IBJNews

Zionsville panel OKs Hat World land deal for HQ

Back to TopCommentsE-mailPrintBookmark and Share

The Zionsville Redevelopment Commission on Monday agreed to sell 15.6 acres in its new Creekside Corporate Park to Hat World Inc. for $577,200—about what the town paid for the undeveloped land last year.

Local incentives tied to the deal, meanwhile, could allow the company to recoup at least half of the purchase price.

Hat World plans to construct a 150,000-square-foot headquarters building on the site, located south of 106th Street and west of Bennett Parkway. The growing company currently is based at 7555 Woodland Drive on Indianapolis' northwest side.

Expected to employ 450 workers within five years, the company’s new headquarters is part of a $21.8 million expansion announced last week. Hat World, which does business as Lids Sports Group, said it plans to add as many as 758 jobs by 2025 between its Zionsville corporate base and a growing Park 100 distribution center.

A Statement of Benefits form filed with the town this week pegs the expected payroll at $23.4 million a year, for an average salary of $52,000. The company estimates that it will invest $16 million in the building and $3 million on equipment.

Zionsville bought 82 acres of former Dow Chemical Co. land for about $3 million in May 2013 in hopes of spurring commercial development in the town, which relies heavily on residential property taxes.

The Hat World deal came together even as officials are working on a master development plan for the property, which straddles 106th Street. The retailer’s multistory headquarters and related parking will take up most of the southern 23 acres; the town will keep about 7 acres there, most of which likely will be used for future drainage.

The Redevelopment Commission also is selling its rights to acquire an adjacent 8.5-acre parcel from Dow. If Hat World does not need the land for a headquarters expansion within 10 years, the town can reacquire the rights.

The purchase agreement approved Monday is contingent on Hat World's receiving all the necessary project permits and development incentives—including a pair of 10-year property tax abatements that must be approved by the Town Council.

Under the terms of the deal, Zionsville will build a deceleration lane on 106th Street, make necessary median and curb cuts, and waive typical road-impact, sewer-connection and building-permit fees. The Redevelopment Commission also pledged to support the tax-abatement requests.

Councilors have the final say on the tax breaks. As proposed, Hat World would pay half of the real estate and personal property taxes levied over the next decade.  An estimate of the value of the abatements was not immediately available.

Zionsville also agreed to provide Hat World a “rebate” of up to $250,000 that the community could receive from Indiana’s Industrial Development Grant Fund to build infrastructure at the site.

The Indiana Economic Development Corp. also agreed to provide Hat World with as much as $3.4 million in conditional tax credits and $300,000 in training grants based on its job-creation plans.

The Zionsville land deal is expected to close in May, and Hat World’s headquarters must be occupied no later than June 30, 2016.

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. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

  3. I live on the east side and I have read all your comments. a local paper just did an article on Washington square mall with just as many comments and concerns. I am not sure if they are still around, but there was an east side coalition with good intentions to do good things on the east side. And there is a facebook post that called my eastside indy with many old members of the eastside who voice concerns about the east side of the city. We need to come together and not just complain and moan, but come up with actual concrete solutions, because what Dal said is very very true- the eastside could be a goldmine in the right hands. But if anyone is going damn, and change things, it is us eastside residents

  4. Please go back re-read your economics text book and the fine print on the February 2014 CBO report. A minimum wage increase has never resulted in a net job loss...

  5. The GOP at the Statehouse is more interested in PR to keep their majority, than using it to get anything good actually done. The State continues its downward spiral.

ADVERTISEMENT