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http://www.nwitimes.com/business/local/art...c2ded9492a.html

Michigan City looks at casino money as bait to lure companies

By Stan Maddox - Times Correspondent | Posted: Friday, May 21, 2010 12:00 am | No Comments Posted


Michigan City could dangle casino money as extra bait to try and entice more companies to locate here.

Those involved in job creation here believe casino money would give the city a definite advantage in competing against other areas, especially when trying to tip the balance of the incentive packages on the table.

''Something like this could be used as a tie breaker,'' said John Regetz, executive director of the Michigan City Economic Development Corp.

The city council again this week raised the issue, believing too much of the same incentives other communities offer isn't enough particularly in a declining job market.

Council president Ron Meer said riverboat money would be the trump card to play here given most other communities don't have such a resource.

Meer said, for example, up to $1 million in gambling proceeds to help custom fit a facility for a prospective employer could be offered in addition to tax abatement in return for a certain number of manufacturing jobs paying a liveable wage.

''That's money well spent,'' Meer said.

Over the years, the city has spent millions in riverboat dollars on extending water and sewer to previously unserviced areas.

Lesser amounts have gone toward areas like promoting tourism and subsidizing employee health insurance costs.

Regetz said the infrastructure upgrades have indirectly produced some economic gains from companies that benefitted from such work.

He said what is being talked about now is on a much larger scale and a viable option Regetz would readily exercise in job recruiting efforts.

Regetz, though, said companies also look at other strengths like quality of the work force and location so casino money might not be the determining factor for some companies.

Meer said no decisions have been made by the council, but Regetz was encouraged to start using casino money as a selling point.

''It's hard to say if companies would want to take a look at it immediately. It's a resource and we'll keep it on our pallet of incentives when deal come along,'' Regetz said.