Councilman brings up business prospect at meeting

Jul 28, 2010 — Kokomo Tribune

Scott Smith

Jul. 27, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- Kokomo Common Councilman Bob Cameron took more than a few people by surprise Monday when he asked area economic development director Jeb Conrad to come to the microphone.

Cameron, D-2nd, wanted to know if the Greater Kokomo Economic Development Alliance was doing everything it can to lure a business expansion to Kokomo.

What followed was information usually kept secret until a company actually commits; a discussion on the status of negotiations between GKEDA and Backhaul Direct, an Indianapolis logistics firm.

Yes, Conrad confirmed, Kokomo is one of several sites Backhaul's site selection consultant is talking to.

And both city of Kokomo and GKEDA officials are doing everything they can to interest Backhaul in Kokomo, he added.

At stake are up to 137 office jobs for a firm which specializes in filling unused shipping space on long-haul semis, sort of like how hotwire.com fills up unbooked rooms at hotels.

"Are we doing everything we can? The answer is always yes," Conrad said Tuesday.

Backhaul, which has been in business for six years, has about 60 employees, and is looking to expand in central Indiana. Anderson, Greenwood and Indianapolis are also in the running for the expansion, Conrad said.

"It's a good company, they've got a good track record and the jobs are good," Conrad added.

The Indiana Economic Development Corp. has already done the background work of collecting information about the company, and Kokomo has put together an incentive package, he said.

A decision on the expansion is probably still several weeks away, but Kokomo's package is "very competitive," Conrad said Monday.

Tuesday, Conrad said he normally didn't like to discuss prospects in a public forum.

"You don't want to raise expectations," he said. "Jobs are important, and capital investment is important ... you've got to balance that out with available incentives."

"We get inquiries every day, and part of our job is to find out how real the companies are, how committed they are, and what they bring to the table," Conrad added.

Conrad said available incentives usually boil down to a quality work force, tax incentives, inexpensive loans and/or grants.

Typically, cities try to offer incentives that match what the company expects to invest in personal property when they come to town.

He said Backhaul has looked at downtown Kokomo office space as a possible expansion location.

--Scott Smith is a Kokomo Tribune staff writer. He may be reached at 765-454-8569 or via e-mail at scott.smith@kokomotribune.com

Newstex ID: KRTB-0280-47387069