New Republican lawmakers are hiring lobbyists, despite campaign rhetoric; Stutzman Hires Harris

Posted by Laura Arnold  /   December 13, 2010  /   Posted in 2010 Mid-term Election & Candidates, Uncategorized  /   2 Comments

 

Editor's Note:  Some of our new members of the Indiana Congressional delegation are also following this national trend of hiring lobbyists.  Marlin Stutzman has hired Tim Harris according to the Ft. Wayne Journal-Gazette. Following this update is an article from the Washington Post reporting on this trend that points out that Dan Coats who was elected to represent Indiana in the U.S. Senate is a former lobbyist himself. Last, there is an article from the Campaign Legal Center that outlines a course of action to address such potential conflicts. This is a three-part blog post. Be sure to read to the end to see recommendations on how to address this national trend. Laura Ann Arnold
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Published: December 2, 2010 3:00 a.m.

Stutzman hires chief of staff

Ft. Wayne Journal Gazette

WASHINGTON – Rep. Marlin Stutzman, R-3rd, said Wednesday he hired a federal energy lobbyist and former Statehouse colleague to be his top lieutenant.

Tim Harris, executive director of the Indiana Utility Shareholders Association, will be Stutzman’s chief of staff in Washington. Harris was Stutzman’s seatmate in the Indiana House before Harris was defeated in 2008. He represented the Marion area.

The trade association, made up of stockholders of investor-owned gas and electric utilities in Indiana including American Electric Power, Duke Energy, NiSource and Vectren, registered Harris to lobby Congress last year and this year on cap-and-trade legislation, carbon emission rules and dividend and capital gains taxes. Harris lobbied Congress only for the Indiana group.

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New Republican lawmakers are hiring lobbyists, despite campaign rhetoric

Washington Post Staff Writer
Wednesday, December 8, 2010; 10:52 PM

During his campaign to represent Wisconsin in the U.S. Senate, GOP nominee Ron Johnson accused Democratic incumbent Russell Feingold (D) of being "on the side of special interests and lobbyists."

"After promising voters that he would reform the culture of lobbying in Washington, instead Senator Feingold embraced lobbyists and declared himself to be on their side," a Johnson spokeswoman said at the time.

But after defeating Feingold, Johnson himself has turned to K Street for help - hiring homeland security lobbyist Donald H. Kent Jr. as his chief of staff.

Johnson is not alone: Many incoming GOP lawmakers have hired registered lobbyists as senior aides. Several of the candidates won with strong support from the anti-establishment tea party movement.

These cases illustrate the endurance of Washington's traditional power structure, even in the wake of an election dominated by insurgent rhetoric. In addition to hiring lobbyists, many newly elected House Republicans have begun holding big-dollar fundraisers in Washington to pay off debts and begin preparing for 2012.

In addition to Johnson, Sen.-elect Mike Lee (Utah) has announced that energy lobbyist Spencer Stokes will be his chief of staff. Tea party favorite Rand Paul (Ky.) has hired anti-union lobbyist Douglas Stafford as his top senatorial aide.

In the House, Rep.-elect Charlie Bass (N.H.) has named food industry lobbyist John W. Billings as his chief of staff. Billings was a senior aide to Bass during an earlier stint on Capitol Hill.

Rep.-elect Chip Cravaack (Minn.) has hired former U.S. senator and former lobbyist Rod Grams as his interim chief of staff, though aides have said the posting is probably not permanent. Grams's lobbying clients from 2002 to 2006 included 3M, Norfolk Southern and the Financial Services Roundtable, records show.

Other incoming GOP lawmakers who have recruited staff from K Street include Robert Dold (Ill.), Steve Pearce (N.M.) and Jeff Denham (Calif.). John Goodwin of the National Rifle Association, one of Washington's most powerful lobbying groups, has signed on as chief of staff for Rep.-elect Raul Labrador (Idaho).

Voters in Indiana chose a former lobbyist, Dan Coats, to represent them for a second time in the Senate. But Coats, also a former U.S. ambassador to Germany, has hired a non-lobbyist as his chief of staff.

Craig Holman, government affairs lobbyist for the Public Citizen watchdog group, said hiring senior aides from K Street gives their former corporate clients an unfair advantage.

"Lobbyists for the most part are hired guns that represent corporations and other special interests that pay for them," Holman said. "Those lobbyists now have direct access to the political agenda of these lawmakers."

But aides to several GOP lawmakers disagreed, saying these staffers were hired for their expertise and will not grant any special favors to former clients.

"Congressman Bass demands all staff adhere to all House rules and ethics guidelines," said Bass spokesman Scott Tranchemontagne. He added that Billings, who has lobbied for the Food Marketing Institute since 2006, "will lead by example."

Jesse Benton, Paul's campaign manager, said that Stafford "is not a lobbyist in the sense that people think," because he worked for a conservative advocacy group, the National Right to Work Committee. His stint included guiding the group's campaign against "card check" legislation favored by unions, Benton said.

"Senator Paul wants principled people on his staff that actually care about the ideas that he's going to fight for in the U.S. Senate, and that's what Doug has done," Benton said.

In Utah, Lee's new chief of staff is the owner of Stokes Strategies, a Salt Lake City-based lobbying and communications firm. Lee spokesman Boyd Matheson said Stokes's lobbying background was "not a concern" because most of his work was done in Utah rather than Washington, and because the incoming senator has declared his opposition to earmarks.

Kent, Johnson's new chief of staff, is a former Republican legislative aide and Department of Homeland Security official who went on to head the homeland security practice at Navigators Global. Kent's lobbying clients have included Tyco International, AT&T, UPS, CSX and LCS Corrections Services, among others, disclosure records show.

Neither Kent's nor Johnson's office responded to requests for comment.

Lobbying for lobbyists

What the beleaguered lobbying profession needs, one group has decided, is a good lobbyist.

The American League of Lobbyists, a small professional group, unveiled a public relations campaign this month aimed at defending the decency and necessity of the much-maligned profession. The effort includes a video that bills lobbying, from grass-roots organizers to paid advocates on K Street, as "your constitutional right."

"Lobbying is an essential part of our political process," the ad's narrator says. "It gives people a voice and helps average Americans navigate the complex waters of the legislative and regulatory process."

The lobbying league's effort is aimed in part at pushing back against a tide of restrictions on lobbying implemented by the Obama administration, which has made criticizing K Street and other "special interests" a key part of its political message over the past two years.

The Sunlight Foundation, a watchdog group, responded with its own "mashup" version of the ad, replete with statistics about the growing influence of K Street in Washington.

The video concludes: "Now that corporations, unions, and individuals can spend unlimited sums of money on influencing politics, we need real transparency on the activities of lobbyists more than ever."

Original story http://www.washingtonpost.com/wp-dyn/content/article/2010/12/08/AR2010120806221.html?hpid=topnews

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Dec 8, 2010

The Hill: GOP freshman class draws K Street talent

 
By: Kevin Bogardus
 

Lobbyists are being lured back to Capitol Hill as the huge class of freshman lawmakers searches for experienced hands to help it transition into Congress. 

At least nine federally registered lobbyists have accepted offers to become chiefs of staff to newly elected Republican House members and senators, according to a review of press releases and media reports as well as interviews by The Hill. 

The migration from K Street to Capitol Hill shows that at least some of the newly elected lawmakers are establishing strong ties to the Washington establishment, despite claims that the next Congress — and its class of Tea Party-affiliated outsiders — will shun the old ways of doing business. 

Rep.-elect Robert Dold (R) of Illinois, for example, has hired Eric Burgeson, a vice president at BGR Group, to be his chief of staff. BGR is a prominent Republican-leaning lobby shop that was co-founded by Mississippi Gov. Haley Barbour (R). 

Burgeson, formerly a Bush White House aide and Energy Department chief of staff, is an Illinois native who knows Dold’s congressional district well. The lobbyist called Dold a “longtime friend” and said they first met doing advance work for then-Sen. Bob Dole’s (R-Kan.) 1996 presidential campaign.

Burgeson will not be the only lobbyist joining Capitol Hill’s ranks next year. 

John Goodwin of the National Rifle Association will be chief of staff to Rep.-elect Raul Labrador (R-Idaho.); Don Kent of Navigators Global will lead Sen.-elect Ron Johnson’s (R-Wis.) office; John Billings with the Food Marketing Institute will be chief of staff to Rep.-elect Charlie Bass (R-N.H.); and Todd Willens, who has lobbied at Vitello Consulting, will be chief of staff to Rep.-elect Steve Pearce (R-N.M.). 

Despite the prospect of less pay and longer hours, several lobbyists told The Hill that working in the new Congress was too exciting a chance to miss.

Jason Larrabee, founder of Jason Larrabee Ventures, said he couldn’t pass up a job as chief of staff to Rep.-elect Jeff Denham (R-Calif.). The lobbyist said public service still interested him, which is why he decided to return to Capitol Hill (he’d worked previously for former California Republican Reps. John Doolitte and Doug Ose).

“The reason I came back is I still believe in serving the people. Chief of staff is one of the positions that I can do that, and I was fortunate enough to have that opportunity with Mr. Denham,” Larrabee said. 

Larrabee lobbied for several local California water agencies and an energy research and development company this year, according to lobbying disclosure records. 

Like Larrabee, Spencer Stokes, president of Stokes Strategies, said he wanted to get into government to help change how Washington works. He will be the chief of staff for Sen.-elect Mike Lee (R-Utah). 

“I have always been a grassroots guy. I have a great amount of heartburn over the size of government, the fact that the federal government has gotten out of control,” Stokes said. “Although it is a cut in pay, I can survive and I can live. In life, there are only a few opportunities that present themselves where you really can make a difference.”

There is nothing in law or congressional ethics rules that specifically prevents former lobbyists from interacting with their ex-clients while employed on Capitol Hill. The 2007 ethics law mandates only a “cooling-off” period for congressional aides who head to K Street; that law bans former aides from lobbying their colleagues for a period of time. 

President Obama did sign an executive order early in his term that slowed the revolving door by stopping political appointments of lobbyists in his administration, though a waiver process was put in place to allow exceptions. That order, however, has no effect on Congress.

Meredith McGehee, policy director for the Campaign Legal Center, said “there is good news and bad news” when hiring lobbyists as Capitol Hill aides. One positive aspect is lawmakers are “hiring someone who is savvy in the ways of Washington.”

“As we can see from many ethics cases, the chief of staff really sets the tone for what goes on in that office. … That is probably the most critical hire,” McGehee said. 

But for a new lawmaker, hiring a lobbyist as an aide can also raise the potential for a conflict of interest between his or her former clients and the lawmaker’s agenda.

“As a chief of staff to a new member of Congress, you could do something to really help them,” McGehee said. “You have to be very careful not to do private bidding in public office.”

The ethics watchdog recommends that new congressional offices establish a written policy whereby former lobbyists share their client lists with lawmakers. McGeehe also says former lobbyists should recuse themselves from any issues involving those clients. 

Some of the congressional hires already seem to be following McGehee’s advice. 

Burgeson said that as Dold’s chief of staff, he would abstain from working on “matters of substance” involving former clients.

“Regarding working with former clients, it will be policy that staffers (including myself) may not work on matters of substance with former clients, and all substantive inquiries from former clients must be referred to a non-affiliated staff member for consideration,” Burgeson said in an e-mail to The Hill.

According to lobbying disclosure records, Burgeson’s lobbying clients included the American Chamber of Commerce in the People’s Republic of China, Southern Company Services and the enriched-uranium supplier USEC, among others. 

Tim Harris, the future chief of staff to Rep.-elect Marlin Stutzman (R-Ind.), said he was “comfortable” in not being allowed to communicate with his former client. 

“There is a lot of conversations with the congressman that we will have,” Harris said. “So if that’s a policy we feel we need to put into place, I’m comfortable with that.”

Harris and Stutzman served together in the Indiana state legislature. Harris will give up his job as executive director of the Indiana Utility Shareholders Association to join Stutzman’s team. 

Harris does not consider himself at risk of a conflict of interest due to the nature of his trade group. 

“I lobbied for one small association. We didn’t have a PAC. Our style of lobbying has been pretty laid-back,” Harris said. 

Stokes said Lee’s position on pet projects will make it easy for him to avoid any conflicts of interest while working in the Senate. His federal lobbying work was finding federal funds for a Utah state university and a county government. 

“Our stated policy is we are not going to be asking for earmarks, so that makes it pretty clear-cut on how I am going to deal with former clients,” Stokes said.

 

Dec 8, 2010 -- The Hill: GOP freshman class draws K Street talent

By: Kevin Bogardus, Campaign Legal Center
 

Lobbyists are being lured back to Capitol Hill as the huge class of freshman lawmakers searches for experienced hands to help it transition into Congress. 

At least nine federally registered lobbyists have accepted offers to become chiefs of staff to newly elected Republican House members and senators, according to a review of press releases and media reports as well as interviews by The Hill. 

The migration from K Street to Capitol Hill shows that at least some of the newly elected lawmakers are establishing strong ties to the Washington establishment, despite claims that the next Congress — and its class of Tea Party-affiliated outsiders — will shun the old ways of doing business. 

Rep.-elect Robert Dold (R) of Illinois, for example, has hired Eric Burgeson, a vice president at BGR Group, to be his chief of staff. BGR is a prominent Republican-leaning lobby shop that was co-founded by Mississippi Gov. Haley Barbour (R). 

Burgeson, formerly a Bush White House aide and Energy Department chief of staff, is an Illinois native who knows Dold’s congressional district well. The lobbyist called Dold a “longtime friend” and said they first met doing advance work for then-Sen. Bob Dole’s (R-Kan.) 1996 presidential campaign.

Burgeson will not be the only lobbyist joining Capitol Hill’s ranks next year. 

John Goodwin of the National Rifle Association will be chief of staff to Rep.-elect Raul Labrador (R-Idaho.); Don Kent of Navigators Global will lead Sen.-elect Ron Johnson’s (R-Wis.) office; John Billings with the Food Marketing Institute will be chief of staff to Rep.-elect Charlie Bass (R-N.H.); and Todd Willens, who has lobbied at Vitello Consulting, will be chief of staff to Rep.-elect Steve Pearce (R-N.M.). 

Despite the prospect of less pay and longer hours, several lobbyists told The Hill that working in the new Congress was too exciting a chance to miss.

Jason Larrabee, founder of Jason Larrabee Ventures, said he couldn’t pass up a job as chief of staff to Rep.-elect Jeff Denham (R-Calif.). The lobbyist said public service still interested him, which is why he decided to return to Capitol Hill (he’d worked previously for former California Republican Reps. John Doolitte and Doug Ose).

“The reason I came back is I still believe in serving the people. Chief of staff is one of the positions that I can do that, and I was fortunate enough to have that opportunity with Mr. Denham,” Larrabee said. 

Larrabee lobbied for several local California water agencies and an energy research and development company this year, according to lobbying disclosure records. 

Like Larrabee, Spencer Stokes, president of Stokes Strategies, said he wanted to get into government to help change how Washington works. He will be the chief of staff for Sen.-elect Mike Lee (R-Utah). 

“I have always been a grassroots guy. I have a great amount of heartburn over the size of government, the fact that the federal government has gotten out of control,” Stokes said. “Although it is a cut in pay, I can survive and I can live. In life, there are only a few opportunities that present themselves where you really can make a difference.”

There is nothing in law or congressional ethics rules that specifically prevents former lobbyists from interacting with their ex-clients while employed on Capitol Hill. The 2007 ethics law mandates only a “cooling-off” period for congressional aides who head to K Street; that law bans former aides from lobbying their colleagues for a period of time. 

President Obama did sign an executive order early in his term that slowed the revolving door by stopping political appointments of lobbyists in his administration, though a waiver process was put in place to allow exceptions. That order, however, has no effect on Congress.

Meredith McGehee, policy director for the Campaign Legal Center, said “there is good news and bad news” when hiring lobbyists as Capitol Hill aides. One positive aspect is lawmakers are “hiring someone who is savvy in the ways of Washington.”

“As we can see from many ethics cases, the chief of staff really sets the tone for what goes on in that office. … That is probably the most critical hire,” McGehee said. 

But for a new lawmaker, hiring a lobbyist as an aide can also raise the potential for a conflict of interest between his or her former clients and the lawmaker’s agenda.

“As a chief of staff to a new member of Congress, you could do something to really help them,” McGehee said. “You have to be very careful not to do private bidding in public office.”

The ethics watchdog recommends that new congressional offices establish a written policy whereby former lobbyists share their client lists with lawmakers. McGeehe also says former lobbyists should recuse themselves from any issues involving those clients. 

Some of the congressional hires already seem to be following McGehee’s advice. 

Burgeson said that as Dold’s chief of staff, he would abstain from working on “matters of substance” involving former clients.

“Regarding working with former clients, it will be policy that staffers (including myself) may not work on matters of substance with former clients, and all substantive inquiries from former clients must be referred to a non-affiliated staff member for consideration,” Burgeson said in an e-mail to The Hill.

According to lobbying disclosure records, Burgeson’s lobbying clients included the American Chamber of Commerce in the People’s Republic of China, Southern Company Services and the enriched-uranium supplier USEC, among others. 

Tim Harris, the future chief of staff to Rep.-elect Marlin Stutzman (R-Ind.), said he was “comfortable” in not being allowed to communicate with his former client. 

“There is a lot of conversations with the congressman that we will have,” Harris said. “So if that’s a policy we feel we need to put into place, I’m comfortable with that.”

Harris and Stutzman served together in the Indiana state legislature. Harris will give up his job as executive director of the Indiana Utility Shareholders Association to join Stutzman’s team. 

Harris does not consider himself at risk of a conflict of interest due to the nature of his trade group. 

“I lobbied for one small association. We didn’t have a PAC. Our style of lobbying has been pretty laid-back,” Harris said. 

Stokes said Lee’s position on pet projects will make it easy for him to avoid any conflicts of interest while working in the Senate. His federal lobbying work was finding federal funds for a Utah state university and a county government. 

“Our stated policy is we are not going to be asking for earmarks, so that makes it pretty clear-cut on how I am going to deal with former clients,” Stokes said.

 Original article http://www.campaignlegalcenter.org/index.php?option=com_content&view=article&id=1216:the-hill-gop-freshman-class-draws-k-street-talent-12-8-2010&catid=64&Itemid=62

3 finalists named for open seat on IURC

Posted by Laura Arnold  /   December 11, 2010  /   Posted in Uncategorized  /   No Comments
Written by John Russell

A nominating committee is recommending that Gov. Mitch Daniels consider three finalists, including the governor's former environmental policy director, for an open seat on the Indiana Utility Regulatory Commission.

Twelve people had applied for spots on the five-member panel, which regulates rates paid by Indiana consumers for electricity, water, natural gas, steam and sewer utilities, as well as parts of the telecommunications and cable industries.

Those recommended on Friday were:

Kari Evans Bennett, chief legal counsel for the Indiana Department of Natural Resources and Daniels' former environmental policy director.

Peter Bisbecos, former director of the Division of Disability and Rehabilitative Services in the Indiana Family and Social Services Administration.

David Yount, a self-employed investment manager.

The person Daniels chooses will fill the vacancy left by David Lott Hardy, a commissioner who was fired in an ethics scandal in October.

The job pays about $104,000. The new commissioner will serve the remainder of Hardy's term, which expires in 2014.

Hardy was the commission chairman, but the replacement will not take the chairman's duties, which were given to another commissioner, Jim Atterholt.

"We tried to come up with the most qualified people for the governor to consider," said William Stephan, a vice president at Indiana University who was chairman of the nominating committee.

The governor is expected to make his appointment by the end of the year.

Call Star reporter John Russell at (317) 444-6283.

Original story http://www.indystar.com/article/20101211/BUSINESS/12110342/3-finalists-named-for-open-seat-on-IURC?odyssey=mod%7Cnewswell%7Ctext%7CIndyStar.com%7Cs

Interviews for IURC Nominees Scheduled for 12/9 and 12/10

Posted by Laura Arnold  /   December 09, 2010  /   Posted in Uncategorized  /   No Comments

Watch this blog for a follow-up on this story about the candidates for the Indiana Utility Regulatory Commission (IURC). http://indianadg.wordpress.com/2010/11/21/few-industry-executives-on-list-to-join-iurc-many-government-officials-vying-for-spot-on-utility-commission/

An opening on the IURC was created after Governor Mitch Daniels fired David Lott Hardy over the ethics scandal involving Duke Energy. Hardy was the chairman of the IURC. Governor Daniels then appointed James Atterholt to chair the Commission. A bi-partisan panel is now charged with sending a list of three candidates to the Governor to fill the vacancy on the IURC.

To read more about the existing members of the IURC, visit http://www.in.gov/iurc/2378.htm to read their bios.

The Indiana Utility Regulatory Commission Nominating Committee will meet 12/9 at 2 pm in Room 125 of the State House to interview Carey Evans and Jim Wallace. The Committee will continue interviews on Friday morning starting at 9 am in Room 319 of the State House. 

Friday, December 10 – Room 319
 9:30 – 10:00 am                                       Greg Server (Indianapolis)
10:00 – 10:30 am                                     Michael E. Gallagher (Indianapolis)
10:45 – 11:15 am                                       Peter Bisbecos (Indianapolis)
11:15 – 11:45 am                                        Walter E. Nesbit, Jr. (Indianapolis)
12:00 – 12:30 pm                                      Lunch
12:45 – 1:15 pm                                          Andrew J. Klinger (Greenwood)
1:15 – 1:45 pm                                            David Yount (Carmel)
1:45 – 2:15 pm                                            James F. Huston (Plainfield)

Following the interviews the committee will hold an Executive Session. Following the Executive Session, the committee will reconvene in open session to nominate three candidates for the vacancy on the IURC.

The Committee conducted an organizational meeting last week at the State House before scheduling interviews today and tomorrow.

Startup Wind Energy Component Maker to Establish Marion, IN Facility

Posted by Laura Arnold  /   December 08, 2010  /   Posted in Uncategorized  /   1 Comments

Editor's Note: We have been following Noel Davis and Vela Gear for some time now.  Congratulations, Noel! We hope you will finally join Indiana Distributed Energy Advocates (IDEA) and the Indiana Renewable Energy Association (InREA) now. (HINT, HINT)  Noel, it looks like all your hard work has finally paid off. Laura Ann Arnold P.S. This is two great announcements in one week with NuSun and Vela Gear. Yes, Virginia there is a Santa Claus.

MARION, Ind. (Dec. 7, 2010) - Vela Gear Systems LLC, a startup manufacturer of mechanical power transmission components used in several markets including wind energy, announced today that it will establish its first manufacturing operations here, creating up to 163 new jobs by 2013.

The company, which manufactures components for planetary gears and gearboxes, will make a multi-million dollar investment to construct a 250,000 square-foot manufacturing facility adjacent to Ivy Tech Community College in Marion.

"The potential new jobs and investment associated with this project will continue Indiana's forward momentum as a leader in the clean-tech market," said Mitch Roob, Secretary of Commerce and chief executive officer of the Indiana Economic Development Corporation.

Construction on the new facility is scheduled to begin by mid-2011. New equipment phase-in and hiring will take place in late 2011 with operations set to begin by mid-2012.

"Indiana is an ideal location due to the high-skilled workforce, and a central location close to a variety of North American customers," said Noel Davis, founder and chief executive officer of Vela Gear Systems LLC.

Vela Gear Systems LLC was founded by veterans of the gear making industry from across the Midwest. The facility will be among the only U.S. manufacturers of large scale gears for wind turbine assemblies.

The Indiana Economic Development Corporation offered Vela Gear Systems LLC up to $1.6 million in performance-based tax credits, based on the company's job creation plans. The city of Marion will consider the establishment of a tax increment financing district at the development site.

"We are proud to welcome Vela Gear to Marion.  Along with Governor Daniels' statewide efforts, we have been working hard to make Marion an attractive place to start and grow business," said Mayor Wayne Seybold. "Vela Gear represents the outcomes of these efforts and the future of advanced manufacturing for Marion and Indiana."

Vela Gear Systems' announced expansion comes just one week after electrical systems manufacturer, Northwind Electronics announcement that it will invest $954,000 to purchase, improve and equip the former General Motors Plant 16 manufacturing facility in nearby Anderson, creating up to 100 new jobs by 2013.

About Vela Gear Systems
Vela Gear Systems LLC is a startup manufacturer of mechanical power transmission components used in several markets including wind turbines. Founded by veterans of the gear manufacturing industry in the U.S., the company will establish its first production facility in Marion, Ind. For more information visit:  www.velagear.com

About IEDC
Created by Governor Mitch Daniels in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Daniels. Mitch Roob serves as the chief executive officer of the IEDC.  For more information about IEDC, visit www.iedc.in.gov.  

-30-

Media Contacts:
Noel Davis (Vela Gear) - 317.224.7831 or Noel.Davis@velagear.com  
Blair West (IEDC) - 317.232.8873  or BWest@iedc.in.gov
Darren Reese (city of Marion) - 765.662.9931  or dreese@marionindiana.us

Solar Panel Company Chooses Columbus, IN

Posted by Laura Arnold  /   December 08, 2010  /   Posted in Uncategorized  /   No Comments

updated: 12/8/2010 5:48:54 AM

InsideINdianaBusiness.com Report

http://www.insideindianabusiness.com/newsitem.asp?id=45066

A solar panel company plans to locate its first manufacturing facility in Columbus. NuSun Inc. says it anticipates creating 240 jobs by 2014 by investing nearly $9 million to purchase an existing facility. Columbus Mayor Fred Armstrong says there are still a few items that need to be put in place before the deal is finalized, including securing a state grant.

December 8, 2010

News Release

COLUMBUS, IN (Dec. 8, 2010) – NuSun, Inc., a manufacturer of solar panels, announced today that it will locate its first manufacturing and assembly center here, creating up to 240 new jobs by 2014.

The company, which will manufacture nano-coated high efficiency photovoltaic solar panels for use in U.S. and international markets, will invest $8.9 million to purchase, improve and equip a facility in the Woodside South Industrial Park in Columbus, Indiana. The company anticipates production to begin in mid-2011.

Citing increased demand for U.S.-manufactured solar panels and advantages over the unpredictable nature of product quality and supply chain from traditional foreign sources, NuSun expects to become a leading U.S. manufacturer of low cost, high quality photovoltaic panels within a few short years.

"We are confident that Columbus will offer us a competitive cost environment and productive workforce,” said Ryan Stout, founder and chief executive officer of NuSun. “As we plan our launch of this exciting new venture in Indiana, the support we have received from the local community and the state has been tremendous.”

Mayor Fred Armstrong welcomes the news of NuSun’s decision to locate its manufacturing and assembly center in the community.

“Columbus is certainly seeing many positive signs that our economy is rebounding,” said Mayor Armstrong. “NuSun’s announcement of up to 240 new jobs is excellent news.”

To win the project to Columbus, the city, Bartholomew County, and the Columbus Redevelopment Commission have pledged $325,000 in combined Economic Development Income Tax (EDIT) and Tax Increment Fund (TIF) support, and the city will also make available the proceeds of a $500,000 grant from the Lawrenceburg Regional Economic Development grant program. The Indiana Economic Development Corporation has also offered NuSun up to $2.25 million in performance-based tax credits and up to $100,000 in training grants. In addition, the Indiana Office of Community and Rural Development (OCRA) will consider an application from the City of Columbus for an additional $600,000 grant to equip the facility.

“This combined effort is a great example of how we can work together to attract investment and jobs to Bartholomew County,” said Commissioner Paul Franke. “This project will add to our tax base, which benefits everyone, and will bring job opportunities to our residents.”

In preparation for the OCRA grant application, the city on Tuesday entered into an agreement with the company that details the creation of up to 80 jobs during the first 24 months, but local leaders are looking to entice up to 240 jobs by 2014 by offering the local portion of funds as a performance-based forgivable loan over a ten-year period.

This will also be the first time that the city or county will use the EDIT fund as part of an incentive offering.

Columbus Economic Development Board executive director Jason Hester believes it’s an appropriate use.

“Columbus is a community that believes in investing in the future, and in today’s highly competitive environment, using the EDIT fund to attract jobs and additional investment is a very good application of the tool,” said Hester.

Trena Carter of Administrative Resources association provided services to the city in the preparation of the OCRA grant application, and Ed Curtain, executive director of the Columbus Redevelopment Commission, helped in the formation of the incentive agreement.

“An important benefit of winning the OCRA grant for the company is that NuSun will be required to offer more than half of their initial 80 jobs to persons who are currently low- to moderate-income, based on federal guidelines,” said Carter.

NuSun expects to take occupancy of their selected building by the middle of February, with improvements and installation of equipment to begin soon thereafter. The first hiring round of technicians, handlers, and other positions should occur by summer of next year. Today’s announcement comes just a few weeks after Cummins announced plans to add 350 professional employees to the local workforce over the next 18 months, filling engineering, technical and other professional positions.

“We still need a few other items to get put into place for the NuSun project, like the state grant,” said Mayor Armstrong. “Assuming everything falls in line, we will look forward to formally welcoming them to the community in the very near future.”

About NuSun, Inc.
Beginning in 2011, NuSun will manufacture low cost, high quality, next-generation crystalline silicon photovoltaic solar panels for U.S. and international commercial and governmental industries from its new manufacturing center located in Columbus, Indiana, USA. For more information please visit www.nusunsolar.com

About Columbus Economic Development Board
For more than 30 years, the Columbus Economic Development Board has supported the growth of businesses in Columbus and Bartholomew County, Indiana, and marketed the region’s strengths in automotive, pharmaceutical and other advanced manufacturing sectors along with emerging renewable energy and national security opportunities. More information on the community’s highly educated workforce, renowned living experience, and I-65 access to more than 1,000 acres of available land is available at www.ColumbusIN.org

Source: Columbus Economic Development Board

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