Celadon plans expansion, $3.4M office building

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Local trucking firm Celadon Group Inc. is seeking tax abatements from the city of Indianapolis to build a $3.4 million, 36,000-square-foot office building at its far-east-side headquarters.

The expansion should enable Celadon to retain 657 local employees at an average hourly wage of $19.76 and hire 100 more at an average hourly wage of $17 by 2016, the company said.

In addition, Celadon plans to invest $960,000 in new equipment.

Celadon is seeking five-year property-tax abatements that could save the company $261,308 during the term of the incentives. The investment should add more than $2.7 million to Indianapolis’ tax base, the city said.

The Metropolitan Development Commission recommends approving the abatements and is giving Celadon preferential treatment to help ensure the company meets its hiring benchmark.

Because the city has targeted the logistics industry as a growth sector, it is giving Celadon until at least 2020 to fill the new positions. In addition, the amount Celadon could save in property taxes over the five-year period typically is what would be provided for in an eight-year abatement, the city said.

“The Celadon project represents a project that merits a high level of support based on the commission’s existing economic development policy,” MDC wrote in its recommendation.

Celadon occupies about 40 acres near East 33rd Street and Post Road. Founded in 1986, it has about 3,500 employees and 1,700 customers. Operating primarily under the Celadon Trucking banner, its fleet of 2,800 tractors and 8,200 trailers carry cargo in the United States, Canada and Mexico.

Company shares opened at $10.81 each Friday morning, down from $15.23 per share at the beginning of the year.
 

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