By TRACI MOYER
Kokomo Tribune business writer
Olympic Food Products originated in Kokomo in 1961 in the basement of Ray's Drive-in, but it wasn't long before the successful business created more than 100 jobs.
Monday, Mike Downs, president of the company at 519 W. Spraker St., announced it will close Sept. 10.
"The decision to close the Kokomo plant was not an easy one," Downs said. "We are fully aware of the impact this decision will have on our employees and their families. We hope this advance notice of our decision will assist employees in planning their future."
Downs said the plant was closing as a result of business conditions in the food-processing industry. He did not elaborate.
In addition to those conditions, the city says there are issues surrounding environmental compliance with sewage discharges at the plant.
"We are very disappointed with Olympic's decision," said Mayor Matt McKillip. "We and previous administrations have done all we could to help Olympic be successful in Kokomo, but despite our best efforts, they have decided to move out of this community, which has taken good care of them.
"My prayers go out to the individuals and families impacted by this devastating news."
The company produces 140 frozen entrees, including chili, macaroni and cheese, lasagna, stuffed cabbage rolls, breaded pork fritters, chicken pot pies and corn dogs.
In 2000, employment peaked at 125.
Kokomo/Howard County Development Corporation President Greg Aaron also voiced disappointment.
"It's very discouraging because we watched them grow, the city offered them tax abatements and apparently they were growing," Aaron said. "I'm disappointed to see them close at this point."
In 2003, through the assistance of the KHDC, Olympic leased 40 percent of its warehouse to Coca-Cola Bottling Co. Coca-Cola was in need of more warehouse space and the agreement saved Coca-Cola the construction costs of a new building.
Aaron said he thought Olympic was still leasing part of its 26,000-square-foot warehouse to Coca-Cola. He said making that arrangement a more permanent one might be one solution to selling Olympic's assets.
"We would certainly want to talk to Coca-Cola," Aaron said. "The production facility is also in excellent condition and approved for food processing. We just need information about the building from Olympic so we can market it."
In 2002, a faulty fryer set the frozen food processing company ablaze, but after remodeling, Aaron said it has been updated and would make an exceptional facility for another food-processing company.
The fire at the plant wasn't the end of the company's problems.
In September 2003, the city's sewage plant issued an order to Olympic requiring the installation of containment equipment around a grease storage tank where repeated spills occurred.
City officials say the company was given a 50 percent deferment of fines so it could purchase corrective equipment.
In December, the city issued another order to install pretreatment equipment and deferred 100 percent of the fines so the money could be used to correct discharge problems.
"The city deferred penalties and fees amounting to more than $10,000 over the past year to help the company through a tough time," said Jason Hester, the city's director of development.
"This was done with the clear understanding that Olympic would continue operations in Kokomo and stop exceeding discharge limits into our wastewater system."
The company moved operations to Mishawaka in 1966, but returned to the City of Firsts in 1970 at West Spraker Street under the name of Tri-State Processing Company.
Since then it has experienced three stages of growth.
There was a period in 1993, when the parent company was prepared to move operations to Minnesota, but a $1 million tax abatement on machinery and expansion, convinced it to remain.
It also changed its name to Olympic Foods where it kept its promise to maintain jobs and add new ones in return for tax abatements.
McKillip said the city has already started looking for a company to replace Olympic.
"We've already begun placing calls to state and local workforce development officials to ensure that the workers are taken care of as best as possible given the circumstances," he said.
"Then we are going to capture all the money, including interest due to us by Olympic. Beyond that, we will aggressively work at locating a new company into Olympic's facilities."
©2004 The Kokomo Tribune.
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