BY PATRICK GUINANE, Times of Northwest Indiana Statehouse Bureau Chief
INDIANAPOLIS | The $78 million plan for a Cabela's outdoor superstore in Hammond probably isn't the best way to spend state sales tax dollars, Republican Gov. Mitch Daniels said Tuesday.
"You never blame any company for asking for all they can get, but that original request, I think, was just not in order," Daniels said.
"It was very, very large. The taxpayers of Indiana can invest that money, probably, better somewhere else."
Daniels says he hasn't completely dismissed sales tax increment financing for Cabela's but would prefer to discuss other incentives, including payroll credits and employee training grants.
"I wouldn't rule anything out 100 percent, but I think the more conventional tools should apply, if any," he said.
"And, once again, the policy of our (Indiana) Board (of Finance), here, is generally no incentives for retail, because most such projects just move dollars from one Indiana business to another. But the board recognizes that, here and there, there's a rare exception."
The governor's comments came after an all-day conference hosted by the Indiana Economic Development Corp. Local leaders, lobbyists and state bureaucrats spent the rainy day searching for Indiana's economic identity.
After a morning of small-group sessions, the crowd reconvened, draping one wall of a hotel ballroom with a dozen easel-sized sheets that outlined state policy goals. They ranged from attracting more federal research dollars to becoming a net exporter of energy.
"I'm glad to see that the IEDC is engaging in strategic planning and doing so with its partners, so that everyone is moving in the same direction," Valparaiso Mayor Jon Costas said after the event.
"I think there's a great future ahead for all of Indiana, particularly Northwest Indiana."
Costas said he met with Daniels and IEDC Executive Director Michael Mauer earlier in the day. Neither Cabela's, nor the Bass Pro Shops megastore planned for Portage came up, but Costas said the retailers' interest in Northwest Indiana is reason for optimism.
"I think they're a good indication of the fact that those entities that look hard at demographics see a lot of latent potential in our area," Costas said.
"We're seeing it all the time."
The governor agreed, but alluded to the fact that only one retailer is asking for state assistance.
"I hope we get them both. Neither of them would be as far as they are if it wasn't a good business proposition. They're well aware of each other," Daniels said. "I think they're both very exciting, and you would have to have some equity between any two."