Hey Locals,

'Tis the season for Night of Lights, holiday merriment and... annual performance reviews. Last week, Electric Works celebrated two-years of opening to the public (in November 2022) by publishing a report on its accomplishments thus far. But things aren't quite adding up, according to our calculations. We cover what to know in Talk of the Week.

We also have updates on Parkview Health and the Urban Trail. And we share a few of our favorite holiday to-do list items you won't want to miss!

Don't forget: We're kicking off your holiday shopping season right with a new deal at Fort Wayne's local toyshop, Hopscotch House! All paid subscribers get $5 off any purchase in November. Did you know we give our paid members a freebie every month at a local business to cover the cost of membership? See what a paid membership is all about with this 30-day trial, and you can get that discount!

Now, let's get started!

NOTE: Links to Journal Gazette articles are marked(*) and may be behind a paywall.

Two years in: Is Electric Works on track to achieve its goals?

And will it deliver on its forecasted annual economic impact of $375M?

What's happening?

• Last week: Electric Works released a Community Impact Report on itself, touting progress on campus and claiming (as The Journal Gazette says) it "has blossomed into 'a vibrant, mixed-use campus featuring a thriving ecosystem of entrepreneurs, innovators, students and professionals' in the two years since it opened." The report notably claimed, "The project is forecasted to have an annual economic impact of $375 million upon completion and full occupancy." But visit campus yourself, and it's no secret it still has a long way to go to achieve this goal and realize the project's original vision, funded in-part by taxpayer dollars.
• One possible explanation: for a discrepancy between the report Electric Works shared and its current reality is that data for the Community Impact Report was largely collected by Electric Works itself. Its economic impact forecast was pulled from an "IMPLAN analysis" conducted by the tax and accounting firm Novogradac Consulting LLC, dating back to August 24, 2022 – months before Electric Works opened in November 2022.
• According to Novogradac's 2022 IMPLAN analysis: the firm "has not examined the data (provided to it by Electric Works's Broadway Redevelopment Partners LLC) or the assumptions underlying such data in accordance with the standards prescribed by the (American Institute of Certified Public Accountants) and, accordingly, do not express an opinion or any other form of assurance on the data estimates obtained for use in our economic impact analysis." It also notes that its economic forecast model "assumes 95 percent occupancy across all uses, during the operation phases," and Electric Works "Phase I and Phase II are projected to be fully operational in 2023 and 2024, respectively."
• In reality: it's almost 2025 now, and Phase II (which includes "Low-Income Housing Tax Credit units and market-rate multifamily units, a fitness center, an early childhood learning center, ground floor commercial space, and a parking garage") is not yet complete – let alone 95-percent occupied.
• So where do things stand? One of the principal development partners, Jeff Kingsbury, tells The JG:* As of last month, West Campus (presumably most of Phase I) is 80-percent leased and more than 50-percent occupied (with a six to nine month buildout of spaces accounting for the gap between leased and occupied percentages). But Novogradac's 2022 IMPLAN analysis forecasted campus would be much further along by now (and have leased housing). It also forecasted campus would directly create and retain an estimated 1,639 jobs in Phases I & II – including 1,603 "direct" jobs in Phase I alone "projected to align with the industry sector strategy of the Northeast Indiana Regional Partnership." These 1,603 jobs for Phase I include 440 "retained" jobs from the relocation of Do it Best Corp., leaving an estimated 1,163 to be "created" in Phase I alone. However, the report Electric Works published last week says about 200 jobs have been created by tenants since 2022. By our calculations, this means Phase I is still short about 963 jobs needed to make progress toward its forecasted annual financial impact of $375M (as seen in the charts below).

• Kingsbury tells us: he wouldn't characterize the difference between the 2022 forecasted jobs and the roughly 200 jobs reported so far as a "shortage." He says: "Based on our leasing pipeline and as the project continues to reach full occupancy and operate into the future, I expect the jobs numbers to grow consistent with the IMPLAN projections, by continuing to help companies stay and grow in Fort Wayne while attracting new companies to the region.” He is working to provide us with a deeper understanding of current and projected campus data, and we will report back when we know more.

So... where do things stand with Electric Works overall?

We're working to gain a clearer understanding, and it's complicated.

• Don't get us wrong: We believe the Electric Works campus has a ton of potential, and we appreciate the investments there so far, particularly those by local businesses. We also understand that Electric Works is only two years into its stated 10-year vision, and projects of this magnitude rarely go "as planned." At the same time, it is the largest redevelopment project undertaken in our region to date, utilizing a significant amount of public money, so we're trying to get a clearer picture of how it operates, where it stands (financially) and what it will take to make the project "successful" in the eyes of the general public.
• In recent weeks: we've been meeting with campus leadership to gain a better understanding of how Electric Works operates. But untangling the web of who does what (and under which business entities) has been about as complicated as financing the project itself. The City of Fort Wayne says it "has not conducted an independent review of the economic impact of the project with any consultants at this time."
• It's worth noting: Novogradac's 2022 IMPLAN analysis lists a few "assumptions and limiting conditions" of its forecast, including that its economic estimates are "made assuming responsible ownership and capable management of the project." Recently, we learned Electric Works is changing how it manages operations on campus as well as how its beverage operations are owned and run.
• So how is campus operated? Two principals of the project, Washington, D.C.-based Jeff Kingsbury and Josh Parker, created a new company, BSW Innovation Lab, in June 2022 to lease parts of the campus. Kingsbury says: “We formed BSW Innovation Lab to lease important, differentiating elements of the project, including Union Street Market, the Arcade, the Forum, and the Innovation Center and coworking space." He says the new entity was created to actively manage these components of the project, which were new to Fort Wayne, and provide entrepreneurs in the innovation center and market the place to start and grow businesses. As part of this change, BSW is also taking ownership of all beverage operations on campus, and hiring another newly created entity to manage them, known as Three Pillars Operations (3PO). 3PO is a team of eight people led by Scott Fergusson, who also owns Chapman's Brewing Co., the anchor dining tenant on campus.
• You might have heard: Recently, two bar vendors left Union Street Market: Kekionga Craft Cider and the Charlie Horse Bar. Two new beverage concepts are also set to open at the market soon: the Neon Pear, a cocktail lounge concept in the former Kitchen & Co. space of East Hall, and The Crane, a sports pub concept in the former Charlie Horse location of West Hall. Fergusson/Chapman's does not “own” these new beverage vendors, but 3PO has been contracted to manage them for BSW. Fergusson and Kingsbury say the move is intended to bring Electric Works more in line with how similar mixed-used campus projects are run across the country, in which the owner of the food hall and public market (BSW, in Electric Work’s case) also owns the bar and "may operate other food and retail concepts to respond to customer demand."

Stay tuned for updates as we learn more.

• Despite recent reports by The Guardian, Parkview Health's hospitals received top marks from an independent national study on hospital safety. All of Parkview's locations received "A" grades,* along with Lutheran Health's Dupont Hospital. The study assigns grades based on errors, accidents, injuries and infections at hospital. Lutheran Hospital and Lutheran Kosciusko Hospital received C’s. Researchers say patients are twice as likely to die of a preventable problem at a C, D or F hospital than an A hospital. IU Health broke ground recently on a $421 million hospital in Southwest Allen County, and it received C’s and D’s at seven other locations statewide. But in a separate ranking of "best hospitals" by U.S. News & World Report, its IU Health Medical Center in Indy earned the No. 1 spot in the state with Parkview Regional Medical Center placing No. 4.
• A section of the Urban Trail will be discussed at City Council tonight. The citizen group Three Rivers Active Streets says: "This City Council session is just a committee session (no public comments), and they’ll only be hearing about the Urban Trail segment on Harrison from Main to Washington. The options for a route from Harrison to Broadway will be discussed at a future session (TBD). You’re still welcome to come and show your support for the Urban Trail." It's unclear if the trail will run along Washington to Broadway and remove a lane of traffic on Washington, as previously planned, but Community Development and Traffic Engineering are currently studying that route, as well as alternative routes along Jefferson and Wayne streets. Community Development Administrator Joe Giant recently appeared on a podcast with AARP Indiana, based in Indianapolis, to give an update on the project.

Plus: a tax bond for the Allen County Public Library, a "record year" for Fort Wayne International Airport and a new (old) sub shop. We cover it all in our premium newsletter.

• Donate: Toys for Tots at Be Better Hospitality's Downtown businesses: Penny Drip, Dana’s, Night Train and the Blue Bottle Shop. Since Toys for Tots is not technically operational in Allen County this year, the local restaurant group is helping YWCA Northeast Indiana collect toys for children ages 16 and younger, now through Nov. 22. All toys must be new and nonviolent.
• Celebrate: the 20th annual Christmas on Broadway on Nov. 22, 5-9 p.m. The event features a tree lighting and fireworks, as well as a visit from Santa and his reindeer, a mini polar express train, food and beverage trucks, and an art/vintage show hosted by Rune, serving hot chocolate, a hot boozy drink and sandwiches on the patio, alongside the work of @old5anddimesignco, @jared.g.andrews, @brycemoodietattoo, and @luckyboylooks.
• Attend: Creative Women of the World's "Small Works" gallery and reception on Nov. 21, 5-7 p.m. "You'll have the chance to meet 10 talented local women artists and explore their unique, original creations—all no larger than 12x12," an IG post says. "Featuring art from: Kristy Jo Beber, Grace Berg, Nancy Fritz, Morgan Wenner, Janet Lynch, Jan Klee, Kara Saylor, Christy Arbogast, Jamie Grabner, and Becky Stockert."

What else? We share more things to do in our premium newsletter.

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Have a great week, Locals!

-Your Editor, Kara Hackett