The Fishers City Council gave preliminary approval Tuesday to a 10-year tax abatement for the developers of the Hub & Spoke building and approved $3.125 million in road project bonds.
David Decker, CEO of ACo, a kitchen, bath and flooring dealer in Carmel, and Travis Tucker, president of Fishers-based OnPoint Real Estate Solutions, are seeking $1.1 million in tax relief for their future $15.65 million design and education hub at 8100 E. 106th St.
In addition to bringing 142 new jobs to Fishers, as stated on Hub & Spoke’s website, the project represents a partnership with the city and Hamilton Southeastern Schools to connect students with trade professionals and provide them with work- and project-based learning experiences.
Construction has already started on the 85,000-square-foot building, which will contain retail showrooms, cooperative work and shop space, dedicated office space, maker’s space, a training facility and community connect space.
The project is expected to be completed in April.
If it’s approved without any changes at the Dec. 16 city council meeting, the 10-year tax abatement would forgive all taxes owed on the assessed value of the project during the first year.
Starting in the second year, OnPoint Hub & Spoke LLC would be responsible for 10% more in taxes each year through the remainder of the agreement. Those terms will save Hub & Spoke an expected $1,085,000 over the course of a decade.
The city of Fishers already waived fees associated with the project and agreed to hold the master lease for the office space. The city also is leasing the 16,000-square-foot maker’s space so that it can be used by the community and students.
The council also voted to issue $3.125 million in bonds dedicated to rebuilding and repairing a number of roads.
The city passed a $25-per-vehicle wheel tax in 2018 to help fund road repairs, but at the time, it was only expected to generate $2.16 million annually.
Now, Fishers will use the money generated by next year’s one-time, 2-cent property tax increase to pay for concrete roads and repairs at Technology Drive, as well as Burberry Place, east of Hague Road between 106th and 116th streets.
Megan Baumgartner, the city’s economic development director, said it was a policy decision to use a roads bond instead of the money generated by the wheel tax.
Ashley Elrod, the city’s spokewoman, said wheel tax money is dedicated to long-term planning. Rather than take money from that inventory of roads, the bond issuance prioritizes concrete construction that lasts much longer than traditional road materials, she said.