EDITORIAL: Business strength benefits city

IBJ Staff
May 22, 2010
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IBJ Editorial

The recession is dragging on, unemployment remains above 9 percent, and Lilly is chopping its way through 5,500 layoffs. Business bummers abound.

But it’s not all bad news. Some of IBJ’s top stories in the May 17 issue highlighted major local companies that are bucking the trend.

Consider Finish Line Inc. The 684-store chain of athletic-footwear stores has built up almost $250 million in cash and has no long-term debt. And last month it reported its biggest quarterly increase in same-store sales in five years.

These successes come in spite of some expensive missteps in recent years, including a failed acquisition and unsuccessful new store concepts. The nation’s second-largest retailer of its kind now plans to build its core brand as well as return more profits to shareholders and pursue diversification—carefully.

Then there’s shopping mall owner Simon Property Group, the area’s fifth-largest public company. It just gave up on its bid to purchase Chicago-based General Growth Properties. Though that attempt to grow was foiled, the company still has $3.6 billion in cash and a $3.2 billion line of credit. One securities analyst recently termed the company “best in class” among real estate investment trusts nationally.

Another story in the May 17 issue looked at CNO Financial (formerly Conseco). The Carmel insurer has managed five straight profitable quarters while its largest competitors have been sucking wind.

This achievement pales in comparison to CNO’s glory days under former CEO Steve Hilbert. But it’s pretty impressive for a company that sank so low last year that CNO’s own auditor suggested it might default on its bank loans, which could have led to a second bankruptcy.

CNO executives recapitalized the company by selling new stock and bonds, resolving regulatory issues and moving some problem policies into a separate trust.

“It’s not going to be like the old Conseco,” Randy Binner, an insurance analyst, told an IBJ reporter this month. “This is just back to being a normal insurance company.”

These days, “normal” doesn’t seem half-bad. Indianapolis is lucky to have such solid corporate citizens to rely on during this difficult economy. So the next time you’re feeling dragged down by another negative earnings report, take a look around. Good news is not hard to find.

An ill-timed request

Convention planners typically pay attention to every detail. But their call this month for more spending on the convention center overlooked a major factor: timing.

The city is already overwhelmed by the Indiana Pacers’ request for $15 million a year to cover Conseco Fieldhouse expenses. And a proposal to close six library branches was barely cold in its grave. So this was a poor time to rally public support to spend more on a major local facility that is already getting a $275 million expansion.

Convention officials actually made a decent case for the need to invest in the current portion of the facility, lest it sit empty because planners favor the building’s more modern section. We don’t quarrel with the eventual need. But this is not the right time to ask.•


To comment on this editorial, write to ibjedit@ibj.com.


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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.