Developer seeks tax break for $11M medical office building in Fishers

May 19, 2014
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Indianapolis-based Cornerstone Cos. Inc. is working on plans for an $11 million medical office building near St. Vincent and IU Health hospitals in Fishers.

The developer—which builds, leases and manages health-care properties—is targeting a 4-acre site on Olivia Way, off Interstate 69’s Exit 210. Preliminary plans call for a three-story, 43,000-square-foot facility largely owned by the doctors who practice there.

A partnership dubbed Deer Creek Point MOB LLC would own and operate the speculative medical building, which would be funded through the sale of “membership units” to participating physicians, according to a project summary provided to Fishers Town Council ahead of its Monday meeting.

Cornerstone principals Bob Whitacre and Tag Birge also would purchase an interest in the company and act as its managers, the summary said.

"It's a great area with visibility, demographics and rooftops being built nearby," Birge said.

The proposed project represents an $11 million investment that is expected to create 30 jobs within six years, Deer Creek Point said in a request for a property-tax abatement filed with the town. The new positions would pay an estimated $45,000 a year.

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

Town staff recommends the council approve the incentives to land the project, which 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 the summary.

Aside from the two hospitals, nearby development so far has been largely retail. In the long term, a medical office building would produce more taxes than a retail building, Gropp told the council.

Council members are weighing whether to declare the parcel an economic revitalization area, the first step in qualifying the project for a tax abatement. If final approval comes next month, the town would forgive two-thirds of property taxes for six years.

Construction could begin this summer, Birge said.

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  • Hand...Out
    I don't have a dog in this fight, but doesn't it seem ridiculous that the first item on the developers agenda is tax abatement. Competing for new business is certainly a reality now, but this is different. If I was HamCo, I'd tell them to please put your medical building in a much more convenient place - like Anderson. Location, location, location.
  • Not needed
    Didn't Fishers pass a rule that churches and such could not build along I69 because they do not generate tax revenue - but....the first business that wants to build, asks to have their taxes removed. Hmmm, that doesn't seem right. I'm sure Fishers will say the jobs is what matters - if that was the case, then say that in the reason you wanted to ban churches!!
    • Tax-exempt
      Fishers does indeed have zoning rules prohibiting tax-exempt entities from locating along I-69, but it ends south of Exit 210. The request is for a partial six-year abatement, so some taxes would be paid during that six years and then the full amount would be due after that. Tax-exempt entities like churches would never pay taxes.
    • No more free money
      We live in the area and the article points to IU Health. There is rumbles that IU Health Saxony might close the ER due to low census. A speculative building is not needed. I am sure IU Health has space. The city should mandate a 90% lease commitment before the tax abatement is approved.
    • More revenue
      I would hope that anyone who truly cares about Fisher, and keeping it a thriving community, would realize that the 3% property tax on an estimated $11 million will bring $330,000 in new tax revenues to Fishers each year. While the first 6 years will see a reduced amount, that property will still generate more than a residential location at only 1%. The addition of 30 jobs at an average salary of $45,000 will also bring payroll taxes and wages to Hamilton county which will benefit everyone. Fishers can not survive as only a residential City, the infrastructure and schools need a healthy commercial tax base to continue to fund them. It may seem like we are giving away money to greedy developers, but they are not making money off of reduced taxes; it is intended to help the new businesses that have to invest in equipment and other business expenses in the first few years of operation to get off the ground.

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    1. I had read earlier this spring that Noodles & Co was going to open in the Fishers Marketplace (which is SR 37 and 131st St, not 141st St, just FYI). Any word on that? Also, do you happen to know what is being built in Carmel at Pennsylvania and Old Meridian? May just be an office building but I'm not sure.

    2. I'm sorry, but you are flat out wrong. There are few tracks in the world with the history of IMS and probably NO OTHER as widely known and recognized. I don't care what you think about the stat of Indy Car racing, these are pretty hard things to dispute.

    3. Also wondering if there is an update on the Brockway Pub-Danny Boy restaurant/taproom that was planned for the village as well?

    4. Why does the majority get to trample on the rights of the minority? You do realize that banning gay marriage does not rid the world of gay people, right? They are still going to be around and they are still going to continue to exist. The best way to get it all out of the spotlight? LEGALIZE IT! If gay marriage is legal, they will get to stop trying to push for it and you will get to stop seeing it all over the news. Why do Christians get to decide what is moral?? Why do you get to push your religion on others? How would legalizing gay marriage expose their lifestyle to your children? By the way, their lifestyle is going to continue whether gay marriage is legalized or not. It's been legal in Canada for quite a while now and they seem to be doing just fine. What about actual rules handed down by God? What about not working on Sundays? What about obeying your parents? What about adultery? These are in the 10 Commandments, the most important of God's rules. Yet they are all perfectly legal. What about divorce? Only God is allowed to dissolve a marriage so why don't you work hard to get divorce banned? Why do you get to pick and choose the parts of the Bible you care about?

    5. Look at the bright side. With the new Lowe's call center, that means 1000 jobs at $10 bucks an hour. IMS has to be drooling over all that disposable income. If those employees can save all their extra money after bills, in five years they can go to the race LIVE. Can you say attendance boost?

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