IBJNews

Zionsville, school district make $5.7M land deal with Dow

Back to TopCommentsE-mailPrintBookmark and Share

Zionsville Community Schools and the town of Zionsville are teaming up to purchase and develop a prime piece of real estate owned by Dow Chemical Co.

The cash-strapped school district said Tuesday that it plans to use funds remaining from a 2005 bond issue to buy 126 acres for $5.7 million from Dow. The company’s Dow AgroSciences LLC division is located south of the property at 106th Street Parkway east of Zionsville Road.

Under the proposal, which needs to be approved by both the school and town boards, the school district will use 10 acres to build a warehouse and maintenance facility, which the district said it intended to do in 2005 until the economy derailed the project.

The town, in turn, will take title to the remaining property and subdivide it for commercial development. It will install underground utilities and make payments to the school district through 2028 on its portion of the property, resulting in no net cost to the school district.

“This partnership is a creative way to benefit taxpayers while expanding assessed valuation by creating a market-ready economic development opportunity, said Dax Norton, executive director of the Boone County Economic Development Commission, in a prepared statement.

The Zionsville school district has been hit by a double-whammy in recent years: The introduction of property-tax caps and a new school-funding formula that favors districts with a significant commercial-property tax base, something Zionsville sorely lacks.

In addition, the district’s annual debt service payments were scheduled to rise just as the housing-market meltdown drove down tax revenue.

Last May, Zionsville voters approved a $4.7 million tax increase to avoid teacher layoffs.

Dow was unwilling to subdivide the tract into smaller parcels, which made the purchase too costly without the agreement between the school district and the town, the school district said.

And several business owners have scoped out the property in recent years but passed because it was too costly to purchase as a single parcel, town officials said.
 

ADVERTISEMENT

  • Sweet Deal for Rockland
    Rockland makes out like an absolute bandit by conveying their right to the ZCS and onto the RDC to buy the land. They have to buy nothing. They need to sell no bonds. Yet buy ZCS and Zvl RDC agreeing to a deal granting them “an Exclusive Development Agreement” they will spend nothing but abundantly profit. 1.Rockland will be granted Exclusive Development Rights 2.Rockland will perform the following roles --- and we can assume they won’t do it pro bono Advise the Owner (the RDC) how to manage and develop the real estate Create Marketing materials Negotiate for and on the behalf of the owner Create layouts for infrastructure Perform the role of the construction manager for any infrastructure construction Work w owners legal counsel to develop easements, restrictions & covenants 3.Compensation for the Developer: As a taxpayer in Zionsville, you will absolutely love this: SALE of any portion of real estate – Rockland receives 3% of Gross Sale Price LEASING: of any portion of real estate – Rockland receives 3% of Gross Rent Payments to be paid during the term of the lease CONSTRUCTION – Developer (Rockland) shall be paid by Owner (RDC) a construction management fee of 2% of construction costs … for all Owner’s construction work related to the Real Estate 4.Owner Covenants – Owner agrees to Separately contract and pay for the services of all engineers, architects, attorneys, financial advisors, environmental consultants and other professionals necessary in Developer’s opinion for the development, sale and/or leasing of the Real Estate. There ya got it --- How ‘bout that. Pretty sweet deal for Rockland wouldn’t you say? Is your blood boiling yet? Keep in mind, Rockland Development LLC has already agreed to purchase the property from Dow for $5,7M. The deal is scheduled to close by Dec 12th, 2012. Why wouldn't the Zionsville RDC just let them buy it. If they proceeded to do so, Rockland would have to perform these same activities and provide these same services and not be compensated for them.
  • TAX & SPEND Schoolboard
    1. The land being purchased from DOW is probably in a TIF district so any commercial development on that property wouldn't benefit the taxpayer. 2. Darth, what is there to understand? Zionsville has a tax & spend school board that only seems to answer to the teacher's union.
  • Not a prudent use
    They have $5.7million? And Vacant land already owned by the soccer fields, the baseball fields, the "old" union school, and at least two other parcels. Taxes will go up to pay for this either for the infrastructure or to pay interest on the bond money spent which are currently in the bank earning interest. Use this money to pay down the bond balance in 2015. Let Dow find their own buyer not the taxpayer
  • I have an idea!!
    Lets all post our thoughts based on limited information on subjects we don't understand or have little to no information about.
  • I thought the town wanted a bigger tax base
    Instead of using the limited land that Zionsville does allow to be commercial to increase the tax revenue base with industry they want to lock it out of tax revenue and make it a tax burden on the community?
    • Smells Bad
      The school system GAVE away land for a fire station that was next to one of the middle schools, that would have been a close location, they have a building and land moth-balled from a closed elementary school but since they have a lot of taxpayer cash now that the town passed a referendum to be used for more teachers and smaller classroom crowding, they all of the sudden have money to buy more land and new buildings and do not midigate spending by using existing assets???

    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. Uh, sorry Johnnie, but you are incorrect. Despite the assertions by yourself and various defenders and captains, sports attendance is NOT off significantly at most sporting events in the US. Variances in attendance has been in the range of single digits, both + & - for years now. MLB has had most of its best overall attendance nubers in the last decade, and that trend has been consistent for most major sporting events. The number one issue cited by most fans when asked about attendance is the overall cost of attending. The presence of HD and big screen televisions in home doesn't even register, as a factor for not attending an event. VALUE in the product is the key, and apparently is something lacking in the current ICS. What other explanation is there when with what is routinely touted as the "best" racing on the planet, fans are staying away in DROVES. A "close" title battle into the last event at Fontana, with the "cars and stars" of the ICS, and who showed up? MAYBE 8K. Sorry, but HD TV isn't to blame for that kind of fan apathy.

    2. Do you need finance to establish your business ? Are you interested in getting a loan at 3% from our private company? If so please Email: suntrust_oil@blumail.org

    3. If she was worth the $ the public outcry over direct tv dropping them would have kept them on their dishes as we have seen with other companies. I too quit watching channel 13 after she showed up since I left channel 8 because of her all show rather than production results. When Randy on 8 corrected her she had a big head and incorrectly challenged his correction for pronunciation of a city. Other antics while she matures was too much for me with her very inaccurate forecasts. All the forecasters were predicting rain until Thursday except Chris. They predicted sunny on Thursday but instead of rain until Thursday upon which the sun would finally make it out in full glory Chris was right on the money just as I too predicted looking at the radar on weather.gov. One thing I love about Angela is the fear you can see in her every time it thunders in the winter. It far exceeds the entertainment value of her body language (high heel noise drags, depression, etc) when her forecasts are so incorrect. Her hair stands on end, you have to see it!!!

    4. Good Day, Apply For A Loan I am Mr Fernadez Antonio, a private Loan lender and a cooperate financial for real estate and any kinds of business financing. I also offer Loans to individuals, Firms and cooperate bodies at 3% interest rate We offer any kind of loans. email us via fernadezloaninvest@outlook.com LOAN APPLICATION FORM First name:......................... Middle name:......................... Last name:........................................ Date of birth (yyyy-mm-dd):....................... Gender:........................................... Marital status:................................... Total Amount Needed............................... Loan Duration.................................... Address:.......................................... City:............................................. State/province:................................... Zip/postal code:.................................. Country:.......................................... Phone:............................................ Fax:.............................................. Mobile/cellular:.................................. Monthly Income.................................... Occupation:....................................... Best Regard, Mr Fernadez Antonio.

    5. i will love to share my testimony to you all the people in world i got married to my husband about 2 year ago we start having problems at home like we stop sleeping on the same bed,fighting about little things he always comes home late at night,drinking too much and sleeping with other women out side i have never love any man in my life except him. he is the father of my child and i don't want to loose him because we have worked so hard together to become what we are and have today .few month ago he now decided to live me and the kid,being a single mother can be hard sometimes and so i have nobody to turn to and i was heart broken.i called my mom and explain every thing to her,my mother told me about DR.okoro how he helped her solve the problem between her and my dad i was surprise about it because they have been without each other for three and a half years and it was like a miracle how they came back to each other. i was directed to DR. okoro on his email:okorospell@gmail.com and explain everything to him,so he promise me not to worry that he will cast a spell and make things come back to how we where so much in love again and that it was another female spirit that was controlling my husband he told me that my problem will be solved within two days if i believe i said OK So he cast a spell for me and after two days my love came back asking me to forgive him i Am so happy now. so that why i decided to share my experience with every body that have such problem contact Dr okoro the great spell caster on his email addresses spellcasterforlove@outlook.com

    ADVERTISEMENT