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Jobs, jobs, jobs. Everybody wants jobs. Everybody wants those manufacturing jobs, the ones that made America the economic engine of the world. We want to build things — cars, trucks, machines, medical devices, whatever. Those jobs pay well, and the more money people make, the more they buy, the better the community’s economy is, and the better the community is, period.
So what will you do to get those jobs to your community?
Mayor Ted Ellis has a cautionary tale.
You have read in the news about Metaldyne. The company was in bankruptcy; the sale of its assets is now complete, and it’s still in business in Bluffton and many people are gainfully employed. That’s the good news.
So what’s the bad news? The cost of that bankruptcy is $150,000, which will have to be absorbed by Bluffton Utilities. That money will have to be made up by the other ratepayers of Bluffton Utilities.
There’s nothing illegal here. There’s nothing nefarious. It’s a business decision.
And we must make sure, as we talk about this, that there is a difference between the old Metaldyne and the new Metaldyne. There’s no real connection between the two.
Still ...
Here’s the deal, as Ellis explained at the end of last Tuesday’s meeting of the Bluffton Board of Public Works and Safety:
Metaldyne declared bankruptcy, and when it did, it owed Bluffton $150,000 for electrical service. Bankruptcy, of course, provides protection for individuals and businesses from their creditors; Bluffton Utilities was a creditor, and the city wasn’t able to do anything about that money.
However, Metaldyne had a $40,000 deposit down. It’s not much, but it helps ease the crunch. After all, the city still had to purchase the power it sold to the company. It wasn’t like the city could just say to Indiana Michigan Power, hey, they didn’t pay us so we can’t pay you. Sorry.
There’s a catch: The deposit is considered an asset. The assets were part of the company. A judge allowed the company’s assets to be sold.
The deposit remains intact.
Is this fair? Is it right? In the grand scheme of things, it may be. After all, bankruptcy protection is generally considered a good thing. Good things cost. How much? Well, in the case of Bluffton Utilities, the cost is $150,000.
Ellis said the city has been pretty pro-active with its commercial utility accounts. He said a company wanted to come to Bluffton a few years ago, when Bluffton was still in Indiana’s 3rd Congressional District, and the city wanted a $40,000 deposit on utilities. The company balked.
Ellis said he was approached in Fort Wayne by Mark Wickersham. Wickersham is now the director of the Huntington County United Economic Development agency; at the time, he was a district representative for Rep. Mark Souder. Ellis said Wickersham told him that the Speaker really wanted to see this situation resolved.
At the time, the Speaker of the Indiana House of Representatives was John Gregg, D-Sandborn. Ellis said he knew Gregg personally and if he had a problem, he figured he would have heard from him.
No, Wickersham said. The Speaker of the U.S. House of Representatives, Dennis Hastert, R-Ill., had asked Souder to get the situation taken care of. The company locating in Bluffton was based near Chicago; apparently someone there knew Hastert, and Hastert wanted to clear the way for his friends.
No, Ellis said, there are some things a city must do that even the federal government has no control over.
The Metaldyne case underscores the problem.
The city may put commercial accounts on a quicker pay basis. Ellis said it could be nearly 90 days between the bill and when the electricity is shut off to a commercial account. That’s how the bill for the former Metaldyne reached $150,000.
We want to bring industry here, but everything has to be fair. It’s a balancing act.
by DAVE SCHULTZ
daves@news-banner.com
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