South Korea gets a look at Kokomo's growing pains
IEDC's new Korean office staff tours city to examine housing, transportation, and amenities
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Kokomo recently played host to some new friends from the Indiana Economic Development Corp. (IEDC) The organization’s new office devoted to building the state’s relationship with South Korea traveled to the city to get a look at where more than $2.5 billion is being invested by the country’s industrial giant Samsung SDI.
Mayor Tyler Moore and the Greater Kokomo Economic Development Alliance (Alliance) served as their guides, taking them to notable landmarks such as Kokomo Municipal Stadium, Indiana University Kokomo, and Ivy Tech Community College.
“We were really excited,” said Moore. “The Indiana Economic Development Corp. has seen the benefit in this new and strengthened relationship with South Korea and their businesses locating and investing in Indiana. So, they have established a South Korean office.
“To introduce them to Indiana and more specifically, Kokomo, the IEDC Indianapolis office invited them over to spend the day in Kokomo, and that day consisted of basically an introduction to the community.”
Moore added that the group visited the city’s downtown, the StarPlus battery plant construction site, and toured sites proposed for housing to accommodate the many South Korean workers who will be staying in Kokomo to launch the battery plant as well as be involved in its operation.
While there was plenty of business to conduct during the visit, the group took time for lunch and a little batting practice at Kokomo Municipal Stadium. They followed that with a trip to Cone Palace for dessert.
The tour of potential housing sites was of particular interest, as the mayor readily admits the community currently doesn’t have sufficient housing stock to meet the needs of the battery plant. At the outset, South Korean workers will live in local hotels until housing can be built.
“The hotels that are being built along Cartwright Drive -- two currently under construction with a third one proposed there – is what we discussed,” said Moore. “We also looked at some of the available farm ground in that area as well as further south.
“And developers have expressed interest in a site up near the battery plant. There are a couple parcels we understand developers are working on with some of the landowners. Neither the city nor Alliance or county have been actively seeking options to purchase land that is transferable to any of these suppliers, as we did early on with the battery plant. So, it's now a series of introductions to landowners that have expressed interest in selling if a developer is considering putting up whatever type of housing they may be interested in.”
Moore said that approximately 1,000 South Korean nationals will locate to Kokomo over the next year to install equipment and infrastructure inside the battery plant. Once operational, the plant will employ 650-700 South Koreans in addition to the more than 1,000 jobs projected for the community.
Given the higher interest rates and material costs that have impacted the construction industry, there is concern that new housing cannot be built affordably enough to meet the growing need. Moore said that developers have reached out to the city, looking for incentives and assistance. The city has a few tools at its disposal, he explained.
“We can provide project-specific TIF (Tax Increment Financing) for the infrastructure,” said Moore. “And the fees for permits and such that the city typically collects can be waived or written off, but there won’t be a straight subsidy. The state’s READI 2.0 grant program is on its way. We have thrown that out there as a possible tool.
“We've been upfront with them, saying we don't want to rely on any type of promise that a portion of the READI funds would be used on that, even though housing may be a major emphasis on this next wave. We're not comfortable relying on being able to use those type of developments.”
While housing might be a problem that isn’t fixed quickly, small business leaders aren’t waiting around to see what happens next. Already, a few Korean restaurants are in development, mainly in downtown Kokomo.
“There is one proposed on Buckeye Street next to Oscar’s Pizza and Three Amigos,” said Moore. “And the previous site of Petite Patisserie on the courthouse square is a second one. And with the housing that's being proposed in the former Kokomo Tribune building, there may be even a third small Korean restaurant in there.”
The group also discussed transportation during the visit. Moore explained that many of the South Korean nationals who locate here temporarily likely will not purchase vehicles. If they are living in a centralized area, such as in the hotels on the south side of the city, shuttle service to and from the battery plant will be needed.
“There's a concern with expanding the city bus routes really in any direction,” said Moore. “Right now, the routes are timed at an hour so that people can best plan. So, if those are extended or expanded, that affects the time that folks have and need to get to and from places.
“We're looking at if we need to add additional trolleys to have maybe two trolleys on some of the larger loops north and south. And we’ll play the funding game to see what is possible. But, yes, we recognize that there may be more reliance on the public transit system. We’re not sure what that would look like yet.”
The IEDC’s South Korean office in Seoul will be the state’s access point to build industry ties and economic development between the two. Launching on July 1, it is the eighth international office maintained by the Alliance. Indiana Secretary of Commerce Brad Chambers is optimistic about the growing relationship.
“Indiana’s new Seoul office underscores the importance of the state’s deepening relationships with Korean companies and their increased interest in a dynamic Hoosier workforce and economy,” said Sec. Chambers. “With over $6 billion of recently announced capital investment from Korean companies and their JV partners, an IEDC office in Korea is a further commitment to building high-tech, future-focused investments and job opportunities to the Hoosier state.
“After visiting with government and industry leaders in Seoul twice over the past year, I’m confident that Indiana and South Korea share similar visions for our futures and that investing in our growing partnership will deliver mutually beneficial results in industry and innovation.”
According to the IEDC, Indiana is home to 14 South Korea-based companies, including Jaewon Industrial, which is establishing its first U.S. location in Kokomo, Soulbrain MI, which is investing $76.5 million to establish operations in Kokomo, and Samsung SDI, which is investing in two major joint ventures to build new EV battery manufacturing facilities with Stellantis in Kokomo and with General Motors in New Carlisle.