Wednesday, February 25, 2015

Indy Council Committee Approves Angie's List Deal

A City-County Council Committee voted on Monday to advance the Angie's List "stimulus" to the full Council.

I still can't figure out why the city is so enamored with this company.

Here's the deal, Angie's List wants to take over the old Ford plant on the near-Eastside and create over 1,000 jobs.  They also want over $18 million in tax incentives to do so.  The Metropolitan and Economic Development Committee approved the deal which would also move an IPS Maintenance Facility.

If this were Eli Lilly or even Anthem, I could maybe get on board with this expansion, but this is Angie's List.  It's a company that continues to struggle to even get close to turning a profit, has laid off workers as recently as August 2014, and has a business model that is essentially the same thing offered by tons of other free sites that review products and help people select the best choices.

If I want to know about a plumber, for example, I don't go to Angie's List.  I go to Google!

So, here we are, handing out more in tax incentives, and my friends, both Republican and Democrat, are championing it.  Yes, I know it benefits your districts, but what about the rest of the city?

To the naysayers, the Councillors say don't worry.  If Angie's List fails, you'll get some of the money back because the deal does have some clawbacks
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I guess I've just seen too many of these bad deals up close.  Here in my area of town, we still suffer from the United Maintenance Facility deal that didn't come close to producing what it said it would.

I swear I sound like a fiscal conservative on this stuff, but I just guess I can't bear to hand out cash to a company with nearly a 20 year record of what I would consider dubious business decisions.

1 comment:

Anonymous said...

You forget to add that Angie's List (1) extorts money from the people being reviewed if they want their business to be seen, (2) has been know to automatically renew their subscribers without permission, and (3) makes tons of money for their founders -- not to mention the hinky land deal their CEO was involved in.

I'm with you - I don't get it