By Mark Miller, Bluffton New-Banner
Conspicuously absent from last Friday's major economic development announcement of the Broin Companies' plans to build an ethanol plant in Wells County was the county's chief economic development official. The briefings were organized and hosted by city and county government officials. While the executive board of the Wells County Chamber of Commerce, which oversees the county's economic development efforts, were in attendance they did not organize nor plan the press conference nor had they been working with Broin.
The reason for that, The News-Banner has learned, is that Wells County Economic Development Director Garry Jones, in a telephone conversation with Broin officials in late March, advised them to "look elsewhere."
Jones is an initial investor in Indiana Bio-Energy, which is building a 100-million gallon ethanol plant here that has been in the planning stages for more than a year. Jones was serving on IBE's board of directors at the time he was contacted by Bob Berens, Broin's director of site development on or about March 20.
"Maybe there was a breakdown in communication, maybe he misunderstood us," Berens stated in a telephone conversation Tuesday afternoon. "We didn't directly identify ourselves, perhaps we should have."
"If that's their opinion (that they were rebuffed) ..." Jones stated in an interview Thursday morning, indicating with a shrug of his shoulders that he cannot change that.
"I was straightforward with them and up-front that I was involved in a local effort, even though in a miniscule way." he continued. "That is a principle I cannot violate."
Jones said that he had no idea who he was talking to, which is not unusual at all in such initial calls, but is adamant that he explained his involvement.
Berens stated he had called Jones and said that he represented a client who was exploring building an ethanol plant in Wells County. He said that Jones' first response was a question: "Do you know that there is another plant being built here?"
"I replied that yes, I was aware of that. He said that in his opinion, there wasn't room for another plant here and he suggested we look elsewhere," Berens said.
Broin officials subsequently contacted Bluffton Mayor Ted Ellis and county commissioner Kevin Woodward in July.
"We did find the people we could work with, we were able to put the project together and we're looking forward to being a part of the Wells County community," Berens said.
"If I gave them that impression," Jones stated in a Thursday afternoon follow-up conversation, "my sincere apologies."
Jones again noted that he did not know who was calling. "We get a number of contacts to our office everyday. It's quite normal that they do not fully identify themselves.
"It was certainly not intentional," he said, drawing an analogy that if he should get a phone call from a retailer who is thinking about putting a new auto parts store in Bluffton, "it's my duty to inform them of the current situation," he said.
"I resigned from the IBE board immediately when I realized there would be a conflict of interest," Jones said, which he believes was shortly after that initial call in March.
"I cannot undo my original investment in IBE, as miniscule as it is," Jones reiterated. "And if I had it to do over again, I would never had made that investment had I known what would transpire."
Jones made that investment for two reasons, he explained: First, because it appeared Wells County is perfectly situated for an ethanol plant; and secondly, he wanted to see the feasibility study done.
"Sometimes, the best of intentions don't always work out," he said.
"I will do anything I possibly can to assist Broin to be successful in Wells County," Jones stated emphatically. "That is my fiduciary responsibility."
Ellis related that his first contact with Broin was in early July, a phone call from Tory Callaghan Castor, their legal counsel with whom Ellis already had acquaintance. She wanted to set up a meeting "with people I'd like you to meet" in Muncie. Castor also contacted Woodward. Neither Woodward nor Ellis were told what the meeting would be about nor whom they were meeting with.
At that meeting, both agreed in a joint interview Thursday, Broin officials, which included Berens, Castor and vice president of operations Brian Minish, made it clear that they didn't feel they had received a good reception from the Wells County Economic Development office and asked "if we can't go through them, who can help us navigate the process" of locating an ethanol plant in Wells County?
"Of course, we volunteered our services," Woodward said. "That's part of our duties, to help bring jobs to Wells County." Both men related that economic incentives were never discussed, only questions on procedures and local polices.
"They didn't like the feeling they got and were concerned about whether they would be welcomed in Wells County," Woodward said.
"They were certainly aware of IBE, particularly that (board chairman) David Dale had been quoted as saying 'the project has to be moved out of Wells County' at the joint meeting on June 27," Ellis recalled.
It was at that meeting that Woodward made a motion that was passed 2-1 by the commissioners to rescind the pledge of CEDIT funds to back IBE bonds. Dale almost immediately rescinded his words, indicating in the next day's issue of the News-Banner that his board was reconsidering options. IBE eventually was able to put together private financing and have begun site development on Bluffton's southwest edge, much to the delight of both Ellis and Woodward, they emphasized.
"At one point, Broin sounded like they might reach out to IBE for some sort of partnership," Ellis said. "But I have no idea if they ever did."
In fact, Minish was in Jones' office the week before that June 27 meeting, and brought up the subject of a possible collaboration with IBE. Jones took that proposal to the IBE board, which "was voted down," Jones said.
At the time, Jones still did not know the exact identity of the company, but said it was quite obvious they were "a major player."
Broin officials made no further contact with Jones' office after that.
Ellis reported that Broin did essentially all of the work themselves in finding the land and working with details. "I've probably had less than a half-dozen phone calls with the company over the course of this, and there were two brief meetings in my office, but those were very impromptu," Ellis stated. "I got the feeling they were going to or coming from Portland each time."
Broin is also building an ethanol plant southwest of Portland, where they broke ground in August.
"Both times, they didn't ask any questions (about the progress of IBE) they could not have gotten the answers to by reading the News-Banner," Ellis said.
Woodward said that he never had any clue "even where the land was" that the group was looking at.
"Neither of us ever initiated a contact with Broin throughout the entire process .... every contact was initiated by Broin," Ellis said.
Some time after that July 12 meeting, Woodward received a phone call from an official at the Indiana Department of Agriculture.
"This guy told me that an ethanol group had contacted them and wanted to know who in Wells County they could talk to. They were aware that Garry (Jones) had a relationship with the local group," Woodward related.
"They never mentioned any names, but they wanted to get a feel for what the feelings were of the general population ... do they want an ethanol plant?"
Woodward said this was very concerning to him. "If this was happening in Indianapolis, what kind of reputation does Wells County have around the state?"
Meanwhile, the contacts with Broin were so infrequent that Ellis and Woodward came to assume that they had decided against any Wells County project, but both were pleasantly surprised to get a phone call from Castor sometime during the week of Oct. 30 that Broin hoped to make an announcement concerning Wells County as early as Friday, Nov. 3.
Apparently, things did not come together as quickly as she had hoped, but she called back to schedule a series of meetings with the local newspaper, government and Chamber of Commerce officials and area media on Friday, Nov. 10.
"Where can we hold all this?" Ellis recalled her asking.
"Of course, I volunteered the City Hall," he continued. "We'd be happy to host such an event for anyone."
"Do I welcome Broin to Wells County?" Jones asked rhetorically Thursday. "Absolutely. And I've made that very clear to Brian Minish."
Jones made a copy available of an email he sent to Minish on Monday, Nov. 13:
"On behalf of the Wells County Chamber of Commerce, WELCOME TO WELLS COUNTY. Because of my investment in IBE, miniscule to total project, I understand the fiduciary responsibility I have to this community. My executive committee will act on your behalf to make your project successful for the betterment of this community. I also want to make myself available when you feel appropriate, and please understand my intention is not to violate any trust of this community or your firm."
Minish responded with an affirmative thanks. "We look forward to a very positive relationship with everyone in Wells County."