Another speculative warehouse is set to round out Greenwood’s Southpoint Business Park if the city council approves a $1.8 million tax break.
The 338,000-square-foot facility would fill one of the last remaining plots at Southpoint Business Park off Graham Road, just east of Interstate 65 in Greenwood. The building is planned directly behind the Ulta Distribution Center.
It would be the third speculative building constructed by the developer, Indianapolis-based Shear Property Group, at the business park. The building would sit on about 26 acres.
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The $13.7 million investment comes with a higher price tag than previous buildings constructed on the property because Cheney Avenue, which runs through the business park, will need to be extended, said Pat Sherman, a local accountant representing Shear. The access road will need to extend to the building, then loop back to East Main Street, he said.
“This construction is a little bit unusual,” Sherman told the Greenwood Redevelopment Commission at its April meeting. “That is the reason (it) is one of the last of the properties to be built.”
Projections for the building, which does not have a tenant, are that it will bring at least 33 jobs to the city with wages starting at about $19 per hour, Sherman said. Construction is set to begin in September and wrap up in 2021.
The council is considering a $1.8 million tax abatement, which the city’s redevelopment commission approved unanimously.
The developer would not pay any real property taxes on the building for the first year, but would pay an additional 10% each year over a 10-year period, eventually paying full property taxes.
The council voted 7-2 to approve the abatement, with council members Ron Bates and Bradley Pendleton voting no. Bates said this week he does not support tax breaks for speculative buildings.
The abatement will be up for final consideration at the council’s next meeting May 4.
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Here’s a rundown of recent speculative buildings built in Greenwood
Two Becknell Industrial warehouses
When: June 2019
Where: Southtech Business Park at Graham Road and East Main Street
Size: Two buildings; 157,825 square-feet and 170,500 square-feet
Tax break: $3.3 million for both buildings
Scanell Properties warehouse
When: April 2019
Where: Graham Road, just south of Amazon facility
Size: 541,500-square-foot warehouse
Tax break: $2.27 million
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