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Consolidation eyed for Indiana mail processing centers

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The U.S. Postal Service is moving closer to making decisions on closing some large Indiana mail-processing centers in cost-cutting moves.

Proposals include shutting down the Terre Haute center and moving its work to Indianapolis and Evansville, along with shifting processing from the South Bend center to Fort Wayne.

The Postal Service estimates closing the Terre Haute center would save about $7 million a year, with the consolidation eliminating 35 jobs. An estimated $6 million would be saved by shutting down the South Bend center, with the loss of 60 jobs.

Because of a decline in mail volume, the Postal Service has too many employees and too much equipment in some mail processing operations, agency spokeswoman Mary Dando said.

"The Postal Service is at the brink financially," Dando told the Tribune-Star of Terre Haute. "We are awaiting proposed changes we have asked of Congress. We must pre-pay our retiree benefits to the tune of $5.5 billion. We are the only federal agency that is required to do that, and no private company has to do that either."

The Postal Service has scheduled public hearings for Nov. 14 in Terre Haute and Nov. 17 in South Bend on the proposals.

The agency is considering closing half of its 500 mail-processing centers nationwide, including seven in Indiana. Centers in Bloomington, Gary, Kokomo, Lafayette and Muncie also face possible consolidations.

The Postal Service announced in April that it would study whether to shift Fort Wayne mail processing to South Bend.

Dando told The Journal Gazette of Fort Wayne that she could not provide reasons for the reversal except that "with the goal of a more-efficient use of the facilities, the equipment and the work force, Fort Wayne seems to be a better choice" to retain mail processing.

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  1. PJ - Mall operators like Simon, and most developers/ land owners, establish individual legal entities for each property to avoid having a problem location sink the ship, or simply structure the note to exclude anything but the property acting as collateral. Usually both. The big banks that lend are big boys that know the risks and aren't mad at Simon for forking over the deed and walking away.

  2. Do any of the East side residence think that Macy, JC Penny's and the other national tenants would have letft the mall if they were making money?? I have read several post about how Simon neglected the property but it sounds like the Eastsiders stopped shopping at the mall even when it was full with all of the national retailers that you want to come back to the mall. I used to work at the Dick's at Washington Square and I know for a fact it's the worst performing Dick's in the Indianapolis market. You better start shopping there before it closes also.

  3. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

  4. If you only knew....

  5. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

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