A Michigan-based real estate investment fund is asking the city of Indianapolis for a tax break on a $9.5 million industrial project planned on the northwest side.
Alidade Capital has requested a property tax abatement of up to seven years on the speculative project, which would occupy about 13 acres at 6139 W. 79th St. The light industrial building would be about 149,000 square feet, with an anticipated completion date of sometime in 2023.
Alidade acquired the property from Fifth Third Bank in November 2018 for about $1.38 million.
The company plans to target “opportunity industries” for the project, similar to what’s been seen with other local industrial developments that have received tax abatements. Those industries are generally business sectors that provide opportunities for worker advancement without requiring a bachelor’s degree.
The abatement request—which will be considered by the city’s Metropolitan Development Commission on Wednesday—would save Alidade about $505,174 in taxes over a five-year period, according to public filings. The project is expected to create up to 30 jobs with an average wage of no less than $18 per hour.
The tax savings could increase by $168,391 for an additional two-year period if Alidade is able to secure an opportunity industry tenant that occupies at least 51% of the building.
Over the initial five-year abatement period, the firm would still pay about $306,455 in real property taxes on the new development, along with about $32,833 annually on the existing property. Alidade would pay an additional $156,260 in years six and seven if the abatement is extended.
The company is expected to pay about $201,224 annually in property taxes on the new improvements once the abatement period expires.
Alidade has two other properties in Indianapolis, including the Lids corporate headquarters in the Woodland Corporate Park near 71st Street and Interstate 465 on the city’s northwest side.
Carmel-based Becknell Industrial is the project’s developer, according to public filings.