Economic Development Is A Plus
July 28, 2016 at 4:25 p.m.
Kosciusko Development Inc. has been going around giving talks about the need for economic development.
They have put together a package to show just how important economic development is.
Warsaw (and Kosciusko County by association) have been very fortunate to achieve the status of orthopedic capital of the world.
Let's be honest. Those industries drive the local economy. And those industries are fairly recession-proof. If someone needs a new joint implanted, they don't put it off. They don't shop around. They just get it done because they're not paying for it, the insurance company is.
I think sometimes because we have this very brisk and vibrant orthopedic thing happening here, economic development isn't always on our front burner.
But it really should be, because economic development is on the front burner in every surrounding county.
Fulton County is courting an ethanol plant. Whitley County snagged SDI. Marshall County's Plymouth Industrial Development Corp. has been cooking along for decades.
North Manchester and Wabash County economic development groups run advertisements in this newspaper attempting to convince businesses to locate in their area.
One ad says, "The North Manchester Industrial Complex is located just a few miles south of Kosciusko County near the intersection of State Roads 13 and 114. Chances are, many of our employees are already commuting from North Manchester. ... We welcome the opportunity to provide your new business location. Local incentives include low-cost or no-cost land, tax abatement, training grants and revolving loan funds."
The ad also points out all the great reasons why the Wabash County community is a great place for manufacturing.
See, Wabash County, with a population around 35,000, budgeted $400,000 for economic development in 2003.
Our county, with a population of 74,000, budgeted $68,000.
KDI states as its goals to:
• Develop new business opportunities in our county.
• Replace businesses that leave our county.
• Assist existing businesses in their efforts to expand or remain competitive.
• Educate the business community.
Those are very nice goals. Would that KDI could only pull them off.
To achieve those goals, KDI says it needs money.
KDI went to the county, seeking $100,000 per year for the next four years.
But I sense what we have here is a classic chicken and egg problem.
The county wants KDI to show its worth. The county wants KDI to show that it can get results.
But KDI says it can't get results without the funding.
It's kind of like the job applicant who lacks experience. How does he get experience if nobody will hire him?
My view is that we probably should hire KDI, so to speak. Give them a chance to show their stuff.
It should be fairly easy to quantify the relative success or failure of an outfit like KDI.
And I don't mean they're a failure if they don't land an automotive assembly plant in the next year.
There are other measures of success. How many companies did KDI contact? How many companies visited our county? How many seminars or impact studies did KDI conduct? How many educational sessions? How many training grants were secured for existing companies? Have they investigated a revolving loan fund? A business incubator? How many existing companies were assisted in expansions, relocations or renovations? (KDI already is doing these kinds of things. They want the funding so they can kick it up a notch or two.)
I am the first to lash out against the aimless squandering of tax dollars, but I really believe if the county ponies up some cash for economic development, it will be money well spent.
There's a whole column to be written about how economic development benefits a community.
And it's not like our county is broke or anything when it comes to economic development funds.
Since 2000, we have had the economic development income tax in our county.
Last year, the county collected $2.5 million in EDIT taxes. At the beginning of this year, there was $4.6 million in the EDIT fund.
So what happens to all that money?
Well, each year, the county makes $1.9 million in payments to service the debt for the Justice Building.
After this year's payments, there will be roughly $2.7 million lying around in the EDIT fund and the county will likely collect another $2.5 million next year.
But the county is eyeing a $3 million courthouse renovation and a $500,000 work-release kitchen renovation.
They've said they won't borrow any money to do this, so after a few seconds of chin pulling, one could speculate that they probably want to use that EDIT money.
Now, I don't begrudge using the money for needed improvements to county facilities, but I think using some of it for legitimate economic development purposes also is warranted.
If you're remotely interested in any of this, check out KDI's Web site at www.kdi-in.com.
That will give you an idea of what they're about and where they're headed.
I think the county should invest in economic development. [[In-content Ad]]
Kosciusko Development Inc. has been going around giving talks about the need for economic development.
They have put together a package to show just how important economic development is.
Warsaw (and Kosciusko County by association) have been very fortunate to achieve the status of orthopedic capital of the world.
Let's be honest. Those industries drive the local economy. And those industries are fairly recession-proof. If someone needs a new joint implanted, they don't put it off. They don't shop around. They just get it done because they're not paying for it, the insurance company is.
I think sometimes because we have this very brisk and vibrant orthopedic thing happening here, economic development isn't always on our front burner.
But it really should be, because economic development is on the front burner in every surrounding county.
Fulton County is courting an ethanol plant. Whitley County snagged SDI. Marshall County's Plymouth Industrial Development Corp. has been cooking along for decades.
North Manchester and Wabash County economic development groups run advertisements in this newspaper attempting to convince businesses to locate in their area.
One ad says, "The North Manchester Industrial Complex is located just a few miles south of Kosciusko County near the intersection of State Roads 13 and 114. Chances are, many of our employees are already commuting from North Manchester. ... We welcome the opportunity to provide your new business location. Local incentives include low-cost or no-cost land, tax abatement, training grants and revolving loan funds."
The ad also points out all the great reasons why the Wabash County community is a great place for manufacturing.
See, Wabash County, with a population around 35,000, budgeted $400,000 for economic development in 2003.
Our county, with a population of 74,000, budgeted $68,000.
KDI states as its goals to:
• Develop new business opportunities in our county.
• Replace businesses that leave our county.
• Assist existing businesses in their efforts to expand or remain competitive.
• Educate the business community.
Those are very nice goals. Would that KDI could only pull them off.
To achieve those goals, KDI says it needs money.
KDI went to the county, seeking $100,000 per year for the next four years.
But I sense what we have here is a classic chicken and egg problem.
The county wants KDI to show its worth. The county wants KDI to show that it can get results.
But KDI says it can't get results without the funding.
It's kind of like the job applicant who lacks experience. How does he get experience if nobody will hire him?
My view is that we probably should hire KDI, so to speak. Give them a chance to show their stuff.
It should be fairly easy to quantify the relative success or failure of an outfit like KDI.
And I don't mean they're a failure if they don't land an automotive assembly plant in the next year.
There are other measures of success. How many companies did KDI contact? How many companies visited our county? How many seminars or impact studies did KDI conduct? How many educational sessions? How many training grants were secured for existing companies? Have they investigated a revolving loan fund? A business incubator? How many existing companies were assisted in expansions, relocations or renovations? (KDI already is doing these kinds of things. They want the funding so they can kick it up a notch or two.)
I am the first to lash out against the aimless squandering of tax dollars, but I really believe if the county ponies up some cash for economic development, it will be money well spent.
There's a whole column to be written about how economic development benefits a community.
And it's not like our county is broke or anything when it comes to economic development funds.
Since 2000, we have had the economic development income tax in our county.
Last year, the county collected $2.5 million in EDIT taxes. At the beginning of this year, there was $4.6 million in the EDIT fund.
So what happens to all that money?
Well, each year, the county makes $1.9 million in payments to service the debt for the Justice Building.
After this year's payments, there will be roughly $2.7 million lying around in the EDIT fund and the county will likely collect another $2.5 million next year.
But the county is eyeing a $3 million courthouse renovation and a $500,000 work-release kitchen renovation.
They've said they won't borrow any money to do this, so after a few seconds of chin pulling, one could speculate that they probably want to use that EDIT money.
Now, I don't begrudge using the money for needed improvements to county facilities, but I think using some of it for legitimate economic development purposes also is warranted.
If you're remotely interested in any of this, check out KDI's Web site at www.kdi-in.com.
That will give you an idea of what they're about and where they're headed.
I think the county should invest in economic development. [[In-content Ad]]