From July 2005 through mid- October 2006, the Conway Data New Plant Database tracked 10 projects in the Greater Evansville- Henderson, Ind.- Ky. metro area. As bi- state metros go, the metro is not as prominent as its brethren upriver, but that doesn't mean it doesn't get noticed by those who matter.
   This year, those who matter include homegrown company Shoe Carnival, which broke ground in August on a 60,000- sq.- ft. (5,574- sq.- m.) corporate headquarters center that will open in March 2007. Its new 410,000- sq.- ft. (38,089- sq.- m.) distribution center is scheduled for completion in December 2005. Combined, the two projects will mean 120 new jobs.
   "These two projects entail a $40- million investment in the Evansville Metro Area," said Mark Lemond, president and CEO of Shoe Carnival, in August. "As the integral pieces of our future growth plans, these two projects serve as the platform that will enable us to expand the Shoe Carnival concept across the United States. Importantly, both of these buildings will be capable of future expansion, as we intend to continue our commitment to the Evansville area for many, many years."
   The incentive package includes up to $20,000 in training grants, up to $200,000 in infrastructure assistance to the local community and approximately $2 million in tax credits based on job creation and capital investment from the Indiana Economic Development Corporation (IEDC). Vanderburgh County will provide the company with a 10- year tax abatement on both real and personal property.
   Another homegrown expansion is coming from American General Financial Services (AGFS), founded in Evansville in 1920 and currently employing 1,400 in the area. The $26- billion subsidiary of American International Group provides direct consumer and home equity loans, retail sales financing and other credit- related products to over 2 million customers through 1,500 branches in 45 states, Puerto Rico and the Virgin Islands.

This site in Mt. Vernon, Ind., will be leased from the Ports of Indiana by Aventine Renewable Energy Holdings, which received lease rights for its $400- million ethanol project from supplier Consolidated Grain & Barge Co., Aventine's sole supplier and export marketer for the project.

A $35- million project will improve and expand its downtown campus, add a 135,000- sq.- ft. (12,542- sq.- m.) building and create 150 new jobs paying an average salary of $40,000.
   "We are pleased to continue our long- standing commitment to Evansville with this expansion," said Frederick W. "Rick" Geissinger, AGFS chairman and CEO, in July 2006. "This new building will allow us to consolidate and upgrade our current facilities throughout the city."
   This time, IEDC teamed with the City of Evansville: IEDC offered up to $450,000 in training grants and approximately $2.25 million in tax credits based on job creation and capital investment. The city will help via land acquisition and infrastructure improvements, including streets, sidewalks, and water/sewer line extensions in the immediate area. That land acquisition involves property transfers from three entities. Among the more tangible incentives were two transportation measures: a new corporate hangar for AGFS at Evansville Regional Airport, and the coming completion of I- 69 into Evansville, thanks to the state's Major Moves highway program.
   The biggest incipient project in the Evansville metro, however, comes back around to energy again: Aventine Renewable Energy Holdings is planning a $400- million ethanol facility in Mt. Vernon, Posey County. The company already supplies 500 million gallons a year from a wholly owned facility in Pekin, Ill., and a partially- owned facility in Aurora, Neb.
   Under the terms of the definitive agreement signed in September, Consolidated Grain & Barge Co., based in Mandeville, La., will transfer to Aventine the rights to lease 116 acres (47 hectares) at the Port of Indiana- Mt. Vernon. The land will be leased from the Ports of Indiana under a long- term lease arrangement that has yet to be negotiated. Aventine intends to construct and operate a 220 million gallon ethanol facility on the leased site, which is served by CSX rail. Construction is expected to begin in April 2007 with Phase I production of 110 million gallons of ethanol by September 2008 and full production by January 2010, when the plant is projected to employ 70 people. Once the plant is built, only 20 percent of the 745 acres (302 hectares) at the port will still be open for development.
   In exchange for the assignment of the option to lease, CGB will become the exclusive grain originator and Dry Distillers Grain with Solubles ("DDGS") export marketer at the proposed facility, as well as the sole provider for ethanol and DDGS loading at the site. CGB currently owns and operates 65 grain elevators in the U.S. CGB will utilize its approximate 10 million bushel elevator system in the Mt. Vernon area to handle grain for the ethanol plant, and will market the DDGS for export to Europe, Japan, and Asia. Aventine will get the first opportunity at any current or future CGB facilities to locate potential ethanol plants, while CGB will, in turn, be granted the first opportunity to bid for exclusive grain origination and DDGS export marketing at all of Aventine's future U.S. ethanol plants in the United States.
   The company has stated it wants to have a capacity of 1 billion gallons by 2010, and the new plant takes it to 756 million gallons. That means one or two more plants, says Les Nelson, director of investor relations with Aventine. In describing the site selection process for Mt. Vernon, he says the site had to have "a good corn flow, and we're a big believer in origination plants, not destination plants. The second important criteria was logistics and transportation, with road, rail and water access. Then you have standard things like an adequate water supply and utilities."
   Nelson says the lease agreement with Ports of Indiana should be finalized in the near term. And he says the firm is not averse to using an M&A opportunity, rather than a greenfield site, to reach its 1- billion- gallon goal. The relationship with CGB is unique in Aventine's arsenal because CGB is an exporter of grain. Asked whether the new plant would be able to handle different feedstock should the strain build on the U.S. corn supply, he says, "If there came a point in time when cellulosic ethanol became more than just a lab experiment, we could bolt on a different front- end process and continue to use the fermentation process on the back end. Cellulosic ethanol would not obsolete existing plants today."
   Asked about the paucity of E85 gasoline, he says Aventine sells it, but it's not a big product for the firm. Only 5 million vehicles can accept E85, and the delivery system is not yet in place. More promising, he says, is the fact that "every car in the U.S. today will accept 10 percent ethanol. The infrastructure is in place. All it requires is for the government to ratchet up the mandate and say we need 10- percent across the country. There's a 150- billion- gallon gasoline market today … 15 billion gallons is a huge opportunity out there.
   The agreement states, "The Mt. Vernon port site is located on the lower Ohio River with excellent access to existing roads, rail and dock infrastructure, including river access to the Mississippi, Cumberland, Tennessee and Tombigbee rivers. The combination of inbound and outbound logistics provides a long term and sustainable competitive advantage for both Aventine and CGB."
   "Not only will this be the first ethanol plant built at any of our three ports, it will be one of the largest east of the Mississippi River," said Rich Cooper, executive director, Ports of Indiana. "This will be a great fit for the Port and our excellent transportation connections will provide the plant with a strong competitive advantage allowing them to ship and receive corn, ethanol and by- products by barge, truck and rail."