Hey K.!
We're new to New Albany too, we moved here from Seattle in August 2005. I have a first grader at New Albany K-1 and a 2 and a half year old son.
When we were in Seattle for my daughter's 4th birthday, we had a Teddy Bears Picnic. We started at Build a Bear, they did all the party entertainment which was SO nice. As the hosts, we paid for a bear for each guest, $10/each and that included a tshirt for the bear. If the child wanted an outfit or something more, the child's parent was responsible for that. I made sure the parents knew that beforehand! :) After we made the bears, we went across the street to a park next door to our local mall and met my husband there with Happy Meals from Mcdonald's and had a Teddy Bears picnic with our new bear friends. Add in some bear cupcakes for dessert and it was a super easy clean up since all the crumbs and food were cleaned up by the birds after we left!
There is a Build a Bear at Easton with a McDonald's right near by. No park for a picnic, but maybe in the courtyard by the train set?
Hope that helps, somewhat. When is the birthday? Is a treasure hunt at a park a possiblity?
Good Luck!
:) B.