The recent announcement that an industrial park is being developed in Kokomo and Howard County was welcome news, but it is a long and expensive journey to go from farmland to a shovel-ready investment site.
Environmental testing took place on the industrial park site last week
Local economic leaders estimate it will take up to $11 million to have the site ready for new industry. That’s how much it costs for land acquisition, environmental studies, and necessary infrastructure investments. But that dollar figure may be a moving target.
“(The City of Kokomo) committed $3 million in ARP (American Recovery Plan) funds; part for purchase of land,” said Kokomo Mayor Tyler Moore. “But the final cost will depend on the cost of utilities. For example, NIPSCO’s dollar amount estimate is three times as much as what it was in 2017. But they can’t commit to a specific cost.”
According to Howard County Commissioner Paul Wyman, $5 million was requested from the Indiana Economic Development Corporation (IEDC) to help cover the cost of the industrial park. The remainder of the cost will have to be covered by the county, the Greater Kokomo Economic Development Alliance (Alliance) and other funding sources.
“We’re looking at several funding opportunities, including the READI grant in which we were awarded $30 million,” said Wyman. “The industrial park is part of that proposal, so as we work with the IEDC, hopefully we will get some of those dollars to bring utilities to the site.”
So, what does the community get for $11 million? It gets 142 acres of land, prepared for investment. Up to 2 million square feet of industrial facilities and up to 13 separate companies could be accommodated at the new park upon completion.
Or it could be used to expand the community’s largest employer, Stellantis.
“It gives us two opportunities,” said Wyman. “One is to diversify away from the automobile industry by attracting companies to a site ready to go. But it also could support Stellantis. They have customers and partners that they want to have close to them as well.”
Moore said officials at Stellantis are “excited” by the prospect of a new industrial park being developed adjacent to their current footprint.
“The folks at Stellantis are excited, especially as they open the engine plant and as they look into electric vehicles,” said Moore. “They like the possibility of having suppliers locate there. We will work with Stellantis and ask for contacts or courtesy meetings with those suppliers.
“They could develop the property as well. That is a very good possibility as they look as their footprint. When they made the $240 million invest announcement, they hinted there may be additional interest in investment in this footprint. So, if they are looking for another piece of property, we will have one right in the neighborhood.”
According to Kokomo Plan Commission Director Greg Sheline, the Alliance already has asked to be placed on the agenda in February to begin rezoning the land, and environmental testing already is taking place. Soil bore samples were taken last week. After that, utilities will have to be mapped out for the site. All this groundwork is done up front to make the industrial park “shovel-ready.”
“We’re all vying for the same jobs,” said Sheline. “If you can get a leg up, that’s huge. If someone calls me and says they are looking at bringing their business to Kokomo, they need 20 acres. You have to rezone, subdivide, go through the draining process. Or we can point to our new industrial park where it already has gone through all those processes. All they have to do is bring us a site plan. To me, it is so much simpler for everyone. It just makes sense.”
The industrial park as it stands today may just be the beginning. The map submitted to the IEDC showed significant expansion potential. If the first park is received well, there may be more to come.
“It’s possible,” said Moore. “If we look at the north side of 50 E and 300 N, there are a handful of owners who have been talked to already. Once they see the industrial park being develop, it may entice them to sell.”
“Industrial parks don’t happen overnight, but there is interest in starting another one,” said Wyman. “If we are blessed to have the first one fill up sooner rather than later, then by all means we would pursue a second site. It makes sense to have our community in that position.”