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Field Report

By Caroline Weber Kennedy

Two Cities, One Community

This issue of The Review focuses on regionalism—the successful results really of the basic elements of cooperation and collaboration. If you were at the 2008 Convention, you saw one of the best examples of this during the Community Excellence Awards competition presented by Michigan’s two northern-most cities: Houghton and Hancock.

A Shared History

Houghton and Hancock are both picturesque, both lush with natural beauty and historical architecture. Divided by the Portage Canal and linked by the Portage Bridge, the two cities have long reveled in rivalry; a common enough phenomenon attributed to public school sports competitions. An anthropologist might better explain how such an enjoyable ritual of growing up seems to have resulted in actually stunting the growth of such communities, creating exaggerated differences and boundaries.

It is these boundaries—having taken on an undeserved reality—that Houghton City Manager Scott MacInnes and Hancock City Manager Glenn Anderson sought to overcome. In so doing, they began a new chapter in history.

The New Reality

The year is 2003 and the area’s assets are now Michigan Technological University (MTU) and Finlandia University, producing a wealth of talented, high-tech and creatively minded young people. The two cities, MTU and the Keweenaw Economic Development Alliance joined forces to compete for one of 12 Michigan SmartZone designations, awarded through the Michigan Economic Development Corporation. Their successful collaboration resulted in a Michigan Tech Enterprise SmartZone designation (MTEC).

SmartZones provide incubator space for technology-based firms, entrepreneurs and researchers in proximity to the community assets best able to assist these endeavors. Combined, Houghton and Hancock have the resources of two universities and four incubator locations. Separately, they would have competed directly against each other and all other state applicants with half the resources. Together, they succeeded not only in winning the designation but in truly capitalizing upon that opportunity.

Long-Tail Economic Theory

The area offers an arguably unsurpassed quality of life. A sentiment shared by most of the state goes something like this: if only we can find jobs, there’s nowhere else we’d rather be. So, the entrepreneurial spirit is strong. Young, talented people are here and they want to stay. We have learned the new economy succeeds on the long-tail theory of economic growth. This means rather than Michigan’s traditional industrial manufacturing base with one employer providing hundreds to thousands of jobs, the new economy succeeds with many diverse and small employers; creativity combined with technology is today’s winning combination. The H2 SmartZone produces exactly that.

Rags to Riches in Five Years

Five years is an eye-blink. Fashion doesn’t even change that much in five years; hoodies are still around, as are retro hip hugger bell-bottoms. In those same short years, the H2 SmartZone created 12 start-up companies leading to 160 new family-sustaining jobs in the area.

Three vacant buildings within the two cities were renovated to provide not only traditional incubator space, but a type of second-phase space, an incentive to these fledgling companies to grow—and stay—in the community.

Ford Motor Company and General Electric came to capitalize on the SmartZone, linking engineering students to engineering projects for the two Fortune 100 Companies. Both companies were exploring the possibility of developing volume engineering work overseas, but H2 is helping them to grow these jobs in Michigan.

More than 410 new jobs were created in the SmartZone, including 12 companies employing more than 160 people in three incubators. Four companies were recognized among the 50 fastest growing companies in Michigan in 2003, 2004, 2006, and 2007.
The results from Michigan’s “Top of the World” are truly phenomenal. And while friendly rivalries still exist, together the H2 communities are one undeniable force. Two cities, one community is their loud and proud mantra.

The initial success of the SmartZone created community momentum. Just as the school-age rivalries once produced some negative and damaging relationships, their collaboration created a startling new self-image. As elected officials, it is important to recognize that your community has its own self-concept and self-esteem, just like people. Negative talk erodes it, and it’s not just some vague and nebulous concept…it’s a damaging reality. Try creating an “alternative narrative” by spreading good news like a bad virus. It’s easier than ever via computer. Remember that the initial success in H2 wasn’t generated by two cities, but by two individuals who formed a positive relationship symbolizing what the two cities could do. The bottom line comes down to individuals like you, following through on ideas. The League can direct you to resources and contacts to help make viable economic ideas into reality.

For more information on MTEC, SmartZones, etc., please go to mtecsmart.com.

 

Caroline Weber Kennedy is manager of field operations for the League. You may reach her at 906-428-0100 or ckennedy@mml.org.