IBJNews

Celadon plans expansion, $3.4M office building

Back to TopCommentsE-mailPrintBookmark and Share

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
    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?

      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.

      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. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

      2. If you only knew....

      3. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

      4. The facts contained in your post make your position so much more credible than those based on sheer emotion. Thanks for enlightening us.

      5. Please consider a couple of economic realities: First, retail is more consolidated now than it was when malls like this were built. There used to be many department stores. Now, in essence, there is one--Macy's. Right off, you've eliminated the need for multiple anchor stores in malls. And in-line retailers have consolidated or folded or have stopped building new stores because so much of their business is now online. The Limited, for example, Next, malls are closing all over the country, even some of the former gems are now derelict.Times change. And finally, as the income level of any particular area declines, so do the retail offerings. Sad, but true.

      ADVERTISEMENT