alliance, muncie, indiana. january 2015

ALLIANCEJANUARY 2015

THE MAGAZINE OF THE

Daleville outlet transforms into thriving business center

INSIDE: Ontario's winning formula

5Communitytax incentive truths & myths

Muncie-Delaware County's global reach

Muncie's B5 INITIATIVE for CHILDREN

Local Decisions

Local Service

Local Bank

Delivering expertise in:

Business Lending

Cash Management

Trust Services

Insurance

BIZBNK-ADPR-AllianceMagazine-0314

First Merchants BankServing over 1200 local businesses

Your local First Merchants team here to support your business: (front row, from left) Steve Moore, Denby Turner, Jeff Parsons, Jamie Matthews, Elizabeth Bradburn, Jane Smith, Kevin Eckerty, Kelly Hampton

(middle row, from left) Lisa Jennings, Brent Webster, Jay Oliver, John Parker, Karen Karmolinski, Curt Stephenson, Patty Hudson, Eva Kreps, Jonathon Thornburg, Tanya Hensley

(back row, from left) John Teshima, Erin McLaughlin, Megan Jeffers, Josh Baker, Debbie Spencer, Gayle Williams, Thomas Carroll, Dana Connell

Fiduciary and Custody

Commercial & Consumer Property, Employee Benefits

1 . 8 0 0 . 2 0 5 . 3 4 6 4 | w w w. f i r s t m e r c h a n t s . c o m

INVESTMENT PRODUCTS ARE NOT DEPOSITS

NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

NOT FDIC INSURED

MAY LOSE VALUE

NOT GUARANTEED BY THE BANK

With a proud tradition of serving East Central Indiana businesses, the local First Merchants team supports you and your business with local decisions, and local service by bankers who live, work and are invested in this community.

We understand that we have ownership in strengthening our community through the investment of our time and dollars, as well as the investments we make as a bank through loans and other financial commitments.

We welcome the opportunity to work with you and your business.

Scott McKeeManager of Commercial Banking Division

“We have a team located right here to meet your Banking, Trust, and Insurance needs!”

Funds are not insured by the FDIC, and are not deposits of, or guaranteed by, First Merchants Bank N.A. or any of its affiliates. Funds are subject to investment risk if the insurance has a cash value, including possible loss of the principal amount invested. Insurance products are made available through First Merchants Insurance Services, Inc., a licensed insur-ance agency affiliate of First Merchants Bank, N.A. Insurance products are underwritten by, and are the obligations of, the insurance companies that issue the insurance policies; these insurance companies are not affiliated with First Merchants Bank, N.A.

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That special tune that takes you somewhere special…even energizes you. That synergy of melody and rhythm that creates incredible harmony. At Meridian Health Services, we’re creating the harmony of whole person health. We’re integrating the physical, mental and social aspects of health to create results that heal and lift the body, mind and spirit. Meridian’s spectrum of services featuring primary medical care, behavioral health, and human services focus on a broader spectrum of health for happier, healthier patients. It’s a healthier approach, now with a healthier name.

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MUNCIE MAIN OFFICE: 240 N. Tillotson Ave. · Muncie, IN 47304 · P | 765.288.1928

4 ALLIANCE | JANUARY 2015

COLUMN A WORD FROM THE PUBLISHER

In the business of economic development, you hear a lot about shell buildings, TIF arrangements, and state incentives. In fact, these are some of the fundamentals of a good economic development strategy. But how often do you hear the economic development community talking

about toddlers or the level of pre-school education?Not often.And that’s just one more fact that

differentiates Muncie and Delaware County from the rest of the state and even the nation.

In this issue of Alliance, you’ll read about the Delaware County’s B5 initiative. Birth to Five is a long-term strategy to heighten the level of education attachment in our community. It is a task that will take no less than a generation to affect. Yes, you read that right. It will take a generation but the time will go by in the blink of an eye.

Consider this: By age 5, a child’s educational blueprint has

been cast. Some say it happens by age 3. That means there may be no greater impact than

family and early childhood education on a child’s lifelong contribution to her community's economic vitality.

I am proud to say the Muncie-Delaware County Economic Development Alliance has made early childhood education one of its pillars of achievement in its Vision 2016 campaign. The EDA and many of the county’s most influential for-profit companies and non-profit agencies are backing the B5 initiative.

If the strength of the economic base of the community doesn’t do this, who will? We see it in our best interest to be a vocal partner in the strategy to improve the education base of our community.

One of Muncie’s biggest allies, Tom Kinghorn, a retired vice president for business affairs and treasurer at Ball State University, is a leader behind the cause. He asked, “Is there anything more important, really?”

I certainly can’t think of anything. These quality of life issues are taking center stage these days in

conversations around the boardroom when it comes to where companies will locate and how they’ll persuade their workforce to follow them. No longer is it good enough to offer employees a paycheck and paid time off. They want to know the place they’ll be living cares about the same things they care about: a good education system, a thriving parks, recreation and cultural environment, a strong housing market and all of it in a location that makes it easy for them to travel.

Muncie and Delaware County hits all those marks and more. And we’re not shy about taking on the tough challenges so many communities face. Early childhood education is a key to our long-term economic vitality and businesses that come here play a role in shaping that future.

Our economic future depends on early childhood education

Growing Delaware County

JAY JULIANCHIEF ECONOMIC DEVELOPMENT OFFICER, PRESIDENT/CEO

Learn more: www.thejmetzgergroup.com

The JMetzger Group specializes in branded content, custom publishing and social media solutions.

PUBLISHER Jay Julian,

Muncie-Delaware County, Indiana Economic Development Alliance

www.muncie.comEDITOR

Traci Lutton, Muncie-Delaware County, Indiana Economic Development Alliance

www.muncie.comDESIGN AND EDITORIAL DIRECTION

CONTRIBUTORS Writing: Doug Gruse, Darrel Radford

Photography: Adam Sturm, Tim Underhill Design, editorial, and production oversight: Juli Metzger, Tammy Kingery, John Metzger

Alliance Magazine: The voice of the Muncie-Delaware County, Indiana Economic Development Alliance. These materials are the sole and exclusive property of the Muncie-Delaware County, Indiana Economic Development

Alliance and may not be used without written consent.Copyright 2014 The Muncie-Delaware County, Indiana

Economic Development Alliance.

PO Box 842, 401 S. High St., Muncie, IN 47308 765-288-6681 | 800-336-1373

PROFESSIONAL STAFF Jay Julian

President/CEO (765) 288-6681

[email protected] Murphy, CEcD

Vice President, Economic Development (765) 751-9104

[email protected] Lutton

Senior Project Director (765) 751-9126

[email protected] Surpas

Economic Development Coordinator (765) 751-9116

[email protected] STAFF

Brad Bookout Delaware County Redevelopment Commission

(765) 751-9133 [email protected]

Todd Donati Muncie Redevelopment Commission

(765) 751-9106 [email protected]

THE MAGAZINE OF THE

ALLIANCE

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JANUARY 2015 | ALLIANCE 5

JANUARY 2015

10 OntariO SyStemS. The formulaThe high-tech computer software company has successfully reinvented itself almost a dozen times across three decades, securing its place as the leader in its industry and community.

6 Heartland. The success storyDaleville's Heartland Business Center, once an outlet mall, has transformed into a thriving and competitive business hub that employes more than 700 people.

ON THE COVER:

OntariO CeO rOn FauquHer

made in delaware COuntyA sampling of products important to today’s business and industry that are made in the Muncie area.

HOMEGROWN

9

ViSiOn SCOreCardThe strategies, goals and progress behind the Economic Development Alliance scorecard for Muncie and Delaware County.

GOALS

17

GlObal reaCHThe impressive reach of local companies that export or partner with locations around the world.

EXPORTS

25

number SnapSHOtA numerical overview of life and business across the Delaware County community.

OVERVIEW

24

termS tO knOwLearn the unique language of the world of business and economic development.

GLOSSARY

30

18 birtH tO aGe 5. The CommitmentMuncie's initiative for children from birth to age 5 is galvanizing the Delaware County community in an initiatve called B5, a local early childhood education movement.

22 q & a. Economic website tipsEconomic development website expert Mark James shares the three criticial components that every economic development website should contain.

26 tiF beneFitS. Common mythsA detailed examination of tax increment finance (TIF), an economic development tool that is a win-win for communities and employers.

ALLIANCEA


The Heartland Business Center just off I-69 near Daleville has had a most interesting economic development metamorphosis.

The massive 220,000 square-foot building was the former home of an outlet mall. Two decades later, more than 700 people drive there every day, not to shop, but to work at cutting-edge businesses like Concentrix (formerly IBM), Element, First Merchant’s Data Center, Indiana Finance Company, Boyce Forms/Systems, Keystone Software and Komputrol Software.

Through the work of Muncie-Delaware County Economic Development Alliance, the structure is approximately 85 percent occupied and exceeding even the grandest hopes of the shopping mecca that was originally intended.

Even more business will be courted in the future, thanks to development of a shell building that is ready to help a future tenant expand or locate.

to prosperityFormer Daleville outlet mall's metamorphosis means big business

Daleville's

outlet


The transformationHow this night-and-day transformation came to be is a story

both mysterious and inspirational, where best-laid plans were rewritten by creative local officials and a giant lemon became lemonade.

Terry Murphy of the Muncie-Delaware County Indiana Eco-nomic Development Alliance, remembers how great excitement about the outlet mall’s opening 20 years ago quickly faded.

“The outlet mall’s struggles are hard to understand,” Murphy said. “You would think the demographics were all there. But for some reason, it didn’t generate the sales that were anticipated. There were 60 stores in the outlet mall in the best of times. There were a lot of part-time jobs.”

“I don’t know if they ever got to 50 percent occupancy,” said Mike Galliher of Boyce Systems, a company that chose this site over possibilities in Anderson and Indianapolis. “I think there was just other competition. People found there wasn’t that much margin difference in the pricing. I think the last retailer here was a guy who had NASCAR memorabilia.”

A trade was made that may go down in Delaware County economic history as one of the best bargains ever, while a David of sorts played a huge role in making the Goliath-like structure stand up to its potential.

Murphy said the Prime Group, original owners of the former outlet mall, ultimately sold the facility and then purchased the Edinburg oulet mall, essentially trading one for the other.

But the structure left behind was transformable thanks to help from the small nearby town of Daleville, population 1,700.

Town leaders recognized that as Delaware County’s front door to Indianapolis, opportunity could be knocking if clutter was cleaned up and aggressive efforts were made to develop the area.

Murphy recounted how town officials worked with the Prime Group on infrastructure needs and establishing a tax-increment financing district. So, while the area was becoming marketable, a pool of money was established to keep it going – and growing.

Tax abatement incentives spur growthA shell building constructed in part with TIF funds generated

by the development is now waiting for a new business to join those operating in the former mall.

“A shell building is a great way to attract a new business,” Murphy said. “About 70 percent of companies looking to expand will look for existing buildings. It can save them about six to eight months in construction time.”

“The town of Daleville was great,” Galliher said. “The town council was really the key on getting any abatement.”

About the time the outlet mall’s demise was complete, Galliher was shopping for a new location for his rapidly expanding Boyce Systems. The company had deep Delaware County roots that date back to its founding in 1899. But for a short time, Galliher entertained thoughts of moving it to Anderson or Indianapolis.

Then the former outlet mall got its first new tenant – the former Sherry Labs business now known as Element, that has clients in the aerospace, oil, gas and transportation industries all over the country. Soon, First Merchants Bank followed.

In Galliher’s view, what the former outlet mall lacked was now in place for the facility.

“There wasn’t a strong anchor when it was an outlet mall,” Galliher said. “It just took one or two really good companies to make the roots here that brought the rest of us. Sherry Labs is a quality place with good ownership. First Merchants is a quality

The Heartland Business Center is now 85 percent occupied, employing more than 700 people.

Continued on page 8

EDA's Terry Murphy with Element's Jennifer Tret


A

place. When I heard they were both going to be here, I said ‘OK, those are going to be really good neighbors.’

“The buildings are really well made,” Galliher continued. “They’re solid. And the price was right.”

Location, location, location.The Heatland Business Center’s location, right off I-69, has been

a big plus for Element and Boyce – in different ways. “It has allowed me to hire technology engineers and scientists,”

Element’s Jennifer Tret said. “It gave me a larger resource pool. I think it’s the location. It’s not quite all the way into Muncie and not so far from Indianapolis.”

While the facility has enabled Tret to reach out, the opposite is more important to Galliher. The building location has made a move to another community unnecessary, allowing him to keep his East Central Indiana team together.

“I didn’t want to lose that intellectual value,” Galliher said. “With some of our positions, it takes two years before a person is really productive. The learning curve is that extreme.”

Tret remembers actually shopping at the outlet mall, never dreaming that it would someday be her work address.

“Even in 2006, there were still clothes hangers out,” she said. “It was hard to imagine how we were going to put a test lab in there.”

Today, the Heartland Business Center has given Delaware County a stronger economic pulse and something to build on for the future. “It’s been a great transformation for the entire area,” Murphy said.

Continued from page 7

Heartland Business Center


crash and protect the occupant much better than steel. Decreasing the weight of the car and improving fuel economy are added advantages.Delaware is not only a leader in engine block and powertrain molds, but is also taking a leadership role in the development of the structural casting market in North America.

Delaware Dynamics is a thriving and busy company. The same values that started in 1938 are evident in the company today. Integrity, ethics, quality and craftsmanship are at the core of what Delaware Dynamics does. Industry leadership and cutting edge engineering and

technology make Delaware a “go to” source in the automotive world. Delaware remains in Delaware County because of a long-standing commitment to give back to the community and is always on the lookout for potential team members to join the mission to design and manufacture the very best die casting molds in the world. The next time you hit the gas and hear the car shift and the engine rumble, think about the company just south of downtown by the big water tower: Delaware Dynamics.

Do you drive a car or a truck? Do you ride in one? If you do, Delaware Dynamics has helped you go from point A to point B. Delaware Dynamics is the largest high-pressure die casting mold-builder in North America. Inside the buildings of the manufacturing campus just south of downtown Muncie, some of the most highly technical molds in the automotive world are designed, manufactured,

and then sampled for validation before shipping to assembly plants across North America. And in this case, highly technical correlates to big and heavy. A mold like you see pictured can weigh from 90,000 to 150,000 pounds. The gross

maximum taxi weight of a Boeing 727 is about 200,000 pounds. One of the Delaware Dynamics buildings has two 75-ton capacity overhead cranes to move molds from one stage to another during the manufacturing, assembly and sampling process.While cars are jammed with electronics and plastic today compared to years ago, engine blocks and transmission cases are still made from metal. These blocks and cases, formerly iron and steel, are increasingly made from aluminum, which is much lighter than steel. This is important because of the global effort to increase fuel economy by decreasing the weight of vehicles. Structural components in a car body are also trending toward molds that cast lightweight aluminum because properly designed aluminum castings absorb the impact of a

wOrld-FamOuS prOduCtSPerhaps one of the best-known products manufactured in Delaware County is the world-famous Ball canning jar. While the jars are no longer produced in Muncie, Delaware County is home to several other diverse products important to today’s business and industry. Below is a sampling.

homegrown

MADEdelaware COunty

Accutech has been providing industry-leading trust and investment management software since 1987. This Muncie-based business has become a one-stop shop for 250 clients looking for solutions to their software needs,

and along the way, also has served the philanthropic needs of its community. The Accutech team was nominated in 2014 for two

Indiana TechPoint Mira Awards: Emerging Tech Company of the Year, and for the groundbreaking AccuTrust Cheetah software, Tech Innovation of the Year. Cheetah, a 100 percent web-based management program, was launched at the end of 2013, and as the name suggests, outruns its competitors. With about 40 employees, Accutech also has been named one of the best small companies for which to work by the Indiana Chamber of Commerce. Accutech President Adam Unger says he is proud if the company's Delaware County roots, proving that “You don’t have to have people in New York or San Francisco to be cutting edge in the technology and financial world.”

wealtH manaGement SOFtware

Accutech Systems Corporation

die CaSt mOldS

Delaware Dynamics

The headquarters building for Accutech Systems Corporation, located in the northwest part of Delaware County near Yorktown, was designed to resemble the financial institutions that serve as the company’s client base.


Ontario SystemsLocal company's high-tech formula for success blends committed talent, servant leadership & community investment

ONTARIO SYSTEMS A HIGH-TECH SOFTWARE COMPANYA


talent brandYou have to have a recruitment strategy and talent brand. Ontario Systems uses its website and social media to recruit. Share your culture and create an expe-rience to get people interested in you.

STRATEGY &1

emplOyeeSEmployees are just as important as custom-ers. You have to be committed to taking care of them, too.

TAKE CARE OF2

teamHave elements in place that recog-nizes employees and creates oppor-tunity for them.

RECOGNIZE3

SurVeySWe survey our associates almost every quarter. We pay close attention to answers to these two questions: Would you recom-mend Ontario as a place to work? Would you recom-mend your man-ager as someone to work for?

ASSOCIATE4

Ontario Systems is the kind of

high-tech, intellectually driven software company any community would love to land. Even better is a co-founder and CEO who evangelizes the attributes of doing business in small communities like his.

Muncie, Indiana’s own Ron Fauquher is a believer. He believes how much you give will directly impact how much you get.

Industry leaderOntario Systems gets to lay claim

as an industry leader in the accounts receivable management business. In fact, Ontario Systems handles nearly 50 percent of the debt collection market in the U.S. Eight of the 10 largest receivables management companies run on Ontario Systems software. More than 30 percent of the largest U.S. health systems use software developed by Ontario Systems as their revenue collection tool.

Founded in 1980 by Fauquher and partner Wil Davis, Ontario Systems, like most all companies, has weath-ered its share of business and economic storms.

“We’ve had to reinvent ourselves about every three years,” Fauquher said. “In 34 years, that means we’ve done that 10 or 11 times. And they’ve been major re-inventions with different products. We’ve stayed in the same industry but we’ve expanded our definition of the industry.”

Community partnersAlong side Fauquher has been an array of community

partners like the Muncie-Delaware County Economic Development Alliance. Today, companies can lean on the EDA to not just start a business but to sustain it.

“When Wil and I came together in 1980 to start what

Here are 10 tips on recruitment, retention and culture from Jill Lehman, administra-tion and human resource leader at Ontario Systems. Her experience spans across Fortune 500 companies, public and private organizations, operations and human resources within union and non-union environments. She holds a degree in Agri-cultural Economics from Purdue University and is a Certified Sr. Professional in Human Resources (SPHR).

Jill was named the Indiana Chamber’s 2013 Human Resources Professional of the Year and a recent recipient of a 2013 Stevie Female Executive of the Year award.

10 tipS FrOm a leadinG Hr expert talent

As hard as you work at being innovative with your products or services, you have to be equally innova-tive in talent acquisition.

ACQUIRE5

Ron Fauquher


Continued on page 14

became Ontario Systems there was very little assistance for small businesses either on a state or local level,” Fauquher said.

“One of the things that has really, really, progressed is the variety of community connections here,” he said. “We have the Innovation Connector, which helps start-ups; a strong presence of the ISBDC (Indiana Small Business Development Center), which helps any kind of business and typically small business, and the Economic Development Alliance, which ties it all together so people aren’t working in silos. Generally, it’s a real community effort toward attraction, recruitment, innovation, and sustaining businesses. The whole continuity of business assistance and economic development growth is here in Delaware County.”

Jay Julian, President/CEO for the Muncie-Delaware County Economic Alliance, says it’s businesses like Ontario that help pave the way for others. “Ontario is an example of just how much one company can do to move the needle in a community. It’s also a testament to how companies evolve as the economic realities of a community evolve. It’s that staying power, that ability to navigate through change, that everyone wants.”

The Ontario formulaLike any business, finding the right people is key

to long-term success, and where you do business is undeniably a factor in employee recruitment. Ontario Systems uses a formula that not only attracts talent but also keeps them for the long haul.

Today, Ontario employs about 265 employees. The average tenure is 16 years. About one third work off site, many from their own homes. Some work in the office two or three days a week. What drives the telecommuting is partly the nature of Ontario’s technological work, and partly the Ontario culture to be an accommodating employer.

COmmuniCate COnSiStentlyThe pace of communica-tions is important. We deliver information over intimate “lunch and learns” with the CEO. We hold monthly Town Hall meetings. We take anony-mous suggestions. The key is to continually communi-cate with employees.

TOWN HALLS6

CHallenGeThe workforce can solve the majority of problems you’re trying to address. Educate them on the challenge and give them the opportunity.

EDUCATE &8

underStandTake time to understand “future talent.” The expecta-tion of the workplace for the millennial is unique to other generations. They are looking for interesting work, a balance of work and life ex-periences as well as a career. Things such as community involvement, access to green spaces and wellness and fit-ness are important to them.

CREATE BALANCE &7

tHe lOnG ViewHiring for the next 12 months is reactionary. Take a longer view. You should be creating a pipeline of talent for the next two, five, seven years.

CREATE PIPELINE9

CultureDefine where that passive talent exists and target those environ-ments for recruit-ment. Use social media channels like Facebook, Twitter and Linke-dIn to connect that audience with your culture.

CONNECT10

Finding the right people is key to long-term success, and where you do business is a factor in employee recruitment. Ontario Systems uses a formula that not only attracts talent but keeps them for the long haul.

Casey Stanley, Vice President of Marketing and Jill Lehman, Vice Administration,

Chief People Officer


StrOnG leaderSHipMuncie's Ontario Systems is led by CEO and co-founder Ron Fauquher who holds true to this philosophy: You get what you give.

CEO1OntariO SyStemS'

winninG FOrMUla

reinVentinG tHe COmpanyOver its 34-year history, Fauquher says the company has worked to reinvent and redefine itself every three years to continue to thrive in its industry.

OPEN TO CHANGE2

“Being a software company, our biggest challenge and biggest opportunity is talent,” says Fauquher, whose affinity for Muncie is palpable. “Our talent wears shoes and they walk out this door every day. We have found a unique mix of great talent in central Indiana and they want to be here.”

Fauquher says it’s the focus of the Muncie-Delaware County Economic Development Alliance that has contributed to retention efforts.

“The EDA has pushed its focus to be not just about business,” he said. “It’s about the community. It’s about quality of life. It’s about parks and trails. It’s about new swimming pools, and entertainment. It’s about culture. It’s about art, all the things that make a community great.”

And there’s more employers can do, as well. Ontario employees are given paid time off to

volunteer in the community. They’re encouraged to be part of positive change at work and off the job. One of the most recent initiatives has been on employee wellness. An on-site gym is used regularly.

“Seventy-five percent of our associates are actively participating in our wellness initiatives,” said Jill Lehman, vice president administration and chief people officer for Ontario Systems. “Some of these initiatives provide an associate the opportunity to earn incentives for participation in walking challenges, annual health screening and BMI management.”

It’s good for the employee and good for the company. Ontario System’s healthcare costs have continued

a double-digit downward reduction year over year compared to national healthcare trends at 4.5 percent inflation, Lehman said.

Small community valueDoes size matter when it comes to relocating your

family to a new place?

Three out of four of Ontario Systems' employees actively participate in the company's wellness initiative, a move that is healthy for employees and the company which has seen a reduction in healthcare costs.


Ontario's fitness room



HirinG and retaininG talentThe average tenure of Ontario Systems' employees is 16 years. The company believes employees should be equally valued as its clients and credits its culture as an accommodating employer for its strong retention of talented employees.

TOWN HALLS3

partnerS in a City witH tHe riGHt FitFauquher credits the Delaware County community and Economic Development Alliance with aiding in Ontario's success. A collaborative community effort in business attraction, sustainability and innovation.

COMMUNITY4

“We do consider Muncie a smaller community but we talk about the value of a small community and that resonates with our employees,” Lehman said. “We attract individuals who have that servant leadership or community spirit. A lot prefer a smaller community, a smaller environment. The opportunity to make a difference is greater here.”

Casey Stanley, vice president of Marketing and Business Development, is a Muncie native. But he’s worked all over including the United Kingdom for several years. He returned to Muncie to work for On-tario. “ I consider Muncie the right size,” he said. “For a lot of people, it’s the right mix of infrastructure, talent, an outstanding university, and other wonderful assets yet small enough that you won’t get lost. A town this size offers amazing opportunities to get involved – to learn and positively impact lives. It’s not a consolation prize to a larger city. It’s the right size.”

And what about the future for a big company in a small town? Fauquher is bullish on that, too.

“We actually think it is pretty robust,” he said. “We’re excited about where we’re at. We’ve weathered the challenges like a lot of businesses, in our area and across the country. 2008 and 2009 were very, very difficult years. The economy was not good, which impacted our customers deeply. But as we look at where we’re at, we’ve been able to move forward.”

Supportive technologyRecent research says about 35 percent of the Ameri-

can working public find themselves in a situation where they have a bill past due. Fauquher explains it this way: Ontario Systems is less about collecting debt and more about keeping money flowing and that plays a huge role in the debt engine that powers the country’s economy.

“In the private debt collection market, there is $55 billion collected every year. Generally, we supply the

Muncie-based Ontario Systems handles nearly 50 percent of the debt collection market in the U.S. Eight of the 10 largest receivables management companies run on Ontario Systems software.

CEO Ron Fauquher


technology for 40 to 45 percent of that,” he said. “If you took that cash flow out of America’s economy, it’s a major hit. If we don’t keep that money flowing, lots of bad things happen, and we believe in the role we play.”

Delaware County assetsUsing community assets in Muncie and Delaware County is how

Ontario has flourished, Fauquher said.“I think Wil and I thought we’d be a really, really big company

if we got up to 20 people,” he said. “Later on, we figured out that Delaware County and Central Indiana and the Midwest had more than a couple of advantages. There are a lot of well-educated people from schools like Ball State, Taylor and Miami (Ohio) and increasingly so from Ivy Tech, and I’m not at all discounting the likes of Purdue, Indiana University and Notre Dame.”

“There is great talent, bright people, and an incredible work ethic for serving our customers.”

Fauquher calls on an anecdote to make his point. “In the break room this morning, one of our team members was struggling to get a cup of coffee. I helped him. I asked: ‘Long night?’ He said that customer “ABC” called about 12:30 so he was up till 3 helping him through the night. This was 7 o’clock this morning. No one would know he did that if he hadn’t told us. We have this happen every day.” The Midwestern values like honesty, integrity, and going the extra mile isn’t the exception. It’s the rule. “That’s not something we teach. It just happens. We capitalize on it. We built a business on it.” A

ASSET reCreatiOnThe Dr. Joe and Alice Rinard Orchid Greenhouse houses the Ball State University Wheeler-Thanhauser Orchid Collection and Species Bank. Displaying rare and endangered orchids as well as many other types of tropical plants, the Rinard Orchid Greenhouse always has something in bloom, even in winter. The greenhouse is open six days a week for self-guided tours at Christy Woods, on the southwest end of the Ball State University campus in Muncie.

quality of life


Creating balance for employees

Ontario's technological work

Wellness program


ViSiOn 2016The Vision 2016 Economic Development Program has six goals, which are supported by government and business partners throughout Delaware County. Among our goals: 2,000 jobs and a total capital investment of $250 million. Below is an explanation of our objectives.

Six goalsVISIONSCOreCard

inVeStinG & GrOwinG$260 million in new capital investment and 1,312 new or saved jobs during the first half of Vision 2016's five-year program.

EXPANSION & RETENTION OF EXISTING BUSINESSES

1

new payrOll SOarSAverage wage of jobs at new companies is $44,349.

NEW BUSINESS ATTRACTION

2mOVinG FOrward The Alliance is working in conjunc-tion with the Cham-ber of Commerce’s Image Committee to acknowledge and promote the unique philan-thropic spirit in the community. For more information on the Committee’s current campaign, “My Muncie,” visit mymuncie.org.

IMPROVE THE IMAGE OF MUNCIE- DELAWARE COUNTY

3

traininG prOGramSThe Alliance worked with the WorkOne office, IVY Tech, City of Muncie, Delaware County Commissioners, Muncie Area Career Center, United Way and area manufacturers to establish the Regional Advanced Manufacturing Program (RAMP). RAMP is a 4-week, 128-hour training program for entry level manufacturing jobs. This is one of several local workforce initiatives underway.

WORKFORCE EDUCATION

4SHell buildinG

The Industria Centre shell building will be completed early this year. The 200,000 square foot building (expandable to 500,000 square feet) is located on Muncie's south side. These buildings are instrumental in generating leads and providing available, modern space for new and expanding businesses.

COMMUNITY PLANNING & PREPAREDNESS

5

raiSinG eduCatiOnal leVelSVision staff continues to have an active role of the B5 Committee on the five pillars of success: parent and family involvement, quality childcare, communication, preschool curriculum, and the health and wellness factor. A pilot program is now underway. For more information visit muncieb5.org.

EARLY CHILDHOOD EDUCATION

6

VISIT

ALLIANCE EXTRA:

In this issue, Alliance presents a special report on Muncie's B5 initiative. See Page 18.

A

A

www.muncie.com to learn more about the Muncie-Delaware County, Indiana Economic Development Alliance and Vision 2016 Economic Development Program.


aCademiCSStudents who begin school behind have a tendency to remain behind through their academic careers.

moving ahead:1

nO diSadVantaGeSThroughout the United States, those most likely to begin kindergarten at an academic disadvantage are low-income and minority children.

for students:2

B55 wayS

tHe birtH tO aGe 5 initiatiVe

will CHanGe tHe munCie COmmunity

'It’s putting pieces of the puzzles together.'

MUNCIE'S B5 A NEW ECONOMIC DEVELOPMENT INITIATIVEA

Paula Gruwell of Huffer Memorial


nO need tO CatCH upResearch shows that remediation after a child has started school is not sufficient to help a child fully catch up.

remediation:4

all FamilieS beneFitWhile early childhood programs do show greater effects with low- as compared to middle-socio-economic status populations, studies show that middle-class families also benefit from early childhood interventions.

socio-economic:5

inVeStmentResearch shows significant returns – as high as more than $16 for every $1 invested – in terms of decreased special education and remediation costs, decreased welfare payments, decreased crime-related costs, increased earnings and increased income tax revenues.

a better3

A growing local movement promoting childhood education at the earliest possible stage may be the single greatest link to ensuring a vigorous econom-ic future for Muncie and Delaware County.

“By age 5, most everybody’s future is already decided,” says Tom Kinghorn, a retired vice president for business affairs and treasurer at Ball State University. “I couldn’t hardly get over that but all the evidence is there.”

The Muncie-Delaware County Economic Development Alliance has made early childhood education one of its pillars of achievement in its Vision 2016 campaign. EDA and nearly 20 of the county’s most influential for-profit companies and non-profit agencies are backing the economic strategy that may take a generation to see the effects.

“Is there anything more important, really?” Kinghorn asked. “Think about it. Ten or 20 years seems like a long time to you and me but to the life of a community, it’s the blink of an eye. It’s no time at all.”

Kinghorn, himself one of 10 children who grew up just south of Muncie in the state capital of Indianapolis, is leading a growing local contingent in a movement called Muncie Before 5: Early Childhood Education Initiative or B5.

“We know businesses see the way forward,” Kinghorn said. “The challenge was to identify a strategy that would be transformative for this community.”

How children's experiences from birth to age 5 will set the course for their future education attainment, earning potential and quality of life

Source: www.muncieb5.org



While commonalities in the board room and the classroom may seem unlikely, it is this very partnership that is designed to signal to new and existing companies that this community is serious about its long-term goals, said Jay Julian, chief economic development officer, President/CEO for the Muncie-Delaware County Economic Development Alliance and Chamber of Commerce.

“Every community has room to improve, room to grow,” said Julian. “Not just every community does something to make certain it does for generations to come.”

Carrie Bale, executive director for the B5 initiative, says there is the big picture to consider. “I view this on a larger scale,” she said. “This is an investment in human capital. It is an investment in the people who will be working in these businesses.”

What’s all this have to do with economic development? Turns out: everything.

“If there are good things happening in a community, business wants to be there.” Bale points out. “It is a shift. Used to be you picked up your family and you migrated to the jobs, to where you knew there are good businesses. Now, businesses want to go where good things are happening. They come to you.”

The action taken today will deliver a meaningful return on investment tomorrow, Bale says. This is the language businesses understand and it is the language the B5 initiative has adopted.

B5 is intended to be the bridge between a productive workforce and the growing demands of a workplace. There may be no greater economic development payoff than that, experts say.

“There was a time that I couldn’t have put it in those terms,” said

Bale, who just finished her MBA. “Now, I can easily describe how this will affect your employees’ retention rate and your worker productivity,” Bale said. “We have research that shows employees stay longer if they have high quality child care environments for their children. They don’t worry as much and they stay focused on the job at hand. Of course, the children themselves become more engaged citizens and mature into the prepared workforce employ-ers need.”

Paula Gruwell sees it first-hand at Huffer Memorial Children’s Center, where she is Executive Director. Four years ago, Huffer was beneficiary of a $1.2 million grant awarded to Ball State University from the Indiana Department of Education. BSU and Huffer partnered and developed enrichment and summer pro-grams for students at Longfellow Elementary School, which sits next door to Huffer at its northeast Muncie location. The grant was extended another four years in April 2014. In many ways, it is a microcosm of what B5 is meant to do.

“It’s all of it,” explains Gruwell. “It’s the academics in the classroom.” It’s also the activity level at home and the one-on-one attention at the daytime childcare facility, she said. “It’s putting pieces of the puzzles together.”

Research and statistics are testimony to these kinds of pro-grams, Bale said. “This is a shining example of what happens when all forces work toward a common goal,” she said. “The entities in this community got together and said: ‘How are we going to make these children successful one grade level at a time?’ And they did it. B5 wants to do that on a larger scale.”

In addition, there is a growing sense of urgency, Kinghorn said.

“This is an investment in human capital.”

Carrie Bale, B5 Executive Director

B5The community partnersEarly childhood development has been adopted as a primary economic development strategy by a number of key groups in Muncie, including these community partners:

l Muncie-Delaware Chamber of Commercel Muncie-Delaware County Economic Development Alliance (Vision 2016 Economic Development Plan)l Muncie Action Planl City of Munciel Community Foundation of Muncie and Delaware Countyl Ball Brothers Foundationl George and Frances Ball Foundationl Mutual Bank and Mutual Bank Charitable Foundationl IU Health Ball Memorial Hospitall Muncie Community Schools’ kindergarten teachers l Muncie Community Schoolsl Ball State Universityl Muncie Public Libraryl United Way of Delaware Countyl Navient (formerly Sallie Mae)l Ardagh (formerly Verallia)l Tri-Kappa

Paula Gruwell, Huffer Memorial Children's Center Executive Director



“There’s a greater realization across the country. Indiana is one of the last states to have this conversation but we’re having it now. If we don’t get on this job, it will never be different than it is today.”

For companies looking for a place to build and grow, Muncie and Delaware County provide a low-cost environment with willing community partners. Over time, the investment in early childhood education will pay off with a capable workforce, prime for hiring.

Bale emphasizes that Delaware County is uniquely positioned to catapult to the front of the statistical lineup.

What children learn before they get to school – the social interaction, the curiosity, the ability to think and ask questions – these are the skills that lead them to successful lives. The B5 program is about reaching the children in their homes, with their families or in settings wherever they are.

“If we don’t get families involved, this will never happen,” Bale said. “The window is zero to 3.”

B5 is working directly with local health care providers, retail centers, libraries, and schools, anyplace where young families interact. The goals include providing early learning experiences, health and wellness awareness and early literacy. “We’re connecting and integrating a seamless, early childhood system, getting every-one saying the same thing, getting all on the same page,” Bale said.

Businesses play a very big role in this objective. Employees have families. Businesses help spread the message of the importance education at all levels. They communicate resources available and make of community connections.

“We know businesses invest where they see investment being made,” Julian said. “It is in their best interest to be in communities like ours.”

Daleville Shell Building: n 50,000 sq. ft. expandable to 215,00 sq. ft.n 32 ft. ceiling height; 8.33 acres/additional 8.33 acres available

Airpark Shell Building: n 40,000 sq. ft. expandable to 110,000 sq.ft.n 28 ft. ceiling height; 11.33 acres

ASSETSHell buildinGSDelaware County has a successful shell building program, with a strong track record of attracting successful companies. Currently, two shell buildings are completed in well-funded TIF districts, and can be customized to the specific needs of a new or expanding company. A third shell building, the largest in county history, is nearing completion.

A“This is an investment in human capital.”

Industria Centre Shell Building: n 200,000 sq. ft. expandable to 500,000 sq.ft.n 32 ft. ceiling height; 34 acres/Additional 97 acres available n Architect's rendering. Expected completion in early 2015


There are three main features all economic development websites must have. Information about where you are, information about who

you are and information about what you do. It is critical in terms of geography that your web audience knows where your city is located. How easy it is to reach other locations? Who are you is not just a description of your organizational type. What is often missing in an ED website is information about the people in the organization. You need a description that says you can be relied upon to work with companies who have millions of dollars in capital to invest. Describing what you do is critical. Do you provide flight location services and forums for employers to connect to other organization? Be specific about who you are and what you can do to position yourself as the experts you are in economic development.Mark James was

consultant on the award-winning muncie.com.

He has taught the Economic Development Marketing course at the Economic Development Institute and has been a featured speaker at numerous ED conferences.

From 2001 to 2011, he was founder, president and chief executive officer of ED Solutions, Inc., a consulting firm providing economic development tools, training and project management services to the economic development profession.

Today, he is Vice President of Economic Development for American Electric Power, an economic development organization that covers 11 states.

Best economic websites understand audience needs

THE EXPERT:Mark James

What are 'must haves' on an economic development website? Why?

AQ

It is among the top five pieces of content on an economic development website. Once a client or company has decided on a state

or general region to locate, exactly where that business lands often comes down to real estate. The Muncie-Delaware County Economic Development Alliance has done a remarkable job, the best I’ve seen, at development, construction and sale of shell buildings. Compared to other organizations, it is jaw dropping. It’s because they get what it takes to attract the business to their community and they’ve got the government and community support to build the inventory. How important is inventory? The moment a company decides to invest a new plant and equipment, they want to shorten the amount of time it takes to put their capital to work. A comprehensive listing of available properties demonstrates you can be counted on to deliver premiere locations quickly.

How important is a sites and buildings database? Why?

AQ

In general, the best websites understand their audience needs. They are responsive, meaning they translate across devices. Mobile

is huge and it’s how many are accessing your websites now. The best sites have strong graphic representation of their geography like thematic maps, lists and an explanation of access to other markets. Key also is the ability to take content away from the site. Downloadable data, either as a PDF, Excel spreadsheet or other format, is critical. Here are four who understand all of those points: l http://charlotteusa.com/ l http://columbusregion.com/Home.aspx l http://roanoke.org/Home.aspx l http://www.ccredc.com/

What are some examples of good economic development websites? (besides Muncie.com)

AQ


Data standards were really an exercise in the mid ‘90s by a volunteer group, International Economic Development Council, to explore

what data site selectors really need. Because it was a volunteer effort, it has not been revised since but the information is still valid. Use this information to drive engagement on your website. Pull out these facts and shout the good news. “DID YOU KNOW? Fill in the blank.” This data has become the Angie’s list for site selectors. Including data standards on your website accomplishes three things: l It injects a discipline in the your organization to gather the data. l It gives you a leg up on competition when you have information others do not. l It differentiates your organization and says, “We get it.” We understand that your company or client needs concrete facts and figures to make an educated decision.

Are 'data standards' still used?

AQ

Yes, especially now. In the last few years, the amount of foreign direct investment occurring is almost unprecedented. On average, 50 percent

of active prospects are from international firms. Being able to demonstrate that you respect a foreign land and have content that is accessible and digestible just for them sets you apart. It shows you are more international than the next guy. What languages should you have? German, Chinese, Japanese, and Spanish and the language of any countries with whom you might have a sister-city/community arrangement, is a good baseline.

Is translation capability necessary?Why?

AQ

Two things are done poorly most of the time. One, tell me where you are. Many sites lack detail in explaining the geography of a location.

How easy is it for me to get from your community to a big city or airport hub? What are the key locations you are near? Second, how can I reach you? Burying the phone number in the footer in a small font size and not having your geographic location represented visually (a map), as well as descriptions that can be searched and found online are classic mistakes.

What is the biggest website mistakes made by economic development organizations (ledos)?

AQ

Content is well organized. The left-hand navigational bar allows web users to pick buckets of content. It includes a deep dive of data.

There’s a ton of downloadable material. The amount of consumable material is near best in class. The site demonstrates the organization’s ability to support a company’s inquiry. It drips with subject matter expertise. All are key components to a first-class website.

Muncie.com recently won a website award for 'Best of the Midwest' from the Mid-American Economic Development Council. What do you think made the website special?

AQ

Here is my priority list:

l Look at what others are doing. l Understand what top 10 piec-es of data you are regularly used for and shout those from your site. Use pullouts or key stats in bigger type to draw attention.l Understand it is a process of building credibility and a rela-tionship with your web audiencel Drive them to contact you. No one is going to bet $50 mil-lion on your website only. But it’s the front door to your house. They’ll decide whether to work with you by what they see on your website.

What are some 'best practices' that you would advise economic development groups to use?

A

Q

'Drive them to contact you. No one is going to bet $50 million on your website only. But it's the front door to your house.'


COmmunity SnapSHOt

by the numbersMETRICS The Muncie and Delaware County region is defined by a number of community metrics. Here is a numerical snapshot and overview of life and business in Delaware County, Indiana.

Ivy Tech Community College

ranks

for the most associate degrees awarded,

according to Community College

Week.

1stin the nation

The Indiana University Melvin and Bren Simon Cancer Center has been selected as

to lead cancer clinical trials in a new national network, and Muncie's IU Health

Ball Memorial Hospital is one of three affiliates of that cancer center.

Muncie-Delaware County is home to

Yorktown High

School ranks 9th and Burris Laboratory School ranks 13th, according to a 2014 report by U.S. News and World Report.

Ball State University is home to the David Owsley

Museum of Art, which houses

artworks in its collection.

11,000

Muncie offers

paved trails: The White River

Greenway, The Cardinal

Greenway, and the Muncie Arts &

Cultural Trail.

three

Muncie-Delaware County has

ranging in size from 40,000 to 200,000 square feet before expansion and up to

500,000 square feet fully expanded.

3expandableshell buildingstwo

of indiana’stOp 15

high schools.

one30

OF ONLY

SITES IN THE U.S.


wOrld-wide reaCHCompanies located in Delaware County have a substantial global reach. Local companies export to or partner with locations around the world.

global influence

GLOBALdelaware COunty

NUMBER OF DELAWARE COUNTY EMPLOYEES: Six employees, and five of them are Murrays.

MANUFACTURES: Murray’s creates custom pieces of jewelry of all kinds, including watches.

PARTNER LOCATIONS:One-of-a-kind pieces crafted at Murray’s have traveled to points all over the United States and other countries including Germany, Canada, and Seoul, South Korea.

TRAVELS: Each year, Todd Murray or Steve Murray travel to Antwerp, Belgium, to hand-select the best diamonds for those custom pieces and the shop’s inventory, keeping in contact with clients – looking for that perfect cut and carat along the way.

About Murray’s Jewelers PATENT PENDING:

The newest Murray’s creation, which is patent pending, is The Tulip Collection, which features a variety of center rings made to fit different types of “jackets” for seemingly endless combinations, depending on your mood.HISTORY: Murray’s has remained a fixture in downtown Muncie, changing locations four times and nestled now in a historic building bearing its name. As the locations have evolved, so has the company’s jewelry-making process. Although the Murrays still create using the classic carved wax mold process, most of the rings and necklaces are now going from sketch to gold piece using the latest computer automated design (CAD) program.

SERVICES: Murray’s also repairs and sells a variety of other designer jewelry and watches, but Todd Murray will tell you it is the manufacturing skills – the skilled trades offered by the artists here – that not only keep this business successful, but “interesting for us.”

Murray’s creations

What distinguishes Muncie’s Murray’s Jewelers from other jewelers is custom work done locally and for customers all

over the globe. Started by watchmaker James E. Murray in 1885, the downtown Muncie business remains family run with Murrays - Todd and Steve Murray and Todd’s sons, James and Ryan, as well as Todd’s wife, Janie. Murray’s prides itself on custom creations, de-signing more than 600 one-of-a-kind pieces each year. Those pieces have traveled to clients in more than 35 states and two countries, each “hand signed” with the Murray hallmark. Todd is the designer. Brother Steve focuses on setting the gems and making repairs. "There is nothing like taking an idea from someone’s mind and, with help from a Murray, making it a real piece of jewelry that will be treasured for generations, " Todd says.

FACT: That ‘ding’ you hear in the quaint storefront is the turn-of-the-century cash register that Murray’s has been using to ring out customers since 1912.


2,500+ new jObS

Through TIF, thousands of jobs have been created in recent years. Some prominent success stories include the 900 new employees at Navient (formerly Sallie Mae), more than 600 positions at Concentrix (formerly IBM), 350 at Magna Powertrain, 240 at Mursix Corporation, 90 at Indiana Finance and 32 at Spartech/PolyOne.

New employees1tiF SuCCeSS StOrieS

TIF Districts have a high rate of success in

Muncie-Delaware County, creating

substantial new invest-ment in the region.

Hundreds of millions of dollars have been

pumped into the area as a direct result.

$60 milliOn GrOwtHBell Aquaculture is making a $60 mil-lion expansion in Albany after TIF fund-ing addressed infrastructure problems.

Bell Aquaculture2

City renaiSSanCeDowntown Muncie has seen a renaissance and new development in the central city area, partially as a result of TIF resources.

Downtown Muncie3

Mursix Corporation has created 240 jobs through TIF

Navient, formerly Sallie Mae.


TIFs work in Indiana.As a principal at H.J. Umbaugh &

Associates, one of the largest and most active independent advisors to government in the Midwest, Loren Matthes has seen TIF,

an acronym for “tax increment finance,” revitalize eco-nomically challenged areas in the state in recent decades.

“Communities have to be able to offer some kind of incentive to attract these companies. It’s essential. Most folks don’t just have pots of money to offer to develop-ment,” Matthes said.

TIF funding worksTIF funding not only helps Indiana communities

compete with other states, but it also helps keep American companies from relocating to other countries.

“The development wouldn’t be coming to these areas without TIF. The communities aren’t losing anything through TIF. The companies are sharing in the cost and the infrastructure investment. The new TIF becomes part of the tax base that otherwise wouldn’t have been there,” Matthes said.

rOad inFraStruCtureMorrison Road has seen tens of millions in new in capital investment after TIF addressed road infrastructure deficiencies.

Morrison Road4

new SHell buildinGS

Magna TIF District5

$14 milliOnMuncie was able to combine TIF with state and federal grants to assist in infrastruc-ture development in the Nebo Road area, which has created in excess of $14 million in new capital invest-ment tax place with another $6 million planned.

Nebo Road7

TIF revenues from the Magna TIF District and the Muncie Mall district have built new shell buildings, which are expected to help the com-munity attract new capital investment and jobs.

1,300 emplOyeeSAn abandoned outlet mall and old trucking facility in Daleville now house nearly 1,300 employees. TIF dollars provide funding for a new shell building to further capital invest-ment and job growth.

Daleville6

Tax incentives key to company recruitment

INCENTIVES TAX INCREMENT FINANCE (TIF)

TIF funding helps Indiana communities compete with other states.


Daleville outlet mall repurposed.

A


The way TIF works is that the cost of improvements is assessed to future tax revenues by each taxing unit levied against the property. TIF provides for the temporary allocation to redevelopment districts of increased tax proceeds, or “increments,” in an allocation area generated by increases in assessed value. Increased tax revenues stimulated by development can be used for capital improvements. The TIF freezes property tax assessments at their pre-development level and issues municipal bonds to finance a portion of the redevelopment.

TIF misconceptions“There have been a lot of misconceptions through

the years. TIF has been used to bring in new com-panies and generate new jobs. In community after community, there wouldn’t have been any other way for the area to have paid for this,” Matthes said.

Although the state legislation regulating TIF has evolved through the years, Matthes said the basic principle has remained the same.

“One of the changes that we have seen is that more reporting


requirements have been added to make it more transparent,” she said. TIFs have been around for 30 years in the state, and Matthes believes economic development groups in the region have become savvy in using the strategy to attract industry that will help local communities see positive growth.

“I think if someone is not familiar with the process, it can sound a little scary. But if you have a experienced team of folks, it is fairly streamlined,” she said.

Despite the recent challenge of a weak national economy, Matthes has seen TIF make a difference in the state.

“I am happy to see communities that have been able to grow and attract business and create jobs and income for their residents,” she said. “I honestly think that without TIFs, these communities wouldn’t really have anything to offer to attract development.”

TIF freezes property tax assessments at their pre-development level and issues municipal bonds to finance a portion of the redevelopment.

A

Matthes

TIF dollars provide funding for a new shell building to further capital investment and job growth.


mOSt COmmOn FalSe StatementSOpponents to TIFs have circulated a number of false statements about the financing procedure. Here are some of the common fallacies you might hear:

Five TIF mythsTIF factstax inCrement FinanCe

FACT: TIFs were first devised in California in 1952. In the years since, every state, except Arizona, and the District of Columbia has enabled legislation for tax increment financing. There are thousands of success sto-ries across the country.

MYTH1:TIFs cost municipalities money in the long run.

FACT: When properly executed, TIFs actually can create money for schools. Schools continue to get the same tax revenue they received before the creation of the TIF district. Often, schools receive greater state aid when a school district overlaps a successful TIF.

MYTH2:TIFs divert money away from schools.

FACT: Although some TIF districts have had financial struggles, other factors have been the primary cause of their financial hardship. Statewide property tax reform, circuit breaker tax caps, declining market value assessments and the recent national economic recession has all contributed to economic problems in some districts.

MYTH3:TIFs are to blame for lost revenue in many communities.

FACT: Property assessments are based on objective measures of square footage, use, age and other relevant factors. Assessors frequently hire commercial appraisers to evaluate commercial and industrial properties.

MYTH4:TIF property assessments are part of "good old boy" politics."

FACT: Tax rates are af-fected by many factors beyond TIF. Blaming a community’s financial hard-ship on TIF is oversimplify-ing a complex situation. Every municipality has its own mix of issues that either help or hinder tax rates.

MYTH5:TIFs produce higher tax rates and tax bills for the rest of the community.

For more than 30 years, TIF has been a driving force in economic development in Indiana. The finance strategy has helped struggling communities encourage private business investment and attract global corporations.

1 Indiana has hun-dreds of TIF areas and economic

development projects. The majority of them have been successful in building bringing new jobs and infrastructure upgrades to communi-ties in need.

2Without TIF, many Indiana communities would not have the

funds or resources to attract new business and fund infrastructure improvements. Another alternative, property tax bonds, would significantly increase the tax rate and cause greater circuit breaker losses.

3 TIF rede-velopment is self-

financed, rather than being a burden on local taxpayers.

4Many TIF areas will soon reach

their expiration dates, and the new assessed value will increase the tax base of the community and all the taxing units.

5Although circuit breaker tax caps have benefitted taxpayers by freezing or reducing taxes, they

also have contributed to significant revenue loss to municipal governments, schools and TIF. The lost funds directly affect public safety, schools, parks, roads and infrastructure. Muncie schools lose $8 million of property tax revenue per year from circuit breaker tax caps.

1

CONSIDER THIS:


GLOSSARY termS tO knOwAn introduction to the unique language commonly used within the economic development world and business sector.

language

AEDO [Accredited Economic Development Organization] AEDO is a prestigious designation presented by the International Economic Development Council to indicate that an organization has gone through a thorough, peer-reviewed organizational assessment, and is a leading authority on economic-related issues. The Muncie-Delaware County Economic Development Alliance is one of 36 economic development organizations in the United States and Canada to hold this distinction.

Brownfield A former industrial or commercial site where future use is affected by real or perceived environmental contamination.

BRE [Business Retention and Expansion] Typically a BRE program is implemented to encourage economic development from within the existing businesses in the community.

CReED [Community Revitalization Enhancement District] The CReED incentive program entitles a taxpayer to a 25% credit against the taxpayer’s state income tax liability for a taxable year if the taxpayer makes a qualified investment in that year.

IEDC The Indiana Economic Development Corporation (IEDC) is the State of Indiana’s lead economic development agency.

LEDO An acronym used to to describe a Local Economic Development Organization.

Prospect A generic description for a potential business evaluating a location in the community.

Shell building A nearly completed speculative building that can be finished in 90 to 120 days to suit a company’s specific specifications, thus saving valuable construction and permitting time.

Site selection Process of choosing the optimal location for a business based on considerations such as tax climate, land and building costs, quality of the available workforce, incentives, and proximity to supply chain.

TIF [Tax Increment Finance]is a method to use future gains in taxes in a specified district to subsidize current improvements, which are projected to create the conditions for those gains. Cities use TIF to finance public infrastructure, land acquisition, demolition, utilities and planning costs, and other improvements.

Clawback A provision in an economic development agreement to allow revocation of performance-based incentive(s) if the company does not meet its hiring and investment commitments.

GIS A geographic information system (GIS) integrates hardware, software, and data for capturing, managing, analyzing, and displaying all forms of geographically referenced information.

Shovel ready/certified site

These sites are parcels of land that have been evaluated and have met specific criteria regarding zoning, utility infrastructure, permits, environmental considerations, and site characteristics. Potential buyers reduce the amount of lead time required for due diligence and therefore reduce the start-up time and costs.

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