By Scott Smith, Kokomo Tribune staff writer
scott.smith@kokomotribune.com
Zuna Infotech's entrance into the world of business was confirmed this week by a $150,000 check from the city of Kokomo.
The forgivable loan is part of the overall incentive package used to lure the information technology firm, and is aimed at helping the company meet specific job goals over the next three years.
The firm, which officially started operations Nov. 1, is still in the first stages of working with prospective clients right now, Zuna chief operating officer Jim Harter said Friday.
Zuna, a startup that announced plans in October to locate in Kokomo, is seeking to enter the market for "on-shoring" IT services, specifically among companies wanting to rethink sending contracted IT work out of the U.S.
"I think we've got some unique approaches," Harter said. "With some [competitors], the way they talk about on-shoring is very mixed; they've kind of got a model that's part off-shoring and part on-shoring. We've got a much clearer message for folks."
Howard County and the city of Kokomo teamed up to offer at least $200,000 in local incentives - mainly forgivable loans - and the Indiana Economic Development Corp. offered up to $1.16 million in performance-based tax credits and up to $145,000 in training grants based on the company's job-creation plans.
To meet the terms of the city's forgivable loan, Harter said the company will need to create 150 full-time positions by the end of 2012.
Friday, he called that goal "very realistic," saying the company's business model hopes to create three times that many jobs in the same time period.
During the company's October introduction to Kokomo, Harter said the firm has three main goals: providing sustainable and long-term careers for employees, providing a real alternative for companies currently "off-shoring" their IT needs, and growing the company to a scale that will make a difference in Kokomo.
Part of the local incentive is based on Zuna hiring eight employees by March 1, 2010. At the October press conference, Harter said he anticipates a capital investment of about $2 million over the next three years.
Right now the company is located at the Inventrek Technology Park, and is negotiating for office space outside the park, possibly in downtown Kokomo.
The city's finalization of the forgivable loan, paid for out of economic development income tax funds, comes as the nation's economic news continues to improve.
Harter said the company's launch could coincide with an economic upswing.
"Things have definitely stopped getting worse. Companies are actually making some strategic plans, rather than just hunkering down, trying to survive."
Harter, an Illinois native with family in the Kokomo area, said he first became interested in Kokomo during a family visit, when he happened to meet former Kokomo Mayor Matt McKillip.
McKillip ended up working as the company's site search consultant.