor force increased                        A   more precise view of the current labor
                    from 28.3% to 41 %.                                  force    will be available when 1990 census
               ï¿½    Two income household were 30.1 %                     data is released in the summer of 1992.
                    and adults with two jobs was 20%



                                                                                    Working Paper #7 - Economic Development
                                                                                                                         Page 2-9





                                                                      DRAFT



               Traffic Zones



                                                                                        FIGURE 2-5

                                                                                                                                    40


                                                                                                                          38

                                                                                                               37
                                                                                                                    36

                                                                                                               31

                                                                                                           0


                                                                                                                 32


                                                                                                       25
                                                                                                            27


                                                                                                                  28



                                                                                                        24             25



                                                                                             67    1
                                                                                                      22
                                                                                    4                            23



                                                                                             61        21




                                                                                   56              15              20
                                                                             5
                                                                                                             19
                                                al                        52        53                        12
                                                               so                                    11
                                      4                                                       10
                                                                                  so



               94                          103
                         97                         77          78         46                        9
                                            2              76                       47                7
                                            2
               93                            71        74       75          44                6

                                                               73                                       4

                                                                                                  3

                                               70
            82       83           84                           69       43      42
                                                                                                   2








         Working Paper #7 - Economic Development
         Page 2- 10





                                                        DRAFT

                                                     Chapter 3

                                    EMPLOYMENT BY SECTOR


         INTRODUCTION                                             In 1989 the Bureau of Economic Analysis
            This Chapter     describes employment in           (BEA-data gathered at the household level)
         Leelanau County     by sector. The sectors are        also reported retail and service sectors as
         agriculture; retail; manufacturing; construc-         major employers in the County. Manufac-
         tion; transportation; communication and utili-        turing has remained relatively stable in terms
         ties; wholesale trade; finance, insurance and         of the number of jobs provided, but it contin-
         real estate; and public administration. The           ues to be a minor employer overall. This indi-
         data was provided by the U.S. Department of           cates that those employed by the manufac-
         Commerce, Bureau of Economic Analysis,                turing industry as of the 1980 Census were
         the Michigan Employment Security Commis-              commuting outside the County for employ-
         sion, Michigan State University Center for the        ment. Between 1972 and 1989 the greatest
         Revitalization of Industrial States (CRIS), the       net increase in employment for Leelanau
         U.S. Census Bureau and the Leelanau                   County were in service and retail sectors.
         County Planning Department.                           The number of jobs in the service sector in-
            Some of this data is gathered by place of          creased from 871 in 1972; to 1,783 in 1989
         work. Such statistics reflect employment              (up 105%). The number of jobs in retail trade
         levels of employers at specific locations             went from 464 to 1,086; an increase of
         within the County. It includes those persons          134%. Jobs in construction and finance, in-
         who live in another county but commute to             surance and real estate have also increased
         Leelanau for employment and does not                  55% and 109%, respectively. See Figures 3-
         include that portion of Leelanau's work force         1 and 3-2, and Table 3-1 for employment fig-
         that commutes outside the county for                  ures for other industrial sectors.
         employment. In contrast, labor force data is             A recent comprehensive survey of County
         gathered by household and addresses those             employers (using data from the County
         people who live in the County who are in the          Chamber of         Commerce,       Dunn's      and
         work force, whether or not they work in the           supplemented by data from the County
         County.                                               Planning Department)         reflects the total
                                                               number of jobs provided in Leelanau at
         EMPLOYMENT BY SECTOR                                  4,928 (1989 BEA figures counted 5,471
            According to the 1940 Decennial Census,            persons employed). Variability may be due to
         the agricultural sector provided 41% of all           seasonal adjustments made (especially in
         jobs for Leelanau County residents. By the            agricultural employment) by BEA that were
         1980 Census, agriculture only accounted for           not made by other sources. As with BEA
         8.6% of all jobs. Service, retail and manufac-        statistics, the retail and service sectors
         turing sectors became the top three employ-           account for the majority of employment in the
         ment industries, accounting for 53%, 20.5%            County (see Table 3-2). Both sectors account
         and 19.8% of all employment-respectively.             for 66% of all jobs. Service jobs on the
         Decennial Census data is gathered at the              Peninsula primarily include jobs in health
         household level. Data from the 1990 Census            care, human services, lodging, repair busi-
         is not yet available.                                 nesses,     boating     services,      consulting,
  40                                                           schools, and business associations.

                                                                         Working Paper #7 - Economic Development
                                                                                                         Page 3-1






                                                                                DRAFT


                                                                              Table 3-1
                                           EMPLOYMENT BY SECTOR FOR LEELANAU COUNTY
                                                                 BETWEEN 1972 AND 1989


                           Transportation &                 Federal Govt.              Agriculture, Forestry Farm Proprietor Emp.
                             Public Utilities                       Emp.                      & Fisheries
               1972                    41                            49                               77                                 510
               19713                   46                            62                               118                                499
               1981)                   48                            54                               110                                475
               1984                    70                            53                               62                                 496
               1989                    57                            36                               79                                 613
                              State & Local                     Services               Finance Insurance &                       Construction
                                Govt. Emp.                                                     Real Estate
               1972                   556                            871                              214                                346
               1976                   467                            876                              165                                344
               1980                   414                           1134                              246                                320
               1984                   4'17                          1121                              265                                281
               1989                   527                           1783                              448                                535
                               Retail Trade              Wholesale Trade                    Manufacturing
               1972                   464                            76                               208
               1976                   585                            59                               202
               1980                   644                            65                               146
               1984                   741                            57                               168
               1989                   1086                           106                              198

                                           Source: Michigan State Universily: Center for the Revitalization of Industrial States (CRIS),
                                                        U.S. Department of Commerce, Bureau of Economic Analysis



                                                                              Table 3-2
                                             LOCALLY RECORDED EMPLOYMENT BY SECTOR
                                                                     LEELANAU COUNTY


                                                                                           Number of                   Percentage of Total
                                             Sector                                        Employees                        Employment
                                           Agriculture                                          150                                    3%
                                              Mining                                               23                               0.5%
                                           Construction                                         383                                 7.8%
                                        Manufacturing                                           378                                 7.7%
                Transportation, Communications and Utilities                                       87                               1.8%
                                      Wholesale Trade                                           116                                 2.4%
                                           Retail Trade                                         953                                19.3%
                         Finance, Insurance & Real Estate                                       234                                 4.8%
                                            Services                                          2,357                                47.8%
                                   Public Administration                                        247                                    5%
                                               Total                                          4,928                              100.1%

                                                                  Source: Leelanau County Planning Department

               Working Paper #7 - Economic Development
               Page 3-2






                                                                                 DRAFT


                                                                                  Figure 3-1
                                             EMPLOYMENT BY SECTOR FOR LEELANAU COUNTY
                                                                     BETWEEN 1972 AND 1989


                        700            191972

                        600                1976
                     CA
                     (D
                     a) 500                1980
                     0
                     CL                                                                                                                            . .. ...
                        400            El 1984
                     Uj
                        300            01989
                     a)
                     E 200 - -
                     Z
                        100


                             0
                                  Transportation            Federal Govt.             Agriculture,                 Farm                State & Local
                                       & Public                   Emp.                 Forestry &               Proprietor               Govt. Emp.
                                         Utilities                                      Fisheries                  Emp.

                                           Source: Michigan State University: Center for the Revitalization of Industrial States (CRIS),
                                                         U.S. Department of Commerce, Bureau of Economic Analysis

                                                                                Figure 3-2
                                           EMPLOYMENT BY SECTOR FOR LEELANAU COUNTY
                                                                  BETWEEN 1972 AND 1989


                        1800               1972

                        1600           D   1976
                     Cn 1400               1980
                     4V
                        1200
                     -2                El 1984
                     UF= 1000
                                           1989
                          800

                     E    600

                          400

                          200
                                                                                                            -M
                             0
                                       Finance          Construction         Retail Trade         Wholesale          Manufacturing          Services
                                    Insurance &                                                      Trade
                                    Real Estate
                                     @1972
                                           1976


                                           1980


                                           1984

                                       01989













































                                           Source: Michigan State University: Center for the Revitalization of Industrial States (CRIS),
                                                         U.S. Department of Commerce, Bureau of Economic Analysis

                                                                                                          Working Paper #7 - Economic Development
                                                                                                                                                        Page 3-3







                                                       DRAFT
              The Michigan Employment Security                   the recent completion of several Walmart
          Commission keeps data on employment by                 and Kmart stores in the SDA (MESC ser-
          industry for the Leelanau/Grand Traverse la-           vice delivery area).
          bor market area (LIVIA). Table 3-3 presents                The construction industry has also
          data for various industries in the LIVIA for           displayed strong short-term growth due to
          1984, 1986, 1988 and 1990 (prior to 1984,              the many commercial and residential de-
          Kalkaska County was included in the labor              velopment projects recently undertaken.
          market area). Note that the industries are di-         Many large projects in the local SDA
          vided into goods-producing and service-                (Grand Traverse Mall, Three Fires Point,
          producing categories. Over 75% of all jobs in          Manufacturers Marketplace, the North
          the LMk are -considered service-producing              Shore Development) have spurred that
          jobs. Although service-producing jobs are              industry segment. Notable area manufac-
          often considered lower income generators,              turing job growth is in the primary metals
          note that governmental, finance and health             and non electrical machinery industries.
          occupations are categorized as service. A                  The many short-term losses in em-
          number of jobs provided by these services              ployment for area manufacturing are due
          are ;among the higher income occupations.              to the sluggish national economy. This
          Analysis of this table reinforces data provided        trend will continue through 1991, with re-
          by BEA, in that service, retail and construc-          covery anticipated in 1992 ... Losses (jobs)
          tion jobs have grown, and manufacturing-               incurred in the food industry are princi-
          related jobs have decreased or flattened out.          pally due to the activities of one firm, the
              MESC aptly sums up what has happened               industry as a whole should show gains in
          in the regional economy (10-county region              the future. "
          vs. 2- county LIVIA) in the last several years         In the 10-county region, MESC projects
          in its 1991 program year report, pg. 23:           employment gains for all industries of about
                 "Particularly strong job gains in the re-   5%      overall,    including     manufacturing
              tail sector were due to gains in eating and    (although it is projected to lose employment
              drinking places and food and dairy stores.     in the state). For the region in the next few
              The largest additions of service jobs in       years, growth in service-producing industries
              the Northwest Michigan region were at          is expected to increase at twice the rate of
              medical, other health facilities, other re-    job increases in the manufacturing sector
              pair services, and hotels and lodging          (goods-producing). Service and retail trade
              places. The Traverse City area is a re-        industries are anticipated to add the most
              gional center for tourism activity and         jobs and increase at the fastest rate in the
              medical care. Other      'notable additions    region.
              have occurred in department stores, with














          Working Paper #7 - Economic Development
          Page 3-4






                                                                         DRAFT


                                                                        Figure 3-3
                                        LEELANAU COUNTY ESTABLISHMENTS BY TRADE


                      80              EM Agriculture

                      70                   Transportation

                      60                  Construction
                   E                  El Manufacturing
                   -1-- 50

                                          Nonclassified
                   LU               L
                   0
                      30

                   E                                                                                                                 . ......
                      20


                      10


                       0
                                   1968              1972               1976              1980               1984               1989


                                      Source: County Business Patterns, Bureau of Census 1968, 1972, 1980, 1984 and 1989
                                                                        Figure 3-4
                                        LEELANAU COUNTY ESTABLISHMENTS BY TRADE


                                   El Wholesale Trade
                      140
                                        Retail Trade
                      120               Finance, Insurance &
                                        Real Estate
                      100
                   CD
                   E                    Services

                   :5  80

                   LU
                   C>  60


                   E
                   =3  40


                       20


                         0 -
                                    1968             1972               1976              1980              1984               1989


                                  Source: County Business Patterns, Bureau of Census, 1968, 1972, 1976, 1980, 1984 and 1989.







                                                                                               Working Paper #7 - Economic Development
                                                                                                                                       Page 3-5













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                                                                                             DRAFT


                                                                                             Table 3-3
                                              CIVILIAN LABOR FORCE & EMPLOYMENT ESTIMATES,
                                              GRAND TRAVERSE-LEELANAU LABOR MARKET AREA

                                                                                             1984 Percent       1986 Percent 1988 Percent,,@ 1990 Perde'nt,.
                Wage and Salary Employment*                                                  29450 @,,1100.00'  33925 IJA 00.00 - 3675C               00.'00 11@' 39425          00.00
                     Goods Producing Industries                                              6325 21.48         7850         23.141- 8275          *,,22.52-"-,,      8275
                          Construction & Mining                                              1650 5.60,         2325         6.85          2800       7.62,           3200  1iP"'8';12iX
                                                                                                                                                            0         5
                              Mining                                                         475  -1.61     -   575      --'11.69          625     -A.7               25           '33"@
                                                                                                                         X,
                             Construction                                                    1200 4.07          1775         5.23          2150       5.85"@@         2675       619g
                          Manufacturing                                                      4675 -15.87        5525         16.29,        5500    '-',14,97,@';@'    5075 @rIA2.'87-
                                                                                                                                                                      3325       8`43""@-',
                              Durable Goods                                                  2650 9.00,         3300         9.73          3525       9.59-,-"-"
                                   Lumber & Wood Products                                    50   0.17          100                        100                        100   40,0.25-@"-""'
                                   Furniture & Fixtures                                      A       --           A                        50         '0.14'11'@@     75    Ir    A
                                                                                                                                           825
                                   Metals                                                    525  1.78          600                                   2. 2 4          725
                                       Primary Metals                                        75   0.25          125          0.37          125                        125        kO.32,
                                       Fabricated Metals                                     425  1.44          500          1.47          700        1',90 "@-tA     600        "I.52""I'@-
                                   Wo-neiectricai machinery                                  10001 3.40         12501-,,,-3.68             900        2.45'1'-'@      950
                                   Electrical Machinery                                      A
                                                                                                                350          1.03          A                          A
                                   Transportation Equipment                                  A                    A                        425       -1.16            350        0.89@1",'
                                   Other Durables                                            1100 3.74          1025         3.02          1200       - 3.27          1125       2.86F`
                                                                                                                                                      537 -j
                              Nondurable Goods                                               2025 6.88          2200 - @'@'6.48            1975                       1750       -4. 4 4
                                   Food & Kindred Products                                   1275 4.33-         1350         3.98,         1225                       925
                                                                                             B                               0                                                   0.19
                                   Textiles & Apparel                                                           100            .29         100        0.27."'         75
                                   Paper & Allied Products                                   B                    B                        B
                                                                                                                                                                      B
                                   Printing & Publishing
                                                                                                                                                                                    '20
                                                                                             325  1.10          375          11.1111       425        1.16            475
                                   Chemicals & Petroleum                                     -       -             -           -
                                                                                                                                                                      B     N.
                                                                                                                             1.18          225           .61
                                   Other Nondurables                                         425  1.44          400                                                   300        '0.76
                      Service Producing Industries                                           23121, 78.52,@     26075        76.86,        2845C      77.411'--I'@,,", 3115C
                          Trans., Comm., & Utilities                                         13001 4.41 -       1450         4.27,'- -     1350                       1350
                          Wholesale Trade                                                    13251 4.50,        1200         3.54          1250       3.40,-,`,,@
                                                                                                                                                                      -1375
                                                                                                                                                                                 '24'.0
                          Retail Trade                                                       6550,22.24         7875     @,@,'23.21        8800       21'95'@,        9475
                          Finance, Insurance, Real Estate                                    1250 4.24@         1325         @@-3.91       1475       4. 0 1          1750
                          Services                                                           7775 ,26.40        9025         26.00         10000',@,,-@27'.21@@@,@111450@"@@429.04-,@
                          Government                                                         4925 -16.72        5175         '15.25        5575       15.17":@'       5750       1*.58
                                                                                             375  1.27          375
                               Federal                                                                                       11'111        450        @1 2Z           550        11.40'V
                               State                                                         800  2.72,         800          2.36          800        2."1 8,@        550
                               Local                                                         37501 12.73        39751,       -11.72        14325, 11.77"              4650       1'41.791,4


                   Source: Michigan Employment Security Commission - Bureau of Research & Stadstics - Field Analysis Unit (313) 876-5427.
                   *Industry detail may not sum to totals due to rounding (rounding is done to nearest 25 employees). Wage and salary employment reported by
                   employers, by place of work. Total civilian labor force higher because it includes estimates of Agricultural employment, sole proprietorships
                   and family employment. Suppressed data included in: X=Totals, A=0ther Durable Goods, 13=01her Nondurable Goods, C=Services













                                                                                                                         Working Paper #7 - Economic Development
                                                                                                                                                                            Page 3-7





                                                       DRAFT


         NUMBER AND SIZE OF                                  While CBP offers insight on ratios of types of
         ESTABLISHMENTS                                      establishments, it overlooks a large number
            Service and retail establishments and            of one-person firms in the County.
         employment therein are increasing faster                Data recently gathered by the County
         than other trade sectors. The highest in-           Planning Department shows that there are
         crease in number of establishments by trade         1,324 firms operating in Leelanau; 792 (60%)
         in the County between 1968 and 1989 has             of them are one-person operations. Another
         been, again, in retail trade and services. The      28% (375) employ 2-4 persons. Even with
         number of establishments have increased             large employers included, the average num-
         105% for retail trade and 468% for the serv-        ber of employees per firm is only 4. (Concen-
         ice Sector. The number of construction es-          trations of Leelanau County businesses can
         tablishments have more than tripled (see            be seen by traffic zone in Figure 3-5). A
         Figures 3-3 and 3-4 and Table 3-4).                 traffic zone is a contiguous area of common
            The number of establishments by trade is         characteristics used to monitor change and
         taken from County Business Patterns,                to monitor change on a variety of socio-eco-
         (CBP) an annual publication of the Census           nomic and traffic variables. The highest con-
         Bureau. CBP is gathered on a yearly basis,          centrations of establishments tend to be ad-
         and statistics are based on administrative          jacent to surface water, within established
         records and survey data. CBP does not               towns and villages, and that portion of
         include small firms with no other paid              Elmwood Township immediately adjacent to
         employees, this should be considered when           Traverse City.
         reviewing Figures 3-3 and 3-4 and Table 3-4.

                                                        Table 3-4
                                            ESTABLISHMENTS BY TRADE


                                                         1968 1072 1976 1980          1984 1989
                    Agriculture                            3       1       2      5      6      3
                    Transportation                         4       7     10     10     16     14
                    Constniction                          25     29      53     50     39     78
                    Manufacturing                         15     12      23     21     26     30
                    Nonclassified                          2       4       5    18     37     41
                    Wholesale Trade                        4       3       7    10       9    14
                    Retail Trade                          63     61      84     91     101    129
                    Finance, Insurance & Real Estate       5   1 15      15     15     15     28
                    Services                              22   1 44      56     67     79

                                        Source: County Business Patterns, Bureau of Census,
                                               1968, 1972, 1976, 1980, 1984, 1989
         SUMMARY                                               mean that there     is a large portion of the
            The service and retail trade sectors are           population at the   lower end of the income
         the largest employers in Leelanau County              scale with limited purchasing power. How-
         with 4.7% and 19% respectively.                       ever, the high proportion of school and medi-
            The service industry also leads in the             cal jobs in the service sector in Leelanau
         growth of commercial establishments by sec-           County means that t   here are many individu-
         tor; with retail trade increasing 134%; finance       als with higher incomes. Overall, a 5% in-
         insurance and real estate, 109%, and con-             crease is expected in jobs in the 10 county
         struction 55%. This may be interpreted to             region by the end of 1992.


         Working Paper #7 - Economic Development
         Page 3-8





                                                       DRAFT

                                                    Chapter 4

                                                   TOURISM


         INTRODUCTION                                         rooming and boarding houses, camps, trailer
            Leelanau County's variety and quality of          parks, and miscellaneous amusement and
         natural resources make it a natural attraction       recreation services. This is a narrow
         for tourism. Lake Michigan, sand dunes, in-          definition of tourism-related jobs, but as the
         land lakes, rolling terrain, woodlands, wet-         TTRRC states:
         lands, orchards, rivers and streams can all              ... sound estimates of the number of jobs
         be found in a relatively small area, which           attributable to tourism activity are difficult to
         compounds their desirability to the visitor.         obtain for several reasons:
         Major federal park facilities like Sleeping             (1) no single, widely accepted definition of
         Bear Dunes and the Manitou Islands offer             a tourist or tourism business exists; (2)
         outstandingly unique recreational oppor-             tourism is not a single business category, but
         tunities. Many times visitors to the County          an activity in       which    many different
         become so enamored by the area's charm,              businesses engage to varying degrees; (3)
         that they purchase or build second homes so          tourism encompasses both public and private
         they can have their own piece of the natural         organizations and an unknown number of
         beauty.                                              small businesses, some of which are exempt
             Tourism can be a mixed blessing, while it        from many kinds of standard economic
         imports a significant amount of outside dol-         reporting, including reporting the number of
         lars and is considered relatively non-con-           employees; and tourism is often a seasonal
         sumptive, it also strains local services and         activity, employing both part time and
         can cause friction between community                 seasonal workers. This makes the definition
         residents (e.g., seasonal and year-round             of 'yob" difficult.
         residents). Regardless of opinions toward               Over the last couple decades, Leelanau
         tourism, it is a significant economic force in       County's economy has shifted toward
         Leelanau County.                                     catering to the tourist industry. The annual
                                                              average number of jobs (per MESC's
         TOURISM-RELATED EMPLOYMENT                           definition) that can be attributed to tourism-
             Data source for the following information        related jobs have generally increased since
         was the Michigan State University's Travel,          1974 (see Figure 4-1 and Table 4-1). The
         Tourism, and Recreation Resource Center              average increase since 1977 has been lower
         (TTRRC), who obtained estimates from the             in Leelanau County than in neighboring
         Michigan Employment Security Commission              Benzie and Grand Traverse Counties (see
         (MESC). MESC only considers a few sectors            Figure 4-2 and Table 4-2). One of the identi-
         as "tourist"; these are jobs in services             fied problems associated with tourism-related
         incidental to water transportation, gasoline         jobs is their seasonal nature. The number of
         service stations, boat dealers, recreational         tourism-related jobs peak during summer
         and utility trailer dealers, eating and drinking     months and taper off during fall and winter.
         places, hotels, motels and tourist courts,






                                                                        Working Paper #7 - Economic Development
                                                                                                       Page 4-1






                                                                        DRAFT


                                                                      Figure 4-1
                               ANNUAL AVERAGE NUMBER OF JOBS IN TOURISM-RELATED
                                                  BUSINESSES IN LEELANAU COUNTY


                         700


                         600                                   Aft-


                         500

                      0
                      j  400
                      0

                         300
                      E
                      z  200

                         100


                             0
                             1974            1976             1978            1980             1982             1984            1986



                                            Source: Travel & Tourism In Michigan, A Statistical Prortle, 1986 & 1991 ed.
                                                        (MSU, Travel, Toudsm & Recreation Resource Center)










                                                                        Table 4-1
                                                       ANNUAL NUMBER OF JOBS IN
                                                    TOURISM-RELATED BUSINESSES
                                                               LEELANAU COUNTY


                                                                 1974                347
                                                                 1976                319
                                                                 1978                600
                                                                 1980                517
                                                                 1982                618
                                                                 1984                433
                                                                 1986                539


                                             Source: Travel & Tourism in Michigan, A Statistical Prortle, 1986 & 1991 ad.
                                                        (MSU, Travel, Tourism & Recreation Resource Center)








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                                                     DRAFT

                                                    Figure 4-2
                          ANNUAL PERCENTAGE CHANGE IN TOURISM-RELATED
                                          BUSINESS JOBS (1977-1987)


                       12-

                                    El 1977-82
                       10-
                                        1982-87
                       8-               1977-87

                   U   6-
                   a)


                       4-



                       2-

                       01/
                                 Leelanau                  Benzie             Grand Traverse



                               Source: Travel Tourism in Michigan, A Statistical Profile, 1986 & 1991 ad.
                                          (MSU, Travel, Tourism & Recreation Resource Center)










                                                     Table 4-2
                          ANNUAL PERCENTAGE CHANGE IN TOURISM-RELATED
                                          BUSINESS JOBS (1977-1987)

                                                          Benzie      Grand Traverse
                               1977-82
                                                              4.1             5
                               1982-87
                                                              8.3            11.6
                               1977-87                        6.2            8.3
                                            ..........................


                                 Source: Travel & Tourism In Michigan, A Statistical Profile, 1986 & 1991 ad.
                                               Tra
                                          (MSU,  vel, Tourism & Recreation Resource Center)












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                                                           DRAFT'


               The Michigan Department of Commerce,               Michigan has more Coast Guard registered
           Travel Bureau uses a proprietary input-output          boats than any other state in the nation. Al-
           model developed by the US Travel Data                  though Michigan experienced a decline in
           Center to determine the amount of tourist              water craft registrations between 1978 and
           spending by county. The input model consid-            1985, Leelanau's registrations continued to
           ers such factors as sales and use tax, pro-            climb. Overall, between 1978 and 1991, the
           prietor earnings, and inventories of business          County had a 42% increase in registered
           sectors in the tourist trade. Spending and             water craft. In that same time period, the
           behavior patterns of tourists are also consid-         state experienced an approximate 22% in-
           ered from results of national surveys. Accord-         crease.
           ing to this model, Leelanau County experi-                Visitation to Sleeping Bear Dunes Na-
           enCed significant increases in travel expendi-         tional Lakeshore is another indicator of tour-
           tures, travel employment and payroll for               ist activity in Leelanau County. Visitation to
           travel-related jobs between 1983 and 1986.             the lake shore has generally increased over
           Exact travel related figures from the Travel           time. See Figure 4-5 and Table 4-6. Well
           Bureau are presented in Table 4-3. It is diffi-        over a million people visit the Dunes on an
           cult to determine how much of the increase is          annual basis. Note that visitation counts are
           due to an upswing in the economy, and how              down in recent years because the National
           much is a real increase. Figures for 1989 are          Park Service has closed a campground for
           currently being computed, but they will not be         upgrading. When this facility is completed, it
           comparable to previous figures, since the              is anticipated that visitation will once again
           U.S. Travel Center has made changes to the             climb.
           model, these refinements are expected to                  Visitation records are also kept for Leelanau
           yield more sophisticated results.                      State Park. Total visits is a combination of
               Sales tax collected by tourism-related             camper and day-visits to the park. In the 1982-
           businesses are presented in Figure 4-3 and             83 season there were nearly 75,000 total
           Table 4-3. Sales tax collections associated            estimated visits to the state park. Visitation rose
           with family restaurants has experienced the            on an annual basis and peaked at around
           greatest increase since 1983. Sales tax at-            216,000 in 1986/87. Visitation dropped be-
           tributed to taverns and clubs, and hotels and          tween 1987 and 1990, tapering off to
           motels have also increased overall. See                approximately 123,000.
           Table 4-4.                                                Another unusual, yet highly active, attrac-
               Michigan is second only to Florida in the          tion in the County is the Grand Traverse
           number of second or seasonal homes (1980               Band of Ottawa and Chippewa Indian's
           data). It was reported, in a recent Michigan           casino operation. That and other tourism-
           State University (MSU) profile of the state's          related investments have greatly improved
           tourism, that 24% of all registered boats in           the economic viability of the Band. The
           the state are stored and used at second                success of the recently expanded gambling
           homes. Further, 30% of all boat owners in              casino is providing job and economic
           the state own second homes.                            opportunities for Band members. According
               Water-related activities are a critical com-       to the Michigan Department of Commerce,
           ponont of Leelanau County's tourist attrac-            the Grand Traverse Band is the number one
           tions. While there is no direct data on the to-        employer in Leelanau County. Given increas-
           tal number of water craft using Peninsula wa-          ing tourism in the County, this facility is likely
           ters, the number of water craft registered in          to take on a more significant role for the Na-
           the County has increased dramatically over             tive American population.
           time. See Figure 4-4 and Table 4-5. Overall,

           Working Paper #7 - Economic Development
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                                                     DRAFT
           Service and retail sectors are closely tied          higher incomes. Seventy percent were
   *
        to tourism in the County. Between the 1977              married, 64% have at least some college
        and 1987 Censuses of Retail Trade,                      education; 73% owned their own home;
        Leelanau County experienced a nearly 108%               and 5751o were 35 years or older. Thirty-
        increase in total retail sales. In comparison,          seven percent of the travelers reported
        Michigan experienced approximately a 78%                incomes of $30,000 or more, while only
        increase and Grand Traverse County                      32% of Michigan households in 1983
        experienced 169% increase (see Table 4-7).              earned $30, 000 or more. "
        Note that even though retail sales increased            When these travelers were asked about
        considerably between 1977 and 1987, the             their reasons for traveling; 46% said the pri-
        percentage of income attributed to retail           mary reason for travel to/in Michigan was to
        sales actually dropped 4%. This may be due          visit friends or relatives; 23% for outdoor rec-
        to other sectors in the economy generating          reation, and 14% for sightseeing and touring.
        more relative income in that same time.             When asked about the importance of various
           Leelanau     has    many establishments          attributes, "good scenery" was ranked num-
        geared toward serving tourists. A 1989 inven-       ber one. Lodging for travelers was primarily
        tory of eating and drinking establishments in       found in the homes of friends and families
        the state reported Leelanau County having           (39%); 36% used hotels or motels; 6% rented
        91 licensed food     'service est  'ablishments;    a cottage; and 11 % camped either publicly or
        Grand Traverse had 293; Antrim, 88; and             privately.
        Benzie; 64. In 1986, Leelanau County offered            While there is limited data available on
        1,026 rooms in bed and breakfasts, cottages,        the County's seasonal population, it appears
        hotels, motels and condominiums. Grand              to be increasing, as evidenced by the afore-
        Traverse had 3,161 rooms; Antrim 1,174;             mentioned travel indicators. The most recent
        and Benzie 727.                                     available estimates (1987) suggest that dur-
           A MSU study of characteristics of Michi-         ing the peak season (June-August) the sea-
        gan's pleasure travelers offered the following      sonal population outnumbers the year-round
        profile of the average Michigan tourist             population by nearly 7 to 1. This number is
        (primarily considered to be comprised of            up considerably from 1975 estimates that
        residents from Michigan, Ohio, Iowa, Illinois,      suggested peak seasonal population out-
        Indiana and Minnesota):                             numbered year-round residents by 4 to 1
           "Compared to the Michigan population as          (see Figure 4-6 and Table 4-8). It should be
           a whole, travelers to and through                noted that 1981 figures are likely down from
           Michigan were generally more mature,             1975 figures due to the recession.
           better educated, and had somewhat

                                                     Table 4-3
                         TRAVEL EXPENDITURES, EMPLOYMENT, AND PAYROLL
                                              LEELANAU COUNTY


                                              1983                 1986             % of        % Change
                                                                                 State Total      '83-'86
        Total Travel Expenditures            54,899,000           81,419,000           1.07         +48.31
        Rank in State                            19th                171h              -              -
        Travel Employment (Jobs)                1,182               1,648              1.18         +3942
      [_@a_"yroll Generated          t-       9,371,000--f-       14,711,000   i      0.94          +56

                             Source: Michigan Travel Bureau. Studies performed by the U.S. Travel Data Center, 1988


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                                                             DRAFT
                                                           Figure 4-3
                                   LEELANAU COUNTY SALES TAX COLLECTIONS
                                                   (1983,1985,198711989)


                 300,000
                                                                                         1983
                 250,000                                                             ED 1985

                                                                                     M 1987
                 200,000
                                                                                     01989
                 150,000


                                                                                                         _77-
                 100,000


                   50,000

                             iE
                                                                            F771-M

                        0
                            Taverns and Hotel Dining         Family      Fast Food       Sporting      Hotels and
                               Clubs                      Restaurants   Restaurants        Goods         Motels


                                   Source: Travel and Tourism in Michigan; A Statistical Profile, 1986 & 199 1,
                                                   MSU Travel And Tourism Research Center








                                                           Table 4-4
                                                SALES TAX COLLECTIONS
                                                    LEELANAU COUNTY


                         Taverns       Hotel          Family         FastFood          Sporting       Hotels and
                       and Clubs       Dining    Restaurants Restaurants                 Goods           Motels
              1983      $128,249      $5,881       $69,640            $12,704            $9,418          $95,587
              1985         64,582     22,004       169,956              29,009           10,584          117,702
              1987       118,817      31 @027      206,872              19,308           15,064          130,728
              1989-1     149,168     139,3871      297,564              31,787           16,732          135,7941

                                     Source: Travel and Tourism in Michigan; A Statistical Profile, 1986 & 199 1,
                                                   MSU Travel And Tourism Research Center"'9W
                                                                                     01985
                                                                                     M @1987
                                                                                     01989














































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                                                                     DRAFT




                                                                    Figure 4-4
                                                      REGISTERED WATERCRAFT
                                                            LEELANAU COUNTY


                       45.00%-                  Leelanau County Percentage
                       40.00%                   Change
                       35.00%  --------   L     Michigan Percentage Change
                       30-00%
                  a)   25-00%                                                     *ur
                  .9   20.00%

                  a)
                  U"   15.00%--
                  (D
                  0-   10.00%-

                        5.00%

                        0.00%
                       -5-000/1                                                                                   Total
                                                                                                             Percentage
                       10.00%                                    Source: Department of State                   Change



                                                                    Table 4-5
                                                      REGISTERED WATERCRAFT
                                                            LEELANAU COUNTY

                                                              County Percentage Change Michigan Percentage Change
                                   1978-1985                              28.00%                               -5.20%
                                   1985-1991                              11.000/0                             28.50%
                          Total Percentage Change                         42.00%                               21.78%


                                                                 Source: Department of State












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                                                                               DRAFT
                                                                             Figure 4-5
                                                        SLEEPING BEAR DUNES NATIONAL
                                                         LAKESHORE ANNUAL PUBLIC USE





                              1,400,000-


                              1,200,000-

                                                                                                                                                 A
                             1,000,000
                                                                                                      3
                                                                                                                                              J
                                                                    nzn",
                               800,000 -


                         E     600,000-

                               400,000+@
                                                                                                                   4
                               200,000-
                                                                                                                                      4ell
                                                                                                         z
                                        0
                                        1984            1985            1986            1987            1988            1989            1990



                                             Source: National Par* Service (*note: in 1987 method for determining visitation changed.
                                   More accurate traffic centers installed. Camp site closed in 1990 for repairs which accounts for loss in visits)






                                                                              Table 4-6
                                                                    ANNUAL PUBLIC USE


                                                                                       Total Visits
                                                                           1984          853,186
                                                                           1985          897,512
                                                                           1986          634,435
                                                                           1987          1,222,811
                                                                           1988          1,317,530
                                                                           1989          1,250,416
                                                                           1990          1,216,870


                                             Source: National Park Service. (*note: In 1987 method for determining visitation changed.
                                   More accurate traffic counters installed. Camp site closed in 1990 for repairs which accounts for loss in visits)












               Working Paper #7 - Economic Development
               Page 4-8







                                                                     DRAFT
                                                                     Table 4-7
                                              RETAIL SALES PERCENTAGE CHANGE


                                                                                                         Retail
                                   Total Retail        Total Retail                                      Sales as a
                                       Sales              Sales              Change 1977-87               % of
                                        19T7               1987                                          Personal
                                                                                                         In me
                                                                             Number         Percent      197A 1981   Change 1977-87
           Antrim                    $39,130,000          $63,324,00         $24,194,000 61.80%          420/c 300/4      -11.70%
           Benzie                    $35,188,000          $48,878,00         $13,690,000 38.90%          549X 360/4       -17.70%
           Grand Traverse           $235,242,000.         $633,344,000.      $398,102,000.169.20%        660X 700/4       .3.20%
                                                                             .2.
                                                                         Wt
                                ........ ...
                                                              . .. ... . ...                                                  05@
           Michigan             1$31,912,356,00@     $56,697,319,00@ $2,478,963,000 77.700/j             440/@ 400         -5.00%

                            Source: Michigan Rural Development Strategy Data Book, Michigan Department of Commerce, 1991, pg. 54



                                                                     Figure 4-6
                                                    SEASONAL POPULATION FOR
                                                            LEELANAU COUNTY
                         120,000-/           EJ Estimated in 1975
                          100,000-           0 Estimated in 1981
                          80,000-            E Estimated in 1987
                          60,000-

                          40,000-

                          20,000-

                                0
                                        December              March to               Juneto              September
                                             to                   May                August                  to
                                         February                                                        November
                    Source: Leelanau County 1989 Solid Waste Management Plan, 1975 & 1981 figure NWMCOG, 1987 Ext. by Gosling & Czubak




                                                                     Table 4-8
                                                        SEASONAL POPULATION
                                                            LEELANAU COUNTY


                                                           Estimated in 1975 Estimated in 1981 Estimated in 1987
                             December to February                  5,645                  2,788                 15,000
                                   March to May                    6,856                  2,759                 13,000
                                  June to August                  56,765                  42,184                113,000
                            September to November 1               12,400        1         7,283          1      43,000
                                                                     5


                                                                     1
                                                                     7]































                    Source: Leelanau County 1989 Solid Waste Management Plan, 1975 & 1981 figure NWMCOG, 1987 Ext. by Gosling & Czubak



                                                                                          Working Paper #7 - Economic Development
                                                                                                                                 Page 4-9







                                                         DRAFT
           SUMMARY                                             areas is protection of the resource to ensure
              Tourism is a large part of Leelanau              that its value is not degraded.
           County's economy. Tourists and seasonal                 Perhaps the biggest issue for sound eco-
           residents import large sums of money that           nomic development planning is the shortage
           can be captured by local businesses. How-           of current tourist-specific economic informa-
           ever, one of the drawbacks of a tourism             tion. The most recent data in 1991 publica-
           economy is its seasonality.                         tions reports 1986 and 1987 activity. That
              Large numbers of second homes are                makes the data already five years old. Ongo-
           hubs of activity for visitors. Beautiful scenery,   ing County level data collection, monitoring
           an abundance of natural resource and public         and analysis (of particularly tourism data) in
           land add to the area's character, which at-         conjunction with pdvate organizations like the
           tracts a great number of visitors to the            Chamber of Commerce will be necessary to
           county. Recent studies indicate that tourists       assure the success of future economic de-
           are becoming more sophisticated and de-             velopment activities and to monitor change
           manding in terms of the quality of their expe-      over time.
           rience, and the environment in which they
           recreate. One of the critical issues for tourist









































           Working Paper #7 - Economic Development
           Page 4- 10






                                                         DRAFr

                                                    Chapter 5

                                               AGRICULTURE


        INTRODUCTION                                          have decreased since 1974 for Leelanau,
            Although agricultural production continues        Benzie and Grand Traverse Counties. Until
        to play a key role in Leelanau County's econ-         1987, however, the amount of acres in or-
        omy, other economic sectors are outstripping          chards increased for Leelanau and Benzie
        agriculture in terms of their percentage con-         Counties (Grand Traverse began to experi-
        tribution to area income and employment. It           ence a decline in acreage of orchards earlier;
        remains, however a dominant force in the              see Figure 5-2 and Table 5-3). The number
        landscape character and heritage of the               of trees or vines devoted to fruit production
        County. The nature of agricultural production         reflect notable changes (see Table 5-4). Note
        in the County is unlike that of most areas in         that over time, fruit growers in Benzie,
        Michigan. A unique combination of climate,            Leelanau and Grand Traverse Counties have
        terrain and soils creates an environment              diversified, in that grape, peach, apple, apri-
        highly    conducive      to   f ruit   production.    cot and plum/prune production account for
        Ironically, many of these areas are also              higher proportions of overall production. Also
        among the most desirable for residential              reflected in the 1982 Census of Agriculture
        development.                                          was 226 acres in Leelanau devoted to berry
                                                              production    (raspberries,    blueberries and
        CHANGES IN AGRICULTURE                                strawberries). By 1987, the acreage devoted
            As noted previously, agriculturally-based         to berry production had been reduced to 213.
        businesses are declining in economic signifi-            According to a report issued by the Lee-
        cance relative to other sectors. In 1940, 41%         lanau County Economic Development Task
        of the County's labor force was employed in           Force 1988, the cherry industry has improved
        agriculture. In 1960, 18% of the labor force          its technology to the point that current
        was employed in agriculture and by 1980 the           production exceeds the ability to market the
        figure reduced to 8.6%. The total value of            volume of product grown. This eventually
        agricultural products sold has also decreased         results in price drops and losses for growers.
        since 1978 (see Table 5-1).                           Additionally, there      are    problems with
            The average size of farms in Leelanau             economically marketing surplus products
        County has increased since 1969, which is a           outside the Peninsula.
        state, national, and regional trend (see Fig-
        ure 5-1 and Table 5-2). This is due to a cer-         SUMMARY
        tain extent to smaller farms being bought out             The agricultural sector of Leelanau
        by larger operations. Operations typically be-        County has diversified the variety of crops it
        come more automated and sophisticated,                produces, which tends to strengthen busi-
        needing less labor to run larger holdings.            nesses economically. Although the agricul-
            In counties with a significant amount of          tural sector of the County appears to be
        orchards, the number of farms in orchards,            strong, pressures against it increase as land
        acreage in orchards, and number of trees or           values rise (see Chapter 6) and demand for
        vines of particular fruits over time are indica-      home sites increase. In addition to being
        tors of agricultural trends (production is not        among the most unique and prime agricul-
        being used as an indicator because many               tural lands in the nation, agricultural opera-
        factors affect this; e.g., weather, presence of       tions are a critical part of the County's rural
        pests, etc.). The number of farms in orchards         character.
                                                                         Working Paper #7 -Economic Development
                                                                                                        Page 5-1








                                                                               Table 5-1
                                         MARKET VALUE OF AGRICULTURE PRODUCTS SOLD
                                                                      LEELANAU COUNTY


                                                                 Total Ag. Prod Sold                     Avg. per Farm
                                               1987                   $15,151,000                             $38,454
                                               1982                   $16,040,000                             $37,389
                                               1978                   $22,540,000                             $53,667
                                               1974                   $12,877,000                             $29,200

                                                          Source: Census of Agriculture 1974, 1978, 1982, 1987



                                                                              Figure 5-1
                                                                AVERAGE SIZE OF FARMS



                                                                                          Michigan

                                                                                          Leelanau


                                                                                          Grand Traverse

                       250 -                                                         El Benzie


                       200 -


                       150--"
                  E

                  CL)  100-,
                  L4

                         50-/'


                          0
                                       1969                   1974                    1978                    1982                   1987

                                                          Source: Census of Agriculture 1974, 1978, 1982, 1987



                                                                               Table 5-2
                                                                AVERAGE SIZE OF FARMS


                                                                Michigan                    Grand Traverse          Benzie
                                                                                     ...........
                                                                                     ..........
                                                                                                  132               231
                                                   1969            153
                                                                                     0*'*":::     146
                                                   1974            169                 . ......                     187
                                                   1978            168                            156               152
                                                   1982            187                            160               142

                                                                                     V:
                                                   1987            202                            156               161
                                                          Source: Census of Agriculture     1974, 1978,  1982, 1987

             Working Paper #7 -Economic Development
             Page.5-2






                                                                                DRAFT


                                                                             Figure 5-2
                                                      NUMBER OF ACRES IN ORCHARDS                                             E Leelanau
                                  18000-/                                                                                     0 Benzie
                                  16000-                                                                                      El Grand Traverse
                                  14000-                                             4,

                                  12000-


                                  10000-


                                    8000-


                                    6000-


                                    4000-


                                    2000-
                                                                             iZl
                                         0
                                                    1974                  1978                  1982                  1987




                                                        source: census of Agriculture 1974, 1978, 1982, 1987




                                                                             Table 5-3
                                                        NUMBER OF ACRES IN ORCHARD


                                                                                FARMS
                                             Year                                Benzie             Grand Traverse
                                                             0.6 anau......
                                                               ............
                                                         ............     ......
                                             1974                                    87                       210
                                             1978                                                             237
                                                                                     102

                                                                       ...........
                                             1982                                    109                      211
                                                                 . ............
                                             1987
                                                                                     71                       210
                                                                                ACRES
                                                           Leelanau              Benzie             Grand Traverse
                                             1974                                  4,361                    12,552
                                                         .............  .....................
                                             1978                                  4,258                    14,055
                                                             ... .. .....
                                             1982
                                                                                                            13,664
                                                                                     661
                                                                                   4
                                             1987                                  4,219                    12,240

                                                        source:
                                                                 census of Agriculture 1974,   1978,  1982, 1987
                                                              V



































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                                                                                                                                                 Page 5-3








                                                             Table 5-4
                               NUMBER OF TREES AND VINES IN FRUIT PRODUCTION


                                                   BENZIE                                GRAND TRAVERSE
               Type                  1974      1978       1982       1987       1974       1978      1982       1987
               Cherries              211,384   216,559    266,966    243,731    892,212  1,077,290 991,434      915,545
               Apricots                        1,641        D           -       3,034      2,717       D       -2,682
               Apples                75,892    79,962     124,954    174,760    129,396    161,492   142,818    171,263
               Peaches               4,165     5,387      6,278      4,159      4,713      3,739     5,262      9,231
               Grapes                  -       6,532        D           -         -        42,235      D        29,817
               Pears                 14,726    4,522      3,024      2,123      28,734     17,661    12,098     8,592
               Plums & Prunes        12,202    18,076     9,029      12,956     61,539     71,402    39,080     32,622
                                                  LEELANAU                                    MICHIGAN
                     Type            1974      1978   -   1982       1987       1974       1978      1982       1987
               Cherries              765,031   980,734  1,314,236  1,247,200  4,727,688  5,320,163 5,768,435  5,674,833
               Apricots              1,940     5,453      10,320     8,554      17,136     30,634    23,662     23,875
               Apples                131,453   120,621    153,932    221,706  4,008,184  4,777,902 5,592,196  6,574,958
               Peaches               17,460    15,961     15,742     13,250   1,139,597  1,051,453 1,062,524    13,857
               Grapes                  -       42,640     41,951  1  26,638   7,810,044  7,788,180 6,448,085  6,040,759
               Pears                 20,890    11,867     5,066      4,878      662,740    314,181   203,139    145,760
               Plums & Prunes        60,246    72,610     52,890     55,604  1 696,544     587,659   387,558    385,877


                                  D = not disclosed


                                             Source: Census of Agriculture 1974, 1978, 1982, 1987







































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                                                           DRAFT

                                                      Chapter 6
                                                 REAL ESTATE

        INTRODUCTION                                            STATE EQUALIZED VALUE
            Residential and commercial development                  Between 1980 and 1991, residential state
        are accounting for a much higher percentage             equalized value (SEV) for Leelanau County
        of Leelanau County's tax base than in the               rose 212% (see Figure 6-2 and Table 6-2). In
        past. This is due to significant new con-               that same period, agricultural land values
        struction activity. At the same time, agricul-          went up 57%; commercial land 171 %, and;
        tural and timber land values are becoming a             industrial land 20%. Timber land values fell
        smaller proportion of tax classifications in the        54%. Nevertheless, the residential compo-
        County. Industrial properties have remained             nent of the tax base remains roughly ten
        stable in terms of value, not gaining, or loos-         times greater than the commercial compo-
        ing significantly.                                      nent and eight times greater than the value of
                                                                agriculturally assessed lands. The signifi-
        HOUSING STARTS                                          cance of the residential component is even
            Cottages or seasonal housing are com-               greater when one considers it was only eight
        prising a larger segment of the county's tax            times larger than the commercial component
        base. Between 1980 and 1990, the number                 in 1980 and four times larger than the value
        of total housing units in the County increased          of agriculturally assessed lands in 1980.
        just over 23%, but the number of seasonal or
        migratory units increased over 125% (see                SUMMARY
        Figure 6-1). The majority of new housing                    The composition of Leelanau County's tax
        units still tend to be single-family detached,          base (and ultimately, the land base) has
        but in recent years, multifamily units have             changed considerably in just ten years. Land
        also increased in number (see Table 6-2). Of            that is reclassified and taxed at higher use
        the 2,200 units permitted between 1980 and              values is under pressure for development. As
        May of 1991, 79% were single-family units.              land values rise and more parcels are con-
        The remainder were multifamily; 15% were in             verted to or prepared for residential and
        structures with 5 or more units; and 6% were            commercial development, the economy and
        in structures with 2 to 4 units. This boom in           character of the County will change dramati-
        low-density residential development puts                cally. Natural resource-based lands (agri-
        pressure on agriculture and timber lands                culture and timber production) are squeezed
        throughout the Peninsula.                               out of existence through economic pressures
                                                                and speculation. These trends permanently
        HOUSING VALUES                                          alter the character of an area.
            According to the Northwest Michigan Data                In addition, the tax base is becoming less
        Center, median selling price for a home in              diversified as more of the tax base is de-
        Leelanau County in 1977 was $41,550. By                 pendent on residential properties. While
        1980 the median selling price rose 24% to               many of these properties are owned by com-
        $51,428. Although more recent median sell-              paratively wealthier nonresidents, they are
        ing prices are not available; 1990 median               driving up the value of residential properties
        value of owner occupied housing (as esti-               often occupied by lower income permanent
        mated by owners vs. actual selling price) was           residents. This is creating a rising tax burden
        $66,700.                                                on existing residents less able to afford it. On

                                                                           Working Paper #7 - Economic Development
                                                                                                            Page 6-1







          the other hand, seasonal residents are using             ity with all its attendent job and income
          public services for only a portion of the year           benefits.
          and paying for them year round, while also
          providing a steady flow of construction activ-



                                                          Figure 6-1
                                        PERCENT CHANGE IN HOUSING UNITS
                                                BETWEEN 1970 AND 1990



                                                      % Increase Between 1970
                            140.00%                   and 1980

                                                      % Increase Between 1980
                                                      and 1990
                           120.00% -             L



                           100.00% -




                            80.00% -
                        Z3



                            60.00%
                       CL



                            40.00%
                                              . . . . .........




                            20.00%




                              0.00%
                                            Total Housing Units        Vacational, Seasonal or Migratory
                                                      Source: Decennial Census

























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          Page 6-2







                                                                   DRAFT


                                                                Table 6-1
                                          BUILDING ACTIVITY LEELANAU COUNTY
                                                                1980-1991


                                           1 Unit          2 Units         3-4 Units        5+ Units            Total
                        1980                 141                2                -              31               174
                        1981                 133                4                7               -               144
                        1982                 107                2                -               -               109
                        1983                 114                -                               27               141
                        1984                 116                -                -              82               198
                        1985                 95                 6                13             22               136
                        1986                 166                2                55             41               264
                        1987                 198                -                28              9               235
                        1988                 226                -                10             26               262
                        1989                 219                12               22             16               269
                                                                14               4
                        1991                 50                 -                4               -               54
                        Total              1,754                42            143               266            2,205
                                Source: Michigan State Housing Development Authority, Michigan Department of Commerce
                                                                *As of March 1991



                                                                Figure 6-2
                               STATE EQUALIZED VALUATION PERCENTAGE CHANGE
                                             BY CLASS BETWEEN 1980 AND 1991


                                                       1980 - 1991 Percent Change



                              250.00%

                                                                           N-4
                              200.00%
                                                                                           01

                              150.00%


                              100.00%


                              50.00%


                                0.00%


                              -50.00%


                             -100.00%
                                         Agriculture      Timber       Residential  Commercial      Industrial


                                                     Source: Michigan Department of Treasury





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                                                                                                                        Page 6-3











                                                 Table 6-2
                          STATE EQUALIZED VALUATION PERCENTAGE CHANGE
                                   BY CLASS BETWEEN 1980 AND 1991


              Year         Agriculture     Timber        Residential  Commercial      Industrial
              1980        $37,434,169     $9,277,808   $158,118,059   $19,086,254   $1,592,447
              1982        $45,092,127     $12,435,840  $249,514,671   $30,662,940   $1,776,300
              1984        $48,442,300     $13,739,385  $275,432,011   $37,654,884   $2,063,150
              1986        $48,613,283     $8,166,390   $307,921,922   $37,437,019   $1,998,450
              1988        $50,089,265     $6,900,440   $348,083,346   $40,365,223   $2,063,900
              1991        $58,798,190     $4,214,000   $493,641,465   $51,799,468   $1,909,690
           1980-1991
         Percent Change      57.00%           -54.00%     212.00%       171.00%        20.00%


                                            Source: Department of Treasury











































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        Page 6-4





                                                             DRAFT

                                                        Chapter 7

                 ECONOMIC BASE & EMPLOYMENT PROJECTIONS


          ECONOMIC VIABILITY                                      the County is more specialized than the na-
              Data presented in the bulk of this working          tion in that industry and is assumed to be a
          paper helps the reader formulate a general              net exporter of goods or services from that
          picture of Leelanau County's economy, but               industry (i.e., the basic sector of the econ-
          what of measures of economic viability?                 omy). If the LQ is smaller than 1.0, then the
          Economic growth, or stabilization in a com-             County is less specialized than the nation in
          munity is usually determined primarily by its           that sector and is assumed to be a net im-
          standing as an exporter to outside communi-             porter of goods from that industry (the non-
          ties. Exports include goods and services sold           basic portion of the economy). If the LQ is
          outside the peninsula plus expenditures by              equal to 1.0, the County and the nation have
          outsiders within the County.                            an equal degree of specialization and the
              The economy can be divided into those               County essentially "breaks even " with regard
          sectors that export (basic sectors) and those           to that sector. Table 7-1 presents the LQ's for
          sectors that import goods and services                  Leelanau County. As might be expected, the
          (nonbasic sectors). Funds brought into an               County is a net exporter in the agricultural,
          area through "basic" export activities are              construction, retail trade and service sectors.
          used to finance local growth or to purchase             The higher the LQ in these cases, the higher
          "import" goods. The assumption is that in or-           the export activity. Services and construction
          der to grow, and sustain growth, an economy             are the leading export sectors in Leelanau
          must have an inflow of money from outside               County's economy. Mining, manufacturing,
          the region. For Leelanau County, transfer               transportation, communications and utilities;
          payments and tourism represent a significant            finance, insurance and real estate; public
          influx of "outside" money.                              administration and wholesale trade are non-
              A common method of assessing the im-                basic, or import activities in the County. Of
          port/export activity of an economy is through           the nine major private economic sectors,
          the establishment and analysis of location              Leelanau County is a next exporter for four of
          quotients(LQ). The purpose of a LQ is to de-            them. Also, economic base analysis tech-
          termine:                                                niques like LQ do not directly assess the im-
              ï¿½  The community's degree of self-suffi-            pact of the inflow of capital in the form of
                 ciency in a particular sector of the             transfer payments. This, too, is a "basic" ac-
                 economy;                                         tivity for the County.
              ï¿½  If a community is losing its local trade             The major problem with an LQ analysis is
                 dollars to nonlocal markets, and;                that most goods produced locally are sold in
              ï¿½  If a community is producing more than            both local and nonlocal markets. Also, many
                 it needs for its own use and selling the         services are provided to the year-round
                 excess to nonlocal markets (i.e., identi-        population while others are provided to tour-
                 fication of export activity).                    ists and the seasonal population. How much
              To determine the LQ, the local percent-             is provided to each? Data doesn't exist to an-
          age of employment by sector is divided by               swer that question.
          the percentage of national employment in
          that sector. The resultant figure portrays the
          relative specialization of a region in a certain
          industry. If the LQ is greater than 1.0, then
                                                                             Working Paper #7 - Economic Development
                                                                                                              Page 7-1







                                                              DRAFT


                                                            Table 7-1
                                 LOCATION QUOTIENTS - LEELANAU COUNTY - 1990


               Industry                                       % of National      % of Local             LO
                                                              Employment Employment
               Agriculture                                        0.029              0.03             1.03
               Mining                                             0.063              0.005            0.079
               Construction                                       0.045              0.078            1.73
               Manufacturing                                      0.169              0.077            0.46
               Transportation, Communities & Utilities            0.051              0.018            0.35
               Wholesale Trade                                    0.055              0.024            0.44
               Retail Trade                                       0.174              0.193            1.11
               Finance, Insurance, Real Estate                    0.059              0.048            0.81
               C%
               Dervices                                            0.25              0.478            1.91
               Public Administration                       1      0.162              0.05             0.31

           FUTURE EMPLOYEES                                       1980 through 1988 result in a projected addi-
               A critical component of both economic              tion of approximately 692 basic jobs by the
           development and growth management on the               year 2000. Applying the existing base multi-
           peninsula is providing adequate facilities for         plier of 1.28 results in a projection of 886 new
           future employers and employees. Adequate               jobs created within the County by the year
           facilities include safe and efficient transporta-      2000. This is an 18% increase over the pre-
           tion systems, adequate water and wastewa-              sent employment and averages 89 new jobs
           ter systems, police, fire and ambulance                per year.
           service, appropriately located and zoned                  Figure 7-1 is a map of existing employ-
           land, and utilities such as gas, electricity, etc.     ment by traffic zones in the County. Employ-
               Estimates of future demands on facilities,         ment centers (those with the highest concen-
           with respect to economic development                   tration of employee) are portrayed by black.
           needs, can be tied to an estimate of the               Existing employment/activity centers tend to
           number of future employees in an area. This            serve as magnets to future employers. It also
           also helps identify the future structure of the        makes good economic sense to cluster em-
           local economy. One estimate of the future              ployer for ease of community service provi-
           number of employees in a county can be de-             sion.
           rived by using an economic base multiplier                In comparison, Figure 2-4 presents the to-
           technique. The premise is that total future            tal number of persons in the labor force, by
           employment is a function of basic employ-              jurisdiction. By looking at relative numbers
           ment. The employment base multiplier is de-            and location of persons in the labor force, a
           rived by dividing the total employment in an           general pattern of movement to employment
           area, by the basic employment (4928 total              areas can be determined. Figure 7-2 illus-
           employed / 3843 employed in base jobs). For            trates future employment by traffic zone if the
           Leelanau County, the employment base mul-              existing geographic distribution of employ-
           tiplier is 1.28. This means that roughly 4 out         ment remains the same.
           of every 5 jobs are in the agricultural, con-             There are       many factors which could
           struction, retail or service sectors.                  drastically alter these geographic relation-
               "Waight line projections of employment             ships. A major resort could close in one area
           for I-eelanau County's base industries from            while another opens elsewhere. More busi-

           Working Paper #7 - Economic Development
           Page? 7-2







                                                 DRAFT
        nesses may spring up in Elmwood Township
        to meet the needs of this rapidly growing
        bedroom community. See land use working
        paper for more information.


















































                                                              Working Paper #7 - Economic Development
                                                                                        Page 7-3







                                                          DRAFT



            Employment by Traffic Zone


                       number of employees
                                                                         FIGURE 7-1

                  F-1 0-1

                       2-4


                       5-9


                       10-39


                          -79
                  M1   40

                                                                                         ct
                       80 and over
                                                                                      tttui.

















                                     ........ .




                                     ................                          . ....
                                   . ....... ... .



                                                                              rrr    t


                                                    t it  t











                  ............

                ...............

                ...............


                               ...........                 ....





                                 .......                   ......






          Working Paper #7 - Economic Development
          Page 7-4







                                                     DRAFT



                 Future Ernpigment
                   by Traff ic zone

                                                                   FIGURE 7-2

                    number of employees
                                                                                           t ttr


                      0-1


                      2-4


                      5-9


                     10-39
                MIN


                     40-79


                     80 and over

















                                 .. ....... ...                          . ......
                                                                         . .........















                   qti


                                       ............ .............





                                                                      .................
                           ...........
                       ....................
                       .................
        Mni
          nt
        -kit,
                     ...........






                                                                   Working Paper #7 - Economic Development
                                                                                                Page 7-5





                                                          DRAFT

                                                      Chapter 8

                             ISSUES AND RECOMMENDATIONS


         ECONOMIC DEVELOPMENT INTERESTS                       ECONOMIC DEVELOPMENT ISSUES
            Certainly, every citizen in Leelanau                  Most economic development groups, after
         County is in one way or another concerned            analyzing existing trends and conditions, turn
         about the local economy. Many formal                 their focus to "critical issues" identification.
         groups exist throughout the state that               Agreement on critical issues provides a plat-
         specialize in economic development issues,           form on which to base future goals and rec-
         providing technical and financial assistance         ommendations. This process is not new to
         to Michigan business. Some of these groups           Leelanau area, in the past decade various
         are rooted in government, others in the busi-        entities in and around the Peninsula have
         ness community. Regardless of their origin,          analyzed socioeconomic information for the
         economic development groups are generally            County, labor market area, and the 1 0-county
         interested in maximizing economic opportu-           region. While the age, depth and breadth of
         nities. Local and regional groups interested in      information changes, many of the economic
         community and economic development in the            development issues identified in this and
         region are listed in Appendix A.                     other studies remain. Prior to identifying is-
            Notably, there are 105 downtown devel-            sues raised specifically by this report, it will
         opment authorities in Michigan, none of              be beneficial to revisit issues identified in
         which are in Leelanau County. There is also          previous economic development studies. The
         a multitude of Industrial Development Com-           most explicit identification of economic de-
         missions,    and     Economic       Development      velopment issues in the area was found in
         Commissions at the local level throughout            the 1977 Regional Overall Economic Devel-
         the state. Leelanau County's only formal             opment Plan, and the Final Report of the
         economic development group is the County             Leelanau County Economic Development
         Economic Development Commission.                     Task Force (1988). Some of the key issues
            The lack of these economic development            raised in these two reports include:
         groups is not necessarily negative. During             Nonmanufacturing sectors:
         the last recession, a flurry of economic                 0 Tend to have a lower average income
         development organizations were created                     per employee than the state.
         throughout Michigan. The majority of these               9 Tend to require lower skill levels, al-
         organizations--formed in small communities                 though some growing service related
         or rural counties--are now inactive or dis-                occupations need specialized training
         solved, because the level of economic devel-               (e.g., health care).
         opment opportunities was not there to war-               * Have a great deal of work that is sea-
         rant their continued activity at the local level.          sonal or part time--much of it tied to the
         Even in some of the larger cities, economic                tourism industry.
         development efforts have slowed due to re-             Manufacturing sectors:
         ductions in funding of state and federal pro-            * Are generally small scale operations,
         grams. County or regionally focused groups,                more susceptible to economic down-
         although under current budgetary -stress,                  turns.
         have historically been the most active in eco-           0 Are of a lower pay scale than state av-
         nomic development efforts.                                 erages.
  0                                                               0 Need skilled labor, of which the region
                                                                    is short.
                                                                        Working Paper #7 - Economic Development
                                                                                                       Page 8-1





                                                            DRAFT                                               . f. .

         0  Manufacturing businesses are relatively              - There is a lack of infrastructure to support
            few had have small numbers of employ-                  industry (water, sewer).
            ees. However, smaller firms often have               - Total employment is growing, but popula-
            significant potential for growth if the climate        tion growth is outstripping job growth.
            is right.                                            0 The labor force (vs. all residents) has lower
         0 The transportation system has:                          skill and educational levels than the state
             ï¿½  No highways of interstate standard.                overall.
             ï¿½  flail trunkline service that is substan-         - Overall, the County has a high cost of living,
                dard.                                              relatively high property values (and hence
             ï¿½  No air service from major airlines in the          taxes) and decreased spending power
                County and limited air service from                because of low wages. The year-round
                major airlines into Traverse City.                 population competes with the wealthier
             ï¿½  Water transportation facilities that are           seasonal population for such things as
                underutilized and obsolete.                        housing, goods and services. While taxes on
         ï¿½  The county is geographically isolated (i.e.,           the year-round population must pay for
            there is limited access to the peninsula).             public services that are sized to meet the
         ï¿½  There are high transportation costs asso-              peak seasonal population.
            ciatod with getting goods to down state              - There is an apparent dichotomy of opin-
            markets.                                               ions between the seasonal and year-round
         ï¿½  Job retention and creation programs are                population with respect to the nature and
            limited and fragmented in the region.                  level of development that is acceptable in
         ï¿½  The economy is not particularly diversified.           the County.
            Leelanau County's economy is essentially             - Leelanau County has a highly sensitive
            driven by tourism, agriculture and commuter,           environment (coastal areas, sand dunes          '
            retirement or seasonally oriented residential          steep slopes, wetlands) that need protec-
            development.                                           tion.
         ï¿½  There is a lack of viable job opportunities          - There is a strong desire to retain rural,
            foryoung people entering the job market.               pristine quality of environment. Can this be
         ï¿½  Many "working poor" are struggling to at-              done in the face of development pres-
            tain a minimum standard of living.                     sures?
         ï¿½  Historically neither the County nor its local        - Local character needs to be retained to
            governments has maintained an inte-                    maintain the viability of the tourist trade.
            grated, up-to-date comprehensive planning            - In order to provide consistency and
            program.                                               motivation in the course of action, there
         ï¿½  There is a critical need to protect the agri-          needs to be more of a focus on leadership
            cultural base of the County in the face of             development.
            residential development pressures or the             - These observations appear to still be
            employment, income and landscape char-                 appropriate, and much of the data included
            acter associated with it will all be lost.             in prior chapters of this working paper
         ï¿½  There has not been a sustained, formal                 reinforces them. The current analysis also
            cooperative effort between the county                  offers additional issues, or a more precise fo-
            and/or the local government and the busi-              cus on existing issues, that should be con-
            ness community.                                        templated before engaging in the develop-
         ï¿½  There are financial problems associated                ment of goals and recommendations. Comp-
            with accommodating additional service/in-              lementary considerations identified in this
            frastructure needs from increased devel-               working paper follow:
            opment and population.


         Working Paper #7 - Economic Development
         Page 8-2





                                                             DRAFT

                Because Leelanau county is a penin-                      the significant importation of pension
                sula, and there is no "pass-through"                     dollars into the economy.
                travel, it is a destination location. This               County residents, on the average have
                phenomena is great for tourism, but                      higher educational attainment than sur-
                drastically limits many types of large-                  rounding communities and the state.
                scale commercial and industrial devel-                   This figure may also be skewed by the
                opment.                                                  influx of wealthier retirees who would
                Common attributes that industrial de-                    tend to be better educated.
                velopers look for when sighting a facil-                 Transfer payments in the form of public
                ity is access to harbors, highways and                   assistance, pensions and social secu-
                rail service, adequate utilities, a skilled              rity represent a significant flow of
                labor force, and proximity to market.                    money to the local economy. This is a
                Leelanau County has limited public fa-                   large component of the basic economy.
                cilities and is relatively isolated geo-                 Between 1960 and 1990, Leelanau
                graphically. This does not make it par-                  County's labor force increased 151%
                ticularly attractive for large-scale indus-              (in that same time, the population
                t ry.                                                    increased 77%), but increases in the
                Leelanau's crown jewels are its natural                  labor force are tapering off. Population
                resources. The agriculture, timber and                   increases have outstripped increases
                tourism industries all depend on the                     in the labor force (likely due to the
                sound management of the area's natu-                     influx of retires). Between 1980 and
                ral resources.                                           1990, the labor force increased 8.5%
                The base, or export industries on the                    and the population increased 18%. A
                Peninsula are    in the service, retail, ag-             large portion of the population increase
                ricultural and   construction sectors. All               is not adding to the labor force, which
                other economic sectors essentially im-                   helps keep competition for employment
                port goods and services to meet the                      down.
                needs of the local economy. Specifi-                     Cottages or seasonal housing are com-
                cally, manufacturing, mining, transpor-                  prising a larger segment of the county's
                tation and public utilities; finance insur-              tax base, increasing by 125% between
                ance and real estate; and governmen-                     1980 and 1990.) What ramifications does
                tal services are import, or nonbasic                     this trend have on community services?
                trades in the County.                                    In a ten year period, residential state
             ï¿½  Leelanau businesses are small with                       equalized value (SEV) rose 212%. In
                few employees. Many businesses are                       that same 10-year period, agricultural
                seasonal, and have a limited ability to                  land values went up 57%; commercial
                provide higher wages and benefits.                       land 171%, and; industrial land 20%.
             ï¿½  Agriculture remains as a key compo-                      Timber land values fell 54%. Resource-
                nent of the local economy and local                      based land uses (agriculture and
                landscape, but a small year-round em-                    timber) are under increasing pressure
                ployer overall, due to automation in ag-                 to    develop.     During     this     period,
                ricultural production and/or the use of                  residential SEV also increased its       lead
                migrant workers.                                         over commercial SEV so that it is        now
             ï¿½  Leelanau County's population has a                       nearly 10 times greater (in 1980 it was
                higher per-capita income than sur-                       8 times greater).
                rounding communities, yet it's workers                   Population growth, particularly the      sea-
                tend to earn less then workers in com-                   sonal increases, have expanded           Lee-
                parable industries. This may be due to                   lanau County's economy. While this

                                                                             Working Paper #7 - Economic Development
                                                                                                              Page 8-3





                                                           DRAFT                                          . 0,

                 may be considered an opportunity for                Promote physical infrastructure devel-
                 business, it is also a responsibility to            opment and guidelines for planned
                 units of government to provide addi-                public investment.
                 tional public services.                             Foster coordination and education
                 New development often does not pay                  throughout the County with regard to
                 for the additional expense of providing             development and redevelopment is-
                 public services.                                    sues.
                                                                     Integrate County plans with National
          ECONOMIC DEVELOPMENT GOALS                                 Park Service efforts.
              In light of some of the previously outlined          Some of these goals are just now coming
          issues, the Leelanau County Economic De-             to fruition, others have yet to be acted upon.
          velopment Task Force in 1988 outlined a se-
          ries of goals and objectives that were in-           ECONOMIC DEVELOPMENT FOCUS
          tended to provide a frame of reference for           AND RECENT RECOMMENDATIONS
          recommendations and subsequent activities.               With key economic development issues
          Following is a synopsis of those goals and           identified, it is appropriate to make specific
          objectives.                                          recommendations for future action. Issues
              ï¿½  Maintain and enhance the current eco-         provide the frame of reference while recom-
                 nomic base (through networking, re-           mendations chart a general course of action-
                 tention strategies and education ef-          providing guidelines for future allocations of
                 fo rts).                                      resources.
              ï¿½  Identify and develop new economic                 Following are recommendations gener-
                 base (through marketing, venture capi-        ated in the 1988 Economic Development
                 tal identification and support for devel-     Task Force Report that remain appropri e
                 opments that will have long-term im-          today. Many other recommendations in t at
                 pacts on the County's economy).               report have already been implemented. T e
              ï¿½  Encourage new growth and develop-             are not reiterated here. These recom-
                 ment to be small scale to retain              mendations should receive further consid-
                 character and not overburden public           eration by county, local and private organiza-
                 services.                                     tions associated with improving the economic
              ï¿½  Focus on a single regional (multi-county)     vitality of the peninsula in order to ensure im-
                 organization for economic development         provement to long term quality of life.
                 services.                                         Maintain/enhance current economic base:
              ï¿½  Develop a localized economic devel-               0 Prepare and annually issue a business
                 opment effort to capitalize on regional             directory listing all Leelanau County
                 initiatives and focus on local opportuni-           businesses.
                 ties.                                             0 Jointly sponsor, with     Michigan State
              ï¿½  Engage in growth management and                     University and industry   associations or
                 planning by updating the county com-                groups, a Fresh Fruit     Marketing Task
                 prehensive plan, solid waste manage-                Force.
                 ment plan and economic development                0 Contract for provision    of business re-
                 plan. Further develop the integrated                tention services on an    annual basis to
                 land management information system.                 stabilize and improve the business cli-
              ï¿½  Promote infrastructure development                  mate in Leelanau County.
                 through a formal organization (e.g., the          0 Identify and develop new economic
                 creation of county EDC and various                  base for Leelanau County.
                 citizen advisory committees).                     a Contract for the provision of Business
                                                                     Development Services.

          Working Paper #7 - Economic Development
          Page 8-4






                                                              DRAFT

                Prepare and distribute promotional                       nomic Development section of the new
                materials.                                               Comprehensive Plan.
                Provide an information and an of-                        Create specific growth management
                fice/contact point for potential inves-                  tools such as:
                tors.                                                    0  Auto mated/I nteg rated Land Manage-
             ï¿½  Identify potential investment opportuni-                    ment Information System .
                ties in Leelanau County.                                 0  Growth impact assessment tool/
             ï¿½  Compile and make available informa-                         procedure based on the Integrated
                tion concerning sources of venture                          Land Management Information Sys-
                capital for Leelanau County.                                tem
             ï¿½  Encourage       creation     of     Leelanau           Infrastructure Development:
                County Venture Capital Club.                           * Adopt a revised organizational schematic
             ï¿½  Support development of measures                          for County planning efforts including use
                which will have possible long term im-                   of citizen advisory committees for major
                pact on the Leelanau County economic                     functional areas.
                base.                                                  0 In cooperation with local governments,
             ï¿½  Promote the designation/development                      evaluate and reexamine planning/zoning/
                of Manitou Bottomland Preserve.                          land use regulation activities in Leelanau
             ï¿½  Support possible expansion of recre-                     County for the purpose of redefining
                ational harbors at Greilickville, Suttons                growth management roles and respon-
                Bay, Peshawbestown/Omena, Northport,                     sibilities among the villages, townships
                Leland, and Empire by assisting in                       and the county.
                conducting preliminary feasibility anal-               0 Contract for a preliminary engineering
                ysis.                                                    review of the central corridor arterial
             *  Identify and develop, Countywide, 1 or                   transportation routes.
                2 light industrial areas (one with an in-              0 Maintain and improve regional air
                tegrated research and training facility).                service by actively advocating and fi-
             ï¿½  Assure a high quality fisheries man-                     nancially supporting the Northwest
                agement program including fish stock-                    Regional Airport (Cherry Capital) as a 5
                ing and habitat improvements consis-                     (or 6) county regional airport.
                tent with the quality and carrying ca-                   Initiate a program of planned public in-
                pacity of the County's lakes and sur-                    vestments in infrastructure based on a
                rounding Great Lakes waters.                             formally adopted multi-year Capital Im-
             ï¿½  Initiate a Countywide Housing Task                       provement Program.
                Force to recommend measures to de-                     Coordination/Education:
                velop a diversified housing stock con-                   Participate actively in regional eco-
                taining an adequate range and mix of                     nomic development efforts on the fol-
                housing types consistent with the                        lowing basis:
                County's projected population.                                Advocate and financially support a
             Growth Management and Planning:                                  single regional agency for eco-
             *  Update the Leelanau County Compre-                            nomic development.
                hensive Plan based on a state-of-the-                         Provide financial support for the
                art approach emphasizing maximum                              single regional economic develop-
                feasible public participation (i.e., public                   ment agency primarily on a con-
                forums/task forces, etc.).                                    tractual fee for services basis.
             -  Develop and adopt a Strategic Eco-                       Advocate and financially support public
                nomic Development Plan which will                        issue education programs for Leelanau
                also serve as the basis for the Eco-                     citizens such as MSU Cooperative Ex-

                                                                             Working Paper #7 - Economic Development
                                                                                                               Page 8-5






                                                             DRAFT

                 tension Service/New Horizons Pro-                   0 Formalize intergovernmental coordina-
                 gram, etc.                                            tion and communications.
              ï¿½  Integrate county plans with planning of             0 Try to attract higher paying service jobs
                 the National Park Service, i.e. Buffer                in the county, e.g., health care, and
                 Zone Plan, Buffer Zone Task Force,                    technical support.
                 service roads, major facilities etc.                  Strategically guide placement of future
              ï¿½  Contract for provision of a small busi-               employers/economic centers in the
                 ness training service to be provided on               county using public investment infra-
                 a modest fee basis to strengthen the                  structure due to limits in transportation
                 management capacities of County en-                   and other public infrastructure systems
                 trepreneurs.                                          throughout much of the County.
              Communication:                                           Develop a data collection and monitor-
                 Initiate a public information program                 ing program to update seasonal popu-
                 using a broad range of techniques de-                 lation data and more closely analyze
                 signed to provide to County citizens                  the impact of seasonal residents and
                 current, accurate information concern-                tourists on the local economy and pub-
                 ing public policy issues and county op-               lic services.
                 erations in Leelanau County, i.e.,                  0 Develop strategies to capture a higher
                 newsletters, news releases, speakers                  percentage of transfer payments brought
                 bureaus, slide/tape or video presenta-                into the County (e.g., pensions).
                 tions etc.                                          0 Create a structure for local planning
                                                                       and zoning that readily encourages and
          ITEMS FOR DISCUSSION                                         permits local governments to take ac-
              Additional items for discussion offered as               tions to implement consensus recom-
          a result of this paper include:                              mendations in the General Develop-
                 Work more closely with the Grand                      ment Plan for the Peninsula.
                 Traverse Band and local units of
                 government in cooperative develop-
                 ment projects.























          Working Paper #7 - Economic Development
          Page! 8-6






    i I -                        DRAFT




 0





                          APPENDICES






                                                       DRAFT

                                                 Appendix A

                               LEELANAU COUNTY ECONOMIC
                                     DEVELOPMENT GROUPS


          Traverse Bay Economic Development Corporation
          202 E. Grandview Parkway
          P.O. Box 387
          Traverse City, MI 49685
          (616) 946-1551

          Jeff Mirate
          Grand Traverse Chippewa Band Economic Development Specialist
          (616) 271-6477

          American Indian Business Development Consortium
          1235; Woodmere Ave.
          Traverse City, MI
          (616) 941-4616

          Michigan Department of Commerce, Area Development Office
          John Bailey (616) 941-4590
          Marc: Oberschulte (616) 947-5454

          Northwest Shore Small Business Center and Center for Business and Industry
          1701 E. Front Street
          Traverse City, Ml 49684

          Northwest Michigan Council of Governments
          160 East State Street
          P.O. Box 506
          Traverse City, MI 49685
          (616) 929-5000

          Northwest Michigan Human Service Agency
          3963 Three Mile Road
          Traverse City, Ml 49684
          (616) 947-3780

          Private Industry Council
          1-800-947-3780
          (616) 947-3780






                                                                    Working Papers #7 - Economic Development
                                                                                                  PageA-1






         11 .                                    DRAFT

        Leelanau County Cooperative Extension
        Courthouse
        Leland, MI 49654
        (616) 256-5521

        Leelanau County EDC
        Tim Dolehanty
        Planning Department
        113 Grand Ave.
        P.O. Box 546
        Leland, MI 49654
        (616) 256-9812

        Traverse City Branch of the
        Michigan Employment Security Commission
        1144 Boon
        Traverse City, MI 49685
        (616) 946-6550


































        Working Paper #7 - Economic Development
        Page A-2





                                              DRAFT

                                          Appendix B

                                LITERATURE REVIEWED


        1984 Population and Economic Characteristics: A Demographic Profile of Northwest
           Michigan Ten County Region, Data Research Center, Inc., July 1984, pg. 101.

        1985 Economic Characteristics: An Economic Profile of Northwest Michigan Ten
           County Region, Data Research Center, Inc., October 1985, pg. 142.

        1985 Population and Economic Characteristics: A Demographic Profile of Northwest
           Michigan Ten County Region, Data Research Center, Inc., July 1985, pg. 96.

        1987 Population and Economic Characteristics: A Demographic Profile of Northwest
           Michigan Ten County Region, Northwest Michigan Council of Governments, March
           1988, pg. 100.
        1988 Population and Economic Characteristics: A Demographic Profile of Northwest
           Michigan Ten County Region, Northwest Michigan Council of Governments, March
           1989, pg. 118.

        Annual Planning Information Report, Program year 1991, Northwest Lower Michigan
           Service Delivery Area, Michigan Employment Security Commission, Traverse City,
           Michigan.

        Census of Agriculture, 1969, 1974, 1978, 1982, 1987.

        County and Regional Facts, Michigan State University, Cooperative Extension Service,
           1976,pg.74.

        County Business Patterns, Bureau of Census, 1968, 1972, 1976, 1980, 1984, and 1988.

        Decennial Census, 1940-1990.

        Economic Characteristics: An Economic Profile of Northwest Michigan Ten County
           Region, Data Research Center, Inc., March 1983, pg. 172.

        Economic Profile of Leelanau County, Michigan Department of Commerce, 1991, pg. 15.

        Labor Market Characteristics Northwest Michigan Ten County Region, Data Research
           Center, Inc., October 1980, pg. 87.
        Labor Market Characteristics: Northwest Michigan Ten Counties Region, Data Research
           Center, Inc., October 1979, pg. 96.

        Leelanau County Economic Development Task Force, June 1988.

        Leelanau County Solid Waste Management Plan, 1989.

        Michigan Occupational Wage Information, Michigan Employment Security Commission,
           May 1991.



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                                                                                    Page B- I







          d V
                                               DRAFT

        Northwest Michigan Labor Market Characteristics, Grand Traverse Area Data Center,
           October 1977, pg. 102.

        Northwest Michigan Labor Market Characteristics: 10 Counties, Grand Traverse Area
           Data Center, October 1978, pg. 73.

        Northwest Michigan Regional Overall Economic Development Draft Report, 1977.

        Population and Economic Characteristics: A Demographic Profile of Northwest
           Michigan Ten County Region, Data Research Center, Inc., June 1983, pg. 101.

        Population Characteristics of Northwest Michigan: Northwest Michigan Ten County
           Region, Data Research Center, Inc., June 1982, pg. 105. (2 copies)

        Population Characteristics of Northwest Michigan: Northwest Michigan Ten County
           Region, Data Research Center, Inc., June 1981, pg. 64.

        Population Characteristics of Northwest Michigan: Northwest Michigan Ten County
           Region, Data Research Center, Inc., June 1980, pg. 121.
        Population Characteristics of the Grand Traverse Area, Grand Traverse Area Data Center,
           June 1976, pg. 43.

        Population Characteristics of the Grand Traverse Area, Grand Traverse Area Data Center,
           June 1977, pg. 55.
        Population Characteristics: 10 Counties, Data Research Center, Inc., June 1979, pg. 119.

        The Economic Impact of Travel on Michigan Counties, 1986, Prepared for the Michigan
           Travel Bureau by the U.S. Travel Data Center, July 1988.

        Travel & Tourism in Michigan, A Statistical Profile, Michigan State University, Travel,
           Tourism and Recreation Resource Center, 1986 and 1991.























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