Academics

The MBA Class that Saved a Town

BY Marc Allan

PUBLISHED ON Feb 19 2019

The story of how a Butler University Lacy School of Business instructor and his MBA students helped revive the small town of Atlanta, Indiana, begins in 2016, inside an 8,000-square-foot flour mill-turned-grocery store that had been vacant for 10 years.

Wall of model trainsThe instructor, Steve Nelson, needed a place to display his collection of 6,000 model trains. He bought the empty building on Atlanta’s Main Street, even though the floor had caved in and the furnace didn’t work, because he liked the location, and the price was right.

He fixed up the building and spread the word that his trains, which had been on display for several years in the Indianapolis suburb of Carmel, had moved about 35 miles north of Indianapolis. Soon, model railroad enthusiasts and families with kids started coming to Atlanta on Saturdays to see Mr. Muffin’s Trains, as the layout is called.

But once visitors had seen Nelson’s collection and watched his train wind its way around miniature cities, their visit to Atlanta was essentially over. Downtown was almost entirely vacant otherwise, with no place to eat or shop. Not only that, but Atlanta had gained nothing—admission to see the trains is free.

“We started talking,” Nelson says, “and we wondered: Is there a way to bring Atlanta back, to turn Atlanta into some kind of destination?”

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Nelson and his wife, Liz, didn’t have an answer. But as a professor in Butler’s MBA program, he knew how to find one. He posed the question as a semester-long project for his Integrated Capstone Experience class—an assignment that would give his students valuable experience as they worked to figure out a real-world problem.

Jenn Truitt MBA '16 was one of the students who took on the challenge.

"I like the concept of taking a small town and trying to build a community around a business that would attract both families with children and train enthusiasts," she says. "That was my draw to the project."

On April 25, 2016, a group of students took a day trip to Atlanta to scout the location.

They found a small town in great decline—there was no one on the streets and nearly every storefront was empty—but they also recognized opportunity. Through subsequent research, the students found examples of at least four other small towns that reversed their declines by making themselves tourist destinations. One—Hamilton, Missouri—had turned itself into “the Disneyland of quilting.”

The students suggested using a train theme as a centerpiece for the town’s turnaround.

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The Nelsons put the report into action. They bought a second building, where Liz opened the Choo Choo Café, and a third, where Steve’s son Jeff operates a workshop that buys, sells, and repairs trains.

Steve bought a light manufacturing business called Korber Models and moved it to Atlanta, upstairs from the train layout. Korber makes easy-to-build structures like power plants and grain silos that augment model railroad displays.

Atlanta Post OfficeBetween the train sales, Korber, and the seed company Beck’s Hybrids, which is also in Atlanta, they generated enough business to keep the post office open.

Meanwhile, others joined in Atlanta’s rebuilding. The Roads Hotel began offering ghost-hunting expeditions. The Nickel Plate Heritage Railroad took riders on train trips from Atlanta south. More than 10,000 people made the trip during fall 2018, and rides resume on Valentine’s Day 2019. The Monon Historical Society moved its historic Monon caboose to Atlanta.

In addition, the town received grants to build a public restroom, and another to renovate its park, including spaces for people to sit while waiting for the train, and build a fire pit.

The report the MBA students put together noted that turnarounds for small towns can take years, and that's true—downtown Atlanta is still mostly open only on weekends for visitors.

Still, the Nelsons’ businesses and the railroad have generated at least 30 full-time and part-time jobs.

“A lot of small towns think they need to bring businesses where the town is the customer, but that doesn't work,” Nelson says. “The town isn't big enough. In today's world, you can bring in ecommerce business to a small town. The real estate is very cost-effective. All three of these buildings we own cost us less than my rent in Carmel. Then there are people who will work for you there, and they're affordable, and you can organize synergy around it.”

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The Nelsons plan to continue what the MBA students suggested. Steve has plans to add a speakeasy and an indoor train that kids can ride. He’s hoping Atlanta can attract another restaurant, too.

They’re not doing this to make a living. Steve, a former tech executive, has been teaching at Butler since the 1990s; Liz sells real estate.

Steve Nelson in Mr. Muffin's Trains“When we started doing this, success for us was knowing that we've entertained a family and when they go home, they're talking about what fun they had at Mr. Muffin’s,” he says. “I feel really, really good about it. It's meant a lot to people in Atlanta. The local people are very excited about it.”

Robyn Cook, the town’s former clerk-treasurer and a 26-year resident of Atlanta, confirms that. She says the Nelsons have been “a godsend” for the town.

“They were a perfect fit for what our community needed,” she says. “What's going on, whatever is needed, we call Liz and Steve and they just jump in, roll up their sleeves, and help in any way they can.”

Jenn Truitt, who was part of the MBA team that spurred the Nelsons’ plans, says she feels good about having a helping hand in Atlanta’s revitalization. She’s brought her 4-year-old daughter to Atlanta to see Mr. Muffin’s Trains, and she plans to go back again to see what else is happening in Atlanta.

“I felt like we did a really good job (on the MBA project), but I didn’t know how much it benefited them,” she says. “It’s awesome to see that it created this vision for him. He’s built upon it since then, but I feel like it helped validate their thinking. And it was a great experience for us, as students. I'm excited that our team had a small influence in the success that's coming, and will continue to come, to Atlanta.”

The MBA Class that Saved a Town

The students found at least four other small towns that reversed their declines by becoming tourist destinations.