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Council finds company not in substantial compliance, sets Feb. 18 public hearing
Summary
The council determined that the company identified in city materials as AccessKaties, Inc. was not in substantial compliance with a job-creation and retention agreement and voted to send notice and set a public hearing on Feb. 18 to resolve the issue. Staff cited missing registration, lack of an in-city lease, and reduced employment as evidence.
The Columbus City Council voted 9-0 on Jan. 7 to find that the company identified in city documents as AccessKaties, Inc. was not in substantial compliance with an investment in job creation and retention agreement and to initiate the contract process that could lead to a public hearing on Feb. 18.
City staff presented a compliance report stating the company received a $50,000 performance-based incentive from the city’s economic development program in 2020. According to the staff report, the agreement required the company to establish a headquarters in Columbus (listed in staff materials as 810 Brown Street) and to create 10 employee positions at a minimum blended wage of $28 per hour. Staff reported that, by Dec. 1, the company had not updated its registration with the Indiana Secretary of State as a business in Indiana and had not obtained a lease for office space in Columbus, as required by the agreement.
Staff also reported a decline in the company’s local employment: earlier filings showed roughly eight employees, while staff’s most recent data indicated about 1.9 full-time equivalent positions in the community. The company submitted a report in November for the Dec. 1 deadline, but staff concluded that the documentation did not meet the agreement’s conditions.
City legal counsel explained the process: if the council determines the company is not in substantial compliance, the city must send a notice explaining the reasons and schedule a subsequent public hearing to allow the company to provide evidence, explain efforts to comply, or contest the findings. The council’s action on Jan. 7 authorizes that next step; counsel suggested Feb. 18 as a hearing date to allow administrative steps and notice.
Council members discussed the timeline and noted the agreement’s original seven-year term runs through 2027 and required companies to maintain at least 80% of the job target to be considered in substantial compliance. Council members said the process is not a final recoupment decision; possible recoupment or other remedies would be considered at the follow-up hearing if the company does not demonstrate compliance.
The council voted to pass the resolution initiating the noncompliance process and to set the subsequent public hearing for Feb. 18 to allow the company time to respond and to permit the city to complete required notices and procedural steps.
