Wednesday, June 28, 2006

Honda Win Bigger Than Expected

The new Honda plant in Greensburg officially announced this morning is much larger than originally expected according to the Star's Norm Heikens. The plant will employ 2,000 new workers, instead of the original 1,500 projected. Also, the cost to build the new plant will be $550 million, up from the $400 million figure originally announced. It is expected to take 24 months to build the plant which will produce Honda's 4-cylinder car (likely the Civic), with production to begin by 2008.

So how much will taxpayers expend to lure the Honda plant? Heikins writes, "Government will kick in at least $85.5 million in incentives to the project. That includes money for wastewater treatment and new or expanded roads. He adds, "Another $56 million will go to regional improvements including an upgrade of the I-74 interchange." Heikins also reports that the financial impact of the plant in the regional economy is expected to be $1.5 billion.

Some of you wondered how Indiana Democrats would react. They are applauding the announcement according to the Star's Mary Beth Schneider who writes:

Indiana Democrats applauded the news Tuesday but weren't about to give Daniels much credit for it."It's great news for Indiana," said Mike Edmondson, the party's executive director. "Certainly, everybody is excited about the prospect of new jobs. That doesn't change the fact that the state is lagging behind the national economy, and he has no substantial strategy to turn that around. And it doesn't change the fact that the governor refused to listen to the people of Indiana (on the Toll Road lease and other issues)."

With the economic infusion from this project and the kick-off of the Major Moves program, Indiana's economy may soon begin a significant uptick. Let's hope anyway.

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