Jul. 18—The Indiana Economic Development Corporation's more active approach to buying and developing land has made its way to Howard County.
The IEDC has purchased some 93 acres adjacent to the Kokomo Engine Plant and the future StarPlus Energy electric vehicle battery plant for a little more than $4.5 million, according to county property records.
In an emailed statement to the Tribune, Erin Sweitzer, vice president of external communications for the IEDC, said the land was purchased for future "economic development."
"In order to help meet the needs of the market, the IEDC purchased the land to support ongoing economic development projects," she said. "We are not yet able to disclose specific project details, as all negotiations are confidential."
Citing "multiple sources," the Indiana Business Journal reported on July 7 that the IEDC plans on using the land it bought to "to market to suppliers and other companies within the electric vehicle battery ecosystem."
Also being considered for that area, according to the IBJ, is an Innovation Development District (IDD) designation.
Created in 2022 by state legislators, an Innovation Development District allows the state to draw boundaries around a development and collect the increment growth in property, sales and income taxes that results from the development.
That revenue can then be used for more economic development projects in the district, real estate purchases or infrastructure improvements within the district.
An Innovation Development District works similar to how a locally-created and controlled tax increment financing district does but on steroids and except for the fact the increment revenue in the Innovation Development District would be controlled by the state.
Notably, at least 12% of the captured revenue would be returned to local taxing units.
Proponents of the Innovation Development District say it will attract large-scale economic development projects, though some are wary about ceding so much tax revenue control away from local governments and to the state.
For IDD's with a proposed capital investment of less than $2 billion, the executive of the local municipality must consent to the designation and reach an agreement with the IEDC. With a capital investment over $2 billion, the IEDC can create an IDD without an agreement with the local municipality.
"We would definitely be open to that conversation with the state," Kokomo Mayor Tyler Moore said to IBJ regarding the state creating an Innovation Development District in Kokomo.