Indiana Economic Development Council

The Indiana Economic Development Council, Inc. was established to coordinate persons having a role in Indiana's economic development, overseeing the implementation of the state's economic development plan and monitoring updates of the plan, and providing education and assistance to improve the long range vitality of the state's economy. The Governor serves as Chairman of the Board of the Council, the Lieutenant Governor the Chief Executive Officer, and other members are appointed by the Governor who are "actively engaged in Indiana in private enterprise, organized labor, state or local government, and education."⁴⁷

Created in 1985, the IEDC provides a "public-private sector partnership" and a bipartisan effort to promote economic development. IEDC has been credited with playing a "vital role in shaping several state initiatives" including the Strategic Development Fund, a grant program in support of local economic development organizations, the Capital Access Program, and the EDGE incentive program for business expansion.⁴⁸

The Indiana Economic Development Council "may review and comment on any proposed rule and may suggest alternatives to reduce any regulatory burden that the proposed rule imposes on businesses." The state agency which is proposing a rule must respond to the Council concerning these comments or suggested alternatives before adopting the rule. If the estimated economic impact of the rule exceeds $500,000, the Indiana Legislative Services Agency must prepare a "fiscal analysis concerning the effect that compliance with the proposed rule" would have upon state government, local government, and the community.⁴⁹

The Economic Development Council recently published an extensive directory of state-funded economic development programs. References are made to the programs administered through the Indiana Business Modernization and Technology Corporation, the Indiana Clean Manufacturing Technology and Safe Materials Instituted, the Indiana Department of Commerce (Business Development Division, Community Development Division, Development Finance Division, Energy Policy Division, International Trade Division and Tourism Division), Indiana Department of Environmental Management, Indiana Department of Natural Resources, Indiana Department of Workforce Development, Indiana Department of Transportation, Indiana Development Finance Authority, Indiana Housing Finance Authority, Indiana Labor and Management Council, Indiana Office of the Commissioner for Agriculture and Rural Development, Indiana Small Business Development Center Network, Indiana State Library, Indiana State University, Indiana University, Purdue University, State Information Center, and U.S. Small Business Administration. Included is a guide to frequently used acronyms.⁵⁰

Indiana Department of Commerce

The Lieutenant Governor serves as Director of the Indiana Department of Commerce.⁵¹ The function of the agency is "to develop and promote programs designed to make the best use of the resources of the state so as to assure a balanced economy and continuing economic growth for Indiana." The Department of Commerce is to cooperate with federal, state, and local governments to make best uses of state resources.⁵²

The agency has a myriad of duties relative to economic development within a positive social climate. Among these duties are to disseminate information concerning the "advantages of Indiana." The agency is authorized to conduct research, promote industrial development programs, assist business and industries, establish foreign offices, promote the growth of minority businesses, aid in community economic development, promote tourism, assist in the promotion and marketing of agricultural products, perform various energy related functions, promote the growth of small business, and develop and promote markets for recycled products.⁵³

The agency administers a number of financial assistance programs. Among them are the Industrial Development Grant Fund, the Industrial Development Infrastructure Program, Training 2000 (reimbursement for eligible employee training programs), Economic Development for a Growing Economy or "EDGE" (tax credits for new, competitively paying jobs for Indiana residents), Tax Increment Financing (public improvements), Hoosier Development Fund (real estate and infrastructure acquisitions for small to medium-sized Indiana businesses that are expanding and for public projects), Industrial Energy Efficiency Fund and Program, and Urban Enterprise Zone Energy Program (grants to businesses to improve heating, ventilation, air conditioning, lighting, and similar functions).⁵⁴

The agency also serves as a focal point for state tourism. An 800 number is maintained for Indiana Tourism Information. Several publications are directed to identifying recreational opportunities. These include the TRAVEL GUIDE, the TRAVEL DIRECTOR, and a regional guide which includes the Indiana waters of Lake Michigan (the NORTH REGIONAL GUIDE). Other efforts by the Department of Commerce include PLAY MONEY, the FALL CAMPAIGN (a fall colors guide), and COLD CASH. The agency also publishes an attractions map, a festival guide, GRIOT (emphasizing African American culture), TIME TRIP (history focused upon children), the BED & BREAKFAST GUIDE, and the ANTIQUE GUIDE.⁵⁵

Following are key telephone contacts within the Indiana Department of Commerce:

Thomas McKenna, Executive Director
(317) 232-8806

Robert Murphy, Director
Business Development Division
(317) 232-0159
Toll Free: (800) 463-8081

Susie Harmless, Director
Community Development Division
(317) 232-8908
Toll Free: (800) 824-2476

Carlos Barbera, Director
International Trade Division
(317) 232-4949

John Goss, Director
Tourism and Film Development Division
(317) 232-8870
Toll Free: (800) 289-6646

Indiana Small Business Development Corporation

The Indiana Small Business Development Corporation was created by statute to strengthen the state economy "by encouraging the organization and development of new business enterprises, including technologically oriented enterprises."⁵⁶ This not-for-profit corporation is funded primarily by the State of Indiana and in part by the federal government. Members of the Board of Directors are appointed by the Governor.

The corporation is comprised of four groups:

• Government Marketing Assistance Group
• Enterprise Advisory Group
• Women & Minorities in Business Group
• Local Initiatives Group

Indiana Development Finance Authority

The Indiana Development Finance Authority (IDFA)was established by the Indiana General Assembly for the "public purpose" of promoting opportunities for gainful employment and business promotion. The design is to support industrial development projects, rural development projects, mining operations, and international exports. The program also seeks to promote "affordable farm credit."⁵⁸

In creating the IDFA, the state legislature found there were areas where "critical conditions of unemployment and environmental pollution" existed. Concern was expressed that in some areas these conditions were chronic and long standing, and without remedial measures they may expand to other areas of the state. In addition, "economic insecurity due to unemployment or environmental pollution is a menace to the health, safety, morals, and general welfare of not only the people of the affected areas but of the people of the entire state."⁵⁹

The Lieutenant Governor serves as Secretary-Manager of the agency.⁶⁰ The IDFA is composed of nine members, including appointees by the Governor, the Lieutenant Governor, and the State Treasurer.⁶¹ The Indiana Development Finance Authority is a body politic but not a state agency and is empowered to employ bond counsel and other professionals to perform its functions.⁶²

The IDFA administers a variety of financial programs. For example, loan guaranty programs are available for manufacturing projects, mining operations, and agricultural operations. The programs must "create or retain Indiana jobs" and provide potential loan guarantees up to $2 million. Security may consist of real or personal property.⁶³ Another example is the availability of financing through tax-exempt bonds to benefit Indiana manufacturing companies, private utilities, and certain not-for-profit organizations.⁶⁴ Another example is the Capital Access Program which helps financial institutions lend money to Indiana businesses that do not qualify under conventional lending policies. In this private and public partnership, a reserve fund is established for each participating lender. "The borrower pays a premium between 1.5% and 3.5% of the loan amount (as required by the lender), the lender matches that payment, and the IDFA matches the combined total."⁶⁵

Indiana Economic Development Academy

The Indiana Economic Development Academy is a statewide public service unit of Ball State University, established in 1984 by the Indiana General Assembly. The mission of the Academy is to help build self-sufficient Indiana communities by increasing the knowledge and ability of development professionals and volunteers.

Included among the services provided by the Academy is a publication which describes eligibility, award amounts, conditions, and application procedures for state economic development programs, as well as federal and local assistance.⁶⁶ The Academy maintains a "Community/Economic Development Information System (CEDIS) which provides an extensive listing, by category, of Indiana organizations and agencies that offer community or economic development funding and technical assistance.⁶⁷

Indiana Business Modernization and Technology Corporation

The Indiana Business Modernization and Technology Corporation was established by the Governor as a private not-for-profit corporation with the purpose of strengthening the Indiana economy through "modernization of Indiana businesses by supporting the transfer of science, technology, and quality improvement methods to the workplace."⁶⁸ An illustrative effort is Small Business Innovation Research Bridge Funding, an enhancement of a parallel federal program designed to support businesses intending to these commercialize technologies.⁶⁹ Another example is Product Development and Commercialization Funding.⁷⁰

Indiana Port Commission
The Indiana Port Commission is a "body both corporate and politic in the state of Indiana." The purposes of the Indiana Port Commission are to promote the "agricultural, industrial and commercial development of the state."⁷¹
The Commission operates three ports statewide, two on the Ohio River and the Port of Indiana (also know as "Indiana's International Port, Burns Harbor") along the Lake Michigan shoreline in Portage. With the Port of Indiana, the Commission provides "a traffic exchange point. . . giving particular attention to the benefits which may accrue to the state and its citizens by the opening of the St. Lawrence Seaway."⁷²
The Port of Indiana began moving international cargo in 1969. According to the Indiana Port Commission, the Port of Indiana "is ideally situated just 30 land miles east of Chicago. Shippers can move products into the Chicago area without Chicago's congestion." The Port of Indiana "is especially designed for St. Lawrence Seaway traffic on the Great Lakes. Any deep-draft freighter that can navigate the Seaway can dock, and turn around." In addition, the Port of Indiana "offers year-round barge access to the Midwestern markets and the Gulf of Mexico through the Inland Waterway System."⁷³

Indiana Voluntary Remediation Program
A process for the voluntary remediation of hazardous substances and petroleum was established by the Indiana General Assembly in 1992 and is codified at IC 13-25-5. A purpose of the voluntary remediation program is to restore contaminated sites to health and safety standards appropriate to the designated usage before initiating the usage.
The Voluntary Remediation Program Resource Guide defines a contaminant as a solid, semisolid, liquid, gaseous matter, odor, radioactive material or pollutant as defined in the Federal Waste Pollution Control Act, a hazardous waste as defined by the Resource Conservation Recovery Act,⁷⁴ or a combination of the two, that is one of the following: (1) injurious to human health, plant or animal life, or property; (2) interferes unreasonably with the enjoyment of life or property; or (3) otherwise violative of the governing state law.⁷⁵
Sites that are enrolled in the Voluntary Remediation Program (VRP) administered by the Indiana Department of Environmental Management must have clean-up levels for redevelopment potential determined before the clean up begins. "Clean up criteria for sites within the VRP consists of a combination of performance and quantitative standards. The performance standards apply to all clean ups. Quantative standards are based on a three tiered approach which includes background levels, generic risk based standards and site specific risk based standards."
Applicants to the Voluntary Remediation Program determine and justify the level of clean up at the site which will determine the future of the site. "Tier I clean up levels are background concentrations in the case of naturally occurring constituents or constituents for which background concentrations have been established through site-specific background investigations." Laboratory detection levels are used for clean up levels when constituents lack "natural or site-specific" background occurrence.
"Tier II clean up levels are derived from standard equations used in the federal Superfund and Resource Conservation and Recovery Act corrective action programs. Tier II levels are based solely on human exposure." Criteria are provided for residential and nonresidential clean up standards. Guidance is provided by the Indiana Department of Environmental Management to determine potential ecological impacts. "Tier III clean up levels are based on a site-specific Risk Assessment performed by the applicant."⁷⁶
Upon the successful completion of a work plan for voluntary remediation, an applicant is entitled to a certificate of completion. Issuance of certificate of completion is a final agency action, so an aggrieved person must promptly seek review or will have waived the opportunity for legal recourse. The recipient of a certificate of completion may record the document, and the certificate remains with the title through future acquisitions.⁷⁷
A person who receives a certificate of completion is entitled to a covenant not to sue from the Governor. The level to which a site is remediated is the standard upon which a covenant not to sue is issued.⁷⁸ The certificate of completion and the covenant not to sue are designed to make a site more attractive for public use and for development after toxics have been addressed.⁷⁹
Funding in the amount of $250,000 was effectively borrowed from the "environmental management special fund" to initiate a "voluntary remediation fund" to support the development of the Voluntary Remediation Program. The funding was to be repaid by 1998 with sources for maintenance of the voluntary remediation fund to include application fees, investments, interest, appropriations, gifts, and donations.⁸⁰

---