Build Indiana News Magazine - March/April 2011

MARCH/APRIL 2011

$6.95

Unlocking IndIana’s

Potential Feature

Center of Attention 46

Feature

Powering the Future 56

On Site

Site Success 62

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New Faces for 2011 So I was looking around the office today and – wow, where did all these people come from? One, two, three...sixteen?!?!

That’s more than twice the number of people we had less than two years ago. And no wonder: Since then, the average size of an issue of this magazine has gone up more than 20 percent – and we’re launching two new publications, LIVELY and NWI Women this year. We had just one event of our own in ’09; we’ll have six in 2011. To help manage that growth, we’ve welcomed four new wonderful women to the company this year: Liza Hilliard, Kristy Hannagan, Melissa Garcia and Laura Bayless. Let me introduce you to them.

Liza is our new Advertising and Marketing Specialist.

She’s a Crown Point native with a marketing and promotion background, a VU grad, and a key member of the LIVELY. Kristy, a native of Lansing, IL, has joined us as PR Specialist. She has a Bachelor of Arts in Media Studies with a Public Relations Minor from Purdue University.

Laura, who is based in Indianapolis, comes to us from promotional products manufacturer Buztronics. A native Hoosier, Laura holds an MBA from Indiana University.

Finally, there is Melissa, who in her previous position as Director of Marketing Communications for Graycor Companies was a long-time friend of DMS. More than 23 years of experience made her the perfect choice for our Director of Communications. She has a Bachelor’s degree from Purdue University Calumet and an MBA with an emphasis in marketing from DePaul University.

All of them bring so much talent and energy to their jobs that I have no doubt the next two years are going to be even more exciting than the last.

Kind Regards,

219.226.0300 • 317.632.1410 www.buildingindiananews.com www.buildingindianablog.com

CORPORATE HEADQUARTERS 1330 Arrowhead Court Crown Point, IN 46307 Publisher/Editor Andrea M. Pearman andrea@buildingindiananews.com Senior Writer David Wellman dave@buildingindiananews.com Creative Director Rebekah Hendricks rebekah@buildingindiananews.com Office Coordinator Carrie Sovola carrie@buildingindiananews.com Special Projects Coordinator Jen Labriola jen@buildingindiananews.com Director of Marketing Chrischelle Schmidt chrischelle@buildingindiananews.com Director of Events Kristin Jurczak kristin@buildingindiananews.com Director of Creative Media Sumer Rex sumer@buildingindiananews.com Director of Communications Melissa Garcia melissa@buildingindiananews.com PR Specialist Kristy Hannagan kristy@buildingindiananews.com Administrative Assistant Jennifer Ward jennifer@buildingindiananews.com Advertising and Marketing Specialist Liza Hilliard liza@buildingindiananews.com Accounting Lindsey Andershock la@buildingindiananews.com InDIAnAPOLIS OffICE 317.632.1410 Business Development Manager Lee Ann Richardson leeann@buildingindiananews.com Business Development Manager Laura Bayless laura@buildingindiananews.com

Andrea M. Pearman Publisher

WARSAW OffICE Business Development Manager Julie Monteith julie@buildingindiananews.com 574.267.0614 Building Indiana is published by Diversified Marketing Strategies.

Visit us at 3dms.com.

2006 Communicator Awards’ Award of Distinction 2009 Communicator Awards’ Award of Excellence

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2006 Marcom Gold Award Winner 2007 Marcom Gold Award Winner 2008 Marcom Gold Award Winner 2010 Marcom Gold Award Winner

2008 Hermes Gold Award 2009 Hermes Gold Award 2010 Hermes Gold Award

Andrea M. Pearman 2009 Small Business Journalist of the Year

2009 nichee Magazine Award

2009 Silver Award 2010 Gold Award

Subscriptions: Standard rates: $24.95/year Single copy price: $6.95 Copyright ©2011 Building Indiana News is published six times a year. Address correspondence to: 1330 Arrowhead Court, Crown Point, IN 46307. Publisher reserves the right to accept or reject any editorial or advertising matter. Publisher assumes no responsibility for return of unsolicited manuscripts or art. No part of this publication may be reprinted or otherwise duplicated without the written permission of the publisher. For general reprint information, contact Building Indiana News at andrea@buildingindiananews.com. All opinions and views are solely those of the participants or editors and are not necessarily the views of magazine sponsors.

www.buildingindiananews.com

MARCH/APRIL 2011

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EXPERT ADVICE

04 Publisher’s Desk

EVERY ISSUE

30 PHOTO fEATURE • Economic Development Groups Launch Campaign • Steel Maker Honored • Beam Signing Held • Hospital Kicks Off Campaign • Second Certification for Occupational Health Leader • Association Raises Money • Refreshed Events Center Hosts Health Conference • TAG Hosts Safety Retreat

08 Contributors 09 Business Buzz 28 People News 88 Location Finder Hospitality Directory 89 Real Estate Marketplace

90 THE LAST WORD An Indiana Success Story

42 SMALL BUSInESS SPOTLIGHT Small Business Booster Shot

44 COMPAnY SPOTLIGHT ARC Indiana

69 COnSTRUCTIOn Contracting Success

46 fEATURE Center of Attention 50 fACTS & STATS Travel & Tourism Statistics 56 52 MASS PRODUCTIOn Aluminum Victory 56 fEATURE Powering the Future

72 YOUR WELL-BEInG The Healthcare Reform Challenge 74 GREEn & SUSTAInABLE A Sustainable Center 77 WELCOME CEnTER Forking Up Jobs 79 MARkETInG Marketing Indiana

62 OnSITE Site Success

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38 THE BOTTOM LInE Take It to the Bank

40 BEInG PRODUCTIvE They Did It My Way

DEPARTMENTS

FEATURES

34 SHOW REPORT Indiana Subcontractors Association

36 STATE Of THE InDUSTRY Rush to Judgment

66 LOGISTICS Wanted: More Rail

82 REGIOn fOCUS Touring for Dollars

70 COMPAnY SPOTLIGHT D&L Wood Products

85 REGIOn fOCUS Whitley & Wisdom

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Contributors WILLIS GLAROS Willis Glaros is President and Owner of Employer Benefit Systems, one of the largest group health insurance agencies in Northwest Indiana. He has headed up the NWI Wellness Council, been the Past President of the NWI NAHU chapter, sits on an advisory board for the Indiana

Department of Insurance, and is a member of the Leading Producers Roundtable.

MARVIN MARSHALL Dr. Marvin Marshall – an American educator, writer, and lecturer – is widely known for his programs on discipline and learning. His approach stemmed from his

COMING IN JULY/AUGUST:

Cordially extends to you this

Invitation to

Nominate

WHO’S WHO I N

I N D I A N A

Submit your nomination online at

www.buildingindiananews.com

Who’s Who in Indiana

Help Building Indiana magazine recognize the movers, the shakers, the people of true influence and achievement who help shape Indiana.

We are recognizing leaders in categories across the state: Northwest, Northeast, Central and Southern Indiana.

Nominate Yourself or a Colleague

by April 11, 2011

Building Indiana’s annual Who’s Who issue is not a paid listing.

There is no cost to nominate or be included. So take a moment and help us determine Who’s Who in Indiana.

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EMAIL NOMINEE SUBMISSION

ONLINE NOMINEE SUBMISSION

dave@buildingindiananews.com

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acquiring knowledge about youth as a parent; a recreation director and camp counselor; a classroom teacher; a school counselor; an elementary and high school principal; district director of education; and as a certificate holder from the William Glasser Institute. More information is available at www.marvinmarshall.com.

KATHY MAYER Kathy Mayer has been operating a full-time freelance writing business in Lafayette since 1987.

A journalism graduate of the University of New Mexico, she specializes in business coverage, news conferences and magazine articles.

DEWEY PEARMAN Dewey Pearman serves as the Executive Director for the Construction Advancement Foundation. He holds a Masters Degree in Economics from Indiana State University. The Foundation promotes the union construction industry of northwest Indiana by helping to enhance its efficiency and competitiveness via labor relations and government management, education, training, safety and workforce development.

LORELEI WEIMER Lorelei Weimer, the Executive Director of Indiana Dunes Tourism, will celebrate 20 years with the organization in June.

Weimer earned a bachelor’s degree in hospitality and tourism management from Purdue University Calumet and obtained her Fellow Certified Destination Management Executive certification from Destination Marketing Organization International.

Weimer is Past President of the Board of Directors for Northern Indiana Tourism Development Commission; she has been appointed by Governor Mitch Daniels to represent Northern Indiana on the Indiana Tourism Council; and she is a past board member of the Association of Indiana Convention and Visitor Bureaus. She also represents tourism in Northern Indiana and Porter County for Region 1 on the Indiana Toll Road Citizens Advisory Board.

www.buildingindiananews.com

BUSINESS BUZZ

Leading Businesswomen to be Honored in June

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Industry CategorIes • Accounting/Banking/ Financial • Construction/Engineering • Logistics • Economic Development/ Real Estate • Education • Healthcare • Legal • Manufacturing/Utilities • Marketing/Media • Nonprofit • Service/Tourism • Other

www.buildingindiananews.com

his June, Building indiana will recognize the top female business owners in Northwest Indiana during its inaugural Influential Women of Northwest Indiana reception at the Avalon Manor. These innovative and successful area business leaders will also be featured in a special supplement, NWI Women, which will be distributed throughout the region.

“When people talk about business in Northwest Indiana, the conversation usually focuses on its strong manufacturing and industrial base, its logistics advantages and its highly trained workforce – and there’s nothing wrong with that; those things should be high up in the discussion,” says Andrea M. Pearman, President of Diversified Marketing Strategies. “But there’s so much more that goes into making the region’s economy vibrant, and one element we feel hasn’t received the recognition it deserves is the contribution made by women-owned businesses.”

According to the most recently available Census data, Lake and Porter counties alone boasted more than 1,600 women-owned firms employing more than 15,000 people in 2007.

From finance to real estate, education, health care and the arts, women-owned businesses contribute not only jobs, salaries and taxes, but add to the diversity and quality of life in Northwest Indiana.

The Influential Women of Northwest Indiana will be chosen from among those nominated earlier this year by their peers at nwiwomen.com. Including leaders from both the public and private sectors, these women were

selected by a blue-ribbon panel for their influence on their company or industry; their reputation for leadership, experience and integrity; and their track record of accomplishment.

Dual Honors

Two honors, the Influential Woman of the Year and the Up and Coming Woman of the Year, will be presented in each of ten industry categories (see box). “The Influential Woman of the Year Award will recognize women whose impact is being felt even now,” Pearman says. “The Up and Coming Woman of the Year Award will identify those women who will make up the next generation of cutting-edge business leadership in Northwest Indiana.” Identifying and nurturing that next generation of women business leaders is especially important now, she continues, as the region explores new opportunities for growth.

In addition, one business or organization will be named Supporting Business of the Year, recognizing an organization that supports the success of women.

The Influential Women of Northwest Indiana reception and awards ceremony will be held from 5 to 8 p.m. on June 2, 2011 at the Avalon Manor in Merrillville. Tickets to the event, as well as sponsorship details and advertising information for the NWI Women supplement, are available at www.nwiwomen.com or by calling Kristin Jurczak at 219.226.0300.

“This is going to be a special night honoring Northwest Indiana’s best and brightest women executives whose continued leadership will be vital as the region moves forward,” Pearman says. “Don’t miss it.”

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BUSINESS BUZZ

One of the first beneficiaries of the tax increase could be Elkhart County, where Roob says local and state officials have been wooing an Illinois-based manufacturer that would bring 500 jobs to the region. A decision is expected in April or May.

Northwest Illinois Passes Massive Tax Hike In an effort to plug an estimated $15 million hole in the state budget, Illinois has raised income taxes by 67 percent and business taxes by 46 percent.

The increases are supposed to be temporary, reverting most but not all of the way back to 2010 levels in four years.

In response, Indiana Secretary of Commerce Mitch Roob said the state would launch an advertising campaign and increase its economic development staff in Northwest Indiana to try and take advantage of the growing gap between the two states’ tax pictures (for more details see page 80).

NWIBRT Elects 2011 Officers The Northwest Indiana Business Roundtable (NWIBRT) Board of Directors has named Scott Miller as the Chairman of the NWIBRT Executive Committee for 2011.

Miller, Refinery Manager at Safety-Kleen in East Chicago, will replace Dewey Pearman, Executive Director of the Construction Advancement Foundation.

William F. Satterlee III, Managing Partner at Hoeppner, Wagner and Evans, was named Vice Chariman of the Executive Committee.

Tim Ross, Regional Director of Working Well, the occupational health care arm of Franciscan Alliance, will remain as Treasurer.

The Board also confirmed the continued appointments of Gary Greiner, Director of Facilities Services at Valparaiso University, and Kelly Nissan, Communications and Corporate Responsibility Manager for ArcelorMittal, as Chairman and Vice-Chair, respectively, of the Operating Committee.

NWIBRT is an independent, non-profit council of local firms committed to the improvement of construction and maintenance projects in Northwest Indiana.

NWI Journalist Named to Hall of Fame

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William Nangle, Executive Editor of The Times of Northwest Indiana, has been named to the Indiana Journalism Hall of Fame.

Nangle, who started his career at The Times in 1970, is the first of the newspaper’s journalists to be inducted into the Hall.

Under Nangle’s leadership, The Times has won the Hoosier State Press Association’s Blue Ribbon status seven times since 1993, more than any other newspaper. He will be inducted into the Hall, based at Indiana University’s School of Journalism in Bloomington, in a ceremony this spring.

Porter County Rejoins RDA Porter County has once again taken a seat on the board of the Northwest Indiana Regional Development Authority (RDA), though it has not ceased legal attempts to pull out of www.buildingindiananews.com

Company Wins National Award for Marketing Effectiveness and Creativity Diversified Marketing Strategies (DMS) has won a 2010 Silver Davey Award from International Academy of Visual Arts for its work in creating, promoting and executing the The Midwest Smoke Out. The Daveys are largest and most prestigious awards competition for small agencies, companies and organizations. They are overseen and sanctioned by the International Academy of the Visual Arts.

This is the second award that DMS has won for The Midwest Smokeout. Earlier this year, DMS was awarded a Silver Marketing Effectiveness Award by Summit International Awards (SIA). The Summit Awards acknowledge the contribution of advertising and the achievement of the advertiser’s business goals

BUSINESS BUZZ

the regional economic group.

Porter County commissioners appointed Jeffrey Good, part owner of three local hotels and Good Hospitality Services Inc. and President of the Porter County Convention, Recreation and Visitor Commission, as the county’s representative to the RDA.

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OE Lakeside Campaign Gets Big Boost The Walgreens Return Center in Northwest Indiana has donated $22,818.54 to Opportunity Enterprises’ capital campaign to build OE Lakeside.

Throughout the year, employees of the Return Center raise money through a variety of fundraising events, and then vote to determine which non-profit organization will receive their fundraising. In 2010, employees raised more than $11,000. Walgreens’ corporate office in Deerfield, IL, matched the donation for a total of nearly $23,000.

The donation was matched again by the Dean and Barbara White Family Foundation for a total contribution of more than $45,000.

These funds will be used to support growth and development of Opportunity Enterprises’ Lakeside property, a 158-acre parcel of land and water on Lake Eliza which currently houses two day service programs serving more than 100 adults with disabilities each day.

Superior Wins Top Safety Award Gary-based Superior Construction Company, Inc. has received the 2010 Pinnacle Safety Award, the Indiana Construction Association’s (ICA) highest safety award.

“Superior Construction Company, Inc. has an excellent safety culture,” says ICA Director of Contractor Relations George Sheraw.

“It was evident to the judges as they reviewed a summary of responses from surveys completed by a random selection of Superior’s onsite workers and supervisors, that they understand and follow the company’s safety program. The judges also noted that while many contractor applicants had outstanding safety programs, Superior’s ‘Good Catch’ program stood out. This program rewards workers for reporting ‘near-misses’ or ‘close calls.’ This gives Superior the opportunity to investigate the close calls and make appropriate changes before they become actual incidents.”

The company also received a Gold Summit Award in the category of Highway, Heavy, and Utility Prime Contractor with more than 300,000 Indiana onsite hours.

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BUSINESS BUZZ

Other companies honored by ICA with 2010 Gold Summit Awards were: ABC Cutting Contractors, Inc.; Gribbins Insulation Company, Inc.; Midwest Mole, Inc.; The State Group Industrial (USA) Limited; WB Koester Construction, LLC; ERMCO, Inc.; and F.A. Wilhelm Construction Co., Inc. Recognized • Respected • Recommended

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Construction workers in northern Indiana logged about 18 percent more hours on job sites in 2010 versus 2009, according to the Building & Construction Resource Center (BCRC), which administers drug-testing programs for the region’s union construction industry.

Construction workers in the area put in about 19.5 million hours in 2010, about three million more than in 2009, but still down from more than 22 million in 2008.

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Construction Hours on the Rise

Health Care Project Moves Forward The City of Crown Point has approved a tax abatement for a $16 million hospice and senior living facility project planned by developer Maliks LLC. The health care complex would include a 15,000-square-foot hospice, a 48-unit assisted living facility and 15 two-unit independent living homes and employ 26 people.

The 17-acre project would be built on part of a 50-acre parcel that Crown Point has agreed to sell to Maliks for $1.58 million.

Valparaiso Consulting Firm Expands Waste Revelation, LLC, a waste, recycling and reuse management cost consulting firm, is expanding its Porter County operations and plans to hire up to 11 new employees over the next two years.

The ten-year-old company will invest $1.2 million to renovate 12,600 square feet of space in a vacant building in downtown Valparaiso. Waste Revelation expects to move into the new facility this summer.

The Indiana Economic Development Corporation offered the company up to $100,000 in performance-based tax credits based on its job creation plans.

Hospital First in State to Adopt New Technology Methodist Hospitals (Gary) is the first Indiana hospital to utilize the cutting-edge technology called Optical Coherence Tomography (OCT) to aid in the diagnosis and treatment of cardiovascular disease.

The C7-XR OCT Intravascular Imaging System developed by LightLab Imaging Inc., and recently acquired by St. Jude Medical Inc., allows cardiologists to see inside human heart arteries using a high resolution camera and a light source.

“This technology is practice-changing: with it we are able to see inside a patient’s blood vessel in a way never possible before, allowing us to more quickly and precisely identify coronary disease and guide its treatment,” says Nazzal Obaid, M.D., Medical Director of Methodist Hospitals’ Cardiovascular Institute “Methodist Hospitals is proud to be the first in Indiana to use the www.buildingindiananews.com

Franciscan Alliance Partners with Hammond Clinic Franciscan Alliance is expanding its health care network of physician services through a new partnership with the more than 60 physicians at the Hammond Clinic.

The Hammond Clinic has served the community for nearly 60 years and continues to provide professional health care services with a highly skilled physician and nursing staff. It has locations in Munster and in St. John.

NWI Lands Two Conventions The South Shore will be rolling out the welcome mats to returning conventions that will be hosted at the Star Plaza in Merrillville. Salvation Army and the United Council of Corvette Clubs are two of the most recent conventions secured by the South Shore CVA and the Star Plaza sales staff. Both will bring hundreds of thousands of dollars to the local economy.

Salvation Army is traditionally the largest convention held in Northwest Indiana, bringing in 3,000 people and ap-

proximately 1,000 room nights. The convention was not held in Merrillville in 2010, but will return to the area in 2011 and again in 2012 and 2014. Salvation Army will bring more than $250,000 to the local economy (each year) with the influx of people attending the convention. Salvation Army will be held June 10th through 12th in 2011.

The United Council of Corvette Clubs (UCCC) was secured for July 8th through 15th of 2012. The event will include drag racing, a road course, cars shows and plenty of social activities. The United Council of Corvette Clubs will bring 200 attendees and will total approximately 560 room nights.

Through visitor spending at local businesses and the Star Plaza, the convention will bring more than $140,000 to the economy.

BUSINESS BUZZ

advanced OCT technology,” says Ian McFadden, President and CEO. “In 2010, Methodist Hospital has invested more than $36 million in technology, equipment, and programs to enhance patient care. This purchase is the latest example of our commitment to deliver the highest quality patient care.”

Snack Food Maker to Expand in Michigan City Snack food baker Hearthside Food Solutions LLC (Downers Grove, IL), is expanding its operations in Michigan City, creating up to 100 new jobs by 2014.

The company, which bakes products for national snack food brands including Keebler, Nabisco and Kraft, plans to invest more than $3.8 million on 23,000 square feet of additional production space for new snack cake and cookie baking lines.

The company, which currently employs more than 320 associates in Michigan City, planned to begin hiring additional production and supervisory workers in the second quarter of - continued on pg 14

www.buildingindiananews.com

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BUSINESS BUZZ

this year. The Indiana Economic Development Corporation offered Hearthside up to $750,000 in performance-based tax credits based on the company’s job creation plans.

Dunes Sets New Visitor Record A record-setting 2,165,605 visits were made to Indiana Dunes National Lakeshore in 2010. This is an 11.8 percent increase over 2009 and the most number of visits ever recorded in a single year for the region’s only national park.

“Surveys show that approximately 80 percent of the park’s visitors are not from the local area,” says Superintendent Costa Dillon. “That means some 1.6 million of these visits are from people outside Northwest Indiana contributing to the local economy through tourism spending.”

Nearly half a million visitors came to the park in July, the park’s busiest month, and June and August saw over 300,000 in each month. The Dunewood Campground had 23,439 people stay at least one night either in a tent or a camper. The 2010 survey of park visitor satisfaction revealed that 91 percent rated the park’s recreation opportunities as good or very good.

The most visited area of the park was the Lake Michigan shoreline.Visits to individual sites included 172, 840 at Mount Baldy, 118,743 to the Bailly/Chellberg area, 176,920 at West Beach and 140,304 at Portage Lakefront and Riverwalk.

For daily news from Northwest Indiana and around the state, visit our blog at www.buildingindianablog.com.

Northeast Six Sites Certified Development Ready The Northeast Indiana Regional Partnership (NEIRP), along with its support foundation the Northeast Indiana Fund (NIF), has unveiled six additional sites for the Certified Site Ready program.

The program was established to ensure Northeast Indiana sites meet critical criteria for development and to create an expedited process catering to stringent production timelines and a low tolerance for delay. The six sites are: • James E. Kelley Aero Centre of Allen County (108 acres) • Auburn-Watson Property of DeKalb County (70.63 acres) • Auburn-Yoder Property of DeKalb County (59.4 acres) • Garrett Industrial Park North Property of DeKalb County (29.65 acres) • Kendallville East Industrial Park of Noble County (36) • Rail Connect Business Park of Whitley County (110 acres) The certification process is handled by a third-party consultant, Mark Williams, President of Strategic Development Group, Inc. The privately-owned professional consulting firm certified the new Certified Site Ready sites by 15 criteria, including: site size, ownership, industrial zoning, 100-year flood plan, environmental study, site buffer considerations, prelimi-

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BUSINESS BUZZ

nary geotechnical exploration, and infrastructure – including water, sewer, electrical, natural gas, highways and telecommunications.

College Gets Grant for New School Manchester College in Manchester, IN, has received a $35 million grant from Lilly Endowment to launch a School of Pharmacy.

The grant – the largest in Manchester College history – will help the liberal arts and sciences college develop its first doctoral program on a Fort Wayne campus surrounded by regional hospitals, pharmacies and health care facilities and services.

Speaking on behalf of Lilly Endowment, Sara B. Cobb, Vice President of Education, said, “We are pleased to offer this funding to Manchester College to assist it in establishing its new School of Pharmacy. The school will further important efforts in Indiana to increase opportunities for education and careers in the STEM (science, technology, engineering, mathematics) disciplines. The Endowment believes this support should add significantly to the intellectual capital in Northeast Indiana and enhance the vibrant life sciences sector growing throughout the state.”

Responding to the national shortage of pharmacists and openings in pharmacy schools, Manchester announced plans last fall to seek accreditation for a four-year doctoral program in pharmacy, with the first classes beginning in fall 2012.

“This grant enhances our tools to attract exceptional faculty in a highly competitive market,” says President Jo Young Switzer. “When accredited, the School of Pharmacy will enroll 265 students in an intensive four-year Doctor of Pharmacy (Pharm.D.) program. Regional hospitals, health care facilities and practitioners will provide a rich array of experiential sites and employment opportunities.”

Distributor to Open Facility in Huntington County Helena Chemical Company, a Tennessee-based agricultural distributor, is making a multi-million dollar investment to construct a fertilizer facility on 35 acres in rural Huntington County.

The facility, scheduled to open in the spring of 2012, will employ about 20 people.

The Indiana Economic Development Corporation offered Helena up to $120,000 in performance-based tax credits based on the company’s job creation plans and $50,000 from the state’s Industrial Development Grant Fund for infrastructure improvements at the site. The City of Huntington is committing TIF revenue to cover the costs of the necessary public infrastructure needed for the Huntington Terminal in lieu of tax abatement.

Fort Wayne Lands Convention The 2012 Democratic State Convention will be held in Fort Wayne June 15-17, 2012. The booking, expected to bring 2,000 to 2,500 people to town , was secured by Visit Fort Wayne and a group of volunteers from Indiana’s Third District.

A few reasons the state Democratic committee chose Fort Wayne include affordability (facilities, parking, hotels, and amenities will be less expensive in Fort Wayne), quality of meeting space and a strong Democratic base of support. www.buildingindiananews.com

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BUSINESS BUZZ

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Steuben County is moving forward with a $28 million economic development plan spearheaded by Trine University and endorsed by the Steuben County Economic Development Corp.

The plan calls for Steuben County to spend $13.9 million of Major Moves money it received in 2006 from the lease of the toll road, with the university matching the investment dollar-for-dollar.

The money would be used to diversify the employment base, create and retain jobs, develop new business ideas and promote economic growth and innovation.

In the plan, Steuben County would work with the university to develop the Rhoads Center for Entrepreneurship, Technology Commercialization Lab, Bock Biomedical Engineering Center and the Biomechanics/Movement Sciences Center.

University officials already have been in discussion with four companies interested in a partnership with Trine University and relocating to Steuben County.

Smith Field Named Airport of the Year Smith Field Airport (SMD) in Fort Wayne was the recipient of the Aviation Association of Indiana’s (AAI’s) seventh Airport of the Year award.

“The award is based on a variety of factors including economic development, aviation education, community outreach, safety, environmental and aesthetics,” says Bart Giesler, Executive Director of AAI. “The Awards Committee was very impressed with the airport’s involvement with the community and their recent runway improvements.”

British Company Consolidates in Goshen Deloro Stellite, a maker of wear-resistant coatings, will consolidate its U.K.-based manufacturing in Goshen, creating up to 46 new jobs by 2013.

The company will invest $5 million to lease and equip additional manufacturing space and will add a production line for rod and wire products which it is transferring from a facility in England.

The Indiana Economic Development Corporation offered the company up to $400,000 in performance-based tax credits based on the company’s job creation plans.

Medical Supplier Moves to Fort Wayne

Hinshaw Roofing & Sheet Metal Co., Inc 2452 So. State Road 39 P.O. Box 636 Frankfort, IN 46041-0636 Phone: 765-659-3311 Fax: 765-659-5390 www.hinshawroofing.com

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County Moves Ahead with Economic Development Plan

Greatbatch Medical, a surgical orthopedic product and medical instrument manufacturer, will build a new $17 million facility in Fort Wayne, creating up to 76 jobs by 2014.

Then company currently has an operation in neighboring Whitley County which it will relocate to an 80,000-square-foot facility in Allen County. The company plans to start construction on the new building this spring.

Greatbatch Medical currently employs more than 100 associates at its existing Northeast Indiana operations. The Indiana Economic Development Corporation offered Greatbatch up to $750,000 in performance-based tax credits based on the company’s job creation plans. www.buildingindiananews.com

The Warsaw/Kosciusko County Chamber of Commerce is now providing a mobile app, MyChamberApp (MCA) that helps consumers find discounts, events and services offered by Chamber members.

MCA provides maps, locations, phone numbers, Web sites, images, coupons, hot deals and even videos to help consumers make a shopping decision.

MyChamberApp is available free for the the iPhone, iPod, Android and Blackberry at www.MyChamberApp.com/downloads.

EDC Honors Seven

Central

BUSINESS BUZZ

Chamber Launches Mobile App

23,000 New Jobs Projected from 2010 IEDC Efforts Last year, The Indiana Economic Development Corporation worked with 200 companies from across the country and around the world that project to create more than 23,000 new jobs in Indiana, an increase from 19,955 in 2009 and more than any other year on record.

Indiana welcomed commitments for 23,017 new jobs and $4.38 billion in capital investment in 2010. The new jobs, many of which have already been created, and others expected to be created over the next five years, pay an average hourly wage of $23.02, above the state’s current hourly wage of $18.40.

- continued on pg 18

The LaGrange County Economic Development Corporation honored seven LaGrange County companies with the inaugural “Business Excellence” award at the its second annual Investor’s Meeting in February The companies honored were: Cruiser RV, LLC, Lennard Ag Company, Open Range RV Company, Spectrum Finishing, LLC, Starcraft RV, Inc., Therma-Tru Doors, and Tri-State Hardwood Company, Inc. The companies were chosen for the award because of their contributions to LaGrange County’s economic growth in 2010, as well as for utilizing the services of the LaGrange County Economic Development Corporation to help them in their growth.

National Retailer to Open Distribution Facility in Ashley Family Dollar Stores (Matthews, NC) will locate a new distribution facility in Ashley, creating up to 350 new jobs starting in 2012.

The retailer, which operates more than 6,800 stores nationwide, plans to invest close to $70 million to construct an 815,000-squarefoot, highly automated distribution center aimed at serving its Midwestern stores.

The company plans to break ground on the facility this spring and begin operations in the spring of 2012.

The Indiana Economic Development Corporation offered Family Dollar up to $2.1 million in performance-based tax credits based and up to $200,000 in training grants on the company’s job creation plans.

For daily news from Northeast Indiana and around the state, visit our blog at www.buildingindianablog.com. www.buildingindiananews.com

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Lafayette Company to Invest $53 Million Fairfield Manufacturing Co. Inc. will make a $53.1 million capital investment over the next three years at its Lafayette plant, which currently employs 1,032.

The new investment comes on top of $47 million spent on the facility over the last four years, for a seven-year total investment topping $100 million at Fairfield.

The $53.1 million in Lafayette is part of a $300 million worldwide investment in the company’s Oerlikon Drive Systems business segment.

Solar Panel Maker Plans New Jobs NuSun, Inc., a manufacturer of solar panels, will locate its first manufacturing and assembly center in Columbus, creating up to 240 new jobs by 2014.

• AEC Fulfillment Services • Global Document Shipping • Color Services • Document Management • Digital Printing

The company, which will manufacture nano-coated highefficiency photovoltaic solar panels for use in U.S. and international markets, will invest $8.9 million to purchase, improve and equip a facility in the Woodside South Industrial Park. The company anticipates starting production in mid-2011.

The city of Columbus, Bartholomew County and the Columbus Redevelopment Commission have pledged $325,000 in combined Economic Development Income Tax (EDIT) and Tax Increment Fund (TIF) support, and the city will also make available a $500,000 grant from the Lawrenceburg Regional Economic Development grant program.

The Indiana Economic Development Corporation has offered up to $2.25 million in tax credits and up to $100,000 in training grants. In addition, the Indiana Office of Community and Rural Development (OCRA) will consider an application from the City of Columbus for an additional $600,000 grant to equip the facility.

Startup to Establish Marion Facility Vela Gear Systems LLC, a startup manufacturer of mechanical power transmission components used in several markets including wind energy, will establish its first manufacturing operations in Marion, creating up to 163 new jobs by 2013.

The company, which manufactures components for planetary gears and gearboxes, will make a multi-million dollar investment to construct a 250,000-square-foot manufacturing facility adjacent to Ivy Tech Community College in Marion.

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Automotive-related manufacturing represented the largest sector for new job commitments in 2010 with 7,219 new jobs projected, up from nearly 5,500 in 2009. With more than 4,100 projected new jobs, the life sciences industry represented the second largest sector of new growth, a shift from non-automotive manufacturing in 2009.

Nearly 3,000 new job commitments in the energy industry represented the third largest sector of new jobs in 2010.

Job commitments for other sectors include: business services (1,760), information technology (1,671) and logistics (1,329).

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Construction on the new facility is scheduled to begin by mid2011. New equipment phase-in and hiring will take place in late 2011 with operations set to begin by mid-2012.

The Indiana Economic Development Corporation offered Vela Gear Systems LLC up to $1.6 million in performance-based tax credits, based on the company’s job creation plans.

Hospital to Expand in 2011 Johnson Memorial Hospital in Franklin has completed the design and planning of a proposed expansion of its surgery department and will begin construction on the $14 million project in early 2011.

The project is scheduled to be completed by the middle of 2012.

The expansion will allow the hospital to add 19,000 square feet of new patient care space, renovate 9,300 square feet of existing surgery department space and construct just over 10,000 square feet of physician office space.

Building our track record on 80 years of client satisfaction.

Mortgage Company to Hire 300 Stonegate Mortgage Corporation is expanding its Fishers headquarters, creating up to 300 new jobs by 2015. The lender plans to invest $3 million to relocate to 29,000 square feet of space at 9998 Crosspoint Blvd.

The Indiana Economic Development Corporation offered the company up to $3.7 million in performance-based tax credits and $50,000 in training grants based on their job creation plans. Additionally, the town of Fishers offered a 10-year personal property tax abatement of up to $760,000 based on Stonegate’s planned capital investment and payroll from the projected jobs.

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Racing Firm Revs Up in Brownsburg Chip Ganassi Racing Teams (CGR) will locate its two newest IZOD IndyCar Series teams, Service Central Chip Ganassi Racing and Novo Nordisk Chip Ganassi Racing, in Brownsburg, creating up to 30 new jobs by 2011.

The organization plans to invest $3.3 million to locate the new teams in a leased facility in the Hendricks County town.

The Indiana Economic Development Corporation offered Chip Ganassi up to $325,000 in performance-based tax credits based on the company’s job creation plans.

Central Indiana Real Estate Picture Mixed The Central Indiana real estate market endured another challenging year in 2010, but emerged with viable opportunities and momentum for 2011, according to Cassidy Turley’s annual Central Indiana real estate report.

The Central Indiana industrial market remained stable with modest growth during 2010. Approximately 3.1 million square feet of positive net absorption occurred, an improvement of more than 37 percent compared to 2009. Seven of the region’s nine submarkets experienced positive absorption and the region led the Midwest in absorption of industrial space.

The Indianapolis office market grew to 31.8 million square feet - continued on pg 20 www.buildingindiananews.com

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of rentable space during 2010. However, the vacancy rate continued its upward trend, reaching a high of 21.6 percent during the second quarter before a surge of activity in the last half of the year. In the last quarter alone, 230,000 square feet of office space was absorbed, pushing the rate down to 20.6 percent by year’s end. However, even with that improvement the vacancy rate remains above the area’s historic average rate of 18 percent.

In the retail market, Central Indiana in 2009 witnessed the “Grade A Shift,” the move of retailers from their locations into Class A properties or locations near them. The phenomenon continued throughout 2010. For example, K &G Fashion Superstore moved into the vacated Circuit City northeast location to experience a 122 percent increase in sales and become one of the highest-producing stores in the national chain.

Indiana Outpaces Neighbors in Population Gains Analysis by the Indiana Business Research Center at Indiana University’s Kelley School of Business reveals that Indiana added 403,317 residents since the last census was taken in 2000, a 6.6 percent increase. According to initial results from the 2010 U.S. Census, Indiana’s official population count was 6,483,802 as of April 1, 2010.

Indiana’s rate of population change over the past ten years falls short of the state’s 9.7 percent growth during the 1990s but exceeds the change seen in the 1970s (5.7 percent) and the 1980s (1 percent).

Among neighboring states, Indiana’s growth rate outpaced Illinois (3.3 percent), Ohio (1.6 percent) and Michigan (-0.6 percent) but lagged Kentucky’s mark of 7.4 percent.

Regional Economic Development Partnership Formed West Central Indiana economic development officials and business leaders have formed an economic development marketing alliance to serve the region.

Accelerate West Central Indiana Economic Development is a regional partnership dedicated to the growth and prosperity of Clay, Parke, Putnam, Sullivan, Vermillion and Vigo counties in West Central Indiana. The alliance serves to increase the area’s development opportunities and competitiveness through global marketing efforts, but will not replace established county development strategies in the region. The six-county area is home to more than 223,500 residents.

Mike Heaton, Duke Energy’s Economic Development Manager, will serve as the group’s chair.

Berglund Construction is proud to have built the new Apprenticeship Training and Administration Center for the International Brotherhood of Electrical Workers Local No. 697.

Located on the northwest corner of 73rd & Mississippi in Merrillville and is seeking LEED Gold Certification!

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Tippecanoe County Company Grows Andover Coils, a manufacturer of ignition coils and transformers will expand its operations in Lafayette, creating up to 52 new jobs by 2013.

The company, which manufactures ignition coils for use in the automotive, marine, aviation, industrial and health care industries, plans to invest $1.3 million to upgrade equipment and computer hardware at its 48,000-square-foot Lafayette headquarters. Andover Coils’ growth is the result of a recent acquisition of a competitor based in Illinois.

Andover currently employs more than 30 associates in Lafayette www.buildingindiananews.com

Sara Lee to Open Distribution Center Sara Lee Corporation has signed a lease for approximately 281,000 square feet of space at Plainfield Business Center at Airwest in Plainfield.

Sara Lee will occupy the remaining available space in Building 9, a 481,965-square-foot building, which is the most recent project within the 6 million-square-foot development that began in the mid-1990s. Sara Lee will establish a new distribution center at the site, which is easily accessible from the Indianapolis International Airport and Interstate 70.

Summit Reality Group represented Opus Development Corporation in the transaction. Sara Lee was represented by CB Richard Ellis and Colliers International.

Tech Company to Grow Headquarters MMY Consulting, Inc. a provider of information technology consulting services will expand its operations in Indianapolis, creating up to 60 new jobs by 2015.

The company, which provides IT consulting services and Google Apps implementation services and support to health

www.buildingindiananews.com

care providers and the private sector, plans to invest more than $700,000 to lease and equip 5,000 square feet of office space at Keystone at the Crossing on Indianapolis’ northeast side.

The Indiana Economic Development Corporation offered MMY Consulting Inc., up to $1 million in performance-based tax credits based on the company’s job-creation plans.

BUSINESS BUZZ

and planned to begin hiring additional supervisory and maintenance personnel in the first quarter of 2011.

The Indiana Economic Development Corporation offered Andover up to $150,000 in performance-based tax credits based on the company’s job creation plans.

Columbus Company Hires 115 NTN Driveshaft, Inc., a designer and manufacturer of constant velocity joints for use in automotive and other applications, has hired 115 new employees to accommodate growing demand for its products. The company currently employs more than 1,300 persons in Columbus, IN.

Indianapolis ED Groups Merge Two of Central Indiana’s leading economic development organizations have formally joined forces to create a more streamlined effort to maximize business attraction and marketing for Indianapolis and the greater region.

Indy Partnership, the regional group representing the ninecounty Indianapolis metro area, and Develop Indy, the local economic development engine for Indianapolis/Marion County, have consolidated marketing, fundraising and administrative operations to create a more efficient and effective enterprise.

The groups will maintain their separate brand identities while pursuing their respective economic development missions.

- continued on pg 22

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Since 2001, Indy Partnership has promoted the Indianapolis region in partnership with local economic development organizations in each of the metro counties. Indy Partnership works to attract new businesses to the region, and provides research and project management support to the LEDOs for their local business development efforts.

Develop Indy was launched in 2007 as the stand-alone LEDO for Indianapolis/Marion County, and works primarily to help existing businesses grow and expand in Marion County.

The two organizations will combine operations in areas like marketing, fundraising, accounting, human resources, and IT. Develop Indy will continue to focus on local Indianapolis business development issues, while Indy Partnership will continue focusing its marketing and business attraction efforts on behalf of the entire region.

A new Indy Partnership Executive Committee, made up of private sector business leaders and representatives from each of the county LEDO partners, will oversee the regional effort. The Develop Indy Board of Directors will serve as the legal governing entity for fiscal and administrative matters for both

entities and will continue to oversee matters related specifically to Indianapolis/Marion County.

Veteran economic development professional Scott Fulford will become the Executive Director of Indy Partnership, as current CEO Ron Gifford assumes the position of Executive Vice President for Policy for the Central Indiana Corporate Partnership (CICP), the regional alliance of CEOs and university presidents. Gifford will also become a member of the Develop Indy Board of Directors. Scott Miller will remain as CEO of Develop Indy.

Texas Company Coming to Indiana Officials of Texas-based Dean Baldwin Painting have signed a 29-year lease with Miami County officials for hangar space at Grissom Air Reserve Base near Peru, IN. According to published reports, the county has secured some $7.5 million in federal grants and loans to pay for a hangar expansion to accommodate the company.

Dean Baldwin’s clients include United, US Airways and Air Canada.

Zionsville Retirement Community Expands Hoosier Village in Zionsville has submitted plans to expand its campus by adding four new facilities, 50 more full-time jobs and 125 workers during construction, totaling $32 million.

A new apartment complex will replace the original Residence Hall constructed in the 1960s, renovated in the 1990s and expanded in 2001. The licensed residential building is designed to include 90 modern, convenient apartments with more accessible and comprehensive amenities.

It will feature a 23,700-square-foot Dining Center with a more modern, efficient kitchen to serve the growing needs of residents. It will include several different dining venues, from casual to traditional, with an approximate 250-person seating capacity.

A new Community Center will be built to expand wellness programming and facilities. It will include additional exercise rooms, a fully-equipped fitness center, an indoor swimming pool and locker rooms.

A new Memory Support Center, licensed for residential care, will implement design and program concepts from the most current research on Alzheimer’s and other dementia 22

www.buildingindiananews.com

Community Health Details Project Community Health Network officials have announced details of a $12 million construction project at I-465 and Washington Street that will improve access to health care and support economic development on Indianapolis’ east side.

Located on six acres at 7910 East Washington Street, construction will soon begin on Community Health Pavilion, a three-story medical building that will house a variety of health care services in 55,000 square feet of space.

When completed in early 2012, the new Community Health Pavilion will offer convenient access to the primary care physicians from Community Physicians of Indiana; specialty physicians; advanced imaging services; Mid America Clinical Labs; rehab and sports medicine; and other health-related

services. It will also house a community room dedicated to patient education and health screenings. Existing MedCheck and Community Occupational Health Services offices, located at 17th and Post Road, will also relocate to the new pavilion.

More than 100 employees will work at the new site, with nearly half of those positions being new jobs.

Life Sciences Marketing Firm to Grow in Indy VMS Inc., a biomarketing company and strategic partner to life sciences clients, will increase its operations in Indianapolis, creating up to 102 new jobs by 2015.

VMS assists clients with marketing, medical education, health care meeting management and patient adherence initiatives. The company plans to invest more than $1.5 million to expand into additional space on the northeast side of the city.

The Indiana Economic Development Corporation offered VMS up to $1,025,000 in performance-based tax credits based on the company’s job creation plans.

Logistics Management Firm to Expand Backhaul Direct LLC, a freight management and logistics firm, will grow its downtown Indianapolis headquarters, creating up to 324 new jobs by 2015.

The company, which manages distribution and transporta- continued on pg 24

www.buildingindiananews.com

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care. It will have 36 private rooms along with 7,500 square feet of common areas.

During the campus expansion, preliminary work for the future development of more independent-living homes will also be carried out. Sites will be prepared for duplex homes, which will be constructed as they are reserved. Also during construction, a dog park will be created where residents can take their dogs for off-leash exercise in a secure area.

Pending approval by the Zionsville Planning Department, Hoosier Village hopes to begin site work in late spring. Construction on the campus expansion should begin in the summer of 2011, with expected completion in 2013.

BUSINESS BUZZ

tion of domestic and international freight and offers real-time freight tracking services, will invest more than $1.7 million to lease and equip additional space at its current headquarters.

The Indiana Economic Development Corporation offered Backhaul Direct up to $2 million in performance-based tax credits and up to $75,000 in training grants based on the company’s job creation plans.

IT Company Undergoing $2 Million Consolidation In a move to consolidate its expanding technology infrastructure, n|Frame, an Indianapolis-based data center and network management firm, is relocating its 15,000-square-foot workplace and disaster recovery center to its headquarters campus in Carmel. The company plans to invest approximately $2 million in the expansion project.

Construction will be complete and the new technology center will be fully functionally by May. In the meantime, n|Frame will continue to serve its business continuity clients from its original workplace and disaster recovery center in Carmel.

The new center is designed to offer its customers an alternate corporate command center where their employees can work and the business can continue to operate seamlessly in the event of an emergency or natural disaster.

For daily news from Central Indiana and around the state, visit our blog at www.buildingindianablog.com.

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South Southern Indiana Firm Named Indiana Small Business of the Year A Jeffersonville company that designs and manufactures technical learning systems was selected as the state’s 2010 Small Business of the Year by the Indiana Chamber of Commerce. Amatrol, Inc., was chosen from a field of dozens of nominees from around the state.

Short for Automated Machine Controls, Amatrol develops skills-based, interactive technical learning systems for the education market, as well as industry and workforce training. The company enables teaching institutions to prepare students for a modern workplace by teaching them relevant technical skills.

In the time since its parent company’s founding as a small industrial automation design operation in the basement of a home in 1964, Amatrol has grown to over 130 employees. Not one employee has been laid off in the company’s history.

Accolades include garnering national recognition in 1997 by the U.S. Department of Labor, and in 2006 Siemens selected Amatrol from a worldwide search as its partner to develop mechatronics training. This year, the company has launched a new utility-scale wind and solar technology training program

www.buildingindiananews.com

BUSINESS BUZZ

and is on track for international sales to account for 20 percent of total sales.

The company has given back to its local community through scholarships, capital contributions to universities as well as equipment and space donation to local schools.

PREVENT WATER DAMAGE AT THE FOUNDATION!

Manufacturer to Grow in North Vernon Montrow Tool and Machine Inc., a manufacturer of testing gauges and specialty machines, will expand its operations in North Vernon, creating up to 30 new jobs by 2013.

The company will invest more than $810,000 to purchase and equip 10,000 square feet of additional production space at its North Vernon headquarters.

The Indiana Economic Development Corporation offered the company up to $175,000 in performance-based tax credits and up to $100,000 in training grants based on its job creation plans. The City of North Vernon will provide a tax abatement and additional grant funding will be administered through the Lawrenceburg and Southeastern Indiana Regional Economic Development Fund.

Steel Service Center Opens in Evansville Sugar Steel has located a structural steel service center in Evansville which will create up to 26 new jobs by 2012.

A wholly-owned subsidiary of Reliance Steel & Aluminum Co., Sugar Steel provides first-stage processing capabilities for steel beams, angles, channels, tubes, pipes, plates and other structural components. The Illinois-based company is investing more than $1.6 million to open for business in the 100,000-square-foot former Patriot Steel building and establish its first operation outside of its home state.

The Indiana Economic Development Corporation offered Sugar Steel Corporation up to $175,000 in performance-based tax credits based on the company’s job creation plans. The city of Evansville has offered additional property tax phase-in at the request of the Growth Alliance for Greater Evansville.

Gibson County Wins Development Award The Gibson County Economic Development Corporation was recently named a 2010 Award of Excellence winner in the Automotive Division by Expansion Solutions Magazine. 2010 is the Fourth year Expansion Solutions has presented their “Top Five” Awards of Excellence.

Gibson County Economic Development Corporation is one of five winners in the Automotive division and the only winner from the state of Indiana.

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La Porte Company Lands Southern Indiana Road Work Walsh Construction Company of La Porte was named low bidder for a $98.8 million construction project on I-69 in Daviess County.

The contract is for new road construction beginning just north - continued on pg 26 www.buildingindiananews.com

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BUSINESS BUZZ

of the White River Bridges up to and including the new interchange at U.S. 50. This new interchange will provide a critical access point which will support continued growth in Southwest Indiana. Work is anticipated to begin this spring.

Jeffersonville Payment Processor Continues Growth Heartland Payment Systems Inc., one of the nation’s largest providers of credit, debit and prepaid card processing services, will expand its Jeffersonville operations, creating up to 140 new jobs by the summer of 2011.

The company, which also provides gift marketing, payroll and check management services, will invest more than $6.2 million to add 50,000 square feet of additional office space at its current Jeffersonville service center, which was among Building indiana’s 2010 Swanky Office Award recipients.

Following the new hires, Heartland will employ nearly 800 associates in Jeffersonville.

The Indiana Economic Development Corporation offered Heartland up to $1 million in performance-based tax credits and up to $200,000 in training grants based on the company’s job creation plans.

International Conference Coming to Bloomington The Bloomington community will host the Future Problem Solving Program International Conference on the campus of Indiana University in June 2012 and 2013, welcoming approximately 2,000 participants from all over the world. The International Conference is held annually on college campuses throughout the country and commits to each host location for two years at a time.

The conference will bring 2,000 attendees and coaches to the Bloomington area, for an average stay of five nights in both 2012 and 2013. The conference will take place on the campus of Indiana University, with major events happening at the Indiana University Auditorium and in classrooms throughout campus. Organizers expect hundreds of additional visitors, including parents and grandparents traveling with participating teams.

Erin Erdmann, Manager of Convention Sales & Travel Media for the Bloomington/ Monroe County Convention & Visitors Bureau, estimates that the Bloomington community will see over $1.6 million in direct economic impact from this event each year.

Kentucky, Indiana Seal $22 Million Bridge Pact Indiana, Kentucky and the City of Jeffersonville will allocate $22 million to complete the Big Four Bridge, creating a pedestrian and bicycle path between Louisville and Jeffersonville.

The agreement will turn an unused rusting hulk into a new pathway from Van Dyke Park in downtown Jeffersonville to Waterfront Park in downtown Louisville.

Under a memorandum of agreement signed by both states, Indiana will spend up to $8 million and the City of Jeffersonville will provide $2 million in matching dollars to pay for construction of a ramp to the Big Four Bridge. Kentucky is pledging $12 million to replace the bridge deck and connect it to the spiral ramp that has been completed in Waterfront Park.

The Big Four Bridge could reopen to 26

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President Leaving One Southern Indiana One Southern Indiana President and CEO Michael Dalby will step down in April. Dalby, who has held the position since One Southern Indiana was founded in 2006, will become President and CEO of the Columbus, Ohio Chamber of Commerce.

One Southern Indiana is a business advancement organization dedicated to supporting entrepreneurship, existing business growth, and attracting new enterprises to the Southern Indiana/ Greater Louisville region.

Two Jeffersonville Firms Eye Growth Pending approval of incentive packages from the city and state, two Jefforsonville companies, Idemitsu Lubricants America Corporation (ILA) and Flexible Materials, plan to expand operations and potentially add 55 jobs.

Idemitsu, which manufactures high-performance lubricants, plans to expand its manufacturing capabilities and add 28 jobs to its facility over the next four years.

In addition, ILA could invest more than $7 million in real estate improvements, more than $13 million in equipment, and another $1 million in miscellaneous personal property.

PROJECT FINANCING DESIGN/BUILD BUSINESS EXPANSION TENANT IMPROVEMENTS FACILITY RENOVATIONS SITE SELECTION NEW CONSTRUCTION PROPERTY MANAGEMENT ARCHITECTURAL SERVICES AND MUCH MORE!

Flexible Materials, a custom wood veneer products producer, is considering the consolidation of its manufacturing operations in Jeffersonville. The consolidation of the company’s New Albany and Jeffersonville plants would immediately add 39 jobs to the 41 currently employed in Jeffersonville and would mean an investment of more than $1.7 million in equipment, building improvements, and lease payments. And as an added benefit of streamling operations, the company forecasts adding an additional 27 new positions over the next few years.

Defense Contractor Expands Gryphon Technologies (Maryland), an engineering and technical services firm, plans to expand its operations in Bloomington, creating up to 60 new jobs by 2013.

The company, which established an Indiana presence less than two years ago, provides engineering, logistics, process management and software development services to national security clients, including the Department of Defense. It will invest more than $800,000 to lease and equip an office at 2088 Liberty Drive in Bloomington.

Gryphon was awarded a $26.6 million contract by the Naval Surface Warfare Center Crane for logistics and technical support last July. The company currently employs nearly 20 and plans ongoing hiring of engineers and logistics professionals.

For daily news from Southern Indiana and around the state, visit our blog at www.buildingindianablog.com.

An expert on local, state and federal incentives specializing in medical, multi-family, industrial and commercial projects of all sizes.

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BUSINESS BUZZ

pedestrians and cyclists in early 2013. The bridge, which was built for railroad traffic in 1895, was closed and its approaches removed in 1969.

o Rogers Gets Second CEO Post Tim Rogers, president and CEO of the Economic Development Corporation of Wayne County, has been named CEO of the Wayne County Area Chamber of Commerce as well. The two organizations say that having joint leadership will make them more efficient and effective.

Outside of having a joint CEO, the two organizations will remain separate.

menn Healthcare in Bloomington, IL, where he served as Vice President of Human Resources and Marketing.

Scheiber in at Gibson Jordan Scheiber has joined Gibson Insurance Group (South Bend) as a Client Executive in Property and Casualty. He will specialize in risk management and insurance for business clients. He holds a Bachelor of Science degree in Finance from Ball State University. Prior to joining Gibson, Jordan worked for Sentry Insurance in property and casualty.

iE

Ubben to SBDC Joe Ubben has joined the Northwest Indiana Small Business Development Center as a business advisor. Working primarily with Porter County businesses, Ubben will assist clients with business planning and execution while connecting them to key region resources. Ubben is an entrepreneur with a sales and marketing communications background. He has launched and/or operated Breakaway Performance Group, Click Bug Studios and three A&W franchise locations.

Methodist Taps Horvath Methodist Hospitals (Gary) has named Alex Horvath Vice President of Human Resources. Horvath has a Master’s Degree in Industrial Relations/Human Resources from Loyola University and has more than 23 years of human resources experience. He joins Methodist from Advocate Bro28

seven years at Star Financial Bank. Chad is active in Rotary, Fishers and Carmel Chamber of Commerce, and is a YMCA little league coach.

Coleman Joins Indiana Trust James P. Coleman, III, ChFC, has joined the Indiana Trust and Investment Management Company as Senior Trust Advisor. Coleman has over 30 years’ experience providing financial services to individuals and their families, organizations and corporations. Jim has held senior management positions in wealth management organizations and will focus on building qualified retirement plan relationships.

o

DLZ Names New COO DLZ Corporation, a national, top-100 engineering and architecture firm with offices in Indiana, Illinois, Michigan, Kentucky and Ohio, has named Joseph C. Zwierzynski, P.E. to the position of Chief Operating Officer. Zwierzynski, a Valparaiso University graduate, has 29 years of professional consulting experience. For the past 12 years he has served as President of DLZ’s Indiana operations.

Garrard to Head New Office Chad Garrard has been named Assistant Vice President and Small Business Lender / Market Manager for The Farmers Bank’s new Fishers office. He brings more than 10 years of banking experience, which included

Weaver Honored as Innovator Charles Weaver, Executive Director of the Starke County Economic Development Foundation and Chair of the Economic Development Committee of the Northwest Indiana Forum was named an Innovator of the Month for January by the Society of Innovators of Northwest Indiana.

Weaver was recognized for creating and deploying a unique financial package to build an industrial park serving a planned SYSCO Redistribution Center.

BMW Names New CFO Mike Keller has joined BMW Constructors, Inc., (Indianapolis) as the Chief Financial Officer. Prior to joining the company, Mike

worked in the homebuilding and land development industry for more than 20 years as the CFO of the Estridge Companies.

His previous experience also includes work with PepsiCo and the CPA firm Harding, Shymanski & Co. PNC Appoints MacGuinness The Purdue University Board of Trustees has ratified the appointment of Paul M. McGuinness as the Purdue University North Central Vice Chancellor for Enrollment Management and Student Services. McGuinness was most recently employed at Purdue University Calumet, where he spearheaded the assessment and accreditation efforts with the Higher Learning Commission.

Rapley Takes Reins at IRMCA The Indiana Ready Mixed Concrete Association (IRMCA) has named Don Rapley President of Ozinga Ready-Mix Concrete, Inc., President of the Board of Directors.

As Board President, Rapley is particularly interested in the continued and expanded promotion of roller compacted concrete, increasing statewide producer membership and generally keeping the Association healthy. Rapley has previously served as the Board’s Vice President in 2010 and Secretary-Treasurer in 2009.

Former General Dynamics Exec to Helm AM General Charles M. Hall has joined AM www.buildingindiananews.com

General (South Bend) as President succeeding James A. Armour. Armour led AM General since 1988 and will continue as its chairman. Hall most recently served as General Dynamics’ Executive Vice President and Group Executive of the company’s Combat Systems group. He is a member of the National Defense Industrial Association and Association of the U.S. Army.

New Marketing Director at Spine Care Specialists Angie Tsikouris has joined Spine Care Specialists (Munster) as Marketing Director. A graduate of Purdue University, West Lafayette, Tsikouris was previously an account executive at Lakeshore Public Television and Radio.

Originally from Crown Point, she is a member of the Munster Chamber of Commerce and a CASA volunteer.

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IVDiagnostics Adds Feczko as Chief Science Officer John D. Feczko, M.D., Ph.D., has joined IVDiagnostics in the capacity of Chief Science Officer & Vice President, Medical Affairs. Dr. Feczko brings over 20 years of expertise in pathology with a concentration in cyto-pathology. He is the President-Elect of the medical staff at Porter Health. IVDiagnostics is an Indiana-based company with offices in West Lafayette and laboratories in Valparaiso.

Sanders to Manage Wealth First Financial Wealth Management (North Manchester) has welcomed Mallory Sanders as trust officer. Sanders will serve clients in North Manchester and Wabash County. Sanders, a

resident of Wabash, is a graduate of Manchester College and a Relay for Life volunteer.

Portage EDC Names New Executive Director Portage Economic Development Corporation (PEDCO) has announced the hiring of Bert Cook as their new Executive Director. Cook, a Portage native, was previously Retention and Expansion Coordinator for the La Porte County Economic Development Alliance and Project Manager for the Greater La Porte Economic Development Corporation.

DMS Welcomes Garcia Melissa Garcia has joined Diversified Marketing Strategies as Director of Communications. Previously, Garcia was Director of Market-

ing Communications for the Graycor Companies, and has more than 23 years of marketing experience. She holds a Bachelors in communication and public relations from Purdue University Calumet and an MBA with an emphasis in marketing from DePaul University.

She is also a senior professor at Keller Graduate School where she teaches marketing management and organizational behavior and leadership.

Birchel to Working Well Karin Birchel has joined Working Well as Account Executive for the Munster, Hammond and Crown Point. Previously, Birchel was Executive Administrator for the Porter County Clerk of the Circuit and Superior Courts. She has also worked in the banking industry in human resources and commercial loan operations. She has a Bachelor’s degree in Business Administration from Indiana University.

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photo feature Economic Development Groups Launch Campaign to Lure Illinois Businesses The Indiana Economic Development Corporation (IEDC) and the Northwest Indiana Forum held a joint news conference in February to mark the beginning of a quarter-million-dollar marketing and advertising push to entice Illinois businesses to Indiana. The effort pivots off of the recent corporate and personal income tax hikes imposed by the State of Illinois and touts Indiana’s financial and quality-of-life advantages. For more information on the initiative, which is being supported by numerous local towns and economic growth groups, see page 79.

(l. to r.) Mark Maassel, President and CEO of the Northwest Indiana Forum; Rex Richards, President, Valparaiso Chamber of Commerce; Mitch Roob, Indiana Secretary of Commerce and CEO of the Indiana Economic Development Corporation; and Don Babcock, Director of Economic Development, NIPSCO. Photo: Pete Doherty, Doherty Images.

The announcement of the new campaign drew a standing-room-only crowd of local media and key officials who had a chance to hear first-hand about Indiana’s lower taxes and more business-friendly climate. Photo: Pete Doherty, Doherty Images.

Indianapolis Hosts Annual Safety Retreat The American Group of Constructors (TAG) held its fourth annual TAG Safety Retreat in February. The Hammond-based company instituted the annual event as part of a sweeping makeover of its safety program several years ago. As a result of the program, TAG has seen its overall OSHA recordable rate fall by 50 percent and has seen safety take root as a core cultural value within the organization. The annual retreat, which includes family members, not only helps to educate employees on good safety practices, but also reminds everyone of the most important reason to be safe on the job site every day: that everyone goes home to their families at night

(l. to r.) TAG executives Ames Martin, President; Mario Munguia, Vice President of Operations; and John Marsch, CEO, at the TAG safety retreat.

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Families are a key part of TAG’s annual retreat, helping to drive home the point that safety is about returning home to your loved ones at the end of the day.

Bob Salinas, Safety Engineer at ArcelorMittal’s Indiana harbor operation, speaks to TAG members at the company’s annual safety retreat. www.buildingindiananews.com

Auto Association Raises Money for Charity

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The Northwest Indiana Auto Trade Association raised $5,200 for Schererville charter school Campagna Academy. The Association raised the funds through a donation program that committed members to giving $25 for every vehicle sold. Members of the Association’s Board of Directors presented Scott Sefton, Campagna’s Senior Director of Development & Public Relations, with a check during their February meeting.

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(l. to r., front row) Scott Sefton, Campagna; Dave Lawson, Harbor Automotive Group; John Schutz, Center Garage; Bruce Hillman, Campagna; Michael Kors, Southlake Automall. (Back Row) Cary Bosak, Bosak Automotive Group; Gino Burelli, Harbor Automotive Group; Bob Kerr, Lakeshore Ford/Toyota; William Fairchild, Art Hill Ford; Gary Richardson, Richardson Suzuki; Tom Van Prooyen, Schepel Automotive Group.

Refreshed Events Center Hosts Health Conference The Avalon Manor and Banquet Center in Merrillville has undergone a facelift to freshen its appearance for 2011. According to General Manager Peter Kaiafas, the improvements included painting, new carpeting and new furnishings. Among the first groups to take advantage of the renovation was Employer Benefit Systems (Dyer), which held a half-day seminar for benefits and human resources executives on the topics of wellness and upcoming changes in health care law in February.

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A renovation program at the Avalon Manor has upgraded the venue’s appearance and furnishings to make it more appealing to individual and corporate customers.

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Second Certification for Occupational Health Leader Working Well occupational healthcare’s facilities at Franciscan St. Anthony Health – Crown Point were honored for attaining ISO 9001:2008 certification during a January presentation at Franciscan St. Anthony Health – Crown Point. Working Well is the only occupational healthcare provider in the world to have received ISO 9001:2008 certification. The presentation was part of the Innovators Café, an ongoing series of luncheons designed to allow business and educational leaders to share strategies for innovation. The events are produced by the Society of Innovators of Northwest Indiana.

Working Well’s Michigan City location received ISO 9001:2008 certification last June.

Its remaining three locations in Hammond, Munster and Valparaiso should all be certified by the end of the second quarter of this year.

(l. to r.) Franciscan St. Anthony Health – Crown Point President Dave Ruskowski and Working Well Regional Director Tim Ross accept a plaque from Rich Shelhamer, National Sales Manager of Perry Johnson Registrars commemorating Working Well’s achievement of ISO 9001:2008 certification at the Crown Point facility. www.buildingindiananews.com

Steel Maker Honored for Equipment Reliability Initiative The Hot Mill World Class Equipment Reliability (WCER) Team at ArcelorMittal Burns Harbor was recently recognized by the Association for Iron and Steel Technology (AIST) with the Association’s Silver Reliability Achievement Award for the process to improve Hot Strip equipment reliability. This functional team at Burns Harbor’s 80” Hot Strip Mill put their knowledge of the WCER process into action and the project has resulted in more than $2 million in savings. These savings are the result of reduced maintenance issues, increased planning and scheduling efficiency on weekly repair turns and improved overall reliability at the ArcelorMittal Burns Harbor Hot Strip Mill. (l. to r.) ArcelorMittal Burns Harbor WCER team members Sam Totten, Jay Koch and Scott Piech with their Association for Iron and Steel Technology (AIST) Silver Reliability Achievement Award.

Healthcare Provider Marks Next Phase of Construction Porter Health System held a “beam-signing” ceremony in January to mark progress on the new Porter Hospital under construction at the junction of routes 6 and 49 in Porter County. The $225 million project is scheduled to be finished in 2012. Porter executives and associates gathered in the lobby of their current facility in Valparaiso to sign one of the last steel beams to be raised on the project. According to Porter officials, construction is proceeding on schedule.

Porter Health CEO John Nalli signs one of the last beams to be raised in the construction of the new Porter Hospital.

www.buildingindiananews.com

33

SHOW REPORT

Subcontractors in the Spotlight The Indiana Subcontractors Association provides networking opportunities and honors top projects at its annual Indianapolis trade show.

T

he Indiana Subcontractors Association (ISA) held its annual trade show and awards banquet in Indianapolis in February.

Billed as the “construction networking event of the year,” it featured a sold-out exhibit hall of more than 80 suppliers surrounding a networking pavilion that provided attendees with the opportunity to network with over 1,000 construction industry leaders.

As always, the highlight of the event was the annual GC of the Years Awards Banquet.

This year’s top winners were Wurster Construction, Inc., and Shiel Sexton Company, Inc., each of whom was named “GC of the Year” in their respective categories.

Shiel Sexton won in the category for general contractors with over $100 million in annual revenue and was recognized for its focus on building positive relationships.

Kevin Hunt, Vice President of Operations for Shiel Sexton, commented in his acceptance

speech on the importance of the ISA and how its members represent a huge number of companies on their jobsites.

Wurster won in the category for general contractors with less than $100 million in annual revenue. COO Steve Hodgson remarked during his acceptance speech that the ISA GC of the Year award was the greatest honor his company could receive.

Wurster Construction was also the recipient of the Project of the Year Award in the under $10 Million category for its work on the SS. Francis & Clare Catholic Church Parish Life Center Project.

Other winners included Messer Construction Co., which took the Excellence in Ethics Award as well as the Project of the Year Over $10 Million honor for the IndyGo Bus Maintenance Facility Project; and RL Turner Corporation, which won the Subcontractors’ Choice Award.

The networking pavilion allowed participants to quickly meet with a large number of construction companies and experts.

More than 80 companies exhibited at this year’s ISA show in Indianapolis.

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RL Turner Corporation was awarded this year’s Subcontractor’s Choice Award. www.buildingindiananews.com

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35

STATE OF THE INDUSTRY

Rush to Judgment “Right to work” legislation needs more study and consideration to determine if it represents sound public policy.

By Dewey Pearman, Executive Director, Construction Advancement Foundation

W

ith more than half of this year’s Indiana Legislative session completed, Hoosiers saw the effects of the convergence of politics, ideology and public policy in the debate over hot-button issues. The Indiana House Democrats left the Statehouse in protest over a number of anti-union bills being pushed by House Republicans. This maneuver denied the House Republican leadership the quorum it needed to conduct business and resulted in the death of a large number of House bills, including the anti-union proposals.

The trigger for this walk-out was the contentious and not-well-understood “right to work” legislation. With the procedural death of this bill, the issue could be over for the year, or it could resurface later in the legislative process, or it could be referred to a summer legislative study committee for further consideration. If the right to work legislation ultimately fails in this session of the legislature it will certainly be on the table in coming years.

As such, it is imperative that Hoosiers have a better understanding of this 36

important issue. Governor Daniels made an important point early in the right to work debate, noting that the proposal has not been vetted and debated during an election cycle and therefore most Indiana voters don’t understand it, and more importantly, political leaders don’t fully know voter sentiment on the issue.

Lack of Understanding

represents dues, fees, or other charges required of members of a labor organization; as a condition of employment or continuation of employment. Establishes a separate private right of action for violations or threatened violations. Exempts individuals employed in the construction industry, employed by the United States, or subject to the federal Railway Labor Act.

Synopsis: Right to work. Makes it a Class A misdemeanor for an employer to require an individual to: (1) become or remain a member of a labor organization; (2) pay dues, fees, or other charges to a labor organization; or (3) pay to a charity or another third party an amount that

This is a long way of saying that collective bargaining agreements cannot contain what are called “union security clauses.” These security clauses ensure that all employees working under the collective bargaining agreement – that is, those who enjoy the benefits of the collective bargaining agreement – pay for their share of the costs the union incurs to represent them at the bargaining table.

An example of a union security clause is: “All employees who are or become members of the union shall maintain their membership in the union as a condition of continued employment. Members of the union who fail to maintain their membership in the union shall upon the request of the union be discharged.”

As this debate unfolded I had the opportunity to discuss right to work with many business leaders and was surprised at the lack of understanding of the issue among both union and non-union employers. Let’s look at what the right to work bill, House Bill 1468 actually said, what it means and what it effects are likely to be.

The synopsis of the bill prepared by the Legislative Service Agency reads as follows:

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Union leaders make the point that, absent union security clauses the union has a duty to, and incurs the cost of representing an employee who may choose not to be a union member. The fear among union leaders is that if workers the union represents choose not to be union members, then the financial base of the union will be eroded and the unions’ ability to represent workers will be diminished, leading to an eventual dismantling of the union structure. Union leaders also note that under current federal law an individual does not have to be a union member, but is required to pay fees to the union that are directly related to union representational activities, if the collective bargaining agreement contains a union security clause.

Politics, Ideology and Public Policy

Let’s look at the politics, ideology and public policy dimensions of this issue. The politics and ideology are sometimes hard to separate, but I think some distinction here is appropriate.

On the political side, as a general rule, and let me be clear that there are important exceptions, Republicans tend to be more opposed to unions than Democrats. No great insight here. But it is also fair to say that, as a rule, again with important exceptions, unions have historically supported Democrats with money and workers to a greater degree than Republicans.

Some may be turned off by this, but the way our political system works is you help your friends, and you tend not to be so helpful to those who are not your friends. That’s the nature of politics.

On the ideological side, there are people who support union because they feel in their hearts that unions are good for our society. These tend to be Democrats, though I know of Republicans who feel much the same way. On the other hand, there those who feel in their hearts that unions are bad for our society. These tend to be Republicans. I think the stalemate we find the Legislature in is due in large part to the convergence of these political and ideological motives.

Proponents of right to work legislation argue that the law would enhance the State’s ability to attract jobs. Supporters cite studies and data to bolster this argument, while opponents cite their studies and data arguing that right to work states are no more economically successful, and in many cases less suc-

The existence of conflicting studies and data is a compelling argument that too little is understood about the issue to push it through this year’s Legislature. cessful than states without right to work laws. They cite Bureau of Labor Statistics data which indicates that average worker wages in right to work states are $5,538 a year less than non-right to work states. This is why opponents of right to work often call the proposal the “right to work for less” bill.

What’s Best for Indiana Workers?

The existence of conflicting studies and data is a compelling argument that

too little is understood about the issue to push it through this year’s Legislature.

As an example of the need for clarity, for the sake of discussion let’s assume that both of the arguments above are correct. That is, the proponents are correct that right to work would make it easier to attract jobs to the state, and opponents are correct that right to work results in lower average wages. What is the compelling public policy imperative?

Are we better off with more jobs at lower wages?

I suppose your perspective on this question would depend on if you are one of the millions of Indiana residents who are currently employed. If you are, you would not want your wages lowered and would be inclined to oppose right to work. Indiana workers’ wages are already at 84 percent of the national average. Then again, if you are one the roughly nine percent of Indiana workers without a job you might come down on the side of the proponents.

The General Assembly needs to take its time to sort through all of the implications of the proposal and to weigh public sentiment on the issue.

An Economic Question

This is where I think the public policy dimension needs to be factored in. In fact, I believe the politics and ideology need to be set aside in favor of sound public policy arguments. This is basically an economic question. That is, are we better off, or worse off being a right to work state? www.buildingindiananews.com

37

THE BOTTOM LINE

Take It to the Bank Indiana banks find ways to help in tough times.

By David Wellman

E

ven though the economic recovery is slow and lending standards remain tight, Indiana banks are continuing to find ways to help customers weather the storm and even grow as opportunities present themselves. From small business loans to refinancing to commercial real estate loans, they have helped new and existing customers to maintain and build businesses over the past year.

Peoples Bank in Munster provided one example of lending a helping hand to a business in need. Dan Duncan, Assistant Vice President at Peoples Bank and John Diederich, Executive Vice President, relate the story of a local company whose troubles started in late 2009. “It was a local business that had been in business for ten years, and ran into difficulty when it got stiffed when a payee went bankrupt,” Duncan says.

Like many small businesses, this one had started out with financing from friends and through personal credit cards, and initially the business turned to those tools again. It wasn’t until those options began to fill up that the owner approached the bank.

“Too many people are afraid to come and talk to the bank,” Diederich says. “We are very interested in working with them 38

and helping them get through.” Peoples was able to work with the business to consolidate debts, increase monthly cash flow and institute a plan to get the business debt-free in five years.

Others tell the familiar story of a community bank scoring a new customer after they’ve been turned down by a bigger bank.

In mid-2010, Centier Bank in Merrillville was approached by a local insurance agent whose landlord was forcing him out of his office in a strip mall in order to replace him with a higher-paying tenant. With less than 60 days to move, the agent found a new location, but it needed work and his existing bank – a large national player – wasn’t interested in financing any type of commercial mortgage because of the overall weakness in the commercial real estate market.

“He came to Centier, because he had heard that it was a community bank that was interested in helping small businesses succeed,” says Thomas J. Wilk, Senior Vice President, Business Banking, at Centier.

“Centier was able to provide construction/ renovation financing in conjunction with end loan financing. Centier was also able to partner with the Regional Development Company through the SBA 504 program.

Northeast Indiana Bank Expands in Indianapolis Lake City Bank (Warsaw) is expanding into an 11,000-square-foot regional headquarters in Indianapolis. The new facility will house its commercial lending operation, which has been active in the state capital since 2006.

Construction began in mid-March and is expected to be completed in October. According to Lake City Bank Chairman and CEO Michael L. Kubacki, the new office is reflective of the bank’s growth in Indianapolis, especially on the commercial lending front. “We enter Indiana markets with a long term view, and expect this to be the first of many offices in the community,” he said.

“Our goal is to establish a base of operations upon which future market expansion can occur.”

The office will eventually be home to more than 25 Indianapolis team members, including senior management of the Bank’s Indianapolis Commercial Banking Department. The office will also be home to the market’s Wealth Advisory, Honors Private Banking and Lake City Bank Investment and Brokerage teams. In addition, the commercial banking staff will provide direct access for clients to specialists in Commercial Treasury Management Services, Corporate Bond Administration, Retirement Services and Merchant Card Services. www.buildingindiananews.com

Indiana Banks Assist 20,000 Community Groups in 2010 Nearly 20,000 community groups in Indiana were assisted last year by the Indiana banking community, according to a survey conducted by the Indiana Bankers Association (IBA).

In 2010, Indiana banks donated more than $23 million to community causes and more than $1 million for scholarships and reached over 95,000 children with financial literacy efforts.

In the category of general community causes, IBA members reported that in 2010: • 19,910 community groups were assisted • 17,206 bank associates helped with banksponsored community causes • 615,154 man-hours of service were donated

• $952,650 raised (through car washes, staff “dress down” days, etc.) for community causes • $23,155,489 donated by banks to community causes • $1,074,120 donated by banks for scholarships • $809,144 donated by banks through in-kind contributions to community causes In the category of financial literacy, IBA members said that in 2010: • 5,426 financial literacy presentations were made by banks • 3,033 bank associates helped with financial literacy projects • 16,893 adults were reached through financial literacy efforts • 95,692 children (age 18 or younger) were reached through financial literacy efforts

From approval to the borrower moving into his new, updated location less than 58 days went by. The borrower is now building equity in his own project, vested in the community, and his customers are thrilled with the new look and feel of his office.”

Along similar lines, Centier was able to

help another borrower who was having trouble finding financing for a new assisted living facility, despite having a strong portfolio of existing commercial investment properties. After Centier provided the money, the project was completed ahead of schedule and under budget and has since become a

successful venture. “The borrowers have quickly become valuable clients of Centier,” Wilk says. “In the past year they have opened multiple operating accounts to service their portfolio of properties, are utilizing remote capture services, and have gone on to successfully develop additional facilities in Central and Northwest Indiana.”

Helping existing customers has been a priority for banks as well. Michele Miller, Assistant Vice President, Business Banking, at 1st Source Bank (South Bend) cites a customer who has been with the bank for 15 years. “They started out in a garage, stayed on plan and are a perfect example of someone you want in your portfolio,” she says.

Thanks to an innovative product, the company faced increasing demand despite the overall economy and needed to invest in more space and more equipment that would enable them to increase their manufacturing capacity. Based on the company’s track record of success, 1st Source was eager to help. “They are not highly leveraged, they know the risks,” Miller says. “They have done a good job at all the things you really look at and that helps to build trust.”

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39

BEING PRODUCTIVE

They Did It My Way How to get your employees and co-workers to do what you want them to do.

By Marvin Marshall, Ed.D.

L

eadership would be easy if it weren’t for those we lead.

As any leader or manager knows, getting people to actually want to do the tasks you need them to do can be a challenge. Without their motivation to want the same goals and objectives as you have, people will not fully commit to a task.

Unfortunately, many managers and leaders rely on external motivators to get people to do things. For example, using rewards as enticements and threats of punishment are approaches aimed at obtaining obedience and compliance. They overpower, rather than empower. Telling people what to do and then rewarding them if they do as expected, or threatening them if they do not, increases stress while diminishing professional relationships.

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Since these management approaches are manipulative, the results are never as effective as cultivating in the employee the thought process of internal motivation.

Manipulative approaches are something you do to another person and have little long-lasting effects.

This is in contrast to working with a person to empower the person.

Whenever you impose something on someone, it only produces short-term results because the person doesn’t have any ownership in it. Think about it: If these external motivational approaches were effective, getting employees motivated to carry out the company’s needed objectives would be easy, not something managers read countless books about.

The irony of manipulating behavior is that the more you use it in an attempt to control people, the less real influence you have. Although managers want to remain in control, the paradox is that the more you empower others, the more effective you become. In addition, if people only do things because they are forced to, not because they want to, then you haven’t really succeeded as a leader. Truly effective leaders know how to trigger internal motivation for commitment that has people want to carry out objectives without the lure of a reward or the fear of threat.

Following are three powerful, enduring and universal practices that will make your management much easier. By implementing these practices on a regular basis,

your staff will be more eager to accomplish mutually beneficial goals.

1

Positivity

So often, when we want our employees or co-workers to change, we attempt to influence them by using negative communications rather than positive ones that would actually prompt them to want to do what we would like.

Even the worst salesperson knows enough not to make the customer angry. Yet, because we allow our emotions to direct us, we often ignore this commonsense approach when dealing with staff members and send negative messages. You can easily tell if your communications are sending negative messages if what you say blames, complains, criticizes, nags or threatens.

Positive communications elevate the spirit; they offer encouragement and support. They send the message that the other person is capable of handling challenges.

Positivity creates hope and prompts feelings of being valued, supported and respected. Communicating in positive terms triggers enthusiasm, capability, pride, dependability and responsibility—none of which are triggered by negativity.

Because being positive is so enabling, it makes sense to stop all thoughts and communications that are negative. Therefore, become conscious of phrasing your communications with your team so they will be in positive terms. Continually ask yourself: “How can I communicate this message in a positive way?” For example, saying, “Don’t be late again tomorrow,” is disabling, and prompts being late because the word “don’t” is not visualized; what www.buildingindiananews.com

comes after the “don’t” is what the brain visualizes. “I look forward to your being on time tomorrow,” prompts the picture you want, is enabling, and is much more effective.

2

Choice

When people resist doing something you ask of them or do something contrary to your instructions, rather than force your request on them, offer them choices; then watch how quickly their resistance weakens. Offering choices paves the way to changing behavior and is much more effective than barking orders. By giving staff members some degree of control, you will get more cooperation. There is a simple reason for this: People do not argue with their own decisions.

Even when there are no choices about whether or not to do something, you can build in some element of choice. Just a small one qualifies because any choice allows the person to retain dignity and power. For example, suppose you need one of your employees to do a webinar to educate current clients about some new product features. The choice is not whether to do the webinar. The choice is in the how. “Would you like to do a live WebEx meeting or a recorded demo of the new features?”

By giving a choice of how to do the presentation, you can avoid a confrontation. Offering choices is a simple approach you can use to immediately reduce resistance.

3

Reflection

The most effective approach for influencing another person is to ask reflective questions. When specific reflective questions are asked, people are prompted to think, reconsider, change their minds and grow. By asking this type of question, you will accomplish what you want more www.buildingindiananews.com

effectively, with less resistance, and with less stress. By having the employee reflect, you instantly avoid the person’s natural resistance to being controlled.

Reflective questions are noncoercive. They guide, rather than force. Reflective questions elicit a thinking response and are framed to fit the situation and clarify. Specifically, they • Focus on the present or future—as opposed to the past • Often start with “What?” or “How?” • Are usually open-ended in that they require more than a “yes” or “no” answer As soon as you start asking reflective questions, you will immediately realize the effectiveness and power of this strategy. Questions such as the following promote deep and reflective thinking: • “What would be the best approach to…(reach the sales target, reduce errors, increase production, etc.)?”

• “How can we correct this mistake?”

• “What would you recommend we do differently next time?”

• “What can you do to accomplish that objective?”

• “How can we do that without disrupting…(R&D, the sales cycle, manufacturing, etc.)?”

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When you regularly use these three practices of positivity, choice and reflection, you will become a more effective manager. Additionally, your team members will naturally put more effort into their work and will achieve greater results. By switching from coercive management behavioral approaches to collaborative and empowering thinking approaches, you can influence your staff to perform at peak performance levels, which will positively impact your company’s bottom line.

41

SMALL BUSINESS SPOTLIGHT

small Business

Booster Shot The Small Business Administration has instituted temporary rules allowing the use of the 504 loan program to refinance mortgage debt.

By David Wellman

S

mall businesses facing maturity of commercial mortgages or balloon payments before December 31, 2012, may be able to refinance their mortgage debt with a 504 loan from the U.S. Small Business Administration (SBA) under a new, temporary program announced in late February.

The new refinancing loan is structured like the SBA’s traditional 504, with borrowers committing at least 10 percent equity and working with thirdparty lending institutions and SBA-approved Certified Development Companies (CDC) in the standard 50 percent / 40 percent split. A key feature of the new program is that it does not require an expansion of the business in order to qualify.

SBA began accepting refinancing applications on February 28. The program, authorized under the Small Business Jobs Act, will be in effect through September 27, 2012.

“The economic downturn of recent years and the declining value of real estate have had a significant, negative impact on many small businesses with 42

mortgages maturing within the next few years,” says SBA Administrator Karen Mills. “As a result, even small businesses that are performing well and mak-

“Phase one will allow commercial mortgages that are renew-

This program will provide up to $33.8 billion of total project financing and is expected to benefit as many as 20,000 small businesses. ing their payments on time could face foreclosure because of the difficulties they face in refinancing and restructuring their mortgage debt. This temporary program is another tool SBA can provide to help these small businesses remain viable and protect jobs.”

The SBA will initially open the program to businesses with immediate needs due to impending balloon payments before December 31, 2012.

“The program is being released in phases,” explains Erica Passauer, Senior Vice President of Lending at the Regional Development Company (RDC), a Valparaiso-based CDC.

ing or maturing by December of next year to be refinanced.

The idea is to assist the business that most need it first.”

The SBA will revisit the program

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later and may open it to businesses with balloon payments due after that date or those that can demonstrate strong need in other ways. Passauer says that the SBA has not laid out a timetable as to exactly when that could happen.

Borrowers will be able to refinance up to 90 percent of the current appraised property value or 100 percent of the outstanding mortgage, whichever is lower, plus eligible refinancing costs. Loan proceeds may not be used for other business expenses. Existing 504 projects and government-guaranteed loans are not eligible to be refinanced.

The new program is subject to same loan size and liquidity standards as the traditional 504 loan, but one important difference is that it does not require job creation.

“Normally the loan requires one job created per $65,000 in loan debenture,” Passauer says. “This new program requires one job per $65,000 debenture. The thinking is that without an opportunity to refinance a business could go under, so it’s about job retention.”

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Congress authorized the SBA to approve up to $15 billion in loans under this program ($7.5 billion in both fiscal 2011 and 2012). Together with the first mortgage, this temporary program will provide up to $33.8 billion of total project financ-

The new program will initially be open to businesses with commerical mortgages that renew or mature by December of 2012. ing. Additional fees charged to the borrower will cover the cost of this refinancing program and as a result no subsidy will be needed. The program is expected to benefit as many as 20,000 businesses.

Long-Term Development Tool

SBA’s traditional 504 loan program is a long-term financing tool, designed to

encourage economic development within a community. A 504 loan provides small businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization.

Typically, a 504 project includes three elements: a loan (or first mortgage) secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a second mortgage secured with a junior lien from an SBA Certified Development Company (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business borrower.

Passauer reports that within 24 hours of the new program’s announcement, the RDC had been flooded with inquiries. Unfortunately, many businesses have loans which mature beyond the December 2012 deadline, so while the new rules will help, she expects the immediate impact to be limited. “When they open this up beyond 2012, that’s when we will see a lot of activity,” she predicts.

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COMPANY SPOTLIGHT

An ARC into the New Era of Reprographics Document Management and Managed Print Services (MPS) represent an untapped avenue of significant cost savings for many companies.

ARC Founded: 1989 Headquarters: Walnut Creek, CA Active Customers: 140,000 NYSE: ARC Revenues (2009): $501 million Web Site: www.e-arc.com Indiana Division: Crown Point Phone: 219-663-3758 Contact: Jim Asbury E-mail: jim.asbury@e-arc.com Services offered: • Managed Print Services • Global Document Shipping Services • Document Management • A & E Fulfillment Services • BIM Services • Digital Services • Color Printing and Signage • Digital Publishing

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Advances in technology have changed numerous industries, but few as profoundly as the Reprographics industry. Yesterday’s Blueprinter is now today’s document manager – and has rapidly evolved into a complete solutions provider for any organization seeking ways to easily manage, track and audit their information assets and of course…save valuable dollars.

u Competitive Edge Jim Asbury and his business partners Dan Nicksic and Jim Scott have experienced these changes within their companies over the past two decades…SBD Reprographics in South Bend and Crown Point, and Digital Reprographics of Fort Wayne. So when the opportunity came in August of 2007 to leap ahead of the curve, they took it and agreed to an acquisition by California-based reprographics titan American Reprographics Company, this country’s largest reprographics firm with 4,000 employees and a global network of service centers. By teaming with ARC, they could provide their customers with the edge they needed in an increasingly competitive marketplace.

Mr. Nicksic stated, “ARC was looking to strengthen its presence in the Midwest, and everything they brought to the table was exactly what we needed to help

them do just that. They had the technology, forward-thinking leadership and global footprint, so it was the perfect fit. Their footprint, expertise and years of experience far outweigh what local competitors can offer.”

The acquisition of SBD Reprographics, has allowed ARC to grow throughout Indiana quickly. In addition to the South Bend and Crown Point offices, ARC Indiana now has offices in Fort Wayne and Indianapolis and will continue seeking new strategic locations around the state.

u Printing ‘Explodes’ Despite promises of a “Paperless Society,” and perhaps because of them, Mr. Asbury, now Senior Consultant for the Indiana Division of ARC, is busier than ever. Far from going out of style, printing has exploded… but now in a new age format. What could once only be done with bulky, expensive equipment and software can be accomplished today with the click of a mouse and any networked printer.

As a result, a lot of companies now have devices ranging from office copiers and desktop printers to large-format equipment of all types and are printing wildly on a regular basis. Most of them unaware of the significant amounts of money they spend on printing, software or of the time and labor involved in maintaining aging electronic records and any business-critical files.

Ensuring that information is quickly accessible 24/7, from any location, in the proper format, and delivered to the right persons at the right time, is a daunting task for most companies but is exactly what ARC does best.

ARC makes sure that their clients’ important documents are available to their www.buildingindiananews.com

COMPANY SPOTLIGHT

Secrets of Managed Print Two key areas in which Managed Print Services (MPS) deliver efficiencies and cost savings: Workflow Optimization…This includes not only an audit and evaluation of what printers and copiers exist in an organization, but also of the production needs, software applications used, output quality requirements, common deadlines and other factors. Examples of savings which can be found here might be converting invoices to PDFs and emailing them versus printing and mailing, or electronically transmitting documents and printing closer to a job site, instead of printing and overnight shipping.

Pay-by-usage…A key difference between an MPS program and a traditional equipment purchases is that the printing is treated more as a service and not an equipment sale.

Typically, the MPS program is structured so that a significant part of the cost is based on employee print usage. Equipment becomes incidental to the service and can be replaced with bigger or smaller equipment as required. Large companies benefit from being able to cycle equipment in and out of the fleet and having the ability to re-deploy underutilized equipment.

Smaller organizations typically don’t have this luxury. However, many small organizations can benefit from Pay-Per-Click (PPC) service programs. PPC replaces the traditional one-time sale of the machine and often includes the ability to change equipment when customers require it. This allows for quick deployment of higher-volume machines during peak business times. If business cycles to slower growth, appropriate and costeffective machines can just as easily be deployed.

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business partners and customers in realtime.

The truth is, whether it’s plans and specs for construction, facility layout plans, manufacturing line drawings, operations and technical manuals, presentations or simply a spreadsheet, the information will always be worthless if there’s no way to deliver it on time. ARC has developed multiple platforms to address these needs. Launched only last September, and growing rapidly, is PlanWell Collaborate, complete with MS Outlook integration. “PWC” is quickly becoming the the flagship product in ARC’s PlanWell Suite of document management applications.

wide reprographics company with more than $500 million in annual revenues in less than ten years.

In 1999, ARC responded to the need for applied technology in the reprographics industry by developing industry-specific internet and software applications, as well as e-commerce-based business models, for managed print and electronic document services. These were initially geared toward the architectural, engineering and construction industries, but can now benefit any company dealing with paper and electronic documents and the ability to track the distribution of this information.

Today, the company’s global team provides its core services through a proprietary suite of reprographics technology products, a global network of more than 340 reprographics service centers and more than 4,000 facilities management programs at customer locations worldwide. Service centers are digitally connected as a cohesive network, allowing the company to provide its services to more than 140,000 active customers.

Printing and documentrelated activities can still account for up to 3% of a company’s annual revenues.

u Needs Assessment Printing and document-related activities can still account for up to three percent of a company’s annual revenues, according to industry research. Not surprisingly, since those costs are often overlooked, identifying and addressing them can drive significant savings.

A typical client meeting begins by discussing, learning and understanding their current workflow on an intimate level, and then putting together a true and factual needs assessment based on these findings. In most cases, it’s a home run since printing and document management usually doesn’t command attention at the executive level…until you present them the actual dollar savings they could realize on an annual basis.

ARC has been providing solutions such as these for companies ranging from small businesses to Fortune 500 titans for more than a decade. Founded in 1989 in Los Angeles, ARC (now a publicly traded firm) grew from a single, $9 million reprographics firm to a nation-

u Indiana Solutions ARC Indiana aims to expand that customer base by delivering to companies in and around the Hoosier State the benefits and solutions that ARC has already provided to such major companies as ArcelorMittal, Boeing, Duke Energy, HDR, AECOM, Gensler, WhitingTurner, HOK, CH2MHill and M A Mortenson.

It doesn’t matter what size your company is, if you are printing anything or storing anything, chances are that you could be saving something. Contact ARC Indiana for a consultation today.

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Indiana Convention Center Contractor List Construction Managers Shiel Sexton Company, Inc. Powers & Sons Construction Company, Inc. Outreach Coordination nubian Construction Group General Conditions Mezzetta Construction Services, Inc. Demolition Sabre Demolition Corporation

Center of

Temporary Earth Retention System Richard Goettle, Inc. Mass Excavation, Site Utilities, Site Finishes HIS Constructors, Inc. Concrete, Retailing Wall, Dock Pavement, Misc. Steel, Pedestrian Connector, Streetscape Improvements f. A. Wilhelm Construction Co., Inc. Structural Steel & Decking Lenex Steel Corporation Masonry Purdy Masonry, Inc. Electrical, Technology ERMCO, Inc. Elevators & Escalators Schindler Elevator Corporation Fireproofing Circle B Construction Systems LLC Roofing & Metal Hinshaw Roofing & Sheet Metal Co., Inc. Framing, Drywall, Doors, Carpentry Gibson - Lewis, Inc. Terrazzo & Hard Tile Santarossa Mosaic & Tile Co., Inc. Residence Flooring CornerStone flooring Painting & Wall Covering Custom Coating, Inc. Overhead Doors Professional Garage Door Systems, Inc. Fire Protection Ryan fireprotection, Inc. Mechanical & Controls Greiner Brothers, Inc. Surface Parking Lot Davis & Associates, Inc.

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Indianapolis completes its latest convention center expansion with an eye toward doubling the number of large shows it attracts.

A

By David Wellman

fter more than five years of study, planning and construction, officials from the Indiana Stadium and Convention Building Authority opened the doors to the latest expansion of the Indiana Convention Center in January. The fourth expansion since the Center originally opened in 1972, it upgraded the facility to the 16th-largest convention center in the nation. Combined with the neighboring 1,000plus room Marriott Place hotel complex,

completed in February, it creates a potential destination for conventions that the city previously lacked facilities to host. If it lives up to expectations, the combination of the new Lucas Oil Stadium and the convention center expansion will generate more than $2 billion in economic activity for Central Indiana over the next decade, and more than 4,000 permanent jobs. “Convention planners tell us Indianapolis is now competing with top convention cities such as Chicago, Denver, Washington www.buildingindiananews.com

Attention EXPANSION STATS: The Indiana Convention Center Expansion includes: • A two-level addition that will provide 254,000 square feet of additional exhibit space • 63,000 square feet of new meeting room space

D.C. and Orlando because of Indianapolis’ lower comparable hotel rates, a compact downtown and because 4,700 hotel rooms are now connected to the Convention Center,” says Lori Dunlap, Deputy Director of the Indiana Stadium and Convention Building Authority. “We’re told that this is more hotel rooms than any other city in the nation to be connected by way of climate-controlled skywalks. We’re also told that there is only one other city in the nation – St. Louis – that has its convention center conwww.buildingindiananews.com

• 103,000 square feet of pre-function and registration space • 24 new loading docks Source: Indiana Stadium and Convention Building Authority

nected to its stadium, so this is a big selling point nationally and internationally.”

Even before the official grand opening, signs were pointing in the right direction.

According to the Indianapolis Convention and Visitors Association (ICVA), 69 large conventions have already been booked or retained, translating into more than $1.3 billion in economic impact for Central Indiana.

The expansion isn’t a showcase for just the city, but for its construction industry as

well. “Indianapolis has long been blessed with a great pool of quality tradesmen,” says Tom Scheele, Senior Vice President of Shiel Sexton Company, Inc., which acted as construction manager on the project in a joint venture with Powers & Sons (Gary).

“Projects like these are inspirational and they are truly proud to leave their mark on the Indianapolis skyline.”

In total, he says about 3,500 construction workers spent roughly 1.4 million hours on the expansion. More than $9 out 47

CONSTRUCTION STATS: Used in the expansion of the Indiana Convention Center: • About 8,000 tons of structural steel • About 8,500 light fixtures • About 30,000 cubic yards of concrete (enough to pave a one-lane road from downtown Indianapolis to Noblesville)

• About 379 miles of electrical wiring and 235 miles of tele-data wiring • There are 273 exhibit hall floor boxes that provide fiber, A/V, power, water and air service.

Source: Indiana Stadium and Convention Building Authority

of every $10 spent on construction went to in-state companies, and $71.5 million of the $243 million in contracts awarded as of mid-January had gone to minority- and women-owned businesses.

For Scheele, convention center expansion are getting to be a regular gig; he also headed up the Phase III expansion (this new one being Phase V). That experience gave him a handle on what was necessary to successfully execute the project.

“To us, preconstruction planning is one of the most critical activities in the building process. We know that decisions made in the early stages of design and preconstruction carry the most significant impact on the final outcome of a project,” he says. So Shiel Sexton had its preconstruction team dig into everything from form and function of the

design to cost and time implications, all of which was shared during regular meetings with the building authority and various subcontactors. “The streamlined decision making the Indiana Stadium and Convention Building Authority put into place for such a large project, invariably saved the state monies in its ability to move through critical decisions quickly,” he adds.

PLAYING THROUGH

That commitment to planning ahead helped keep the expansion on track despite the fact that it had to basically “play through” a number of other activities, ranging from the construction of the J.W. Marriott Indianapolis one block away to the Indianapolis Colts’ season.

“During construction the project team

creatively worked around the existing convention center’s schedule of events and an elevated rail line that sliced through the southern part of the job site,” Scheele says.

“Plus, a 1,245-foot enclosed climate-controlled connector from the convention center to Lucas Oil Stadium was constructed under the rail lines while the rail service remained active and while the stadium was in use during the Indianapolis Colts’ season.”

The connector – which includes large, tinted glass windows and is filled with natural light – measures 1,245 feet long, 30 feet wide and ranges from 31 feet high to a minimum of nine feet six inches high.

About 75 percent travels south along Capitol Avenue and then dives under elevated CSX railroad tracks. The final quarter of the connector goes under South Street to

Congratulations

Indiana Stadium & Convention Building Authority FRANKFORT

HINSHAW INDIANA

Hinshaw Roofing & Sheet Metal Co., Inc. Roofing & Architectural Metal 765.659.3311 www.hinshawroofing.com

Mezzetta Inc.

General Conditions 317.328.8003 www.mcfsi.com

Lenex Steel Company Structural Steel & Decking 317.818.1622 www.lenexsteel.com

Ryan Fireprotection Fire Protection 317.770.7100 www.ryanfp.com

Indiana Convention Center 48

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MAJOR GROUPS/CONVENTIONS BOOKED AT THE INDIANA CONVENTION CENTER FOR 2011 March Fire Department Instructors Conference Hotrod & Restoration Trade Show American Challenge 2011 April NCAA Women’s Final Four Tourney Town National Council of Teachers Mathematics Annual Golden Gloves National Tournament May Association for Iron & Steel Technology OneAmerica 500 Festival Mini Marathon Expo Do it Best Corp. May Market June National Baptist Congress on Education July 2011 Pokemon U.S. National Championship August Gen Con 2011: The Best Four Days in Gaming October Do it Best Corp. October Market November National FFA Convention 2011 Indianapolis Monumental Marathon/Registration Percussive Arts Society International Convetion 2011 WSF Cheer & Dance Nationals

Attendance 32,000 5,000 8,000 25,000 8,000 10,000 5,700 35,000 10,000 60,000 5,000 45,000 12,000 50,000 5,000 6,200 8,000

Source: Indiana Convention Center

the northeast corner of Lucas Oil Stadium. This section enters the stadium at the event level , allowing quick and easy access to meeting rooms, exhibit halls and the playing field. Combined with Lucas Oil Stadium, the entire amount of space for conventions and meeting uses rises to more than 1.2 million square feet.

“It is not unusual for us to work with other contractors and adjacent to other projects in a tight urban environment,” Scheele says. “The expertise of our staff members in planning out and executing a comprehensive logistics sequence goes a long way toward keeping disruptions to a minimum for all business owners in the vicinity of the construction project.”

“We are very pleased with the results of the project,” Dunlap says. “The complex is a true jewel for our state. The new entrance facing Georgia Street and Conseco Fieldhouse is a welcoming destination point for visitors and the three story glass cube www.buildingindiananews.com

turned out even more magnificent than we envisioned, allowing daylight to reach throughout the Center and creating a beautiful gathering point in the middle of the facility.”

RAMPING UP OUTREACH

To promote the new convention center, the ICVA is ramping up its outreach efforts. “The ICVA has increased its large conventions target goal to 20 – previously they’ve had 10 – while still putting an emphasis on luring more events of all sizes,” Dunlap notes. “The ICVA also is targeting corporate businesses mostly from the pharmaceutical, medical, life sciences and sports-related industries. This is because their research indicates that doctors, physicians and researchers tend to stay longer and spend more per day on average when they’re at a destination.”

In addition, the city is bringing meeting planners in from around the country for personal tours of the expansion.

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Travel & Tourism Statistics While Indiana isn’t normally thought of as a big tourist draw, the fact is that tourism still plays a strong role in the state’s economy. According to study by Ball State University, the hospitality industry – including hotels, motels, campgrounds, RV parks and bed & breakfasts – produces more than $1.4 billion in revenue annually. Of that, more than $834 million was in turn spent by the industry on labor, capital costs and in taxes.

The same study also examined the impact on promotional spending by convention and visitors bureaus. The impact varied widely depending on what was being promoted, but overall, for every $1 spent by CVBs, roughly $15 was generated in additional tax revenues for state and local governments.

The Hoosier State contains many hidden treasures. Take, for example, the Allen County library, which was visited by more than 3.1 million people in 2009. Located in Fort Wayne, the library houses one of the nation’s most extensive Genealogy Centers with more than 350,000 printed volumes and over 513,000 items on microfilm and microfiche, as well as the largest English-language genealogy and local history periodical collection in the world. It’s a magnet for researchers, scholars, historians and hobbyists.

Then there’s the Indiana Dunes National Lakeshore in Northwest Indiana, which recorded a record-setting 2,165,605 visits in 2010, an 11.8 percent increase over 2009, making it a more popular destination than Mammoth Cave National Park, Everglades National Park, and Gettysburg National Military Park.

RESTAURANTS BY CONGRESSIONAL DISTRICT – 2008 DISTRICT 1 2 3 4 5 6 7 8 9 TOTAL

ESTABLISHMENTS

EMPLOYEES

1,221 1,303 1,158 1,000 1,022 1,057 1,486 1,253 1,230 10,731

24,972 26,653 23,680 20,462 20,913 21,630 30,405 25,628 25,157 219,500

Source: National Restaurant Association

7,100

Number of downtown hotel rooms in Indianapolis following the completion of the new JW Marriott hotel.

$8.7 billion 52.6%

Source: Indianapolis Convention & Visitors Association

Projected sales for Indiana restaurants in 2010.

Source: National Restaurant Association

Indiana hotel occupancy rate in 2010, up from 50.6% in 2009.

Source: Smith Travel Research STR Global

1 in 10 jobs in Indiana is related to hospitality and tourism.

Source: Indiana Department of Tourism

For more on travel & tourism, visit www.buildingindiananews.com.

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The East North Central Census region, which includes, Illinois, Indiana, Michigan, Ohio and Wisconsin, was the destination of CASINO REVENUES BY STATE – 2009 RANK 1 2 3 4 5 6 7 8 9 10 11 12 13

STATE Nevada New Jersey Indiana Mississippi Louisiana Pennsylvania Missouri Illinois Iowa Michigan Colorado South Dakota Kansas

NO. OF CASINOS

TOTAL GAMING REVENUES

260 11 13 30 18 9 12 9 17 3 40 35 1

$10,393.00 $3,943.00 $2,799.00 $2,465.00 $2,456.00 $1,965.00 $1,730.00 $1,429.00 $1,381.00 $1,339.00 $734.59 $101.9 $1.99

CHANGE VS. 2008

TAX REVENUE $831.75 $347.62 $878 $296.34 $598.14 $929.04 $469.09 $495.61 $306.17 $320.01 $101.53 $15.98 $0.537

8.6%

of international visitors to the U.S. in 2009.

Source: U.S. Department of Commerce, ITA, Office of Travel and Tourism Industries

$77.28

Indiana average daily hotel rate in 2010, down 44 cents versus 2009.

Source: Smith Travel Research STR Global

Source: 2010 AGA Survey of Casino Entertainment

Indiana welcomes more than

62 million visitors each year, generating more than $10 billion in visitor spending statewide.

Source: Indiana Department of Tourism

10%

County Innkeeper’s Tax Rate in Marion County, the highest in Indiana Source: Indiana Department of Revenue

www.buildingindiananews.com

MOST POPULAR INDIANA INSIDER BLOG POSTS – 2010 RANK 10 9 8 7 6 5 4 3 2 1

POST Summer Indiana BBQ Festivals Get a Great Deal on Vera Bradley Merchandise!

Free is Key at Holiday World Evansville Otters Baseball for Southwest Indiana Zipline Indiana The Circle of Lights on Indianapolis’ Monument Circle Go Hog Wild with Indiana State Fair Discounts Looking for Fall in Indiana?

Go North!

Titanic Exhibit at the Indiana State Museum is a Definite Must-See Indiana Transportation Museum’s Pumpkin Train

SUBJECT Best BBQ festivals in Indiana Annual Vera Bradley sale in Fort Wayne Holiday World amusement park The Evansville Otters Dagaz Acres.

Circle of Lights The Indiana State Fair Northern Indiana Fall hotspots The Titanic Exhibit.

The Pumpkin Train

Source: Indiana Insider Source: Indiana Insider

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MASS PRODUCTION Indiana Governor Mitch Daniels and Nanshan America Co. Ltd. President Lijun Du unveil plans for a $100 million aluminum extrusion facility during an event in Lafayette.

Aluminum Victory China-based Nanshan Group will open its first U.S. production facility in Lafayette, boosting an already strong Hoosier aluminum industry.

W

By Kathy Mayer

hen it comes to metals, Indiana is probably best-known for steel, thanks to the massive mills dotting the state’s northern shoreline.

But the Hoosier state is no slouch when it comes to aluminum, either – in fact, according to the U.S. Census Bureau’s Annual Survey of Manufactures for 2009, more than 10 percent of the nation’s alumina and aluminum production and processing industry employees work in Indiana, making the state No. 1 nationwide.

And in terms of total value of shipments of aluminum products, Indiana is second only to its southern neighbor, Kentucky.

That gap looks to narrow next year when a division of the Nanshan Group, based in the People’s Republic of China, will begin production in a $100 million, 435,000-square-foot aluminum extrusion manufacturing facility and office in Lafayette. It is slated to open in early 2012 and will employ 150 within two years.

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The Lafayette plant, the company’s first manufacturing site in the United States, will be known as Nanshan America Advanced Aluminum Technologies and located on 50 acres in Park 350, a 330acre industrial park near Veterans Memorial Parkway and U.S. 52.

“The facility will make high-end aluminum extrusions used in mass transportation, automotive, distribution, industrial and electrical industries,” says Lijun Du, President of parent company Nanshan America Co. Ltd. “We will also make train-body material for the upcoming high-speed rail industry. It will be a very competitive combination – Chinese capital, state-of-the-art equipment from Europe and the U.S. with the most recently patented technology, experienced and innovative American management and a talented local workforce.”

Aluminum is expected to continue to play a growing role in transportationrelated industries, especially automotive.

According to The Aluminum Association, an Arlington, VA-based trade group, aluminum usage in cars has doubled, and in SUVs, tripled, over the past decade. As a percentage of vehicle content, aluminum passed plastic in 2000 and iron in 2005, and now trails only steel.

Next-Generation Vehicles

“Use of automotive aluminum in North American light vehicles was estimated at nearly nine percent of vehicle curb weight in 2010 – an all-time high,” notes Randall Scheps, Chairman of the association’s Aluminum Transportation Group. “For the next generation of cleaner, safer, higher performing vehicles, aluminum will continue to be a growing part of the solution.”

Scheps says that for every 10 percent weight reduction from substituting aluminum for conventional steel, cars can improve fuel economy by five to seven percent. And of note to Indiana’s nascent alternative fuel vehicle industry, there’s a www.buildingindiananews.com

potential savings of up to $3,000 apiece for plug-in electric vehicles that switch from steel to an advanced aluminum body because the stored energy requirements of batteries can be cut by 10 percent. Both aluminum-structured hybrids and aluminum-bodied diesels could return about a 13 percent increase in fuel economy, as compared to steel-bodied hybrids and diesel vehicles.

Access to the U.S. automotive industry was one reason for locating the Nanshan plant in Lafayette. “The site we purchased in Lafayette makes a lot of sense for our business,” says Du. “It is close to our main market. We have easy access to Interstate 65, a truck diesel station nearby, low business costs, technical support from Purdue, a strong workforce base and training capabilities at Ivy Tech Community College.”

The community’s open arms were also a factor, he said. “During the process of this strategic decision making, we have had a feeling that we are coming back home. The whole community is welcoming Nanshan as a friend coming back. And that is important for a Chinese company making its first $100 million U.S. investment in the largest economy in the world.”

www.buildingindiananews.com

ALUMINA AND ALUMINUM PRODUCTION AND PROCESSING INDUSTRY - 2009 STATE Kentucky Indiana Tennessee New York Ohio Pennsylvania Texas Alabama California Michigan West Virigina Illinois Missouri Georgia Wisconsin

PAID EMPLOYEES 4,522 5,038 2,608 2,352 3,114 2,173 2,407 1,647 2,192 2,183 1,560 1,605 1,588 1,349 952

ANNUAL PAYROLL ($1,000) $251,793 $285,251 $147,389 $149,677 $139,393 $112,860 $114,322 $79,689 $94,868 $101,108 $97,304 $67,296 $86,401 $55,642 $33,937

TOTAL VALUE OF SHIPMENTS ($1,000) $3,927,087 $2,902,559 $1,990,246 $1,861,851 $1,208,798 $1,106,757 $999,533 $970,678 $746,633 $721,928 $653,193 $625,872 $623,040 $569,295 $253,186

Source: U.S. Census Bureau, Annual Survey of Manufactures, 2009

Du’s Lafayette ties include earning a master’s of science in industrial administration in 2004 from Purdue University and formerly serving as director of China operations for Oscar Winski Co. Inc., a Lafayette-headquartered business.

Phase 1 construction is already underway. “We plan to install equipment in January 2012, with production slated to

begin in the second quarter of 2012. Average wages will be $15.27 per hour, plus benefits,” Du says.

Lafayette Mayor Tony Roswarski believes those jobs are important, but only part of the picture. “The positives in today’s announcement are both abundant and ongoing, tangible and intangible,” says Lafayette Mayor Tony Roswarski.

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“At the top of the list is the jobs –150 new jobs. Next is the long-term economic impact.

Greater Lafayette Commerce, which worked closely with the company to bring its manufacturing plant here, estimates that the local impact will be $412 million in the company’s first decade here,” Roswarski said.

“Less tangible but of great significance to Lafayette are the global implications of Nanshan America’s decision,” he said.

“It’s a big world, a world with many countries, states, cities and towns looking for a company like this to choose them. And Lafayette was chosen.

Purdue Welcomes Alum

Purdue President France Córdova welcomed the return of a Purdue graduate to the community. “This is a proud day for Purdue, as another one of our graduates has become a successful leader and role model for our students,” she said. “We are prepared to help Nanshan build a profitable, healthy business by assisting with recruiting support and employee training programs.

“We also look forward to working with Nanshan through internships and co-op programs, fulfilling the company’s needs and providing our students with invaluable experiential learning,” she added.

Purdue is establishing an administrative team to assist with services, from education, workforce development and consulting experts to recruiting interns, graduates and alumni.

Local economic development agency Greater Lafayette Commerce worked closely with Nanshan representatives, said Jody Hamilton, Director of Economic Development.

“From the first notice we received that Nanshan America Co. Ltd. might be interested in Lafayette to the time we knew they had chosen our community was an amazingly short period of time – only about two 54

months,” she said. “That kind of timeline is quite unusual.

Because we continually work on recruitment, we were able to pull our team together and respond immediately. We were ready.”

Greater Lafayette Commerce first learned of the company’s interest in early November.

“We didn’t know it then, but company representatives had already visited here three times,” Hamilton said. “I began direct communications with the company on December 21 and met with their site team on January 5. Their company chairman visited here on January 7, and we were soon finalizing details.

“It was not a slam dunk, however,” she said. “We did have competition, others who

“It’s a big world with many countries, states, cities and towns looking for a company like this. And Lafayette was chosen.”

- Tony Roswarski, Mayor, City of Lafayette

wanted this company in their town. One was another Indiana community and two other states were in the running, too. In the end, what Lafayette had to offer proved to be the best, and today we welcome a new industry to town.”

The city of Lafayette, Tippecanoe County, and the WorkOne West Central Indiana office and its REACH Center are providing a combined local incentive package valued at $7.6 million.

The incentive package includes $1.2 million in Tax Increment Financing (TIF) funds toward land, equipment and capital improvements; $6.1 million in proposed, 10-year tax abatements; up to $200,000 in training funds; and assistance from WorkOne. www.buildingindiananews.com

www.buildingindiananews.com

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InTAC Contractor List General Contractor Berglund Construction Co. Architect Design Organization, Inc. Barricades & Flagging Security Industries, Inc. Diamond Coring Co., Inc. Temporary Fence Security Industries, Inc. Excavation, Utility Work, Excess Soil Removal & Dewatering Ziese and Sons Excavating, Inc. Structure/Miscellaneous Steel Munster Steel Co., Inc. Concrete C&S Concrete Construction, Inc. Asphalt Paving Rieth-Riley Construction Co., Inc. Masonry Colvin Masonry Company Drywall/Accoustic kleckner Interior Systems, Inc. Glass and Glazing Precision Wall Systems, Inc. Flooring Master Tile Carpet One floor & Home Painting & Wallcovering Prism Painting Company, Inc. Millwork & Finish Carp Hensley Custom Cabinetry Doors, Frames & Hardware Lazzaro Companies Inc. Overhead Doors Anagnos Door Company Inc. Roofing E.C. Babilla, Inc. Fire Protection f.E. Moran Inc. fire Protection of northern Illinois Elevator Otis Elevator Company HVAC Arctic Engineering Co., Inc. Plumbing Circle “R” Mechanical, Inc. Electrical Continental Electric Co., Inc. Electrical Tri-Electronics, Inc. Final Clean Building Performance Company, Inc.

56

Powering the Future

IBEW 697’s new INTAC facility is more than just a headquarters and training center, it’s a showcase for green power technology.

T

By David Wellman

here’s no getting around it: the new International Brotherhood of Electrical Workers Local 697/National Electrical Contractors Association Joint Training Center in Merrillville is pretty cool. It even comes complete with a slick, vaguely military-sounding acronym: INTAC, short for “IBEW NECA Training & Administration Center.”

And, as befits a cutting-edge electricians’ school, it’s a power geek’s toy box of technology, ranging from a boiler about the size of washer/dryer set that heats the entire 42,000-square-foot complex to the 21.5 kilowatts of solar panels on the roof to the wind turbine that’s going up just as soon as local officials give the nod.

A full-size wind turbine? “As big a one as they’ll let us put up,” grins Ray Kasmark, Business Manager for the local. And why not? After all, the primary purpose of the new facility is education, and there’s no better way to learn how to work on a wind turbine or install a solar panel than by actually doing it.

The same approach is taken inside the building. Whereas the local’s old center in Hammond had just a pair of classrooms and a lab, INTAC boasts seven classrooms, a lab, and a practical application lab that several times larger than anything available before. Many of the classrooms feature hands-on stations – with literally millions of dollars of equipment obtained with the aid of grants from www.buildingindiananews.com

Congratulations IBEW Local 697 & NECA – Northern Indiana Chapter

Arctic Engineering Co., Inc. HVAC 219.947.4999 www.arcticengineering.com

Berglund Construction Co. General Contractor 219.926.4246 www.berglundco.com

Continental Electric Co., Inc. Electrical 219.938.3460 www.continentalelectric.com

Design Organization, Inc. Architecture & Interior Design 219.476.1400 www.designorg.com

F.E. Moran Inc. Fire Protection Fire Protection 219.923.2352 www.femoran.com

Kleckner Interior Systems, Inc. Drywall/Accoustic 219.787.8876 www.klecknerinteriors.com

The Performance Companies, Inc. Commercial & Industrial Janitorial Services 800.358.6951 www.performancep.com

Rieth-Riley Construction Co., Inc. Asphalt Paving 219.977.0722 www.riethriley.com

Security Industries, Inc. Perimeter Security Specialists 219.942.9447 www.siifence.com

Training & Administration Center www.buildingindiananews.com

57

electrical equipment manufacturers – that let students continue to learn by doing.

In part due to the economy, this is the direction in which training is moving. “We have lots of hands-on opportunities because of the competitive nature of the business,” Kasmark says. “There’s not as much time for training on the job site so there has been a big shift back to training in the classroom.”

It’s serendipitous, then, that INTAC is opening just when it’s needed, even though plans for a new hall and training center have been in the works for more than a decade.

“We started a building fund in 1997,” Kasmark says, in order to replace a Hammond location originally built in 1968. In addition

...a showcase

to being too small, the old building was no longer convenient to the local’s membership.

“All the members used to live in the Hammond area,” he notes, but over the years local 697’s membership, which now includes about 1,000 active and 400 retired members in Lake and Newton counties, has shifted east. With the Merrillville location, “we are back at the center of our membership, so we can get people to come back for night school and continuing education programs,” Kasmark says.

LEED Experience “A Big Deal”

Conversations about a new facility started in 1997 and, thanks to a member who was also a certified LEED professional, the idea of making the center a green building arose. “After all, technology and innovation is who we are and what we are about,” says Karl Krizmanic of +5 Residential Electrical Contractors (Hammond). “And we wanted experience with LEED. That was becoming a big deal and a lot of our guys didn’t have any experience with it.” It turned out to be a wise decision, he adds. “That was four years ago, and now communities are starting to adopt green standards for buildings in the community.”

Thus, INTAC became not just a training center, but also “a showcase for what we do as a trade,” Kasmark says.

Of course, LEED involves more than power-related elements like LED lighting and plug-ins for electric vehicles. The local tapped the Valparaiso office of planning, architecture and interior design firm Design Organization, Inc., to design the structure, thanks in no small part to their experience with LEED. Other green elements that were part of the construction phase or incorporated into the facility include: 58

www.buildingindiananews.com

for what we do as a trade...

- Ray Kasmark, Business Manager, IBEW Local 697

Hands-on electrical workstations in an INTAC lab.

www.buildingindiananews.com

The glass-enclosed electrical and technology service rooms.

59

The history wall at INTAC honors the union’s past. Pictured are members of Sweeny Electric, circa 1952.

Future plans for INTAC include a wind turbine, more solar panels and a demonstration green roof featuring native plants.

• Glass-enclosed electrical and technology service rooms in the main lobby with video displays to monitor building performance, as well as an internet connection which monitors solar panel power output.

• Coordination with the Save the Dunes Council to preserve the native habitat, reduce storm water quantity and improve of storm water quality.

All storm water on the site is filtered through rain garden and discharged into a pond onsite before eventually being released into the nearby Deep River.

• Forestry stewardship management and the harvesting of on-site hardwoods for inclusion in building construction and furnishings.

White Lumber in Valparaiso milled the trees and Prickly Pear Furnishings in Hammond turned the wood into paneling and furniture.

• A high percentage of recycled and regional materials.

• Healthy building features such increased ventilation, low VOC paints, caulks, and adhesives, as well as daylighting and views for occupants.

• Prior to construction, NIPSCO provided a permanent power infrastructure in place of the usual temporary setup, allowing the solar panels to be hooked to provide power for construction.

• IBEW 697 worked with the town of Mer60

www.buildingindiananews.com

rillville to reduce parking spaces to the minimum necessary, which decreased the amount of asphalt and in turn decreased the amount of runoff from the facility.

• INTAC features both a white roof that reflects sunlight to counteract the “heat island” effect and has space set aside for a demonstration “green roof” featuring palletized native plants that require minimal water. The green roof will be installed in the spring.

Directed by Berglund Construction

(Chesterton), work got underway on INTAC in September 2009, with steel going up in February 2010 and the union taking occupancy on December 17th of last year.

“Berglund was really good,” Kasmark says. A focus on communication and joint planning led to a smooth job with few change orders, resulting in a job than came in seven percent under budget – which is a decent chunk of change on a $10 million project.

In addition to the turbine, plans call for

Part of a mural which will represent the IBEW’s heritage in the region.

www.buildingindiananews.com

the number of solar panels to be doubled, increasing power capacity to 43 kilowatts.

Initially, Kasmark says the local was hoping for LEED Silver certification for the facility. However, he now believes they have a shot at LEED Gold. An official verdict is expected from the arbiters of LEED, the U.S. Green Building Council, in July.

For more about INTAC visit www. buildingindiananews.com.

Wood paneling made from hardwood harvested at the site.

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Companies at AmeriPlex at the Port Chrysler/Daimler Distribution Walgreens Co. Office/Distribution Tri-State Hospital Supply Corporation Office/Distribution Starin Office Graycor Industrial Constructors Office/Warehouse family Express Corporation Convenience/Gas fluor, Inc. Warehouse/Distribution foster Wheeler USA Corp.

Warehouse/Distribution kv Works, Inc. Office Lyons & Bolek LLP Office

Lakeshore Solutions Inc. Psychiatric Office Hilton Hotels Corp.

Laundry Facility Applied Industrial Technologies, Inc. Office/ Distribution Specialty foods Group, Inc. Warehouse Allied valve Inc. Distribution DRD LLC Warehouse/Distribution Country Inn & Suites

by Carlson Hotel fairmont Supply Co. Office/Warehouse Silvent north America, LLC Office/Warehouse

RMC Office

Manufacturing Solutions International Office/Manufacturing

Calumite Company LLC Office/Testing Lab

Longhorn Steakhouse Restaurant

Sheet Metal Workers Local 20 Office/Training Center

Bass Pro Shops Destination Retail

Hosley International, Inc. Warehouse/Distribution Great Lakes Engineering Office/Warehouse MonoSol RX Office/Distribution Holladay Properties, Inc. Office Quadrelle Realty Services Office

Quaker Steak & Lube Restaurant Iron Workers Local 395 Office/Training Center Starbucks Restaurant Egg on Your face Restaurant kramer & Leonard, Inc. Warehouse/Distribution Chicago Tribune Warehouse/Distribution

Dogan & Dogan Attorneys at Law Law Office

flowserve Corporation Office/Distribution

villages of Indiana Inc. Office

vision Wheels, Inc. Office/Distribution

Dungarvin Office/Training Area General Electric Company Office/Warehouse

62 62

Specialty foods Group, Inc. Warehouse/Distribution

Access to rail lines, highways and ports has been a key factor in AmeriPlex at the Port’s growth.

Site Success

Since opening in 2000, AmeriPlex at the Port in Portage has become one of Indiana’s most successful business and industrial parks.

T

By David Wellman

he thing about location, says Bert Cook, Executive Director of the Portage Economic Development Corporation (PEDCO), “is that it’s something you either have or you don’t. And we have it.”

Located in northern Porter County in Northwest Indiana, Portage has unique highway, rail and maritime advantages that act as a natural magnet for business. To make the most of its geographic opportunity, Portage worked with developer Holladay Properties (South Bend) to establish AmeriPlex at the Port in Portage. Since breaking ground in July of 2000, 70 percent of the total land carved out for the park has

been developed, and a piece of property that was generating just $32,000 annual in tax revenue now shovels more than $1.7 million a year into Portage’s coffers.

The initial TIF bonds issued to build the necessary infrastructure for the AmeriPlex at the Port “was a significant investment,” says Portage Mayor Olga Velazquez, “but it proved to be a great return on investment. It is a great advantage to have a light industrial park like this to bring jobs to Portage and Northwest Indiana.”

One of a number of Holladay “AmeriPlex” properties, AmeriPlex at the Port is home to 43 companies who employ more than 1,200 people. Conwww.buildingindiananews.com

A piece of property that was generating just $32,000 annual in tax revenue now shovels more than $1.7 million a year into Portage’s coffers

To date 20 buildings have been constructed at AmeriPlex at the Port.

struction of facilities for these companies – 20 building totaling nearly 2.5 million square feet so far – has meant nearly $150 million in construction dollars for the area’s building trades as well. Recent additions include Foster Wheeler USA Corp, part of the B.P. Whiting Refinery Modernization Project, which opened in AmeriPlex in 2010, and a 44,000-squarefoot area headquarters for Graycor Industrial Constructors, which will open this year.

Graycor, one of the Chicago-area’s largest companies, chose to build a new facility at AmeriPlex at the Port in order to best serve key customers in the region, including Arcelor Mittal, BP, Northern Indiana Public Service Co. (NIPSCO), www.buildingindiananews.com

The offices and training center for Ironworkers Local 365.

“It is a great advantage to have a light industrial park like this to bring jobs to Portage and Northwest Indiana.”

- Olga Valazquez, Mayor, City of Portage

Praxair and U.S. Steel, as well as to position itself for future expansion “The Northwest Indiana operations center’s proximity to key resources and business partners will help us continue to offer quality services as we broaden in scope and geography,” says Tom Muchesko, Senior Vice President, Graycor Industrial. “We appreciate being warmly welcomed by the community and are excited

about having a facility close to our Northwest Indiana clients.”

Companies located at the complex are a bit more mixed than are found in many industrial parks due in part to its sheer success. In addition to office, warehousing and distribution operations, AmeriPlex at the Port also boasts retail and hospitality operations to service park employees as well as people living in the surrounding area. These include a Country Inn & Suites hotel, Family Express gas and convenience store, restaurants Longhorn Steakhouse and Quaker Steak & Lube, and retailer Bass Pro Shops, which has a 130,000-square-foot store in the park. And, adds Cook, it’s also adjacent to the Indiana Dunes National Park, 63

Companies at the park include Walgreens, Graycor, General Electric, Foster Wheeler and the Chicago Tribune.

AmeriPlex at the Port is home to 43 companies who employ more than 1,200 people.

Natural surroundings help make the park unique.

64

“which really speaks to the quality of life in the area.

“I’ve seen a lot of industrial parks and nothing is as impressive as AmeriPlex at the Port,” he says. “You can’t help but bring prospects through to look at it.”

In fact, Cook says, the park was one of the key reasons he agreed to return to his native Portage to head up PEDCO after spending more than five years with Greater La Porte Economic Development Corporation and Greater La Porte County Economic Development Alliance. “The development offers opportunities you just don’t see everywhere, in Indiana or in the nation,” he says. “It’s well-planned, has a variety of uses and the infrastructure is impressive.”

One new use coming to AmeriPlex at the Port is that of shared office space. After a child care center left part of the site’s Dearborn Building, Holladay has decided to re-imagine the space along shared office lines.

“We had this pretty large bit of office space ideally suited for a day care, but not really suitable for anything else,” says Mike Micka, Vice President of Development for Holladay

Properties. “We weren’t really sure what we were going to do with the space since we didn’t have any day care prospects at the door.” However, while Holladay wasn’t getting many calls for 6,203-square-foot spaces, Micka says they were getting a number of inquiries for small office space in the 100 to 1,000 square feet range.

“For example, you have people working for a company in Chicago looking for a regional office so they don’t have to go into the city all the time,” he explains. They were also getting inquiries from homebased businesses that were looking to grow and wanted to be able to present a more professional image.

Thus was born the Dearborn Executive Suites. “It really is the perfect solution to our problem,” Micka says. “Now, instead of trying to find one to two new tenants and doing really extensive and expensive renovations to the space, we can use the existing layout to provide immediate space to up to 11 smaller users.”

Available offices in the Dearborn Executive Suites range from 138 square feet to 1,009 square feet and feature a 1,994-square-foot comwww.buildingindiananews.com

Cook cautions that PEDCO remains in the “looking at options” stage but hopes to be able to commit to some actions in the next six months.

Mayor Velazquez is also looking at more investment in the area, pointing to plans to use part of the TIF district funds from the AmeriPlex at the Port to develop the 70 acres along the road opposite the park.

The Dearborn Executive Suites building.

mon area. The larger spaces have private bathrooms and storage closets and could house multiple cubicles or could be built out for private offices. Smaller offices can be combined or multiple offices could be rented to suit any user. There is also a shared conference room. Currently, Micka says, Holladay isn’t planning to provide shared office services such as a receptionist, but a shared copier for all the offices is a possibility.

Overall, Micka says, activity at AmeriPlex at the Port is picking up. We

“I’ve seen a lot of industrial parks and nothing is as impressive as AmeriPlex at the Port. You can’t help but bring prospects through to look at it.”

- Bert Cook, Executive Director of the Portage Economic Development Corporation (PEDCO)

are seeing a lot more people looking for space,” he says. “Seven to nine months ago, the phone was hardly ringing at all.”

Though the park already has many benefits, Cook and PEDCO are hoping to bump its game up even more by bringing more fiber optic lines into the park. There is incomplete service already, and PEDCO is putting the finishing touches on a study of exactly what is in place and what could be done. “There have been studies before but we are talking about taking the next step and looking at implementation,” Cooke says. “So fiber could be an infrastructure tool for us in the future.” www.buildingindiananews.com

Accelerated Rehabilitation • Manta Industrial • Stevenson Crane Service Inc. Senator Sue Landske • Hoeppner, Wagner & Evans LLP

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LOGISTICS

Wanted: More Rail Talk of intermodal rail facilities in northern and central Indiana continues as the legislature eyes a tax credit that could fuel needed rail expansion.

I

By David Wellman

t can be fairly said that Indiana runs on rail. The state ranks among the top 10 nationwide in more than 20 rail and rail-related logistics categories, and even so the Hoosier State’s rail potential isn’t close to its peak. However, moving forward will require adding more capacity to meet the industry’s growing needs.

While rail traffic fell dramatically in 2009 due to the recession, there was a strong rebound in 2010.

According to the Association of American Railroads (AAR), total carload traffic on U.S. railroads last year increased 7.3 percent compared to 2009, the single largest yearover-year increase on record.

Total annual intermodal traffic in 2010 grew at an even faster pace, 14.2 percent, with 11.3 million total truck trailers and shipping containers, compared with 9.9 million trailers and containers in 2009.

The combined increase in total annual 66 66

carloads and intermodal trailers and containers was roughly equivalent to 20,000 additional trains moving in 2010 versus 2009.

That still isn’t as much traffic as the industry recorded in 2008, but any breather this gave to Indiana’s railroads won’t last long. “We will see a doubling of rail cargo in the state by 2035,” says David Holt, Vice President of Operations and

“We will see a doubling of rail cargo in the state by 2035. We don’t have the capacity for that, so the railroads will have to upgrade and add lines.”

- David Holt, Vice President of Operations and Business Development, Conexus Indiana

Business Development at Conexus Indiana. “We don’t have the capacity for that, so the railroads will have to upgrade and add lines.”

The Indiana Department of Transportation (INDOT) is on the same page.

Based on recommendations contained in a 2009 report by Cambridge Systematics prepared for the Department, “we and the railroads are in agreement that extra capacity is needed,” says Jim Pinkerton, Media Director for INDOT’s La Porte District, “but there’s been no funding because of the economy. At the moment, he www.buildingindiananews.com

adds, INDOT is in the process of redoing its rail plan, with the new plan scheduled to come out in late 2011 or early 2012. “That could have new directions,” Pinkerton says.

The recommendations made in the 2009 report strongly encouraged more and greater communication between the railroads, government agencies like INDOT and quasi-governmental bodies such as the Ports of Indiana in order to pry efficiencies out of the existing rail system.

One such set of conversations bore fruit in February when the Port of Indiana - Burns Harbor selected Norfolk Southern to provide onsite, dedicated railswitching services to its customers.

The partnership will allow for more and longer trains to service customers at the port, with Norfolk Southern providing storage and switching services via its rail yard adjacent to the port. “This agreement not only improves daily rail service to our port customers, but it will also increase operational efficiencies at both Norfolk Southern and the Indiana Harbor Belt Railroad, making it be a win-win for all parties involved,” says Steve Evans, Norfolk Southern’s Assistant Vice President for Ports and International Business.

Unexpected

Intermodal Need

But while every little bit helps, without additional capacity, the kind of rail traffic jams common to Chicago and NorthINDIANA TOP 10 RAIL RANKINGS west Indiana will 1ST in rail tons of primary metals originated spread elsewhere in rail tons of primary metals terminated in the state. In 2ND in rail tons of petroleum products terminated Chicago, shippers in rail tons of waste and scrap materials terminated who offload cargo 3RD in local freight railroads for transfer to the in total freight railroads rail system often 4TH in Class 1 railroads experience delays in local rail mileage of several days in regional railroads due to congestion.

5TH in rail tons of food products originated “I talk to comin switching/terminal railroads panies who say that if northern 7TH in rail carloads Indiana had an inin rail tons of farm products originated termodal facility in rail tons of waste and scrap material originated 8TH and they could get in rail tons of coal originated away from Chiin rail mileage cago, they could in rail tons of coal terminated save $1,000 per in Class 1 rail mileage 9TH box,” Holt says. in rail tons carried Based on current in freight rail employment rail traffic in In10TH in rail tons originated diana, he says that Source: Ports of Indiana could easily cut costs for shippers “This partnership creates by $250 million or more a year. several opportunities for our Talk of intermodal facilities customers to grow business, in- in La Porte, Fort Wayne and Avon cluding implementing unit trains in Central Indiana has gone on where appropriate, improving for some time, but the railroads switching services inside the have yet to pull the trigger. That port, and working closely with could finally change this spring, other carriers when opportuni- when economic development ties present themselves,” says officials in Fort Wayne hope to Rich Cooper, CEO for the Ports hear good news from Norfolk of Indiana.

Southern. At the request of the www.buildingindiananews.com

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Fort Wayne-Allen County Economic Development Alliance, the railroad is studying the prospect of converting the New Haven Depot, a former Department of Defense site used to stockpile raw materials, into an intermodal facility. The site, already on Norfolk Southern’s lines, would require relatively little investment to convert – about $2 million in improvements to rail lines and storage areas plus some improvements to local roads – says Andi Urdis, President of the Alliance.

A decision is expected in April.

Railroads have been reluctant to invest in intermodal facilities because of the costs and because their traditional business model put them one step removed from customers. “The railroads in general are like American auto manufacturers: they produce the

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The biggest step Indiana could take to spur development of intermodal centers is to pass Senate Bill 222, which would provide a 50% tax credit for logistics investments. product but they’re not the retailer,” Holt explains. “The steamship lines are the ones who deal with the railroad. So the railroad sometimes has no idea of the volume they have from an individual company.”

But the railroads are starting to come around. “Once they look at the markets and the customers there, they say, wow,” he reports.

Indianapolis is an example. The push for an intermodal yard in Avon is driven by the amount of business the city could provide.

“There is enough volume in Indianapolis to have direct service to Long Beach, California,” Holt says. “Right now, companies like Cummins have to haul everything to and from Chicago. If you have trains coming directly into Indianapolis, that alleviates all of that time and expense.”

The concept is the same in

Fort Wayne and La Porte, he says, pointing to Warsaw-based duck producer Maple Leaf Farms as another example. “Right now they ship everything to Mexico in refrigerated trucks,” he says. “If they could put that on a rail car to Florida it would save time and money.”

Key Tax Credit

The biggest step Indiana could take to spur development of intermodal centers, and rail in general, is to pass Senate Bill 222 this session, Holt says. The bill would provide a 50 percent across-the-board tax credit for logistics investments. “Illinois and Ohio offer these kind of credits, so they’re eating our lunch,” he says. Backed by a lobbying effort led by the Indiana Chamber of Commerce, the Indiana House Transportation Committee passed the bill 9-0, “and after it was passed all nine members signed on as co-authors,” Holt says.

Despite that support, the tax credit remains an uphill fight because, according to the Indiana legislature’s accounting methods, passing it would decrease revenues, so legislators would have to make offsetting spending cuts.

The state only takes into account revenue lost from the credit, and does not factor in gains from any additional spending that the legislation would spur.

“Basically, they are saying that companies will invest anyway, so we are just giving money away,” Holt says. “But I don’t believe it will take away from the state because most companies weren’t going to spend the money in the first place.”

Holt points to testimony of the CFO of Brightpoint before the transportation committee.

The Indianapolis-based company is currently examining three locations, including one in Indiana, for a new distribution center that would employ up to 400 people at wages as high as $30 an hour. “He testified that having that tax credit would have a ‘major impact’ on their decision,” Holt says. www.buildingindiananews.com

CONSTRUCTION

There’s never been a better time to build, but make sure your builder can deliver what he promises and works well with others.

Contracting Success I

By David Wellman

t’s hard to understate the impact of the recession on the construction industry. As just one example, according to the most recent figures from commercial real estate association NAIOP, commercial construction spending in Indiana fell from $12.5 billion in 2007 to just $3.8 billion in 2009.

Anecdotal evidence suggests things have improved since, but the industry remains a long way from where it was four years ago.

However, what’s been tragic for construction firms has been great for project owners, who have seen construction costs plummet and, even then, projects routinely coming in under budget. In its 2010 yearend report, the Construction Owners Association of America identified the continued low cost of construction services and materials as the top trend of the year.

Facilities managers and owners attribute this to a combination of a buyer’s market for construction services, and contractors and subcontractors who are bidding at cost just to keep people working. They also note that both the quality of work and construction speed have improved. Contractors and subcontractors have winnowed their employees down to www.buildingindiananews.com

the best and most-experienced, resulting in a better product, and the slow pace of new projects combined with a surplus of labor means work is getting done faster.

In short, there’s never been a better time to build. However, it’s also never been more important to do the due diligence on contractors and subcontractors before signing off on a bid. Facilities managers say one of the biggest challenges today are the low bids themselves – in their zeal to get the job, subcontractors may understate costs, requiring owners and general contractors to go through proposals with a fine-toothed comb.

On larger projects, requiring that contractors post performance and payment bonds has become more common. This adds slightly to costs, but protects everyone involved if the contractor has financial problems during the project.

The lack of work has also meant that many contractors and subcontractors are wandering further afield than in the past.

Just because a company is new to the area or market isn’t a reason to reject them, but project owners are checking newcomers’s resumes thoroughly.

One skill that’s become required in re-

cent years is the ability to work well with others. The traditional design-bid-build model has given way to integrated, collaborative approaches such as design-build.

Alternative procurement methods like Construction Manager at risk have grown in popularity as well. Under a CM at risk model, a contractor is chose as construction manager based on a set list of qualifications, works with the owner in the design phase, and then acts as a general contractor, taking bids and subcontracting out work during the construction phase. Integrated Project Delivery (IPD), a collaborative approach aimed at improving quality, reducing waste and maximizing efficiency in construction projects, is another growing approach.

None of this is to suggest that the old standbys shouldn’t be checked off when eyeing contractors for a project. They still need liability insurance (that won’t expire during the project) and worker’s comp insurance. Questions about safety programs, OSHA training and QC procedures still need to be asked. But double- and triplechecking low bids and ensuring a collaborative spirit have become critical factors in ensuring the success of a project.

69

COMPANY SPOTLIGHT

The Wood Wizards “Museum Quality is Our Standard”

I

f you’re looking for a fresh example of the old phrase, “good things come in small packages,” then meet D&L Wood Products, Inc. The Northwest Indiana-based company, which designs, fabricates and installs custom architectural millwork and casework for commercial properties, not only punches far above its weight on a regular basis, but routinely knocks its clients out with stellar quality and service.

From a 20,000-square-foot (and growing) facility in Crown Point, D&L Wood Products provides its services on a national basis. The company recently completed work closer to home – in Indianapolis – on JW Marriott’s new flagship hotel, earning kudos from the project’s construction manager, Hunt Construction Group, in the process.

It was an extremely satisfying conclusion to the project for D&L Wood Products President and founder Bob Ligda. While his company has a long history with Marriott brand owner White Lodging (his first project, nearly two decades ago, was a $450 bench for the hospitality giant) there were still concerns that the 25-employee firm would be in over its head on the 1,005-room hotel project.

“We were one of a select few contractors to receive an award for commitment and dedication to excellence,” Ligda says.

“That’s how we build relationships: we prove ourselves.”

u Father & Son Bob started D&L Wood Products with his father Robert E. Ligda in 1992.They converted the former McLaughlin golf ball manufacturing plant in Crown Point into a 70

Indiana supplier provides nationwide clientel with service, quality and attention to detail.

custom architectural millwork shop. “One thing led to another,” Ligda says. “We worked on our first hotel 10 years ago and that was maybe a $75,000 job. Then the jobs got to $100,000, then $200,000 and on. We just finished a Westin in Austin, Texas that was $2 million. And the Indianapolis Marriott was substantially more than that.”

u ‘Can Do’ Spirit Though D&L Wood Products has grown far beyond the days when it could fit in Ligda’s toolbox, the company retains the “can do” spirit which has always marked its approach to business. “We are really good at plan B, because plan A doesn’t always work,” he says. A focus on flexibility and schedule allows the company to handle the inevitable last-minute changes on its jobs. “We are now coordinating work nine, ten, eleven months in advance,” Ligda notes, which is how the company could take on the JW Marriott Indianapolis and still complete projects in Texas, Wyoming, Fort Wayne and at Notre Dame at the same time.

“All the credit goes to the people I have working here,” he says. “They have a lot of pride in what they do. Everyone here wears a lot of hats and everyone is accountable. We never feel we are entitled to anything.”

The business of D&L Wood Products has continued to stay within the family, as Bob’s son Adam was the project superintendent at the JW Marriott Hotel and now works as the General Manager at the shop. While facing numerous obstacles throughout the course of the two-year project, he helped ensure that the high-profile project was completed on time.

D&L Wood Products, Inc. Founded: 1992 Headquarters: Crown Point, IN Web Site: www.dlwoodproductsinc.com Phone: 219-662-9177 Contact: Bob Ligda

Millwork Magic D&L Wood Products has provided quality fabrication and installation of architectural millwork goods for more than 17 years. Exotic veneers, hardwoods, and custom trims are just a few examples of products that the company can supply and install. Other specialties include: • Casing, base trim, chair rail, and arches • Matched and sequenced wood veneer panels • Plywood and laminate products • Resin and polycarbonate decorative panels • Curved stainless steel drink rails and foot rails • Ellipse ceilings • Custom bar tops and drink rails • Architectural glass panels • Crown, curved, and flexible moldings • Mitred wood column wraps

www.buildingindiananews.com

COMPANY SPOTLIGHT 1

2

1. The Westin Hotel lobby bar in Austin, Texas.

3

2. First floor lounge, JW Marriott in Indianapolis.

u Attention to Detail

Pictured from left to right: Adam Ligda, Bob Ligda and Project Manager Greg Kaiser with their Award of Excellence at the grand opening of the JW Marriott in Indianapolis.

www.buildingindiananews.com

Delivering on quality is as important as delivering on time. “Attention to detail is what sets us apart,” Ligda says. For example, “we are very meticulous on installation,” he says. Though the company typically installs its own products, the sheer size of the Indianapolis Marriott project required them to hire local contractors to assist with the work.

“We had three full-time project managers on the job to ensure every aspect of the project was performed to our high standards,” Ligda says.

D&L Wood Products’ track record has earned it the respect and confidence of long-time clients. “Marriott is in the process of renovating 600 hotels nationwide, and we

3. The High Velocity Sports Bar in the JW Marriott.

are one of a select few millwork contractors who have been prequalified for that work,” Ligda says.

With a successful year in the books for 2010, Ligda is looking forward to the challenges of 2011 and beyond. “We have been very fortunate to do some real high-profile jobs,” he says. “We have not been close to being out of work for the last 10 years.”

With some projects in the pipeline as far as two years out, D&L Wood Products will be expanding once again this spring, moving its offices into a new building on its current site and using the freed-up square footage for more production space.

“We are very proud,” he says. “We have worked very hard to get where we are and we have no interest in slowing down.”

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YOUR WELL-BEING

The Healthcare Reform

Challenge Healthcare reform has already begun to reshape the health insurance benefits companies offer employees.

O

By Willis Glaros

n March 23, 2010 the House, Senate and President officially marched the country into a new era of healthcare and health insurance. The Patient Protection and Affordable Care Act was passed with the intent of extending coverage to millions of uninsured Americans, at more affordable rates and with greater access and choice, and would supposedly result in the stabilization of the ever-growing health care costs.

In an effort to better understand the complexity of the law, let’s look specifically at the heath insurance reform piece of the puzzle. Brilliantly planned and executed, the bill initially makes insurance reforms which everyone can at least somewhat agree needed to be addressed and were hard to argue against.

The changes implemented in 2010 and 2011 required that plans extend coverage to age 26 for dependents, eliminate lifetime maximums and accept dependents under age 19 with pre-existing conditions.

In addition, small business with fewer than 25 employees may qualify for premium subsidies. These are changes all plans will face, with a larger list looming based on a company’s ability to sustain their “grandfathered” status.

While all of these changes are arguably good for the consumer, they will cause the cost of health insurance to increase at a time when business is struggling.

The more ominous changes, with more government intervention and control, really don’t start until 2014 and for the sake of this piece I will only mention them in summary. They include totally removing pre-existing condition limitations, mandating that everyone purchase insurance or be penalized and forcing employers with more 72

The biggest challenge businesses we represent face due to health care reform is maintaining “grandfathered” status. than 50 employees to cover employees or pay a $2,000 penalty tax or a $3,000 subsidy for qualifying employees.

The mid-term elections of 2010, not to mention the Presidential election in 2012, may very well have an impact on many of these provisions, so that is another reason to defer more in-depth discussion on these items at this time.

I would now like to take you through the biggest challenge the businesses we represent have faced due to the implementation of health care reform: what it takes to remain grandfathered and what it means if you lose that status.

A grandfathered plan is one that exist-

ed on March 23, 2010. For all plan changes made after that date, if you stay within government limits you will retain your grandfathered status. To further complicate the issue, when the government passed the bill they had no regulations, therefore employers were making decisions blindly until the rules were released. Due to increasing insurance costs, many employers made decisions that caused the loss of their grandfathered status without even knowing they had done so. While the impact of the change does not occur until the first renewal date following September 23, 2010, it did cause significant angst.

What will cause you to lose your grandfathered status? You will lose your status if you exceed specific limitations set forth in the PPACA for deductibles, coinsurance, out of pocket maximums, co-pays and contribution. I would recommend that you speak with your insurance consultants/ brokers to determine those limits and then measure carefully the pros and cons of your decision. Once you lose the status, you will never regain it. It is also important to realize that any new plans written after March 23, 2010 are automatically “not grandfathered.”

What impact does losing your status have on your plans, costs and implementation? First, you will have to make the changes that occur for all plans, as previously outlined, then add those changes effective in 2011: preventative care with no cost sharing; extend patients rights on ER visits; and referrals and claim review.

Many more ominous changes will occur in 2014 and include limitations on plan designs that allow employers to reduce the cost and payment of clinical studies (experimental care).

With the information provided from your consultants and knowing what impact the loss of grandfathered status has, you can now make your decision and move on to implementation.

Your next task is to provide notices to all current and future covered employees notifying them that you do or do not have the status and then present to them the language provided by the regulations so that they understand what has changed in their plans.

The bottom line is, many of the changes mandated and earned are difficult to argue against from a consumer standpoint.

But they do limit the flexibility of the employer and will cause the cost of health insurance to increase. www.buildingindiananews.com

www.buildingindiananews.com

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GREEN & SUSTAINABLE

A Sustainable Center

A $3 million renovation earns LEED Gold status for a landmark Indiana Tech building.

T

By David Wellman

here are a lot of LEEDcertified buildings around these days. According to the U.S. Green Building Council, which created the Leadership in Energy and Environmental Design program back in 2000, the total floor area worldwide that was LEED-registered and -certified as of 2009 topped seven billion square feet. And even in the midst of one of the worst construction downturns in memory that year, registrations and certifications continued to rise versus 2008.

So if you wanted to find a LEED-certified building, chances are that you wouldn’t have to travel very far.

Now, pre-Civil War-era LEEDcertified buildings, those are just a bit more rare. But one can be found in Indiana on the campus of Indiana Tech in Fort Wayne. Last December, the USGBC awarded LEED Gold Certification to the college’s Wilfred Uytengsu, Sr. Center. Built in 1857, the Uytengsu Center is the oldest building on campus and in fact predates the university’s occupation of the site. It was originally built as an administration building for Concordia Seminary.

Not only is it the oldest building on campus, “but it’s the only building left

from before about 1990,” says Director of Marketing Janet Schutte. “It’s a very recognizable symbol for older alumni.”

So, rather than demolish the deteriorating landmark, the university embarked on a $3.1 million renovation to preserve and modernize the building.

The school tapped hometown firm

Congratulations

INDIANA TECH - Uytengsu Center Michael Kinder & Sons, Inc. General Contractor 260.744.4359 www.kinderandsons.com

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Viridian Architectural Design, Inc., to plan out the challenging renovation. Viridian President Terry Thornsbury says the university was interested in making the building more energy-efficient and thus less expensive to operate from the start, but the involvement of Indiana Tech President Arthur Snyder took things to a new level.

“Dr. Snyder isn’t the type to start something without understanding it, so he went and did his own research,” Thornsbury, a www.buildingindiananews.com

LEED Accredited Professional himself, recalls. “By our third meeting, he was telling me things about sustainability. So before I did the proposal I said we are going all out.”

To help fund the renovation, the university approached Wilfred Uytengsu, Sr., a 1951 graduate of Indiana Tech who had gone

In the end, the new Center earned 65 points in six different categories under the USGBC’s LEED 2009 version 3 Building Design and Construction Green Building Rating System, including: Sustainable Sites: 13 points by minimizing the impact on the site and minimizing the heat island effect of the roof Water Efficiency: four points by reducing water usage by 23 percent compared to American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) standards Energy and Atmosphere: 27 points with a high performance building envelope insulation system enhanced commissioning, a closed-loop geothermal system, and high efficiency LED lighting; over 43 percent more efficient than the ASHRAE 90.1-2007 standard.

Materials and Resources: five points by diverting more than 80 percent of the construction waste from the landfill, using recycled content material, and reusing hardwood and brick from the original building.

Indoor Environmental Quality: 12 points through the use of low VOC products and materials, MERV 13 filtration systems, and user friendly HVAC and lighting controls systems.

Innovation in Design: four points through exemplary performance throughout the rating system, a highly-effective building envelope design and verification system, and employing a LEED Accredited Professional in the project.

on to a long a successful business career in the Philippines. In March of 2010, Uytengsu donated $2 million toward the project, marking the second-largest gift ever made to the university. An additional $1.34 million was secured from the U.S. Department of Energy.

That grant allowed the university to partner with Fort Wayne-based WaterFurnace International on the installation of an innovative geothermal heating and cooling system for the Center. www.buildingindiananews.com

The building is 99 percent electric and has an operating cost of $385 a month for 11,500 square feet. The Uytengsu Center costs just 41 cents per square foot to operate.

Another local company, Michael Kinder & Sons, Inc., was brought in as general contractor to orchestrate what boiled down to a complete gutting and rebuilding project inside four original walls. The project “absolutely required an integrated design approach,” Thornsbury says. “We had 10 people and the owner had six at every meeting. We had

to make sure that we and the contractor had it all figured out.”

Work began in September, 2009.

“We took it down to the brick walls and dirt – no roof, no floors – and put in an all concrete and steel interior,” Thornsbury says. The four-foot crawlspace beneath the Center was excavated to nine feet to accommodate the new mechanical

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system, while heat pumps for the geothermal system were hidden in the ceiling. The third floor of the building, which hadn’t been used since the Sixties, was opened back up to recoup office space that would be lost to a new Campus Welcome Center on the first floor. Ceiling height was increased to expose the top two feet of the nine-foot windows on one side of the building, which had been cut off in a previous remodel. Existing walls were better insulated through the use of foam to fill cracks in the brick, and in some spots old, bricked-up entrances were reopened.

A priority was placed on reusing materials from the site, including wood and brick from load-bearing walls that were removed. Some of this was reused in the building, while some was used for other purposes. For instance, pieces of the Center’s pine trusses were made into duck decoys that the school subsequently gave away. Materials that were still usuable but weren’t going to be reused were donated to Habitat for Humanity. In the end, 81 percent of the material removed from the Center was diverted from landfills.

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As the project went on, the plan to apply for Silver LEED status started to change color. “We ended up getting into gold,” Thornsbury says. “We had not planned for that.”

Based on an ROI analysis of the project, the savings from a more efficient use of energy in the building will pay for the cost of the renovation in just under 10 years.

“The building is 99 percent electric and has an operating cost of $385 a month for 11,500 square feet,” Thornsbury says.

“According to the Commercial Buildings Energy Consumption Survey, the typical office building costs about $1.25 to $1.50 per square foot to operate and a vacant building will still cost about 29 cents per square foot. The Uytengsu Center is at 41 cents per square foot to operate.”

HANDS-ON LEARNING Not only has the renovation given Indiana Tech a leading-edge green administration building, it’s also provided a handson learning opportunity for students. “We have an energy engineering degree, so it gives our students a living project to work

on,” Schutte says. Sensors in the building provide continuous feedback on energy usage, which Viridian is tracking as well.

“We get to play with this for five years, so both we and the students can figure out how to make buildings even better,” Thornsbury says.

Sadly, the one person who won’t get to see the fruits of the project is Wilfred Uytengsu, who passed away unexpectedly just a month after giving the university the $2 million gift that made the renovation possible. “It saddens me that Mr. Fred was taken from his family too soon, that he did not live to accompany them here to see what his philanthropy has brought to Indiana Tech,” President Arthur E. Snyder said in addressing about 300 people gathered for the dedication.

Uytengsu’s wife, Bonnie; his children Candace, Michael, and Fred Jr.; and grandson Christian attended the dedication ceremony. In his remarks at the dedication, Fred Uytengsu, Jr. said he was certain his father would have been happy with the renovation and that the scope of the project had exceeded their expectations.

www.buildingindiananews.com

www.buildingindiananews.com

Forking Up Jobs

WELCOME CENTER

I

ndiana’s restaurant industry will have a strong impact on employment in the Hoosier state over the next decade, according to a new forecast from the National Restaurant Association (NRA). The Washington, D.C.based trade association projects that Indiana will add restaurant jobs at a faster pace than any of its neighbors except Kentucky over the next ten years, with total industry employment approaching 320,000 by 2021. That reflects a growth rate of 8.4 percent, or about 24,700 jobs, between 2011 and 2021.

While restaurants were not immune to the economic downturn – 2010 marked the third straight year of sales declines – NRA’s 2011 Restaurant Industry Forecast predicts sales will rebound this year. In Indiana, sales should rise just under three percent to $8.568 billion, driven by longterm trends toward out-of-home dining that were stalled but not reversed by the recession.

Americans today spend nearly half of their food dollar in restaurants, up from just a quarter in 1955. Almost one in four consumers surveyed by NRA last year described ordering take-out as “essential to

Restaurants will play an important role in Indiana’s economic rebound.

By David Wellman

the way they live,” and 43 percent called restaurants “essential to their lifestyle.”

And nearly three-quarters – 74 percent – claimed that going a restaurant with family

or friends was a better use of their time than cooking or cleaning up.

The result is a restaurant industry that crested $600 billion in sales nationally for

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the first time last year, and currently employs more than 12.8 million people, a figure equivalent to 10 percent of the nation’s total job base.

“The U.S. restaurant industry is an economic juggernaut whose annual sales are larger than 90 percent of the world’s economies – if it were a country, it would rank as the 18th largest economy in the world,” notes Hudson Riehle, Senior Vice President of the Research and Knowledge Group for NRA. “As in 2010, restaurant industry job growth is expected to outpace the national economy this year, emphasizing the importance of industry to the nation’s economy.”

Nationally, restaurant industry employment is projected to grow in all 50 states over the next 10 years, with the lowest increase, 5.2 percent, coming in Ohio.

Demand is expected to be highest among skilled positions such as those that combine food preparation and service, cooks and management.

Combination preparation and service jobs will number more than 3.1 million by 2021, an increase of 403,000 jobs over

As the economy improves in 2011, restaurants expect to face a dwindling pool of employees. this year. The number of chefs and head cooks will grow 11 percent between 2011 and 2021, while other cook positions are expected to increase nearly 10 percent to nearly 200,000 over the same period.

There is an eight percent increase projected for foodservice managers between 2011 and 2021, and a 12 percent jump in the demand for first-line supervisors and managers. Though wait staff jobs will grow by more than 2.6 million by 2021, the gain is just 240,000 jobs.

As the economy improves in 2011, restaurants expect to face a dwindling pool of employees, and long-term demographic shifts suggest that the challenge to recruit and retain employees will continue well into the future. Historically, teenagers and young adults made up most of the restaurant industry workforce, with nearly half of all restaurant industry employees under 25. However, over the last several decades, this key labor pool steadily declined as a proportion of the total labor force.

According to data from the Bureau 78

APPETITE FOR JOBS Restaurant industry job growth by state 2011-2021 INDIANA Restaurant Jobs 2011: 295,100 Restaurant Jobs 2021: 319,800 +24,700 OHIO Restaurant Jobs 2011: 524,900 Restaurant Jobs 2021: 552,400 +27,500 ILLINOIS Restaurant Jobs 2011: 501,000 Restaurant Jobs 2021: 537,500 +36,500 MICHIGAN Restaurant Jobs 2011: 382,300 Restaurant Jobs 2021: 405,400 +23,100 KENTUCKY Restaurant Jobs 2011: 180,800 Restaurant Jobs 2021: 196,300 +15,500 Source: National Restaurant Association

69%

of adults say they are more likely to visit restaurants that offer locally produced food.

Source: National Restaurant Association

of Labor Statistics, the 16-to-24-year-old age group represented 24 percent of the total U.S. labor force in 1978, its highest level on record. By 2008, 16-to-24-yearolds represented only 14 percent of the labor force, and the segment is projected to shrink to only 13 percent by 2018.

In contrast, individuals age 55 and older made up 18 percent of the labor force in 2008, and are projected to comprise nearly one-quarter of the nation’s labor force by 2018. www.buildingindiananews.com

MARKETING

Marketing Indiana Indiana makes its case to Illinois businesses after Illinois raises personal and business taxes to close a $15 billion budget gap.

I

By David Wellman

ndiana was among several states touting their tax advantages to Illinois-based businesses in January after Illinois Governor

Pat Quinn signed legislation boosting income taxes by 66 percent and business taxes by 45 percent as part of an effort to close the state’s estimated $15 billion budget deficit.

“The bottom line is that New Jersey is doing and Wisconsin is doing it so we have to be in the mix,” says Mitch Roob, Indiana Secretary of Commerce and CEO of the Indiana Economic Development Corporation.

The first salvo was launched independently by Indianapolis Mayor Greg Ballard, whose administration took out newspaper ads (pictured at left) in Chicago, Peoria and Springfield immediately after the tax hike was passed inviting companies to explore In-

tion a t i v n I s s A Busine m the fro olis p a n a i d n City of I Dear Illinois Business Leader,

on your company’s bottom line and ability As you consider the effect of large, new state tax increases The nation’s 13th largest city is right next door, hire, I invite you to take a serious look at Indianapolis.

— but in a much more stable, affordable offering the same Midwestern work ethic and conveniences and pro-growth economic environment.

to

and prosper because of: Indianapolis is the place where your company can grow State of Indiana have balanced budgets and cash • Fiscal Stability: The City of Indianapolis and the a lid on taxes reserves which produce AAA bond ratings and keep Great Lakes states and constitutionally • Low Tax Structure: Best business tax climate among capped property taxes of less expensive labor rates — and still • Well-Trained & Available Workforce: Take advantage pull from a highly skilled and educated workforce in the country markets estate real competitive most the of • Real Estate: One technologies • Efficient Utilities: Competitive rates and state-of-the-art highways, a new, user-friendly $1 billion • Modern Transportation: Five major interstate FedEx hub international airport terminal, and the world’s second-largest college and amateur sports; thriving arts • Ample Cultural & Recreational Amenities: Pro, and bike trails; and beautiful parks community; world-class zoo and museums; walking Others agree: • Fourth Most Affordable City in the U.S. (Forbes) • Fifth Best Metro Area for Business (Area Development) • •

Top 10 Cities to Relocate to (CNBC) Top 10 Cities Poised for Economic Recovery (Newsweek)

These are just a few of the reasons Indianapolis may

be a great option for your business.

make financial sense for your For more information about how Indianapolis could team at 317-808-3272. www.developindy.com or call our economic development

dianapolis as an option. But the state’s primary effort, focused on Northwest Indiana, debuted in February with the launch of the “Feeling Squeezed?” campaign (see page 59).

Seize the Opportunity

A partnership between the IEDC and the Northwest Indiana Forum, the campaign includes print ads in Crain’s Chicago Business, the Chicago Tribune, specialty real estate publications and targeted e-mails, as well as Comcast cable and outdoor ads. It directs interested business executives to MakeTheMove. org for more information. The effort will also be featured as part of the Forum’s and IEDC’s 2011 tradeshow/conference schedule which includes Build indiana Conference, Chicago Industrial Properties and Pro-Mat 2011 as well as other industry-specific meetings.

“We’ve had discussions with numerous companies that are interested in moving to a lower cost location.”

- Mitch Roob, CEO, IEDC

company, visit

Sincerely,

COST OF DOING BUSINESS – INDIANA VS. ILLINOIS

Gregory A. Ballard Mayor of Indianapolis

is Bond Ban Indianapol ent. y and the sem Develop Ind d for this adverti use Paid for by lars were No tax dol

www.buildingindiananews.com

k.

INDIANA

ILLINOIS

Total State Business Taxes / Sum of Corporate State Income Tax, Workers' Compensation

$132,236

$230,926

Corporate Income Tax Due Per Net Taxable Income of $1,000,000 (2011)

$85,000

$95,000

Average Workers' Compensation Annual Premium Based on 100 Employees (2010)

$47,236

$135,926

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“Why now? Simply because it’s a moment to seize the opportunity,” said Mark Maassel, President and CEO of the Forum. “[The campaign] really drives home the advantages of Northwest Indiana.”

Regional Effort

In addition to the Forum and the IEDC, partners in the $250,000 campaign include the Porter County Economic Development Alliance, the La Porte County Economic Development Alliance, the Starke County Economic Development Foundation, the Newton

County Economic Development Corporation, the towns of Munster and Schererville, the City of Whiting and NIPSCO. “Northwest Indiana communities are Chicago’s east suburbs, offering lower costs of doing business, affordable, high quality of living and a prime business location in the heart of the Midwest,” Maassel says. “In cooperation with IEDC, we believe this campaign will educate and entice businesses with the opportunities right next door and show them that we are prepared to assist businesses in finding their new home.”

Illinois’ tax hikes have definitely

Northwest Indiana Lifestyle Magazine Debuts Northwest Indiana isn’t just a great place for businesses – it’s a great place for people, too. That’s the message of LIVELY, a new bi-annual publication launched in March by Diversified Marketing Strategies (DMS), the Crown Point-based publisher of Building indiana.

The magazine is the centerpiece of a targeted media campaign, including outdoor and radio advertising and a variety of online and social media initiatives, designed to spread the word about Northwest Indiana’s strong communities and quality-oflife advantages.

“Organizations like the Northwest Indiana Forum and the Indiana Economic Development Corporation are doing a great job of reaching out to businesses on behalf of Northwest Indiana, but there’s so much more to the region than just low taxes,” says Andrea M. Pearman, President of DMS. “We have some of the state’s best schools, award-winning health care facilities and a national treasure in the Indiana Dunes National Lakeshore – all just a half hour from downtown Chicago.”

The first issue of LIVELY was mailed to more than 20,000 mid- to high-income households in Illinois and featured easy-to-read stories about education, recreation and local communities and businesses, as well as information on the tax benefits and lower general living expenses of Northwest Indiana.

“We are grateful for the support that Lively has received,” Pearman says. Sponsors of Lively’s inaugural issue included the City of Dyer, Olthof Homes, Precision Homes, NIPSCO, Phillippe Builders, the United Ways of Lake and Porter counties and the Greater Northwest Indiana Association of Realtors (GNIAR). Other supporters included Holladay Properties, the Radisson Star Plaza and the cities of Crown Point and Hammond.

The second issue of LIVELY will mail in the third quarter of 2011. For complete details, visit www.livelyindiana.com.

spurred interest in the Hoosier state, Roob says. After the increases, the IEDC quickly rolled out the “Illinoyed?” Web site (now housed at http://www.stateofyourfuture.com/ illinnoyed) and was rewarded with more than 2,700 hits in the first few weeks. Roob reports 80

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Indiana Takes Cup Again

Illinois Hikes Online Taxes, Too

Indiana ranked ninth among states for the number of new economic development projects in 2010 according to the annual Governor’s Cup awards from Site Selection magazine. That’s up one spot from 10th place in 2009.

Yet another tax increase by Illinois in March – this one aimed at online merchants – has provided more incentive for Illinois companies to move to Indiana.

Indianapolis ranked ninth for major metropolitan areas and Anderson tied for an eighth place ranking for metropolitan areas with a population less than 200,000. “Micropolitan” areas in Indiana which ranked among the top 100 in the country were: Marion (T-ninth); Huntington (T-25th); Angola (T-41st); Seymour (T-41st); and Peru (T-74th).

Governor’s Cup winners are selected based on the number of new corporate location projects in each state and metropolitan area that meet at least one of three criteria: involve a capital investment of at least $1 million; create at least 50 new jobs; or add at least 20,000 square feet of new floor area.

that IEDC officials were in Chicago in February “visiting companies that had solicited us” and has set a target of enticing 12 companies to choose Indiana over Illinois over the course of 2011. And subsequent tax changes in Illinois, such as the recent imposition of sales taxes on Web-based merchants who advertise on Illinois-based Web sites (see box at right) have only added to Indiana’s arguments.

Fill the Pipeline

“We’ve had discussions with numerous companies that are interested in moving to a lower cost location and we are hopeful that our partnership with the Northwest Indiana Forum will continue to fill our pipeline with promising leads that will bring new opportunities to Hoosiers in Northwest Indiana and across the state,” Roob says.

As the state’s two northwestern-most counties, Lake and Porter counties might be expected to reap most of the benefits of the campaign, but economic development agencies from around the region have stepped in to help fund the effort because they believe the proverbial rising tide will

www.buildingindiananews.com

lift all boats.

“Site selectors and business decision makers look at a region before they even get to the community level,” says Tim Gropp, Co-Executive Director of the La Porte Economic Development Alliance. “The more we collaborate the more the region receives attention helping us to accomplish our mission of attracting investment and jobs to Northwest Indiana.”

While officials are confident the campaign will bear fruit, they caution that it will take time. “These kind of corporate decisions often take several years to make,” notes Don Babcock, Forum Board Chair and Economic Development Director for NIPSCO. “We hope that this will encourage companies that are on the edge of a decision to come over because of this tax increase. This is our opportunity to highlight the great things going on in Indiana and show businesses we can help them grow and prosper in a more financially stable state.”

To learn more about Indiana’s advantages, visit www.buildindianaconference.com.

“CouponCabin is actively exploring moving to Indiana,” says Scott Kluth, CEO of online coupon marketer CouponCabin. com. “It’s a shame we have to consider leaving our longtime home in Illinois, but we will do what is best for our business.”

At issue is the Internet tax bill (HB 3659), which requires out-ofstate merchants like Amazon who advertise on Web sites based in Illinois to collect taxes from all Illinois customers. Under the provisions of the new law, these merchants are deemed to have a presence, or “nexus,” in Illinois and are therefore required to collect Illinois sales tax.

“The Governor’s approval of HB 3659 is deeply disappointing,” Kluth says. “Illinois will lose jobs, thriving businesses like CouponCabin and other affiliate marketing firms will be forced to move to other states.” Even more importantly, he adds, the law is unlikely to generate the tax revenue Illinois expects.

“Instead, the merchants who would be affected by this law will simply sever their contracts with Illinois affiliate advertisers, as they have done in every other state,” he says. “The only result of this law is that high-growth businesses like CouponCabin will be driven out of Illinois to maintain their relationships with outof-state merchants.”

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REGION FOCUS

Touring for Dollars Research illustrates the impact of travel and tourism on Hendricks County.

S

By David Wellman

o, just how does travel and tourism drive economic development? It’s easy to see the impact of a construction project or corporate expansion, because those create highly visible new buildings and jobs that weren’t there before and can easily be identified as additions to a community.

Quantifying the impact of tourism can be more elusive since it often doesn’t add

anything tangible to the landscape, but does show up on the bottom line of area businesses. In Central Indiana, the Hendricks County Convention and Tourism Bureau (HCCVB) has taken a proactive role in getting to the bottom of travel and tourism’s impact on local companies, funding studies over the past four years to nail down the numbers. The most recent, released in November 2010, paints the picture of a growing tourism industry responsible for tens

HENDRICKS COUNTY TOURISM AND TRAVEL INDUSTRY ECONOMIC IMPACT – 2007 AND 2009

Total Expenditures Direct Expenditures Indirect Expenditures Change 2007 vs. 2009 (Direct Expenditures) Change 2007 vs. 2009 (Adjusted for Inflation) Total Wages Total Taxes State Local Federal Total Employment Jobs (Direct Expenditures) Jobs (Indirect Expenditures)

2007

2009

$174,793,754 $124,125,660 $50,668,094

$192,298,439 $136,556,199 $55,742,240 5.00% 3.30% $41,104,440 $45,948,097 $16,634,909 $8,963,829 $20,349,359 2,679 2,098 581

$37,362,755 $41,765,500 $15,120,654 $8,147,863 $18,496,983 2,581 2,021 560

Source: Economic Impact of the Hendricks County Tourism and Travel Industry – 2007 and 2009

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of millions of dollars in business and thousands of area jobs.

The study, covering 2009, was done

by Louisville, KY-based Certec Inc., which also conducted an identical study in 2008 for the HCCVB of 2007. Certec found that travel and tourism in Hendricks County in 2009 contributed nearly $192.3 million to the local economy, up from $174.8 million in 2007. Tourism also created nearly 100 additional jobs in the county between 2007

“There’s a lot of opportunity out here to promote and develop Hendricks County as a destination.”

- Jaime Bohler Smith, Associate Director, HCCVB

HENDRICKS COUNTY TOURISM-GENERATED EMPLOYMENT BY OCCUPATION – 2009

OCCUPATION Professional & Technical Managerial Marketing & Sales Administrative Support Construction Craftsman Agriculture & Forestry Operatives & Fabricators Laborers Personal Services Total

JOBS 124 190 266 313 48 154 45 139 94 1,306 2,679

Source: Economic Impact of the Hendricks County Tourism and Travel Industr

www.buildingindiananews.com

and 2009 (from 2,581 to 2,679) and generated almost $46 million in tax revenue: $20.3 million for the feds, $16.6 million for the state and $9 million for local government.

And in contrast to the conventional wisdom, the study found that travel and tourism had an economic impact far beyond low-wage, retail and service sector jobs. Other businesses that benefitted included banks, insurance agencies, real es-

Travel and tourism in Hendricks County in 2009 contributed nearly $192.3 million to the local economy, up from $174.8 million in 2007.

- Certec Inc.

tate agencies, transportation and utilities, construction, agriculture and manufacturing. Tourism spending does this because of the downstream effects of spending in the more obvious places. For example, tourist demand for restaurant meals creates business not only for restaurants, but for producers and packagers of fresh and frozen foods, butchers, dairies, and ultimately, for manufacturers of farm implements and fertilizers.

HCCVB Associate Director Jaime Bohler Smith attributes the county’s strong tourism industry and growth since 2007 to several factors. “Number one is Lucas Oil Raceway,” she notes. “They have the largest drag race in the world and also have about 200 days of racing a year, so a significant portion of those dollars come from motorsports.”

But that still leaves a lot of days unaccounted for, so the HCCVB runs a series

DIRECT EXPENDITURES BY CATEGORY

Souvenirs

Transportation

Lodging

7%

10%

33% 12% 18% 20%

Food & Beverage

Shopping Attractions Source: Economic Impact of the Hendricks County Tourism and Travel Industry – 2007 and 2009

www.buildingindiananews.com Source: Economic Impact of the Hendricks County Tourism and Travel Industry – 2007 and 2009

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More than 5,000 Holly Hendricks holiday coupon books were distributed.

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of seasonal campaigns to encourage visitors.

“Our primary goal is to attract visitors top stay the night,” she says. “We are getting ready to roll out our ‘Come, Stay & Play’ campaign.

Then there’s our fall campaign, and finally we will do our ‘Spend the Holidays in Hendricks County’ campaign again.”

That latter campaign debuted during the 2010 holiday season “and went over really well,” Smith says. Campaign elements included a coupon book with 100 coupons good at local retailers, half a dozen $1,000 shopping cards good at a local mall people could sign up to win, a smart phone-driven “cookie trail” promotion and numerous personal appearances by spokesperson “Holly Hendricks” at community events.

Coming Together

“We ended up distributing more than 5,000 coupon books and some retailers had more than 100 coupons redeemed,” Smith says. “That’s one thing we like to do, offer a way to connect stores, lodging, entertainment providers and merchants a way to come together.” The cookie trail promotion also sought to drive shoppers into stores during the holidays by offering 10 free cookie recipes they could receive by visiting select shops.

For each ‘stop’ on the Cookie Trail, a unique code was assigned to the business and stored online. Once a person visited a business, they could scan the code with a smart phone and receive a holiday cookie recipe on the screen of their phone. (Those without a smart phone could get the recipes off the HendricksCountyHolidays.com Web site.)

The HCCVB also runs a grant program that encourages people and business in the county to contribute ideas and new tools to its tourism promotion efforts. “We have a $30,000 budget that we grant out every year,” Smith explains. Known as the Tourism Enhancement and Development, or TED, fund, it was given out last year to support a number of efforts.

“In the fall cycle last year, we gave a grant to Gear Up Cyclery that they used to create a county-wide biking guide,” Smith says. “So now we have a guide of biking routes that we can use to promote the county.”

Continually injecting new ideas and energy into the process is a big part of the county’s tourism success. “Two years ago, the first Hendricks County film festival came out of the grant program,” Smith notes. “There’s a lot of opportunity out here to promote and develop Hendricks County as a destination.”

For more on tourism in Hendricks County, visit www.buildingindiananews.com www.buildingindiananews.com

REGION FOCUS

Artist’s rendering of Iotron’s $15.3 million electron-beam sterilization center in Whitley County, scheduled to open later this year.

Whitley& Wisdom

Whitley County Snapshot Total Population, 2009 32,861 Total Households, 2007-09 13,190 Median Age, 2009 39.3 Projected Population, 2015 34,803

A good location, solid labor force and pro-growth attitude are paying off for Whitley County.

Median Household Income, 2009 $48,451

By David Wellman

Per Capita Income, 2008 $31,945

W

hitley County, Indiana is making the most of its geographic advantages – including highways, railroads and a ready supply of labor – in order to both attract new businesses to the community and provide growth opportunities for existing firms.

“We have done some things right,” says Alan Tio, President of the Whitley County Economic Development Corporation. “We have a great location with highway access and rail infrastructure, a deep and wide labor pool in Warsaw and Fort Wayne and a local government that’s very www.buildingindiananews.com

supportive of business growth.”

Over the course of 2010 and early 2011, several new companies chose the county as a base of operations, while existing companies also took advantage of growth opportunities. One example is structural steel distributor Triad Metals International, which announced plans for a $10 million, 168,000-square-foot warehouse and processing facility in Whitley County last October. The facility, Triad’s first in the Midwest, is scheduled to be completed in June and should create about 35 jobs once it reaches full capacity.

According to the Pittsburgh-based

Labor Force, 2010 17,108 Unemployment Rate, 2010 10.2% Commuting INTO Whitley County, 2008 3,717 Commuting OUT of Whitley County 8,722 Source: Whitley County EDC

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Triad Metals’ new processing and warehousing facility under construction at the Rail Connect Business Park.

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company, which processes and distributes steel, tubing and hot rolled coil, this new location “allows Triad to compliment our current marketing plan in western Ohio and Kentucky while allowing the development of new market areas in Michigan, Illinois, Indiana and Missouri.”

The company is the anchor tenant at the newly established Rail Connect Business Park east of Columbia City, Tio notes. He points to the publicly owned rail park as one of the local government initiatives that have made the county attractive to businesses. Whitley County also boasts one of the state’s largest Tax Increment Financing (TIF) districts along U.S. 30, revenues from which have been plowed back into infrastructure development.

The Rail Connect Business Park has been certified as “site ready” under a program run by the Northeast Indiana Regional Partnership (NEIRP), an umbrella organization spanning six counties including Whitley. The certification process is handled by Strategic Development Group, Inc., a consulting firm which certifies sites by 15 criteria, including size, ownership, industrial zoning, 100-year flood plan, environmental study, site buffer considerations, preliminary geotechnical exploration, and infrastruc-

ture. Tio says that establishing a second Certified Site Ready location in South Whitley is currently under consideration.

Based on strengths of the region and the talents of its workers, NIERP has identified six industry segments on which development officials should focus. Of those, Tio says Whitley has honed its efforts in on three: advanced manu-

“We have a great location with highway access and rail infrastructure, a deep and wide labor pool in Warsaw and Fort Wayne and a local government that’s very supportive of business growth.”

- Alan Tio, President, Whitley County Economic Development Corporation

facturing, medical devices and aerospace. In December, it scored a win in the second of those categories when Iotron Industries Canada chose the Park 30 Business Center, a shovel-ready park near Columbia City, as the site for a new, $15.3 million electronbeam sterilization center.

The company’s electronbeam treatment process is used in the medical products, agribusiness, defense and manufacturing industries. “Their new central www.buildingindiananews.com

location gives them immediate access to major orthopedic companies in Warsaw and the $2 billion commercial defense industry in Northeast Indiana,” Tio notes. Iotron expects complete the 54,000-square-foot facility, which should create about 20 jobs, by late 2011.

Indiana to Indiana

In-state relocations have also played a role in Whitley County’s recent growth.

For example, Sailrite Enterprises, a canvas industry supplier which was headquartered in Columbia City until the early 2000s, is moving back from Merriam. The company has acquired the former Kilgore Manufacturing Company along U.S. 30 and anticipates adding a dozen new employees in addition to the 23 it will retain from its Merriam facility.

“This facility provides an excellent location to encourage our continued expansion into high-growth opportunities such as online sales,” says Sailrite President Hallie Grant.

In similar vein, LaOtto-based Red Star Contract Manufacturing is relocating to a facility near Larwill in order to boost service to nearby medical device clients. The

company produces insert molding, product assembly, and prototyping services for medical device manufacturing customers.

“This facility provides an excellent location in proximity to our Warsaw based customers and with the improvements we are making will allow plenty of room for future expansion,” says President Scott Werstler. Red Star will occupy the former Eagle

“We are seeing interest in redeveloping some vacant industrial properties and more interest in the rail park. 2011 is shaping up to be very strong.”

- Alan Tio, President, Whitley County Economic Development Corporation

Precision Machining facility, while Eagle Precision Machining will itself relocate to a facility in South Whitley.

Among existing companies in Whitley County expanding last year were Ultra Electronics-USSI, Ag Plus LP and Shindigzs.

USSI, which designs, develops and manufactures advanced military sensor and

sensor systems as well as audio products, is investing $3.85 million to expand and equip its facilities to accommodate the manufacturing and refurbishment of Ultra Electronics’ line of high-pressure air systems for use on military aircraft. USSI is a division of UK-based Ultra Electronics.

Ag Plus is expanding its Raber Ag Center to increase grain storage capacity, improve its agronomy capabilities, and construct a new office facility.

Shindigz, a leading party supplies retailers, is investing more than $1.7 million in new equipment and facility improvements, including digital printing and digitized cad cutting, information technology expansion as well as facility improvements and capacity increases.

The USSI and Ag Plus expansions will add about 47 combined jobs, while Shindigz, which added more than 55 party hosts in 2010 projects employing over 400 party hosts during peak sales periods in 2011.

The early read on 2011 for Whitley County is promising, Tio says. “We are seeing interest in redeveloping some vacant industrial properties and more interest in the rail park,” he says. “2011 is shaping up to be very strong.”

2011

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the

LastWord

opinion page An Indiana Success Story There’s an industry right here in the Hoosier state that brings in significantly more money now than it did even a few short years ago.

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By Lorelei Weimer, Executive Director, Indiana Dunes Tourism

hen you think of the businesses that are critical to Indiana’s success, you probably think of the steel, medical and education industries. But tourism not only belongs on the list of heavy hitters, it’s also one industry that actually grew in our county, Porter, and many others during the recession.

How does tourism help Indiana’s economy? The answer is that visitors bring their hard-earned cash here from outside of the state. And we all know you want to import more money than you export.

Visitors are obviously instrumental in the success of our hotels, restaurants, stores, attractions and gas stations, but there is also a ripple effect that boosts industries ranging from construction to banking. And every hospitality business that brings enjoyment to visitors also boosts the quality of life of our residents.

But why has Indiana been so successful?

First of all, Indiana is rich with attractions.

Here in Northern Indiana, the Indiana Dunes draw three million visitors a year.

Northern Indiana is also home to Amish Country, Notre Dame Country and more.

There are a myriad of other attractions throughout the state – from the Indianapolis Motor Speedway, to the architecture in Columbus to Brown County State Park.

But having quality attractions is just the start to bwing a great destination. We also need to be proactive in improving existing attractions and developing new ones.

In an effort to extend the stay of current visitors and bring additional money into Porter County communities, Indiana Dunes Tourism has embarked on several new initiatives. Last year we launched the Beyond the Beach Discovery Trail, which links over 50 nature-based and historical sites from the Indiana Dunes to the Kankakee River. We are already seeing positive returns from this project.

Best-Kept Secrets We also continue to be an active member of one the best-kept secrets in Northern Indiana – the Northern Indiana Tourism Development Commission (NITDC).

The seven-county partnership has been working, and working well, for 20 years now. Long before it became fashionable, our partnership became a model of government entities working together and seeking out efficiencies of scale. A few of our accomplishments are: • Managing tourism initiatives along the Indiana Toll Road, which sees 80 million drivers (and potential tourists) each year.

• Doing cooperative research to drive our marketing decisions.

• Pooling resources to purchase ads in Midwest Living and the Chicago Tribune.

• Sharing our Web site and database platforms to save money.

• Launching the seven-county Northern Indiana Art & Earth Trail. The trail directs visitors who are interested in the arts, farm markets and quaint lodging to such

attractions in each county.

Each of the counties – Porter, La Porte, St. Joseph, Marshall, Kosciusko, Elkhart and LaGrange – makes the same financial contribution, has an equal vote in the decisions, and maintains professional and mutual respect for each other. This is the formula for successful partnerships.

Recent research conducted by Purdue University shows the NITDC is the most effective regional destination marketing organization in the state. Analyses of comparable tourism organizations across the nation also indicate the partnership is one of the better travel marketing and sales cooperatives in America.

In our seven-county region, travel and tourism contributed more than $2.15 billion to the economy in 2009, an annual growth of 4.7 percent since 2002.

The tourism industry generated more than $573.4 million in tax revenues in 2009: $239.1 million to the federal government, $220.5 million to the state, and $113.9 million locally. A total of 27,965 jobs resulted from tourism and travel in 2009, versus 24,179 in 2002. More than a third of the jobs were in high-wage occupations.

I enjoy spending my money at the great restaurants and attractions in Porter County. But don’t be surprised to see me in Indianapolis, French Lick, Fort Wayne or Nashville. And I invite you to visit Indiana Dunes Country. You won’t just be having an enjoyable time, you’ll be contributing to Indiana’s success.

The opinions expressed in this article are the views of the authors. We welcome your response.

If you are interested in writing an opinion piece, send an e-mail to editor@buildingindiananews.com.

90

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SURE FOUNDATION INSPIRES CONFIDENCE, ENCOURAGES CREATIVE THINKING, AND ENABLES US ALL TO ACHIEVE WONDERFUL THINGS….”

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FOUNDATION STONES OF

The business of The American Group of Constructors shall be evidenced by the following values: • Determination in our Commitment to Safety Allowing a TAG Employee to be placed in harm’s way is unacceptable. We will place the safety of our Employees before profit, before any project, and before any potential customer.

• Pride in our Workmanship The finished product of an American Group of Constructors project will be held to the strictest of standards, meeting or exceeding all of the expectations of our Customer.

• Trust in our Relationships Our Customers, Vendors, and Employees must know that we fulfill our commitments, meet our schedules, and make honesty our watchword.

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We have issues.

OSHA. Contracting compliance. Worker’s compensation. It’s difficult to stay current on the latest construction industry issues and still run your day-to-day operations.

So, who has the time to monitor it all?

We do.

Introducing The Monitor from the Indiana, Illinois and Iowa Foundation For Fair Contracting.

It’s a free, quarterly newsletter designed to keep labor, management and public bodies in stride with the biggest issues facing our industry.

Register now at www.iiiffc.org.

You can’t afford to miss an issue.

Trustees David A. Fagan—Chairman Financial Secretary—IUOE, Local 150

Marshall Douglas— Trustee Treasurer—IUOE Local 150

James Sieracki—Secretary President—Central Teaming Company, Inc.

David Snelten—Trustee President—Excavators, Inc.

James M. Sweeney—Trustee President—Business Manager—IUOE Local 150 James J. McNally—Trustee Vice President—IUOE Local 150

Larrie Reiling— Trustee Assoc. Contractors of Quad Cities Gene Yarkie—Trustee Regional Vice President—Reith-Riley Construction Co., Inc. Marc R. Poulos—Executive Director

Steven M. Cisco—Trustee Rec – Corresponding Secretary—IUOE Local 150

Indiana, Illinois, Iowa Foundation for Fair Contracting 6170 Joliet Road • Suite 200 Countryside, IL 60525 • 815.254.3525

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