Maybe things don't always appear as they seem, and such is the case with the recent
actions of a California company looking to relocate to Indiana. Apparently after
scouting numerous sites in twelve states, the owner of Tailgate Beer of San Diego,
Wesley Keegan identified Franklin, Indiana as the site for expansion. But  it appears
California may still have a chance.

Based upon information gleaned from press and news media in Indiana, the Indiana
Economic Development Corporation allegedly offered TailGate Beer up to $1.85 million
in performance-based tax credits and $100,000 in training grants based on the company's
job creation plans. In addition, the City of Franklin's Redevelopment Commission allegedly 
offered to finance the $2.3 million purchase of a 48,000 sq. ft. vacant industrial building for
Tailgate that allegedly planned to hire 150 workers over the next three years. Other incentives
that had been on the table for Tailgate included $900,000 in lease guarantees, a $300,000
loan and a $200,000 grant for "greening" the building.  However, Tailgate after failing to meet
a deadline, forced the Commission to call off the deal.

In the meantime, Indiana's Governor desperate for economic development made a premature
announcement without thinking of the potential for what could occur and has occurred.

                "TailGate Beer is the latest company to flock to Indiana to take
                 advantage of our low cost of doing business and great location
                 for distribution."   "We wish this young company success as it
                 establishes and grows in the Hoosier State." 

                                                                   Indiana Governor Mitch Daniels

But because Tailgate Beer apparently failed to respond to a deadline to provide detailed
financial information, all offers have been canceled. The following presents short briefs
on the various actions leading up to the cancelation.

 Incentives for a California-based brewery planning to launch operations in Johnson County
are moving forward, but some city officials want more answers before final approval is
given. The Southside Daily Journal reports members of the Franklin Redevelopment
Commission are asking TailGate Beer LLC to provide more details about the company's
finances and how much it plans to invest in the new operations. The commission did
provide initial approval for more than $1.4 million in cash and loans through the city.
At least one commission member questioned whether the city should be providing funding
to the brewer without having seen a business plan or other financial documents. The
taxpayer-funder Franklin Development Corporation is expected to spend $2.3 million to
help renovate a building in the Franklin Business Park for TailGate. Franklin Mayor
Fred Paris and TailGate Owner Wesley Keegan said they would work to provide all the
requested documents before officials meet again to give final approval to incentives.
Source: The Southside Daily Journal 4-16-10

A California-based brewery is seeking $107,000 from the city of Franklin after traveling
to the city to discuss an economic development project. The Southside Daily Journal
reports TailGate Beer owner Wesley Keegan claims he is owed for travel and accounting
expenses and lost time and business. City officials say they don't believe they have
to pay Keegan anything. Keegan announced in April plans to locate in the Franklin
Business Park and hire 150 workers over the next three years. However, the Franklin
Redevelopment Commission withheld some tax incentives, raising concerns over Keegan's
business plan. The commission has said it would consider the remaining incentives after
the company provides information on income and expenses and the loan will use to open
in Franklin. Source: Southside Daily Journal 07-15-10

A California-based brewery looking to locate in Johnson County has two months to provide
financial information or face losing local incentives. The Southside Daily Journal
reports if TailGate Beer doesn't provide the requested data to the city of Franklin, it
risks losing $3.7 million in incentives. Members of the Franklin Redevelopment Commission
have raised questions about the company since it first announced in April plans to locate
in the Franklin Business Park and create 150 jobs over the next three years. In July,
TailGate Owner Wesley Keegen notified officials he was seeking $107,000 from the city,
claiming he was owed for travel and accounting expenses and lost time and business
stemming from a visit to the city. Source: Southside Daily Journal 08-30-10

It appears a deal to bring a California beer company to Franklin, south of Indianapolis,
has fallen apart. The Southside Daily Journal is reporting city officials have ended a
deal with TailGate Beer after trying to secure financial information from the company.
TailGate announced in April that it would locate in the Franklin Business Park and
create up to 150 jobs over three years.Part of the deal called on the city to purchase
an empty manufacturing facility for the company.Even when it appeared the TailGate deal
would fall through, Franklin officials considered buying the building so it would be
ready or any other company that was interested. That idea has been shelved. The Daily
Journal reports that other companies are interested in purchasing the building. Source:
The Southside Daily Journal 9-17-10

So, apparently no Tailgate to Indiana. But to the economic development corps of professionals in California,
it appears there is a real opportunity to retain this company. If I were back in San Diego, I would look into the
opportunity specifically to enhance sells by getting their beer at the Qualcomm and Petco, but also locating
them in a enterprise zone and use 'One Stop' training dollars to help in the effort along with CDBG/EDBG
funding to guarantee a note.  But at this point, it is everyone's opportunity. Go retain them California!

Tim Johnson
tjohnson@californiabusinessminute.com