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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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  • Clawbacks
    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.
  • Trust But Verify
    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?
    • why are you confused?
      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.
    • ??????
      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?

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