Debbie Blank
Gov. Mitch Daniels joined executives from technology distributor and service provider Defender Direct Jan. 30 to announce the company’s plans to expand its Hoosier operations, investing more than $15 million and creating more than 1,100 new jobs.
Up to 100 of those might be in Batesville, city council members learned Feb. 11.
Headquartered in Indianapolis, Defender Direct (www.defenderdirect.com) already has response centers in Indianapolis, Sunman and Greensburg, according to Tim Cook, partner in charge of state and local tax services for certified public accounting firm Katz, Sapper & Miller Indianapolis, who appeared before the council.
The company employs more than 400 in Indiana and has locations in 40 states, an Indiana Economic Development Corp. news release stated.
Defender Direct is a supplier of ADT home security, Dish Network and General Electric Security products and services, Cook said. Inc. Magazine ranked the firm 845 on its 2007 list of 5,000 fastest-growing private companies, and the Indianapolis Business Journal named it as the second fastest growing business in that city last year, the IEDC report noted.
Batesville is one of four sites being considered now for the expansion, Cook explained the next day. At the meeting, he said Defender Direct leaders are interested in 212 Cross County Plaza, the storefront between Maurice’s and Ruth Ann’s Hallmark Shop.
According to Mayor Rick Fledderman, the company wants 7,000 square feet of space.
Cook said if it locates here, up to 150 could work at the facility through the next 10 years, with a minimum of 50 to 100 the first year. Some workers might relocate to Batesville from other sites.
The mayor asked about the average annual wage. The tax consultant said it’s between $28,000 and $30,000. Once all jobs are phased in, that figure could rise to close to $40,000.
IEDC offered Defender Direct up to $6 million in performance-based tax credits and up to $345,000 in training grants based on the company’s job creation plans, the news release said. Cook observed, “The state incentives are based on the hope local government will offer some type of incentive” as well.
He had one proposal, asking the council for a 10-year tax abatement on a personal property tax investment of $397,000 for IT systems, servers and computers. “We think the value of that abatement is $35,000 to $40,000 over 10 years.”
Cook noted that grant-ing the abatement would make Batesville more competitive in its bid to land the company.
Reaction from city leaders was favorable. Council member Brad Dreyer said before the meeting he met with Cook and Lisa Leventhal, a Katz, Sapper & Miller senior manager, to understand the proposal. “I think it's a wise investment on the city's part.”
Council President Ham Struewing pointed out, “If we don't have anybody (filling the Cross County Plaza vacancy), we wouldn't have that tax anyway. We're banking on the future. We're giving an incentive to do a whole lot better down the road.”
Fledderman said more jobs would improve Batesville's economy by boosting businesses, whether workers buy houses here or commute in, spending money on lunches and gas. “For the amount of the investment, the benefits are well worth it.”
The abatement was approved.
How serious are Defender Direct officials about Batesville? “They’re very interested or we would not have gone through the exercise” of seeking an abatement, Cook said.
He believes a decision about locating in Batesville will be made “soon, in the next week.”
