Scannell planning to build $14.5M distribution facility for PepsiCo

A local industrial developer plans to develop a $14.5 million distribution and warehousing facility for PepsiCo Inc. on the city’s southeast side.

Scannell Properties will construct a 200,000-square-foot facility at 700 S. Post Road and make upgrades in public infrastructure as part of the development, according to documents filed with the city’s Metropolitan Development Commission.

The Indianapolis-based firm is expected to ask the city for an eight-year tax abatement of $1.4 million for the project.

The project will span more than 24 acres of undeveloped land between Rawles Avenue and Brookville Road. The site is east of Interstate 465 and north of U.S. 52.

Scannell plans to add a turn lane and public sidewalks to that stretch of Post Road.

The warehouse would be constructed for PepsiCo subsidiary P-America LLC, which has multiple facilities around Indianapolis.

P-America is expected to sign a 10-year lease for the entire facility, with most of the space being used for warehousing and distribution. About 13,000 square feet of the building will be used as office space.

The project is expected to create 27 new jobs at the building and help the company retain 467 other jobs at P-America’s Pike Township Facility. Some of those jobs could ultimately move to Post Road. The average wage for the new positions would be about $19.59 per hour, while the retained jobs average $24.77 per hour.

The tax abatement requested for the project—which must be approved by the MDC—would give Scannell a 56% savings on its taxes, or about $1.4 million.

The company would still pay just over $1 million in real property taxes on the new construction throughout the abatement period. Following the abatement period, the annual property taxes on the improvements would be about $300,525.

According to public documents, Scannell is asking for the abatement to assist “in offsetting the high cost of investment associated with the proposed project,” and would make the project “more economically feasible.”

While the staff of the Department of Metropolitan Development recommended approval for the project, it was pulled from the Aug. 7 MDC hearing by Scannell and PepsiCo.

City officials said the withdrawal was temporary, and the request is expected to be back before the commission in the coming weeks.

A representative for Scannell did not respond to a request for comment Friday morning.

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