Economic Development Coalition of

Southwest Indiana

annual report 2013

Letter from the CEO

In 2012, the world saw several unusual inventions. First, the self-inflating tire which uses an internal pressure regulator and self corrects without the driver’s knowledge; Google glass which incorporates a computer built into the frame of a pair of glasses creating a layer of “augmented” reality into your life – think Tony Stark in the movie Iron Man; and lastly, liquid-glide, a plant-based product coating that could prevent ice from sticking

to airplane wings or coax the most stubborn of all condiments, (ketchup) out of its bottle of anticipation.

This was also a year of beginning to reinvent Southwest Indiana. With the Garner Report recommendations, the Coalition began the journey of taking the Blueprint for Success off the drawing table to reality. The recommendations from Garner were in three areas: product marketing, product improvement and organizational. The most immediate need for the Coalition was to provide a financial foundation on which to begin to improve the region.

As the Coalition embarked on a five-year capital campaign, the Southwest Indiana story began to take shape in a way that it never had before – in print. The facts were this: in five years, the Coalition had garnered $437 million in investment, with companies creating over 3,000 jobs as well as obtaining over $65 million in grants improving the lives of Southwest Indiana Hoosiers. Telling our story to the companies in Southwest Indiana netted us an improved investor base by 60 percent as well as strengthened our current supporters. Companies who had not been a part of the Coalition ‘culture’ were seeing the impact and importance that this organization brings to the region; add to that the accomplishments of our very engaged local economic developers and collectively, Southwest Indiana is no longer a wallflower at the commerce dance. Companies are looking, some are hovering, and we need to keep striving to provide a great place for them to land.

Greg Wathen, APRPresident & CEO

PGP invests $21 mil- lion in facility at Vanderburgh Indus- trial Park

“PGP International is the type of com-pany that any community would be for-tunate to have. They focus on hiring and training local talent, recognizing that investment in their employees provides the greatest return,” said Debbie Dewey, President of the Growth Alliance for Greater Evansville (GAGE).

PGP invests $21 million in facility at Vanderburgh Industrial Park

PGP International Chooses Southwest Indiana

Economic development is truly a team sport and no better example of how all the pieces come together than last summer’s announcement of food manufacturer PGP International’s building a state-of-the-art 70,000-square-foot facility creating 41 new jobs at an average wage of $22 per hour and investing $21 million in real and personal property. A leading manufacturer and supplier of high protein and grain crisps for the cereal, energy and the nutritional bar industry, PGP International’s Vanderburgh County facility will produce rice-based products. Company officials said they considered more than 45 site locations in numerous states including Ne-braska, Wisconsin and South Carolina before they chose the Vanderburgh Industrial Park. “PGP International is the type of company that any community would be fortunate to have. They focus on hiring and training local talent, recognizing that investment in their employees provides the greatest return,” said Debbie Dewey, President of the Growth Alliance for Greater Evansville (GAGE). The project driven by both GAGE and Woodward Development & Construction helped marshal the local and state resources while Woodward made all of the numbers work. Other team members included Vanderburgh County officials like Commissioner Marsha Abell, Evansville Mayor Lloyd Winnecke, the Indiana Economic Development Corporation, Grow Southwest Indiana Workforce, the Evansville Industrial Foundation, Ivy Tech Community College, Vincennes University, University of Southern Indiana, University of Evansville, Evansville Vanderburgh School Corporation, Southern Indiana Career and Technical Center, Vectren, Evansville Convention and Visitors Bureau, Indiana Southern Railroad and the Coalition. Though some might believe economic development organically occurs, every project requires a different level of expertise as well as a considerable group of players. Southwest Indiana should be proud of the hard work put forward by GAGE, Woodward and the other team members to secure another important project during challenging economic times.

A Community Development StoryFormer NFL Coach, John Madden once said, “The road to Easy Street goes through the sewer” which should be a warning in most situations, but is a cold hard fact for an economic development project. If a community’s capacity for growth is limited by its water, sewer or infrastructure, growth will stop. Period. For the past six years, the City of Mt. Vernon’s sewer system has been under a state judicial action and an agreed order through the U.S. Environmental Protection Association (EPA) and the Indiana Department of Environmental Management (IDEM) for both its water and sewer systems. The City was cited for a CSO-Combined Sewer Overflow which meant that the sewer and storm water flows needed to be separated to be EPA and IDEM compliant. If the problems were not addressed, the EPA would seize the utility, fix the problem, send the city the bill and not allow any new taps until it was paid - translation, no new customers – residential or commercial for Mt. Vernon.

In 2010, the Coalition applied on behalf of the City for a Community Focus Fund Grant from the Office of Community and Rural Affairs to fund the three phases necessary to become compliant: Improvements to the Mill Creek Pump Station and Wastewater Treatment Plant, Force Main to WWTP and to construct a 3.5 MG Storage Tank. The City received the grant for half of the total project amount of $14,400,000 million and received the remaining funds from a State Revolving Loan. The project was finished in March 2013 with over 6,200 residents and many businesses receiving the benefit of not just an updated sewer, but the future economic growth of Mt. Vernon. “The most important economic development assets to possess are land, water and sewer. The improvements made to the City of Mt. Vernon’s sewer system provide the future platform for new business and expansion growth to occur,” stated John Taylor, Executive Director of the Posey County Economic Development Partnership.

This project has spurred many other great improvements for Mt. Vernon including but not limited to the silo demolition, the park and trials by the riverfront as well as the new condo/commercial mixed use development overlooking the Ohio River. This community development project has helped Mt. Vernon and Posey County begin the process of creating a community that all residents can take pride in. (Pictured above the rendering for a new ampitheatre and fountain by the riverfront).

“The improvements made to the City of Mt. Vernon’s sewer system provide the future platform for new business and expansion

growth to occur,” -John Taylor

Executive DirectorPosey County Economic

Development Partnership.

TEAM SOUTHWEST INDIANAThe Economic Development Coalition of Southwest Indiana acts as the market-ing arm and economic development umbrella organization for Gibson, Posey, Vanderburgh and Warrick Counties. Since 2006, the Coalition has helped gar-ner $437 million in investment creating 3,034 jobs; plus, the Coalition’s Com-munity Development team has helped our communities secure over $65 million in infrastructure and capacity. Economic development in Southwest Indiana is strengthened even further by the collaborative efforts of our four county local economic development organizations: Posey Co. Economic Development Part-nership; Gibson Co. Economic Development Corporation; Growth Alliance for Greater Evansville; and, Success Warrick County.

The collective investment and jobs data for the Coalition along with its local economic devel-opment partners is over $1.6 billion with over 4,850 jobs. These investments are the key to having the infrastructure and quality of life necessary to keep attracting companies to our region.

The First Point of Contact

Although the level of assistance that the Coalition provides for our local economic development organization (LEDOs) varies from organization to organization, the Coalition is usually the first point of contact for a project lead. We work in conjunction with the LEDO to make sure all proposals and any ancillary information that a company might need is provided on a timely basis.

Throughout 2012, the Coalition provided assistance on a total of 61 projects:

Energy – 2Auto-related – 9

Food-related – 12Chemical-related – 2Mining industry – 2Plastic industry - 2Pharmaceutical – 1

Other – 33

CAPITAL CAMPAIGNInvestors in the Coalition realize that when our region’s economy grows it creates an environment that benefits all. Investment made in the Economic Develop-ment Coalition is not just for employing economic and community developers but for promoting the assets of Southwest Indiana such as the new Advanced Engineering Center on the campus of the University of Southern Indiana. The Center due to open in May 2013 will become a ‘differentiator’ when manufactur-ing companies look for speed to market and a technically talented workforce. It’s an investment of regional assets like I-69, the Port of Mt. Vernon and the Warrick County Wellness Trail.

Number one on the priority list from the Garner Report and confirmed by the Coalition board of directors was to initiate a five-year capital campaign by en-gaging a professional fundraising firm. In 2012, Resource Development Group was hired and immediately began working with our team. To lead the charge, Old National Bank provided a loaned executive to the Coalition, Ben Schmitt, to oversee and provide leadership for broadening the investor base and increasing the pledges of current investors. With Campaign chairs Bob Jones, Old National Bank; Linda White, Deaconess Health Systems; and, Carl Chapman, Vectren Corporation the Coalition broadened its investor base by 42 companies for a total of 70 investors; an increase of 60%.

Southwest Indiana leaves a lasting impressionThree Southwest Indiana organizations came together to market the region through the televised United Leasing Championship, which is the first event for the newly named Web.com Tour (formerly the Nationwide Tour). The Evansville Convention & Visitors Bureau, the Chamber of Commerce of Southwest Indiana and the Coali-tion teamed with Oswald Communications and Barefoot Productions to produce national broadcast-quality commercials to be aired on the Golf Channel during the tournament week.

The tournament was broadcast in national prime-time and Southwest Indiana was put in the spot light as the Golf Channel airs in 176 countries with a potential view-ing audience of 123 million people. The Business Hotspot Commercial is the recipient of an International MarCom Gold Award and an ADDY bronze award. The Southwest Indiana web site and e-newsletter had a refresh in both content and look using various technological updates to make both collateral pieces eye catching and tech savvy.

Print/Web Advertising: Automotive News show dailies, Evansville Living, IndustryNet, Manufacturers’ News, Toronto Globe & Mail, Trade and Industry Development, Site Selection Magazine, Indiana Business Journal, BizVoice Magazine, Chamber of Commerce of Southwest Indiana Business Highlight Map and Indiana Economic Develop-ment Corporation.

Events: United Leasing Championships web.com PGA Tour, Site Selectors Guild – Orlando, Indianapolis, Center for Automotive Research (CAR) Management Briefings, Sister City – Evansville/Tochigi, U.S. Commercial Service Automotive Trade Mission –CANADA, U.S. Midwest Japan Conference, Industrial Asset Management Council Conference, Big 10 Football Event, Indiana Economic Development Association Annual Conference, Indiana Economic Development Corporation – Young Professionals Organization event, Small Busi-ness Development Corporation TIF/Tax Abatement seminar, Indiana Office of Community & Rural Affairs Local Elected Officials Training, Big Ten Football Championship and the Chicago Bears Football Game with Indiana Economic Development Corporation, Coalition Investor Recep-tion.

Associations: Indiana Economic Development Association, International Economic Development Council, Indiana ARC, COSCDA.

Sales Trips: Chicago, Atlanta, GA, Greenville, SC

Through Communications: Southwest Indiana News - monthly e-newsletter (increased by 318% in 2012), Direct Mail Campaigns, Press Releases.

Through Social Media: Twitter, LinkedIN and YouTube (over 2,000 views)

Board of Directors - 2012

Marsha AbellMike AndreasDr. Ray BarberEvan Beck, Chair-electDr. Linda BennettRev. Adrian Brooks Joe CastraleRon Christian, ChairMarco DeLucio, SecretaryDebbie DeweyTim FleschBill GillenwaterEd HaferMayor Pam HendricksonMike Hinton Dan Hoefling Jeff HowellMichelle Hudson Mayor Robert Hurst Ann HynemanBob Jones, TreasurerDr. Thomas KazeeMichael E. KeeneSally Rideout LambertDon LeeMark LemondJ. Steven MartinTim MasonShawn McCoy Beth McFadin HigginsNorm MillerRandy MillerTim MosbeyTodd MosbyScott Moye

Jeff MulzerJon NeufelderHoward NevinsBill NewmanMarlene ObertBob O’Leary Jack Pate Randall PembertonKurt PhegleyGeorge Postletheweight Jennifer RaibleyVirgil RaschePaul RudolphDr. Dan Schenk Mike Schopmeyer Mark SeibTom Shetler, Jr. Mike StanleyJerry StillwellJohn Taylor Larry Taylor Jeff ThompsonBob TownsendMayor John Tucker Rev. Rabon TurnerGreg WathenMayor Jonathan WeinzapfelRalph WeinzapfelJane WilhelmusLarry WilliamsPhil WilzbacherLloyd Winnecke Tony WolfePhil Young

Bold type denotes Executive Committee member

Alcoa Warrick OperationsAnchor Industries, Inc.Anthem InsuranceAT&TAtlas World Group Azimuth Custom Extrusions, LLCB&W Nuclear Operations Group, Inc.Banterra BankBernardin, Lochmueller & Assoc. Inc.Berry Plastics CorporationBKD, LLPBMG, Inc.C.H. Robinson CompanyCasino AztarCrescent City Security Inc.CSB State BankDeaconess HospitalDuke Energy IndianaDunn Hospitality GroupEmpire Contractors, Inc.Evansville Commerce BankEvansville Courier & PressEvansville Teachers Fed. Credit UnionF.C. Tucker Emge Realtors Fifth Third Bank First Security BankFlandersGerman American BankGribbins Insulation CompanyHafer Associates, PCHahn Realty CorporationHarding, Shymanski & Co. P.S.C.Health Resources Inc.HR Solutions, IncIndustrial Contractors | SkanskaKahn, Dees, Donovan and KahnKemper CPA Group, LLC

Kemper CPA Group, LLCLensing Building Specialties Locust Street Company, Inc. Management Recruiters of NewburghManpowerMcKim’s IGAMead Johnson NutritionMedical & Professional Collection Services, Inc. Mel-Kay Electric CoMulzer Crushed StoneNorthwestern Mutual Financial NetworkOld National BankPorts of IndianaRegency Property Services LLCSABIC Innovative PlasticsSchultheis Insurance Agency Shoe Carnival, Inc.Smith & ButterfieldSouth Central Communications CorpSouthwest Indiana Association of RealtorsSpringleaf Financial ServicesSt. Mary’s Health SystemThe Martin Group, IncThe State Group Industrial (USA) LimitedToyota IndianaTraylor Bros., Inc.Trey Exploration Inc.Tri-State OrthopaedicsUnited BankVectren CorporationVenu Works/Ford CenterWarehouse Services, Inc.Warrick County Chamber of CommerceWB Koester ConstructionWoodward Commercial RealtyZiemer, Stayman, Weitzel & Shoulders, LLP

Investors