Fishing in the Same Pond

Officials dangle incentives, attracting firms across county lines
Sat. July 26 - 2008
Peter Schnitzler - pschnitzler@ibj.com

Marion County economic development officials are proud of their latest headquarters attraction. Bowen Engineering Corp. will inject 103 high-paying jobs into the Indianapolis economy immediately. And over time, the company expects to add another 138. Their average salaries will top $70,000.

The deal didn’t require Mayor Greg Ballard to travel to Japan, or even to another state. Bowen Engineering is moving all of 8.4 miles, from its former home in Fishers to the 8800 block of North Meridian Street.

But in crossing the Marion County line, the company earned itself a seven-year property tax abatement valued at $290,389.

“We were pleased that Bowen wanted to make Indianapolis its home, and excited about that,” said Deputy Mayor Nick Weber, who leads economic development for Ballard.

“At the end of the day, we’re looking for Indianapolis to have a vibrant economy, with employment possibilities for our citizens. Companies that want to be a part of that, we’re interested in talking to.”

Indianapolis didn’t set out to poach Bowen Engineering, which declined to comment to IBJ because lease negotiations for its new location aren’t complete. Marion County economic-development officials began courting the company only after it couldn’t find new space near its current home to its liking.

And they opened talks only after Fishers granted a release letter—something counties routinely do when companies suggest they might move outside central Indiana.

The letters are necessary because officials in Indianapolis and the suburbs long have agreed that pilfer- ing companies within the region is a no-no.

Yet there has been a spate of such deals lately, most involving substantial incentives. In the last year, Indianapolis landed both Bowen and Haverstick Consulting. At the same time, it lost ASI Ltd., Freije Treatment Systems Inc., Klaisler Manufacturing Corp. and SMC Corporation of America.

But doling out incentives to reshuffle companies that already are in the region strikes some observers as a waste of precious tax dollars. More here.