Honda Central
Casino revenue helps lure Honda
Lawrenceburg Mayor Bill Cunningham reminds Hoosiers not to go badmouthing casinos. Thanks to a long-standing arrangement that allows Argosy Casino there to share revenue with the City of Lawrenceburg, that city has pledged “in excess of $10 million” to improve the infrastructure around the proposed Honda plant west of Greensburg, Cunningham revealed June 29.
In 2005 when state officials hinted to Lawrenceburg leaders that they should share the wealth with surrounding counties or the state would grab it to spread around Indiana, the Lawrenceburg City Council decided in January to use $10 million of $27 million it had accumulated in Argosy Casino revenue-sharing funds to establish the Southeastern Indiana Government Grant Program, which has a special emphasis on economic development.
Nine counties (Ripley, Franklin, Decatur, Bartholomew, Jackson, Jennings, Jefferson, Union and Fayette) and the cities and incorporated towns within them are eligible to apply for grants from this program.
Before applications had even been filed, the granting committee (comprised of the mayor, two city council members, a governor’s delegate, Indiana Economic Development Corp. official and taxpayer) was approached by Greensburg leaders and Gov. Mitch Daniels. According to Cunningham, “They had discussed with us the amount of money needed to do infrastructure projects that were needed to hopefully secure the Honda plant. We agreed to the amount of money to make this deal work.”
Because the Lawrenceburg council already had appropriated $10 million, the committee made the commitment. According to the mayor, “We felt that was the best use of the money. It would benefit Lawrenceburg, it would benefit everyone (the nine counties).” He said, “We felt it was a good use for the money for the advancement of southeastern Indiana. There are very few communities that have the ability to do this.”
Cunningham pointed out the Honda facility means “employment for a lot of people. There’s going to be a lot of money made through the construction cycle. It will be unbelievable.”
Greensburg officials do not have that cash in hand yet. “We’ll look at what they need it for and how they’re spending it. We’re not going to just give them a lump sum,” the mayor reported.
As soon as area government officials learned of Lawrenceburg’s largesse, Cunningham’s phone began to ring as they questioned him about whether their grant prospects had vanished. He has been telling the callers, “This is economic development for your county, too.”
The additional great news: “We will still have money available for the other counties. We have to sit down with the mayor of Greensburg and see how fast it (the Honda project) moves forward and how quickly they need that commitment (of money). I don’t think it will affect distribution” of the $10 million earmarked for 2006 grants.
Cunningham admitted the location of his city has led to a windfall. “We’re very fortunate to have the most heavily visited riverboat in the nation.” He emphasized the money set aside for Greensburg improvements is made possible by Lawrenceburg’s relationship with Argosy Casino. “They are very good citizens and very good to work with.”
According to Cunningham, the pledge of over $10 million is a pre-emptive move. “Part of this is to make sure the State of Indiana isn’t going to take our gaming money. The governor thought we were very instrumental in making this deal happen. If that was the case, it shows how riverboat gaming money should be used” – to land “the best economic development thing that’s been done in our part of the country.”
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