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Little jets get the test in Indiana: New aircraft could help small airports shave costs

A top Indiana economist will study whether an emerging class of aircraft known as “very light jets” could fuel an economic boom, especially in the state’s smaller, more isolated communities. Morton J. Marcus, director emeritus of the Indiana Business Research Center at Indiana University, will gauge the potential impact of VLJs in six communities, including Mount Comfort Airport in Hancock County. Several aircraft makers next year plan to launch the diminutive jets, which can whisk up to six people as…

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ProLiance verdict to cost Citizens: Utility to pay at least $1.5M in fraud case

Citizens Gas & Coke is one of two Indiana utilities burned by a $33.5 million jury verdict, won under a federal racketeering law, against Indianapolis-based Pro-Liance Energy, an unregulated subsidiary of Citizens. The city-owned Citizens has set aside $1.5 million as part of the hit it expects to take for its investment in ProLiance, which procures and manages more than 475 billion cubic feet of natural gas for 1,200 utility and industrial customers in North America. Meanwhile, Evansville-based gas and…

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EYE ON THE PIE Morton Marcus: Casino location none of state’s business

Let’s see if I have this right. This is Indiana, a state dominated by conservative thought. Folks here support the free market, unimpeded competition, the roughand-tumble world of entrepreneurs doing their stuff guided by the benevolent invisible hand. So, why don’t we live by our supposed principles? Case in point: gambling, specifically at French Lick, where the Donald has ducked out, thus reopening the bidding for the right to build a casino and hotel complex in Orange County. Let’s review…

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Struggling IndyGo pays big for technology expertise: At $94 an hour, IT director raises some eyebrows

Financially struggling IndyGo is paying a handsome sum to its information technology director, hired to help turn around a city bus system that began 2004 with a $4 million budget deficit. Dale Meyers would earn about $188,000 if he worked 40 hours a week, based on a $94-an-hour employment agreement inked last July. Meyers’ pay would dwarf the $120,000 annual salary of Indy-Go CEO Gilbert Holmes. It’s also salty compared to others’ in his field. The median pay for an…

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BEHIND THE NEWS: In scandals’ wake, firms endure financial wringer Process mapping Too high a cost

Last year was excruciating for executives at many of Indiana’s public companies, but not for the usual reasons, like a slumping economy or sliding stock market. Instead, it was because they had to devote thousands of employee hours and millions of dollars to comply with a controversial new rule, Section 404 of the 2002 Sarbanes-Oxley corporate-accountability law. The rule requires companies to assess the internal accounting controls they have in place to ensure their financial reporting is accurate and reliable-and…

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INVESTING: Tumbling indexes should not be cause for panic-yet

The market’s been taking a bit of a beating lately. On March 4, the Dow Jones industrial average and the Standard & Poor’s 500 index closed at 3-1/2-year highs. Apparently that was enough to bring out sellers, because the major averages suffered pullbacks of 2 percent to 3 percent the next week. Each time the market falls, I get the feeling there are more than a few people ready and willing to call the start of the next bear market….

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EYE ON THE PIE: Citizens must fight tyranny to preserve freedom

A few reflections on the Department of Homeland Security and its Transportation Security Administration: The TSA declares it “has developed standardized security screening procedures for all airports. Therefore, you can expect that you will encounter essentially the same procedures at each airport you visit.” I doubt this claim. Note that my remarks are reserved, tolerant and most respectful concerning an agency that can arbitrarily deny me almost anything, including my freedom, in the name of national security. Consider my recent…

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EYE ON THE PIE: Do we need agriculture department?

Indiana’s General Assembly reflects Hoosier values. It wants to make us more like other states. If others have daylight-saving time, so should we. This is called progress. If others have a Department of Agriculture, so should we. This, too, is called progress. The idea that we should differentiate ourselves from others, that we should find new solutions to problems, is not examined. Let’s look at House Bill 1008, which would create an Indiana Department of Agriculture. This proposal was given…

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GERALD BEPKO Commentary: Chicago World’s Fair is model for Indiana

Cities seem to progress in stages with moments of decline, growth, exceptional energy, and, at times, a sense of destiny. For many years, Indianapolis has been a city on the move, a little like Chicago in 1893 when it hosted a World’s Fair. Chicago sought to shed its frontiertown image and establish itself as a city of global consequence. It beat out New York, St. Louis and Washington, D.C., for the right to host the fair. In hosting it, Chicago…

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EYE ON THE PIE: Do Indiana papers make the grade?

I’m always trying to learn more about Indiana. I suspect investors within and outside our state are also interested in what is happening in our many cities and towns. Yet no single newspaper does a good job of covering the news of the state. Nor can one hope to read all 47 daily newspapers published in Indiana. Then, along comes the Internet and the posting by local newspapers of their records of Hoosier activity. Here, at last, is our chance…

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INDOT chief’s changes altered contract decision: Insider alleges Nicol favored Kernan contributor

Former Indiana Department of Transportation Commissioner J. Bryan Nicol changed official recommendations of INDOT’s design division, according to an INDOT source, a move that sent millions of dollars of work to major contributors to former Gov. Joe Kernan’s campaign. Two days after last fall’s election, INDOT consultant services manager Jeffrey Clanton said he was ordered by then-commissioner Nicol to make a number of changes to a July 29, 2004, selection list. On seven of the 24 different projects on the…

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BEHIND THE NEWS: Setbacks smudge image of Obsidian CEO Durham Stock is down Snapping up firms

Tim Durham tells reporters he wants to be the richest man alive. His office sits atop the Bank One Tower, the state’s tallest building. For fun, he adds to his collection of four dozen collector cars. But behind the glitz, Durham is trying to untangle what’s become a real mess at Obsidian Enterprises Inc., the publicly traded manufacturing and transportation firm he controls and leads. In a regulatory filing last week, Obsidian’s independent accounting firm, Minnesota-based McGladrey & Pullen, expressed…

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Companies abuse certification to nab contracts: Critics wonder if they truly are ‘disadvantaged’

Indiana companies are playing the system to get millions of dollars in federal highway funds by posing as and receiving state certification as economically disadvantaged, minority or women-owned businesses. Under federal law, a prime contractor bidding on a federally funded project has to subcontract a certain percentage to businesses that are certified by the state as disadvantaged. The idea is to ensure that these companies have an equal opportunity to become successful. Files at the State Department of Administration show…

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EYE ON THE PIE Morton Marcus: Time for a tax strategy to boost retail

It is time to recognize the role of retail trade in economic development. Too often, we follow the notion that a community grows only because it exports. That which we mine, grow, harvest or manufacture is an acknowledged part of the economic base. It brings in dollars from outside. In some communities, we recognize tourism, medical and other specialized services as part of that export base. Just a few places see retail trade as a means of economic development. Yes,…

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Carmel’s Sunrise Café may be nearing sunset: Developer would raze café to make way for retail, office

A longtime favorite spot to conduct business over breakfast on the far-north side will close if plans to sell the building that houses Sunrise Café come to fruition. Locally based Meridian Asset Development has the café building and a surrounding 2-1/2-acre lot at 11450 N. Meridian St. under contract. The seller is an Omaha, Neb.-based trust that owns it and a nearby office building. If the sale closes as expected in the coming weeks, Meridian Asset plans to raze the…

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INDOT spends millions with little oversight: Critics charge state’s failure leads to poor work

More than half of the $8 billion spent by the Indiana Department of Transportation on construction over the last decade went to only 10 construction companies. The same is true of the hundreds of millions spent on consulting. Ten design and engineering firms got 56 percent of all of the money contracted by INDOT-more than $155 million over the last 12 years. The large sums of money concentrated in a relatively small number of recipients has raised alarms for some…

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ATA may fly solo again, exec says: Restructuring officer sees opportunities ahead

The retired Southwest Airlines executive helping pilot ATA Holdings Inc. out of bankruptcy said he’s confident the Indianapolis carrier could again fly solo, despite a virtual pullout from its hometown and what to some is a precarious reliance on code sharing with competitor Southwest. John Denison, former chief financial officer and executive vice president at Dallas-based Southwest, said ATA’s long-term strategy could include boosting frequency of flights from ATA’s Chicago Midway Airport hub to key markets such as New York…

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IDEM levies fewer fines: Air pollution violators account for half of state’s penalties

Four of the 10 largest environmental penalties levied against Indiana companies in 2004 involved air pollution violations, an area of regulation likely to come under renewed focus after the first-ever “fine particulate” health warning was issued last week for Marion and five other counties. The Indiana Department of Environmental Management, which sounded the alarm, assessed $1.2 million in air pollution penalties last year-almost half of the $2.4 million in 1999, according to state records. The decrease in air penalty amounts…

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EYE ON THE PIE: Airline and transit service linked

“So, what do you think about our new governor?” State Rep. Roberta Righteous asked as we met for breakfast. “No comment,” I said, studying the menu. “Until we have his financial program on the table and a chance to think about it, any judgments are premature.” “But he’s already set a tone,” the longterm representative replied. “Other than an injudicious inaugural reference to barn-building in an overwhelmingly urban state, there’s nothing to commend or condemn. The administrative changes he has…

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Outlook is good for entrepreneurs:

Could 2005 be the tipping point for Indiana to become the center for entrepreneurship in the world? That is a pretty bold statement, considering Indiana’s poor track record. As executive director for Entrepreneur’s Alliance of Indiana, I talk with many entrepreneurs that are excited about the direction Indiana is headed. We have in place a strong educational component with several universities ded icated to research and development and the incubation of new ideas. Geographically we have always had an advantage,…

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