Nate Feltman: Elanco win gives a shot in the arm to downtown

Elanco Animal Health’s recent decision to locate its global headquarters downtown is just the shot in the arm (pun intended) Indy needed to close out this difficult year. The decision could not have come at a better time given the questions and concerns that so many have regarding downtown’s short- and long-term future.

With growing concern about when and if workers will return to downtown office buildings that have remained largely vacant since the onset of the pandemic, Elanco’s CEO Jeff Simmons is forging boldly ahead with plans to create a dynamic campus that will become home to hundreds of new high-paying jobs. Simmons’ “bet on Indy” decision might be just the inspiration needed for more CEOs to reconsider their downtown strategies.

Elanco made it clear to economic development officials that a driver in its location decision would be its ability to attract globally competitive talent. As a result, an urban setting with strong amenities, including quick access to a major airport, appealed to Elanco. Elanco’s ability to be a major player in the community and help develop a part of the city that has gone through challenging times also played a part in its decision to make Indy home.

The choice came down to Indy or Kansas City, Missouri (which bills itself as “America’s Animal Health Corridor” and where both Elanco and recent Elanco acquisition Bayer Animal Health have operations). As a former deal lawyer and state secretary of commerce, I appreciate the nimble deal-making that took place to land one of the more important wins for Indy and Indiana in recent memory.

Keys to Indy’s ultimate success included:

◗ Gov. Eric Holcomb and Secretary of Commerce Jim Schellinger reaching out to Elanco as soon as they caught wind of Elanco’s possible purchase of Bayer’s animal health division in 2018. The acquisition would catapult Elanco to the second-largest animal health company on the planet. This simple but important move ensured Elanco knew of the state’s strong interest in keeping Elanco in Indiana and kept the lines of communication open.

◗ Schellinger’s plan to have the Indiana Economic Development Corp. acquire the 96 acres making up the former General Motors stamping plant. Although he did not have a company in mind when he initially pursued the purchase of this strategic parcel across from the Indianapolis Zoo, Schellinger knew the time would come. This is exactly the type of deal-making that was envisioned when former Gov. Mitch Daniels created the IEDC as a public-private partnership.

◗ Purdue University President Daniels’ support. He continues to play a key role in many of the state’s largest economic development projects. This is natural given his previous role as governor and chair of the IEDC, and he is masterful at it.

◗ Bipartisanship. As the saying goes, “Politics stops at the water’s edge.” Well, in this case, at the site formerly known as Waterside. When it comes to economic development, Indy and Indiana are top-notch. Indianapolis Democratic Mayor Joe Hogsett’s chief of staff, Thomas Cook, and Develop Indy’s Ian Nicolini worked seamlessly with state Republican leaders Schellinger and IEDC Chief of Staff Luke Bosso to get this deal across the finish line. AgriNovus and BioCrossroads also assisted with the pitch.

Elanco’s signature investment could mark a turning point for downtown Indy’s resurgence. The energy, collaboration and innovative mindset brought by all the players should now be harnessed to tackle other downtown challenges and opportunities. Let’s keep the momentum going!•

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Feltman is CEO of IBJ Media and a shareholder in the company. To comment on this column, send email to nfeltman@ibj.com.