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County Redevelopment Commission Hears From KDI President, Syracuse Real Estate Broker

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Businesses in search of places to expand want three things: an existing building ready for occupation, local water and sewer services and tax breaks from the county and state.

This theme was reiterated by Kosciusko Development Inc. president Joy McCarthy-Sessing and Dan Harstine of Integrity Realty during Monday's county redevelopment commission meeting.

Since reforming a couple months ago the redevelopment members are gathering economic development information.

McCarthy-Sessing presented an "In Context" report about manufacturing in the state. The monthly publication comes from the state Workforce Development office and from the Indiana University Kelly School of Business.

The publication shows Kosciusko County as one of the 20 counties that gained manufacturing jobs, 173, from 2001 to 2005. Neighboring Elkhart County gained 6,840 jobs while other adjacent counties lost as many as 1,654.

Kosciusko ranks fifth in the state in manufacturing jobs with 15,170, the report shows.

"The work this commission is doing is important because other counties are looking to us," McCarthy Sessing said. "We're highly dependent on manufacturing jobs. The high percentage surprised me."

McCarthy-Sessing said KDI was established in 1984, and mainly works with established companies that may want to expand.

When companies outside the county inquire about the area, "They always want an existing building, 20 to 25 acres, water and sewer service."

Harstine said his brokerage was based in Syracuse and he came to talk about the northeastern half of the county.

He said it was a challenge to bring in manufacturing because Syracuse is land-locked. Voluntary annexation proposals were met with remonstrance from property owners.

He said there was a 10-year-old study from Ball State University that addressed traffic issues "just sitting on a shelf."

"Syracuse took a hit when Dana pulled out," Harstine said. "There are 15 to 20 people working in the 13,000 square foot building. It may be purchased by Rinker.

Rinker marine is no longer locally owned, bought in 2004 from a group of Chicago investors. The company recently acquired Godfrey Marine, making it the largest manufacturer of boats in the country.

"They want to go from 43 foot craft to the 50 to 55 foot yacht class. They have 615 employees, hopefully they'll buy the Dana building."

Rinker representatives have appeared before the Syracuse county council asking for incentives.

Harstine noted that many support businesses are expanding as Rinker expands, but they're settling in Noble County and Elkhart County, where there are land, buildings, zoning, services and incentives.

He said about $10 million has been invested commercially along Ind. 13, from Harkless to Bowser roads. That area has services but there are problems and delays with the mix of commercial, industrial and residential traffic plus the 50 to 70 trains that go through town each day.

"The Ball State study, done 10 years ago, recommends three to five lanes on Ind. 13," said Harstine.

Town has discussed industrial park development for years, to facilitate that Syracuse is constructing a new well field this year.

"There are plenty of 'starter homes,' $125,000 or less in town plus modular homes. Seventy-nine percent of all property sold in the county is in the lake area, southwest to Warsaw," Harstine said.

He discussed failing septic tanks that are leaching into the lakes. He said the Turkey Creek Regional Sewer district built a sewer system about halfway around Lake Wawasee and is now out of money. He suggested the Barbee and Tippecanoe lakes area could be treated at the North Webster wastewater treatment plant.

"It's going to come down to education by these conservancy districts. Sometimes best thing to do isn't easy," Harstine said.

"I'll try to say it nice," said commissioner Lowell Owen. "Sometimes it seems Syracuse doesn't want to be part of the county."

Harstine said, "I think the underlying current is the town can't decide if it is a resort area, dependent on seasonal trade or whether we want to be a year-round town? If it's year-round that will take jobs.

"We're losing business to Elkhart; 8,800 employees leave Kosciusko County every day to go work there. They're very generous. They have established TIF (tax increment financing) districts. They have incentive packages ready to present based on the number of employees being hired. They get back to companies very quickly with information."

Commissioner Ron Truex appeared before the board saying there is county support for the Warsaw-to-Leesburg sewer line along Ind. 15. The county has capped it's expenditure at $350,000.

The commissioners and the council are also moving ahead with the bypass road west of Warsaw and plan to move ahead with engineering and environmental studies.

Owen asked how the economic development income tax, paid by people earning incomes, was being used and Truex said the bulk of it was paying off the Justice Building.

The earliest those bonds can be "called" or paid off is 2013.

"Then we can borrow against another $27 million for sewer system," Truex said.

Redevelopment commission members are Bill Warren, Bruce Woodward and Lowell Owens. Larry Teghtmeyer and Max Courtney were absent.