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Interactive Intelligence set to break ground on $12.5M building

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Duke Realty Corp. is set to break ground within the next few weeks on a $12.5 million building on the northwest side that Interactive Intelligence Group Inc. will occupy as part of a major expansion.

The Indianapolis-based software developer announced its growth plans in May, in which the company said it will add 430 employees statewide by the end of 2016.

REW interactive building 15colThe 119,000-square-foot building from Duke Realty Corp. is expected to be finished by the end of next year. (Image courtesy Interactive Intelligence)

Duke will develop and own the three-story, 119,000-square-foot building in Woodland Corporate Park that will be built north of the Interactive Intelligence headquarters near West 79th Street and Interstate 465.

The company’s strong growth last year is prompting the need for more space, Donald E. Brown, Interactive Intelligence’s CEO, said in an email.

“We continue to expand, particularly here in Indianapolis, which has necessitated another campus building at our northwest-side world headquarters,” he wrote. “We’re fortunate that Indiana has such a well-educated and talented labor pool from which to draw. As a software company, it’s these high-quality employees that have enabled us to grow into a successful, publicly traded company capable of competing with competitors many times our size.”

Founded in Indiana in 1994, Interactive Intelligence has roughly 1,000 employees in Indiana and had annual revenue last year of $318 million, ranking it as the 14th-largest public company in Indianapolis.

Jeff Harris, managing director of NAI Meridian, brokered the deal and said land on which to construct a large building in the city is getting increasingly difficult to find.

“[There are] not a lot of large tracts of space essentially anywhere in town, with a couple of exceptions,” he said. “The office market is soft with a lot of space, but if you’re a large user, it’s tighter.”

The building is expected to be completed late next year. Interactive Intelligence already occupies nearly 300,000 square feet in four buildings nearby.

The architecture firm that designed the mostly glass building is Indianapolis-based Architects Forum.

Duke Realty began developing Woodland Corporate Park in 1997. Interactive Intelligence’s building will be the office park’s seventh. Other Woodland tenants include Fusion Alliance, AIT Laboratories and Closure Systems International. About 13 acres remain to be developed.

Interactive Intelligence announced in May that it would add the 430 employees within the next two years and is seeking $2.6 million in property tax breaks from the city.

If approved, the city would reduce Interactive’s real property taxes for 10 years for a total of $1.8 million in savings on the $12.5 million real estate investment.

Interactive also is seeking another decade-long tax break worth $764,100 in personal property taxes on $10 million in new information-technology equipment.

The city’s Metropolitan Development Commission is set to vote on the abatements Aug. 6.

The tax breaks are in addition to $8.3 million in state tax credits and $300,000 in training grants the Indiana Economic Development Corp. offered Interactive, assuming the company meets its hiring commitments.

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  • Poor Formatting :(
    Apologies for the wall of text. I promise I had this nicely formatted in paragraphs in Notepad before pasting here.
  • Disagree with your math
    I believe that is incorrect Sir, the people's tax-dollars are NOT paying for the companies investment. Without the tax-break the company would be paying an ADDITIONAL $11.1 million in taxes ON TOP of their $22.5 Million investment (Building + IT), for a total of $33.6M or a 50% tax rate. Also, the article does not specify what the total taxes were BEFORE the break. Usually such a corporate tax-break is a 'discount' not a 100% wavier of tax obligations. For sake of example lets say the original taxes added up to $30M over 10 years. $12.5M, New Building $10.0M, IT infrastructure $30.0M, Total Taxes (Example Number) == $52.5M ININ's Cost - $1.8M /10 years, Tax Break (Building) - $0.75M /10 years, Tax Break (IT Infrastructure) - $8.6M /2 years, Tax Breaks (against Hiring Commitment: 430 new jobs /2 years) == 11.5M Possible tax breaks. ININ TOTAL COST: $41M Even if you assume a 100% break, change the '30.0M' to '11.5M' and you can see the Company will be paying a minimum of $22.5, out-of-pocket for their capital-investment - NOT the tax-payers. Also note, much of this money is being spent locally in Indiana and it is creating 430 jobs in your city. I admit I'm a little unclear which tax-breaks are allocated to exactly which expenses. Clearly this is all oversimplified but I think we have both made our points! :) Sorry for the long post.
  • do the math
    8.3 mil & 2.6 mil = 11.1 million (the investment is 12.5 mil. Then that talk about 1.8 mil and 764 K savings which if added to the other make the tax break over 13 mil). that seemed unclear, but the PEOPLE are paying 11.1 million of a 12.5 million investment, THEREFORE the company is only out 1.4 million. This makes me SICK

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