KOKOMO — Bolstered by the emergence of Chrysler Corp. from bankruptcy and a $1 billion infusion of corporate dollars, downtown Kokomo has experienced a revitalization.
Within the past 18 months, the Howard County seat has announced plans for construction of a new YMCA building, a downtown minor league baseball stadium, parking garage with apartments and three other housing developments.
A California investor is transforming a block near the courthouse square into restaurants and housing. A comedy club and two new restaurants have also opened on the courthouse square.
Matt Greller, executive director of the Indiana Association of Cities and Towns, said Kokomo is now a model for creating a successful downtown.
“Kokomo has made the choice to invest in a vibrant downtown,” he said.
“There has been public investment which has made the downtown drastically different than it was 10 or 15 years ago.”
After being located on the city's south side in the Kokomo Mall, Marcie Senske moved her Planet Mind Learning Store to downtown.
“In the mall there were a lot of empty businesses around us and people couldn’t see our business from the outside,” she said. “There were a lot of reasons for the move. There was a good rent incentive to come downtown, more space and a better atmosphere to work in.
“We could tell a lot was taking place in downtown,” Senske said. “There were investments being made in downtown. More businesses in the area help us and increases foot traffic. We’ve seen a lot of businesses come into downtown. I love it.”
The city of Kokomo and Howard County have partnered for the past four years to attract new businesses downtown. The Howard County Commissioners provided a $5,000 grant as part of a rent abatement program for new businesses coming into Kokomo, Greentown or Russiaville.
The county budgets $35,000 each year from Economic Development Income Tax revenues to fund the program. If a business decides to move out within the first three years, grant funds are to be repaid.
Commissioner Paul Wyman said there are three phases to the program. After the first year a business can request funds for the purchase of new equipment or apply for low interest loans.
“So far there have been 27 takers,” he said. “Overall the majority have remained in the downtown area. It’s gotten to the point where it’s hard to find a vacant storefront in downtown Kokomo.”
Wyman said the downtown continues to grow and is becoming more vibrant on a daily basis.
“When companies look to locate in a community, they always want to see the downtown,” he said. “They want to see if the downtown remains a vibrant location in the community.”
Wyman said the revitalization of downtown Kokomo is a partnership between the two governmental entities and the private sector. He doesn’t know why other Indiana communities haven’t adopted a similar program to encourage businesses to locate in a downtown.
“It’s a result of people thinking outside the norm,” Wyman said. “We have targeted funds to what we want to accomplish. We made the decision to help create jobs.”
Carol Roe and her partners recently moved the home decor shop, Sycamore Cottage, to downtown after trying locations in the two malls and another storefront.
“We debated it for a year, almost did it a year ago,” she said. “Sales were so bad where we were at before.”
Roe said the rent abatement program made it easier to give it a try for a year.
“We were going to have to close where we were at,” she said. “The grant money pays half the rent. It was a key to the decision.”
Roe said she believes the downtown area is coming back and she has noticed increased foot traffic.
In recent years Kokomo eliminated most one-way streets, removed stoplights and hosted summer concerts in a nearby park. Kokomo has a revolving loan fund and a façade program aimed at helping downtown development.
Kokomo Mayor Greg Goodnight said downtown development is critical to the community for a number of different reasons.
“It is the oldest and most historic part of the city,” he said. “Developers interested in locating in Kokomo want to see the downtown and see how we’re taking care of the oldest part of the city.
“The downtown is the center of your community and belongs to everyone,” Goodnight said. “It has the potential to have the most pedestrian traffic in a concentrated area.”
During the past two years, Kokomo has added four new housing developments in the downtown area and more are in the planning stage.
“You have to look at trends,” Goodnight said. “Baby boomers and millennials (people born between 1980 and 1990) want to live in urban areas with mixed-use neighborhoods.”
Goodnight said in close proximity to the downtown area is the aquatic Kokomo Beach, Highland Park, a new baseball stadium and YMCA are being constructed in the downtown area.
“A city needs the right programs and right mix of investment to be revitalized,” he said. “We have young people in the downtown area on a regular basis.”