StartUp Gary Recruitment Lecture with the Incremental Development Alliance

On November 17, 2022, StartUP Gary Community Development Corporation hosted a powerful community conversation led by the Incremental Development Alliance (IncDev). Its goal? To recruit and train local "small developers" to revitalize neighborhoods through small-scale, locally owned projects. The following is a summary of InvDev’s presentation. The workshop video can be viewed here.

Speakers: Ali Quinlan (Architect/Small Developer), Dan Zach (Planner/Consultant), Mike Keen (Incremental Developer).

1. Core Philosophy: What is Small Development?

The session defined "incremental development" not just by size, but by approach. It serves as an alternative to large-scale, "extractive" development models.

• The "0 to 3 Stories" Rule: The sweet spot for small developers is zero to three stories.

  • Zero Stories: Pop-up tents, food trucks, and temporary retail to test markets with low risk.

  • Three Stories (Wood Walk-ups): Capped at three stories to avoid expensive triggers like elevators and fire sprinklers, keeping construction costs lower.

• "Cute AF" Business Model: Projects should be "As Functional" and "As Beautiful" as possible, aiming for the "minimum effective dose" to get something great on the ground.

• Locals Hiring Locals: The model relies on people living in the neighborhood where they work. This ensures money stays in the community and developers are accountable to their neighbors for the quality of the work.

  
  

2. The Economic Case: Why Cities Need This

The speakers utilized concepts from Strong Towns and Urban3 to explain why traditional, dense development is fiscally superior to sprawl.

• The "Ponzi Scheme" of Sprawl: Auto-oriented developments (like big-box stores) often cost more in infrastructure maintenance than they generate in tax revenue.

• Value of Traditional Neighborhoods: Historic downtowns and mixed-use neighborhoods generally produce more tax revenue per acre (the "green" areas on revenue maps) than they consume in services, effectively subsidizing suburban areas.

• Anti-Fragility: Large monoculture buildings (e.g., a Walmart) are fragile; if the tenant leaves, the building is often useless. Small, adaptable buildings can host different businesses or housing types over decades, making them "gentrification-proof" and resilient during economic downturns.

  
  

3. Key Learnings for Aspiring Developers

The workshop offered a roadmap for moving from an interested citizen to an active developer.

The "Farm" Strategy

• Find Your Farm: Don't chase deals all over the city. Pick a specific neighborhood you love (preferably where you live) and commit to it long-term.

• Cultivate Knowledge: By focusing on one area, you become an expert on its specific zoning, infrastructure, and neighbors.

Financial Reality Checks

• Get Rich Slowly: This is not a "get rich quick" scheme; it is a way to build wealth slowly over years while improving your community.

• Math Over Romance: Don't fall in love with a building and try to make the math work later. You must develop a "strong and abiding relationship with math" to ensure the project creates cash flow.

• Small Steps reduce Risk: Start with the smallest possible step (e.g., a pop-up shop) to validate a business idea before committing to a mortgage or construction loan.

  
  

4. The "Ladder" of Development Types

IncDev encourages starting with low-risk projects and graduating to complex ones.

Level	Project Type	Description
Entry Level	Zero-Story / Pop-ups	Temporary retail, markets, food trucks. No permanent building required.
Entry Level	House Hacks	Renting out a portion of your own home, ADUs (Accessory Dwelling Units), or basement units to generate income.
Undergrad	Duplexes / Quadplexes	Small multi-unit residential buildings. Often "secret density" hidden in single-family neighborhoods.
PhD Level	Mixed-Use / Commercial	New construction mixed-use buildings or large adaptive reuse projects. These are high-risk and require significant experience.

5. Local Context: Challenges in Gary, IN

During the Q&A, specific challenges regarding the local ecosystem were addressed.

• Financing Gaps: There is a lack of local lenders familiar with small-scale mixed-use projects. The group discussed using Community Development Financial Institutions (CDFIs) or aggregating multiple small projects to qualify for larger funding pools like New Market Tax Credits.

• Zoning and Code: Often, local zoning codes prevent the exact type of historic, beloved buildings the community wants to save. The goal is to identify and repeal these barriers.

• Support Network: Because this work is hard, aspiring developers need a "Smallville therapy" network, a community of other small developers to share field notes and support.

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6. Next Steps for Attendees

• Start Small: Look for a project you can do now (a fence, a cleanup, a pop-up) rather than waiting for a "grand slam" deal.

• Join the Bootcamp: Stay tuned for registration information for IncDev’s more intensive "bootcamp," which teaches active developers how to plan a project, create a pro forma, structure a deal, and ask for financing.