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Fishers OKs tax break for medical building

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Fishers Town Council will phase in property taxes on an $11 million medical office building planned for Interstate 69’s Exit 210—a largely retail area near two hospitals that officials hoped would spur med-tech development.

Indianapolis-based Cornerstone Cos. could break ground this year on the three-story, 43,000-square-foot building, expected to be largely owned by the doctors who practice there.

Attorney Steve Hardin of Faegre Baker Daniels told the council June 2 that interest is strong among independent physician groups that want to be close to St. Vincent Fishers and Indiana University Health Saxony.

medical Two-thirds of the property taxes would be forgiven for six years. The four-acre site is designed to target medical and technology companies. (Rendering courtesy American Structurepoint)

Cornerstone—which builds, leases and manages health care properties—is targeting a four-acre site on Olivia Way. The building, which would back up to I-69, would be constructed of precast concrete and a glass curtain wall, Hardin told the council.

A partnership dubbed Deer Creek Point MOB LLC would own and operate the speculative building, which would be funded through the sale of “membership units” to participating doctors.

Cornerstone principals Bob Whitacre and Tag Birge also plan to purchase an interest in the company and act as its managers.

“It’s a great area with visibility, demographics and rooftops being built nearby,” Birge told IBJ.

The proposed project represents an $11 million investment that is expected to create 30 jobs within six years, Deer Creek Point said in its request for the property-tax abatement. The new positions would pay an estimated $45,000 a year—much better than the typical retail job.

Half the positions are expected to be created within three years, and the other half over the following three years.

The Town Council agreed to forgive two-thirds of the property taxes on the project for six years. The remaining tax liability is about what a retail project without tax breaks would pay, Community Development Director Tom Dickey told the council.

When the abatement runs out, Deer Creek Point’s property tax bill is expected to be about $178,000 a year—$70,000 more than retail would generate, according to projections prepared by public finance firm H.J. Umbaugh & Associates.

The medical office building will “diversify the business mix in the area and create a higher taxable use for this parcel,” Tim Gropp, assistant director of economic development, wrote in a summary prepared for the council.

Aside from the two hospitals, nearby development has been largely retail: A gas station, liquor store and fast-food restaurants are among the users.

Construction could begin this summer, pending approval of the development plan and building design. Early interest from physicians suggests the building could be “well over” half leased before work begins, Dickey said.

The Cornerstone partners are “very confident they will be able to put this project together,” Hardin said in response to inquiries from the council. Work must start by July 31, 2015, to qualify for the abatement.•


 

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  1. I am not by any means judging whether this is a good or bad project. It's pretty simple, the developers are not showing a hardship or need for this economic incentive. It is a vacant field, the easiest for development, and the developer already has the money to invest $26 million for construction. If they can afford that, they can afford to pay property taxes just like the rest of the residents do. As well, an average of $15/hour is an absolute joke in terms of economic development. Get in high paying jobs and maybe there's a different story. But that's the problem with this ask, it is speculative and users are just not known.

  2. Shouldn't this be a museum

  3. I don't have a problem with higher taxes, since it is obvious that our city is not adequately funded. And Ballard doesn't want to admit it, but he has increased taxes indirectly by 1) selling assets and spending the money, 2) letting now private entities increase user fees which were previously capped, 3) by spending reserves, and 4) by heavy dependence on TIFs. At the end, these are all indirect tax increases since someone will eventually have to pay for them. It's mathematics. You put property tax caps ("tax cut"), but you don't cut expenditures (justifiably so), so you increase taxes indirectly.

  4. Marijuana is the safest natural drug grown. Addiction is never physical. Marijuana health benefits are far more reaching then synthesized drugs. Abbott, Lilly, and the thousands of others create poisons and label them as medication. There is no current manufactured drug on the market that does not pose immediate and long term threat to the human anatomy. Certainly the potency of marijuana has increased by hybrids and growing techniques. However, Alcohol has been proven to destroy more families, relationships, cause more deaths and injuries in addition to the damage done to the body. Many confrontations such as domestic violence and other crimes can be attributed to alcohol. The criminal activities and injustices that surround marijuana exists because it is illegal in much of the world. If legalized throughout the world you would see a dramatic decrease in such activities and a savings to many countries for legal prosecutions, incarceration etc in regards to marijuana. It indeed can create wealth for the government by collecting taxes, creating jobs, etc.... I personally do not partake. I do hope it is legalized throughout the world.

  5. Build the resevoir. If built this will provide jobs and a reason to visit Anderson. The city needs to do something to differentiate itself from other cities in the area. Kudos to people with vision that are backing this project.

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