INDIANAPOLIS -
The world's second largest exchange for futures and options on futures is considering Indianapolis for a new home.
The Chicago Mercantile Exchange could bring hundreds of jobs to central Indiana. The Merc is a $3 billion company has Windy City roots dating back to 1848. Unfortunately, those roots have become very expensive. The exchange currently accounts for just over six percent of every dollar collected in Illinois income tax.
"They've been down here. It's been going on for a few months, so we want to make sure, if they do make a change, we are the ones who benefit from it, because I think they will benefit also," said Indianapolis Mayor Greg Ballard.
When representatives from the Merc visited, they also came to Carmel, which might insinuate competition in central Indiana.
"We've been working with the state," Ballard said. "I think Carmel might be in a little competition with us at this point, but we will have to wait and see."
Carmel Mayor Jim Brainard declined to comment on the ongoing discussions, but there could be something for both cities if the Merc should decide to split the office, which could go to one city, while the data center goes to the other. Initial figures have 1,700 jobs at stake, with an average salary of $130,000.
A incentive package intended to keep the Exchange in Chicago failed in the Illinois State Assembly last week, but there is speculation that work is underway to craft another offering.
"It sure sounds like leverage, but even if that was the original goal, once you get far along in the process like this, it's more than just an attempt to whipsaw the other guys into a better deal. At some point, it's far enough along where people say 'That looks pretty good. Maybe no matter what Chicago offers, we should consider the move'," said Dr. Bob Harris, an IUPUI Economics professor.
"It would give us more prestige in the financial sector," Ballard said. "I understand people feel as though they are trying to get leverage. I can't say what is in their minds. I will tell you I had a half-hour meeting scheduled last Friday and that went an hour. I tend to believe they are pretty serious."
Indiana has cultivated the tax differential with its neighbor, even going so far as to placing billboards around the state asking if Illinois businesses are "Illinnoyed by higher taxes?"
It appears at least one company is and it may not be the last.
