Wednesday, October 15, 2014

Despite Checkered Track Record, Angie's List Gets More from City

Mayor Greg Ballard announced a plan to give local company Angie's List $25 million in public assistance in order for them to expand their operations on the city's Eastside and provide 1000 new jobs.

Angie's List, according to the plan as outlined in the IBJ, will spend $40 million of their own in the plan, but local bloggers and others have serious questions about the health of Angie's List and recent layoffs by the company.

Just this past August, the company laid off 97 workers in its sales department.  The IBJ also points out that despite being in business for 19 years, the company hasn't turned a profit yet.

Advance Indiana blogger Gary Welsh, a Republican, hits a home run with this blog post on the deal calling the deal "crony capitalism."  He points out that Angie's List CEO Bill Oesterle has given to both the campaigns of Mayor Greg Ballard and Governor Mike Pence.  Coincidentally, those are two of the people who stood up at the news conference yesterday with Oesterle and company founder Angie Hicks.

While you could term Welsh's reaction as that of a single blogger, the pushback on the Mayor's official Facebook page is also there.  See below.

Screenshot from Facebook
It appears that this deal has come under more great scrutiny than normal deals.  Hope it works out for the Eastside, but, with the history of Angie's List, who knows?  Kind of a big bet with $25 million of our dollars!

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