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Real estate company proposing $26 million development

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Real estate firm Becknell Industrial LLC has proposed a $26 million, three-building development on the northwest side of Indianapolis that would be ready for tenants by early 2015.

The Chicago-based developer said the flex industrial buildings would be built on a speculative basis, with hopes of landing tenants by the end of 2016. When fully occupied, Becknell estimates that property's users would have at least 103 employees making an average wage of $15 per hour.

Plans call for a 266,4000-square-foot building and two 124,000-square-foot buildings at the site at 8401 Bearing Drive. The property is a farm field that hasn't been cultivated since the 1970s.

Becknell is pursuing a 5-year tax abatement on the development from the city that would save it more than $1.4 million. During the abatement period, the company would pay an estimated $963,000 in property taxes.

After the abatement, the developer is expected to pay an estimated $222,000 annually in property taxes.

The Indianapolis Metropolitan Development Commission will consider the incentives at a Wednesday meeting. If approved, they would move to a public hearing scheduled for Sept. 3.

 

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  • Re: Concerned Citizen
    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.
  • Sales tax revenue?
    Sales tax revenue doesn't flow to local government, except in the special tax districts that repay the bonds for sports/convention facilities.
  • Concerned Citizen make sense
    ...although the math seems weird? The 5 year abatement saves $1.4 and they pay almost $1M over the 5, but after the 5 years it's only $222K per year?
  • Agreed!
    This is why our infrastructure is in such bad shape. They keep trying to put the tax burden on citizens while the big corps do everything they can to keep from paying for the very roads and bridges which keep them in business. Disgusting. And why do we need more buildings? Half of the north and west side is littered with empty ones already.
  • Tax Abatement
    Tax abatement shouldn't be given to speculative real estate. If they have the money to gamble on potential tenants, then they should have the money to pay for the taxes that would ordinarily be due.

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