IBJNews

  • Home

Celadon plans expansion, $3.4M office building

Scott Olson
December 16, 2011
Keywords
Celadon, Distribution & Logistics, Economic Development, Economic Development Agencies, Economic Development Incentives, Government & Economic Development, Job Creation, Local Government, Tax Abatements, Transportation, Distribution & Logistics, Trucking
Back to TopCommentsE-mailPrint

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.
 

ADVERTISEMENT

  • Clawbacks
    MikeWDecember 16, 2011 1:26 PM
    There was anb article recently, just within the week that announced that Ballards' administration was going after a few companies who failed to meet their obligations, thus returning and forfeiting over some of the dollars that were allocated for training and job creation.

    While I think this has not been on the radar in the past - given our fiscal conditions, Ballard's administration ( as well as those in surrounding counties) are starting to claim money back, or negate abatements.
    I agree though, there should be a person dedicated to this proces/project of all abatements and reviewing, not just when the company asks for a renewal, but throughout the entire abatement program.
    Reply to CommentFlag Comment
  • Trust But Verify
    Fiduciary DutyDecember 16, 2011 11:38 AM
    Considering that every company can justify it fits into one of the cities "industry focuses", is this the new normal?

    Sounds like MDC is falling all over itself to give this company accelerated tax benefits and easy terms not normally offered.

    This on top of the no "job retainment requirement" and missing "claw back" clauses for Rolls Royces recent taxpayer deal.

    Is anyone really creating and enforcing "performanced based" taxpayer incentives or are they just throwing money out the window hoping for the best?
    Reply to CommentFlag Comment
    • why are you confused?
      MikeWDecember 16, 2011 11:03 AM
      Celadon "requested" an abatement and suggests expecting to hire 100 more by 2016. However, since city dollars are associated with those 100 by 2016, and $ has to be given back if Celdaon doesn't reach that target, the city is providing an extension on their own accord for them to hit the 100 employee additions by 2020 (without penalty if they don't hit the 2016 mark) - since it is an industry focus for this city.

      The abatement issue, means the city is giving them a better deal to save on taxes that would normally amount to an 8 year abatement, but they are pulling those dollars forward to give them an added benefit of those saved dollars being provided in 5 years instead of a normal 8yrs (for that % or $ amount) - to help them earlier financially.
      Reply to CommentFlag Comment
    • ??????
      QuestionDecember 16, 2011 10:50 AM
      This article is confusing.

      First it is said Celadon will retain 657 local employees and hire 100 more by 2016.

      Then the Metropolitan Development Commission is quoted that that 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.

      Whats up?

      Reply to CommentFlag Comment

      Post a comment to this story

      COMMENTS POLICY
      We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
       
      You are legally responsible for what you post and your anonymity is not guaranteed.
       
      Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
       
      No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
       
      We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
       

      Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

      ADVANCED SEARCH
      Sponsored by
      ADVERTISEMENT

      facebook - twitter on Facebook & Twitter

      Follow on TwitterFollow IBJ on Facebook:
      Follow on TwitterFollow IBJ's Tweets on these topics:
       
      Subscribe to IBJ

      1. The Fringe! Plus, the simple fact that there are so many local faves in such close proximity to each other.

      2. I remenber, watching the toll road, being built, through South Bend, when I was 10 years old. I believe, back then that it was estimated, that the toll road, would be paid for in 20 years and then it would be free. I am now 71, what happened? Since the power is in the people, by that, I mean that, we the people are in total control of everything. I, suggest that no one ever use the toll road again, let it go broke. We the people can control the price of everything, from groceries to gas, if we would just do it. If we don't pay the asking price, the sellers will lower the price and if we wait awhile, they will lower the price to what we accept as reasonable. I would like to know why a highway like interstate 94, is so well maintained, a much better highway, than the toll road, but has no tolls. I would also like to know why, a sitting governor, with a term limit, maximum of eight years, can lease, public property, for 75 years. Even though I have transponders in both of my trucks and will not be affected by the increase, I have been and will contine to avoid using the toll road. I make many trips from northern Indiana to Chicago, every year, and I prefer the better highway, I94!

      3. Coming from her background,she should be used to those kinds of advances! Menard probably figured it was ok to tuck a buck!

      4. I'm still waiting for the list of available, high quality apartments in the Village.

      5. This criminal masquerading as a lawyer obviously has serious issues. He’s been proven by his own testimony to be a pathological liar and probably has a personality disorder as he seems to be constructing a reality around himself. He places no value on truth, honesty or loyalty as evidenced by what he has done to his clients and his own family. And by the demands and lies he has made in court, it is evident he feels entitled to do and say whatever suits his purpose and everyone else is expected to nod obediently and believe him because he is, after all, Bill Super Lawyer; or BS lawyer for short. This millionaire wanna-be no longer owns anything of value; he squandered it and put everything he had into foreclosure. He has no money, house, car, boat or vacation home left to show for what he earned or what he stole. He’s just another loser without morals who will be doing time. I’m certain all of his courtroom shenanigans are antagonizing his poor victims. As Lamar said, his behavior and claims in court have been outrageous. The judge needs to be more than concerned; he needs to be judicial and end this nonsense.

      ADVERTISEMENT