IBJNews

Franklin calls off deal to land brewery plant

Back to TopCommentsE-mailPrintBookmark and Share

The Franklin Redevelopment Commission has canceled a deal in which it would have financed the $2.3 million purchase of a vacant industrial building to attract a California-based beer company that planned to hire 150 workers over the next three years.

The commission decided Thursday to call off the deal because TailGate Beer of San Diego failed to respond to a deadline to provide detailed financial information.

In April, the Indiana Economic Development Corp. offered TailGate Beer up to $1.85 million in performance-based tax credits and $100,000 in training grants based on the company's plan to create as many as 150 jobs over the next three years in a multi-million-dollar production, packaging and distribution facility.

"[The commission] started asking for updated information way back in April," said Craig Wells, executive director of Franklin Development Corp., the economic development entity that would have purchased the 48,000 square-foot-building at 1800 Musicland Drive.

"I think there were some red flags based on some information he had provided at the April meeting," Wells said of TailGate owner Wesley Keegan. "The original vote was contingent on receiving satisfactory financial information."

Although Keegan later indicated he didn't intend to provide any further information, Wells said the development corporation held up its end of the bargain by reaching a purchase agreement with Coyote Development. Wells said the development corporation won't lose any money by letting the purchase agreement expire. 

Coyote Development built the manufacturing space in 2008 for Klaisler Manufacturing Corp of Franklin. Both companies are owned by Terry Hubbard. Wells said Klaisler never occupied the building because of the recession.

Other incentives that had been on the table for TailGate included $900,000 in lease guarantees, a $300,000 loan and a $200,000 grant for "greening" the building and operations, Wells said.

Mayor Fred Paris said he’s still in favor of having the Franklin Development Corp. buy the building on the chance of attracting a different company. “This is a phenomenal building in a great location. A lot of times requests we get are looking for buildings like this,” he said.

Paris noted that it took six months to negotiate the purchase agreement because, as a short sale, it had to be approved by the bank and the Small Business Administration. If the building slips into foreclosure, Paris said, it would be nearly impossible to make it available to a new company in a timely way.

 

ADVERTISEMENT

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. They can always get jobs at the Post office.

  2. Hello i am Clarisa Steve from Florida USA,when i was in need of a loan of $230,000 to transit a business my friend introduced Mark Oscar loan firm to me because she got a loan from them sometime ago, so I was so scared because of the scams in the internet but my friend encouraged me to give them a try and i gave them a try and i got my loan within 4hrs and their ways was very easy no credit check,no cosigner,no collateral and their interest rate is just 2%, so i will advice anyone out there that need a loan to contact them via their Email:(oscarloanfinance@hotmail.com).

  3. "This was a very localized, Indiana issue," he said. As in, Indiana failed to expand Medicaid to cover its poor citizens resulting in the loss of essential medical services, including this EMS company. Well done, Indiana GOP. Here are the real death panels: GOP state governments who refuse to expand Medicaid for political reasons.

  4. In the "one for all, all for none" socialist doctrine the sick die...this plus obama"care" equates to caucasian genocide plus pushed flight to cities thus further eroding the conservative base and the continualed spiral toward complete liberal/progressive/marxist America.

  5. There is a simple reason why WISH is not reporting on this story. LIN has others stations in different markets that are affiliated with CBS. Reporting about CBS blindsiding WISH/LIN due to CBS's greed and bullying tatics would risk any future negoations LIN will have with CBS in other markets.

ADVERTISEMENT