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UPS plans $10 million upgrade on northwest side

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United Parcel Service Inc. is planning a $10 million modernization project for a regional transportation hub in Indianapolis and is seeking tax incentives to help make it happen.

The shipping and logistics company said the project will ensure the viability of the West 81st Street facility on the northwest side of Indianapolis and allow it to retain 750 workers earning an average wage of $30.79 an hour. No additional jobs will be created by the project.

UPS is requesting a five-year tax abatement from the city that will save the company an estimated $276,404 to help offset the cost of the investment.

UPS said the cost per package handled at the facility is greater than similar operations in neighboring states and its needs the improvements to stay competitive.

“If this modernization were not undertaken, UPS would need to consider other locations or route packages through an alternative, more cost-effective hub,” states an analysis by the Department of Metropolitan Development staff, which recommends approval of the abatement.

The abatement request is to be heard Wednesday by the Metropolitan Development Commission.

The requested abatement amounts to a 64-percent property tax savings over five years. UPS would still pay $152,000 in taxes on the new logistics and distribution equipment during the abatement period.

After the tax abatement expires, UPS would pay an estimated additional $64,380 in personal property taxes annually related to the new equipment.

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  • 2.75%
    I don't see UPS bailing on such a project if they don't get a tax abatement that is less than the 3% of the project's cost. Wonder if there is already a precedent for this type of request to the Metropolitan Develop Commission. Seems tantamount to blackmail - give us this tax abatement or we'll close up shop.
  • hooray!
    oh goody more corporate welfare for EVERYBODY!!!

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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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