Battery Innovation Center asks redevelopment commission to pause August payment amid frozen state grant

Lester Alexander, CEO and president of the Battery Innovation Center, told the Redevelopment Commission that the center cannot make its Aug. 1 payment under a multi-year agreement because two major revenue streams have been disrupted. Alexander said the center typically receives roughly 25% of its revenue from state grants and about 35% from federal contracts. He said the state grant reimbursing workforce and scale-manufacturing work is frozen pending audits or revisions at the Indiana Economic Development Corporation, and that delays or cancellations of federal contracts have reduced federal revenue by about $1.8 million — leaving the center down roughly 55% of revenue over the last six months. "That grant has been frozen ... It represents about 25% of our income," Alexander said. "Without the reimbursements of those vendors, we've had to use our general funds to pay those vendors off." He asked the commission to pause the August payment for 30–45 days and said he would return with either restitution or a payment plan. Commission discussion focused on timing, the risk of default, and options for follow up. Commissioners asked whether Alexander could provide at least a partial payment by Aug. 1; he said he could not confirm any partial payment and that, as of his remarks, the center would be in default as of Aug. 1 without the suspension. Alexander offered to provide a written status by Sept. 1 and a payment plan to the commission by the Sept. 25 meeting. A motion to suspend the Aug. 1 payment and require Alexander to present a payment plan at the commission's Sept. 25 meeting passed by a 3–1 vote. The commission instructed Alexander to return with an update at that meeting; if no payments had been made, commissioners said they would revisit enforcement or further action then. Why it matters: The Battery Innovation Center occupies property and has an existing payment pledge to the redevelopment commission. The center also reported ongoing construction and vendor obligations tied to the state grant; delayed reimbursements have moved vendor payments onto the center's general funds, creating immediate cash-flow pressure.