Brenda Showalter, The Republic Reporter
Columbus city officials received a reminder this week on how stiff competition is when recruiting new businesses and retaining old ones.
Makuta Technics Inc. announced that it would be moving from Columbus to Shelbyville next year.
The company, which employees 16, plans to build a new 20,000-square-foot building at Shelbyville’s Intelliplex Park.
Owner Stu Kaplan said he had been looking for a place to build a new facility for his expanding business for almost two years.
He looked in at the Info Tech Park at Columbus Municipal Airport and talked to Seymour officials, but decided his best offer was in Shelbyville.
“In the end, no property was available at a good price (in Columbus),” Kaplan said.
He said the cost to lease land at the airport was a key factor, but not the only one in deciding to move.
“The competition in Seymour and Shelbyville presented very concise, cohesive information on what they are doing for businesses and how they were good communities to do business in,” Kaplan said.
He added that officials presented themselves very honestly and ethically.
The Shelbyville park is next to Interstate 74 and has a hospital close by, making it a good location for his company that manufactures small plastic parts for medical, automotive and other industries, Kaplan said.
Mayor Fred Armstrong said he thought land costs were the deciding factor for Kaplan.
“The city and private groups have an investment there, and they offered him a deal that we couldn’t touch,” Armstrong said.
Armstrong said land at the Columbus park is leased for about $5,000 a year. Kaplan said he paid significantly less for the Shelbyville land, but would not specify an amount.
Although Kaplan had mentioned that the property was “shovel ready,” Armstrong said the Columbus Info Tech Park also is ready for businesses with infrastructure and roads in place.
Armstrong added that the Columbus location is ideal for high-tech companies since local universities and the Columbus Learning Center are across the street.
The mayor said Indiana cities do not normally compete with each other for businesses, but Kaplan had some connections to the cities that gave him an edge.
“They were able to help him, and I can’t blame him,” Armstrong said.
“He’ll save a lot of money up front. I hope he does well. I wish him good luck.”
The mayor said city and economic development officials are making progress attracting other businesses to Columbus.
“We’re hoping it all comes together in the near future,” Armstrong said. “We would like to have that park filled in the next five years.”
Kaplan said he never planned to move his business out of Columbus, but he plans to continue living here with his wife and two school-age sons.
He hopes his experience, however, will offer insight to city officials on what they can do to better attract and retain businesses.
Construction on the new Makuta facility will begin early next year.
Brooke E. Tuttle, Columbus Economic Development Board president, was out of town and unavailable for comment Wednesday.
© 2005 The Republic