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Lilly Payback

I don’t have much use for Gary Welsh, but sometimes even a blind squirrel finds a nut, or vice versa.

Eli Lilly announced more than 5,000 layoffs Monday, many of which will impact the Indianapolis area.   If Lilly goes forward with the job reductions will it have to payback some of the money it received in tax incentives over the years which were predicated on job creation?

From today’s Star…

From 1999 to 2004, the expansion added about 9,000 new Lilly jobs in Indianapolis and secured more work for the company’s 7,000 vendors in the state.

Since 2004, Lilly has shed 2,000 jobs and never reached the target of adding 9,500 new jobs in Indianapolis by 2009. That target was set in 2004 when Lilly applied for tax breaks and incentives totaling $1.6 billion in exchange for its expansion.

Scaling back now has little to do with the recession. [John] Lechleiter said the restructuring would have happened anyway, to speed up the pipeline, which has sputtered in recent years.

I have no desire to kick a major employer when they’re going through issues, but it is a fair question to ask, especially during these tough financial times.

  • Bob Miller

    If the city of Indianapolis could take back all the incentive money it ever gave to businesses in return for empty promises, it could fund whatever it really needs. But it's only make-believe.

  • mrslundy

    Adbul –

    The restructuring goes back to 2002/2003, in spite of what is reported by the Star. There also was a Spring announcement about buyout offers which aren't taken into account (I think). In addition, I'm sure you're also aware of the commercial real estate owned by LLY & recently put on the market (briefly). Finally, the long-term prognosis for big pharma is not good, just like the long-term prognosis for big tobacco wasn't good 10 years ago.

    The bottom-line is that these jobs are never coming back. If LLY is incapable of forecasting its revenue streams when it loses patents (like Prozac in 2001) and adjusting its business properly, then it gets what it deserves — $33/share (DOH!) and eroding credibility in the community.

    The money should go back to the taxpayers. The end.

  • mrslundy

    In 2004, who was the mayor, instrumental to the deal and not pressuring Lilly? Bart Peterson. Since he was ousted from office, he managed to secure a senior position at Lilly, just a mere 3 months ago:

    “Bart Peterson joined Eli Lilly and Company in June 2009 as senior vice president of corporate affairs and communications. He is a member of the company’s executive committee, operations committee, and senior management council.”

    Wow. Wow. Wow. I don't care how you want to spin this one, but it looks bad, it smells bad, and it should make every taxpayer citizen sick.

    Abdul, I think you owe it to your listeners to push on this one. The star has let the monkey business at Lilly to slide for too long.

  • Indy4U2C

    The very first thing Lilly should do is ELIMINATE the make-work, do-nothing, 6-figure salary of Bart Peterson! That move alone can allow them to retain 3 jobs that are truly needed.

    If Bart is allowed to retain that salary as a payback for the tax incentives, then Lilly should pay the full taxes to the City.

  • shortylong

    The only job it created was one for Bart Peterson.

  • Think Again

    Wow. Tough crowd.

    Two simple facts: Lilly still employs a large number of persons, at very good salaries.

    Second: Bart Peterson is no longer mayor, so you Peterson haters can redirect your anger at something more worthwhile.

    Like asking why we have a bunch of dopes on the 25th floor now.

  • Rico

    Was the jab at Gary even necessary to make your point, Abdul? You two are like a couple of schoolkids on the playground.

  • IndyErnie

    I would rather have our “dopes” (your words) then your Crook Peterson any day TA.
    This issue reeks of premeditated deceit could it be that the former Mayor and Lilly exec's ripped of the citizens of Indy? I think it could.
    I've never slammed Brizzi on any blog before but he should be paying attention here.
    The Indiana Attorney General should be looking very closely at this too.
    Could it be that BART is a LIAR and a THIEF?….We all know that BART LIES…is he a crook?…could it be…?

  • lindsaybuydos

    Dear Abdul,
    My name is Lindsay and I am a campus organizer at IU-Bloomington for INPIRG, the Indiana Public Interest Research Group. We do a lot of work with social issues – like global warming, hunger and homelessness, healthcare reform – and this semester we're launching a new program aiming to make students more educated consumers. We'll be publishing a report every month and distributing them to students campus-wide as a resource to consult when signing up for a new credit card, signing a lease, applying for student loans, and many more common consumer pitfalls students face every day. Because this is a new campaign, I would love to have someone to consult as to how to tackle these issues most effectively and why Indiana is such an important state to launch a campaign such as this. After reading your blog, I feel as though you may be able to provide some excellent advice, and I would greatly appreciate your willingness to assist students here in Bloomington and myself educate the student body and help them make educated decisions as consumers.
    Thank you so much for your consideration and I look forward to hearing from you!
    Lindsay Buydos

  • Think Again

    An altruistic appeal there from Lindsay, Abdul. Grab it. This is your chance to do more for humanity. And womananity, for that matter.

    Break out the trumpets–I agree with Rico. Senseless back-and-forth like this is juvenile, and beneath both Abdul and Gary. Gary brought up a great point–why not let it go at that?

    Rico–if you think this prosecutor is going anywhere near that crap, you really are dillusional. As for cerebral power on the 25th floor, last administration to this one–not even close, pal. Peterson, for instance, never employed a deputy mayor who spoke gibberish routinely. He did employ a former county chairman who had not one lick of common sense.

    The last administration was sometimes aloof and often out of touch, but rarely rudderless. Your Peterson hate notwithstanding.

    But thanks for stopping by.

  • IndyErnie

    “Peterson, for instance, never employed a deputy mayor who spoke gibberish routinely”

    They all spoke gibberish and repeated Peterson’s non-truthful talking points.
    We don't hate Peterson TA, we just think he was out for himself at the citizens expense…and he continues to prove it daily.

  • Indy4U2C

    Bart Peterson is no longer mayor, but is getting a BIG FAT PAYBACK with his “make-work, do-nothing” position with a 6-figure salary at Lilly. It's morally wrong that he is getting the gravy and real workers face job loss!

    Bart is corrupt; true Machine Politician.

    The current Mayor is a man of character, unlike Bart.

  • Indy4U2C

    Bart Lies!

  • wilson46201

    Bart Peterson beat Indy4U2C (Jocelyn Tandy) 4 to 1 in the Democratic primary in 1999 — she still hasn't gotten over being so soundly rejected by voters (again) … poor thing!

  • Rico

    I'm curious, Lindsay, what your organization does about global warming. Do you try to convince non-thinking Americans that it exists? Don't you think you should CYA by calling it 'climate change' as others have done? That way you can blame every climatological phenomenon on capitalism. C'mon and get with the program!

  • Rico

    TA, I wrote nothing about our lame prosecutor.

  • Rico

    Gee, Wilson, I thought I was Jocelyn Tandy. Aren't delusionally paranoid, are ya?

  • Think Again

    Sorry, Rico, I confused you with Ernie. Sometimes it's not difficult to do.

    Ernie, here's one thing you need to get through your thick head:

    You may despise Bart Peterson. It's your right, but it's not very productive. But when you stoop to calling him a thief, you've demonstrated ignorance, and crossed a line. Because this city got Bart Peterson for 8 years, love it or hate it–and every single day he served was a huge cut in salary for him.

    Now, he's not going to miss a car payment, so don't cry for him. But he left his family's very lucrative business to be mayor. He had that raw political ambition, to be sure. But a thief? Hardly.

    Oh yeah, Rico: only Jocelyn can be Jocelyn. She's one of a kid.

  • varangianguard

    TA, you prefer Peterson's last Deputy Mayor to anybody Ballard has? Wow.

  • Think Again

    I know the deputies involved, of both parties. I'm very familiar with their work product.

    I prefer anyone to Ballard's current deputy for neighborhoods. Including an empty chair.

  • varangianguard

    Being that close to being Mayor requires more than some non-verifiable “work product”, which is debatable IMO.

  • IndyErnie

    Don't you find it a little odd that Peterson didn't return to the family business? Was he wanted back into the business? One thing is for sure…if Peterson produced in Daddy's business as he did as Mayor… Daddy was better off with him playing mayor.
    TA I don't despise or hate Peterson. I just know him as being a lousy mayor.

  • IndyErnie

    If Peterson received this job as for services rendered as Mayor and if the tax payers money benefited Lilly then it is theft. ALL involved are thieves.
    I think the AG should look long and hard at this arrangement.

  • pogden297

    Mayor Ballard is a “man of character?” Unfortunately that “character” includes turning over his adminstration to those who seek to profit off taxpayers while throwing away the future of the Marion County GOP. Apparently that “character” also includes raising taxes when you've promised not to do. so. I can't imagine a way Ballard could have been more disappointing to Republicans than he has been.

  • pogden297

    You're actually on a website complaining about Peterson's conflicts of interest? As much as I don't like Peterson, the conflicts in Ballard's administration are much, much worse than Petersons. You do realize that Bob Grand is president of the CIB and also represents the Simons? That is only 1 of about a hundred conflicts in Ballard's adminsitration. The ethics in this adminstration have fallen by the wayside. It's very, very sad.

  • pogden297

    AG has no authority to bring charges against anyone for a conflict of interest. That person would have to be Carl Brizzi. Good luck getting Brizzi to go after white collar crime. It hasn't happened in nearly 7 years.

  • Indy4U2C

    Thief is an accurate term! He ran this city like a true Machine Politician. He gave lucrative contracts to his cronys. He allowed Sweet Pea, Monroe Gray, to engage in ghost employment, and flaunt it on TV…not to mention the no-bid airport contracts given to him…

    …now Bart is partaking of rewards for giving tax rebates to a large corporation. He gets a 6-figure salary for a make-work, do-nothing position; a reward for political favors.

    I say Ernie is right!

    And, TA, spare me the mischaracterization that when Bart was mayor, “every single day he served was a huge cut in salary for him.” I say the opposite! Bart was born with a silver spoon in his mouth, was GIVEN his position by his father, he didn't EARN it! The pay cut on paper resulted in millions of rewards for cronys and Bart is now reeping in the payback for those rewards.

  • Think Again

    OK, Varan, if you don't like the work product answer, try this:
    Sit down for ten mionutes with Olgen Williams. Let hinm wax poetic on whatever subject you ask.

    Report back.

    I'll wait right—————————-here. With my jibberish-to-English dictionary.

    I dsisagreed often and loudly with Peterson's folks. But they weren't incompetent…just different opinions.

  • IndyErnie

    Paul just as you are a man of good character so is Mayor Ballard. I understand some of the democrat ignorant and unjust snipes toward Ballard but I don’t understand yours.
    As a republican who is very active in the party I find your criticism of Ballard appalling. You accomplish nothing by trashing Ballard except alienating your fellow republicans. It’s time to put it to rest.

  • IndyErnie

    Paul just as you are a man of good character so is Mayor Ballard. I understand some of the democrat ignorant and unjust snipes toward Ballard but I don’t understand yours.
    As a republican who is very active in the party I find your criticism of Ballard appalling. You accomplish nothing by trashing Ballard except alienating your fellow republicans. It’s time to put it to rest.

  • IndyErnie

    Paul just as you are a man of good character so is Mayor Ballard. I understand some of the democrat ignorant and unjust snipes toward Ballard but I don’t understand yours.
    As a republican who is very active in the party I find your criticism of Ballard appalling. You accomplish nothing by trashing Ballard except alienating your fellow republicans. It’s time to put it to rest.

  • IndyErnie

    What the hell happened here…Oh well maybe Paul will get the point if he reads it three times.

  • varangianguard

    I'd prefer Olgen Williams to a Don Rumsfeld wanna-be any day of the week. Maybe, we are talking about two different people?
    For the one I speak of, there is no reason to allow rude, demeaning, grudge holders to be so close to the top. And that, beyond the evasive, self-serving, and “pigeon”-style management skills that seem worthless for the money being paid out, whether in salary or in self-approved ancillary contracts.

    What is “pigeon”-style managment? Flies into a job on the recommendation of someone who is trying to get rid of him, “poops” all over everything in sight, adds more fluff to their résumé (like, oh say, “I saved the company $20K by changing coffee vendors -to one run by a pal of mine, who uses inferior coffee, after all, it's just for the hourly employees), then flies off to repeat the process again, [i]ad nauseum[/i].

  • guest

    Someone needs to review Mitchs record in light of Lilly going south.

    First, Mitch was Director (architect)director of the Office of Management and Budget (OMB). He served as Director from January 2001 through June 2003. In this role he was also a member of the National Security Council and the Homeland Security Council.

    Daniels came under fire for overseeing a $236 billion annual surplus turn into a $400 billion deficit during his 29-month tenure.

    In 2002, Daniels helped discredit a report by Assistant to the President on Economic Policy Lawrence B. Lindsey estimating the cost of the Iraq War at between $100–$200 billion. Daniels called this estimate “very, very high” and stated that the costs would be between $50–$60 billion.

    Mitch left us in a mess.

    But this is only the beginning. Mitch was also the President of the Hudson Institute, a conservative thinktank based in Indianapolis, from from 1987 to 1990. Since that time, Hudson, due to financial reasons, closed their headquarters in Indianapolis and currently downsized their operation to the DC area. Mitch left a mess.

    Then there was the IPL issue. In January 2001, upon his appointment as Director of federal Office of Management and Budget, Daniels resigned as a member of the board of Indianapolis Power & Light Co. and sold the $1.45 million he held in company stock. Later, that year, Indianapolis Power & Light Co. was bought by Virginia-based AES Corp. Daniels was a member of the IPALCO board of directors at the time of the transaction in early 2001. Just before the sale was completed, Daniels sold his shares in IPALCO for $1.45 million.
    Over the course of the next year, IPALCO shares plummeted from nearly $50 a share to under $1. Employees lost an estimated $179 million in the devaluation of the 401(k)-styled “Thrift Plan” that the employees were encouraged to invest in. Once again, Daniels left a mess.

    Then there is Lilly. From 1993 until 1997, Daniels was President of North American operations, and promoted to Senior Vice President for Corporate Strategy and Policy at Eli Lilly in 1997 where he served until leaving the company in 2001. During that time, Daniels carved $1.5 billion tax credit for Lilly if Lilly could/would hire 2000. Lilly this week stated that they would be cutting 5,000jobs (http://www.indystar.com/article/20090920/BUSINE…)
    Mitch left a mess.

    Then there is Govenor Mitch. First, he sold the toll roads (in order to balance the state budget) to a private Australian-Spanish (buy American) for $3.8 billion. It appears that the company has filed for Chapter 11/7/13.
    Additionally, a state youth program that serves 5,000+ youth in Indianapolis known as Youth Emergency Services, will be closing there doors along with 40 employees due to the fact that there was no funding in the amount of $1.5 million. Then there is the property tax fiasco. Mitch imposed property tax caps which has resulted in a drastic reduction in public school education funding. So much in fact, most schools are slashing teaching positions, afterschool programs and school renovations. In the meantime, several school districts have filed suit against the state. Have we mentioned the Capital Improvement Board?? Mitch has failed to fund roughly $33 million for operations of Lucas Oil Stadium/Convention Center/Conseco Fieldhouse after taking the lead in the funding. He even refuses efforts to fund it specifically, casinos in Indianapolis. Once again, Mitch left a mess.

  • guest

    Hey Indy4U2C are you talking about Peterson or Daniels???

  • guest

    Hey Indy4U2C are you talking about Peterson or Daniels???

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    Eli Lilly was one of the Nifty Fifty stocks that propelled the mid 20th century bull market.