Private investment grows in Kokomo; Howard County fails to replicate 2015 numbers

In the last year-and-a-half, such thinking has proven accurate, as projects like the new YMCA have developed alongside the Apperson Way Apartments and JCF Residences at Wildcat Creek.

In fact, from Jan. 1 to June 9 this year, 173 improvement location permits worth $39.2 million have been granted. In comparison, 352 permits worth $46.1 million were granted in all of 2015.

While the mixed-use project being developed by Indianapolis-based Flaherty & Collins Properties at the former NISCO building boosts the 2016 numbers with a $23.4 million expected cost, Kokomo’s 2016 numbers still exceed the figures attained during the first half of 2015.

Without the Flaherty & Collins project, Kokomo has an estimated improvement location permit cost of $15.8 million for 2016. During roughly the same time period last year, Kokomo had an estimated project investment of $12.4 million.

“If we as a community are not willing to invest in our community, don’t expect people from the outside to either,” said Goodnight, who referenced the city’s trail system and a remodel of City Hall done in 2014. “They recognize that. If we are investing in ourselves, at least they know we are there as partners.”

Private housing development has been a prominent trend in Kokomo over the last year-and-a-half, with the Apperson Way Apartments, JCF  Residences at Wildcat Creek and the Flaherty & Collins project all receiving project approvals.

Also likely to receive permits in 2016 are the Market Street Townhomes and a $20-million, four-story, 105-unit assisted living facility at 410 S. Washington St.

For Goodnight, credit for the influx of private housing can be attributed in two ways – his administration’s focus on bringing commuters into Kokomo and private developers wanting to be a part of a growing community.

“We are engaged with developers that can build these types of structures, but they also have to see the benefit. Just asking them to do that doesn’t get them to invest those private dollars,” he said. “I think we have a good story to tell, and obviously they look at the business climate and the things that are taking place in the community, and I think they feel very comfortable.”

In addition, Goodnight pointed to the need for housing that covers all demographics.

To display such an effort, he referenced the Apperson Way Apartments, a certain portion of which will be allocated to applicants at 30, 40, 50 and 60 percent of the area median income, and the Flaherty & Collins project, which is aimed at upper-income residents.

“We have to have housing for beginning families, for young single people, for retirees, for people that need assisted living,” said Goodnight, who said he would like to see a continuation of affordable, market-driven housing.

On this year’s permit list, other prominent projects were two business building additions for Kokomo’s FedEx branch, listed with a cost of $2.6 million; a rebuild of the McDonald’s at 1735 E. Markland Ave, listed at $1 million; and the upcoming construction of a Sonic restaurant at 2321 E. Markland Ave, listed at $1.2 million.

“With all private investment, there are some that are necessary improvements and must be addressed, but you can look when it’s new commercial buildings, whether it be fast-food restaurants, apartments, a lot of the big numbers are confidence in the economy,” said Goodnight.

“We can give some credit to the federal government, we can give some credit to the state government, but across the state, I think we are doing pretty well and it is a pretty wide array.”

Howard County Improvement Location Permits

While Kokomo has seen continued growth, county officials are looking at a sharp decline from the investment figures of 2015.

In 2015, Howard County granted 114 improvement location permits worth $12.7 million - $5.4 million of which is listed as coming in the form of facility upgrades at Western School Corporation.

Through May of this year, however, the county has granted 13 improvement location permits worth $442,900.

In relation to the decline, Howard County Commissioner Paul Wyman cited Indiana’s slow economic growth and the irregularity of last year’s large county projects, including the Western investment.

Figures released this week by the Bureau of Economic Analysis show that while Indiana led the nation with 3 percent gross domestic product growth in the fourth quarter of 2015, the state’s annual growth actually declined last year.

The state had an overall growth of 1.7 percent, a decline from the 2.2 percent growth seen in 2014. In addition, Indiana trailed the national 2.4 percent gain last year.

“I don’t know if it is troublesome, because I think about the economy as a whole,” said Wyman. “The growth rate in our economy is very low. When you see the economy is not growing very fast, it is not surprising to not see construction growth. As our economy grows, I expect to see our construction numbers grow.”