A large inventory of partially-completed wind turbines sits on the floor of the WindStream facility on Buckeye Street.
The bad news is that WindStream Technologies laid off all employees Thursday, Oct. 18.
The good news is that CEO and founder Dan Bates' goal is to hire everyone back as soon as possible.
The layoff was necessitated because the company has run out of money for now, explained Bates in a candid interview Friday morning. WindStream's founder said he wanted to explain via the local newspaper what has happened to precipitate the layoffs to the residents of North Vernon and Jennings County before the rumor mill totally runs amok.
City Councilman Matt Hurley was also present to hear firsthand what had transpired at the company.
"The day after our darkest hour, I am here (talking to you)," Bates said. "We have nothing to hide."
The company was forced to lay employees off because funding from a new investor failed to materialize.
This infusion of cash for the alternative energy company was slated to be made Sept. 15. After this investor signed the stock purchase agreement earlier this summer, Bates informed other potential investors the offering was closed.
When the investor failed to make the Sept. 15 payment, there were emails with explanations and excuses for the delay. Because the man was related to "a founder and trusted member of the WindStream family," Bates says he
wasn't too worried at first.
Now, a month later, that money remains unpaid and Bates says he will begin the legal process of voiding the contract and resuming talks with other interested parties.
"I will get the dough to reset this business," he vows. "I've put my heart and soul into this and I owe it to the community and to the City Council."
The CEO has another reason to find another investor. Bates says he has invested "everything I have in this business."
WindStream was founded by Bates in 2008 in his home state of California to create an affordable and simple wind turbine to create clean energy. In November 2009, the company relocated its research-and-development operations to the Purdue Research Park in New Albany. By 2011,
WindStream opened its manufacturing facility in the east end of the former Regal Rugs building on Buckeye Street (U.S. 50).
As an incentive, the company received a 10-year $1.4 million loan at 5.5 percent interest from the City of North Vernon funded from its Redevelopment Commission or TIF board.
The company also received incentives when it moved to Indiana, which included $1.5 million in performance-based tax credits and up to $84,500 in training grants based on the number of jobs created. It has also received two grants from the Lawrenceburg regional economic development grant program.
Bates is adamant that the loan from North Vernon will be repaid because he is committed to finding new investors in WindStream. "I've put my heart and soul into this. I owe it to the community, to the City Council."
If, however, he is unsuccessful, he does have a "fail-safe plan." If the company is sold, the city is first in line to be repaid.
It is so ironic, he continues, that WindStream is facing this funding problem now because for the first time since the company was founded, sales are not a concern.
The product has really taken off, especially in parts of the world where electric power is either very expensive or nonexistent.
Right now, the plant, says Bates, needs to quadruple production.
Before that can happen, though, the company must finish a new braking system for the turbines that stop rotation in torrential winds to prevent the turbines from collapsing inward.
The work on this project is about one week from completion and, despite the layoffs, continued Friday morning on Buckeye Street. Engineers and other office staff made good on their pledge to continue working because they believe in the company's mission and want to see it succeed.
"We have a great team. We've built a great group and family," said Bates, who predict "In the long term, North Vernon is going to be the renewable energy capital of Indiana."
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