The Town of Whiteland on Tuesday green-lit a nearly 1 million square foot logistics facility to be built at Whiteland and Graham roads.
The Whiteland Town Council voted 4-0 to declare 121 acres an Economic Revitalization Area, authorizing a 10-year tax break on real property. One council member was absent.
The property was rezoned last week to light industrial from agricultural to facilitate plans for the massive warehouse.
The developer, Mohr Whiteland, LLC, is planning to build a 996,930-square-foot speculative building, said Norm Gabehart, town manager.
Mohr Whiteland is a subsidiary of Mohr Capital, a real estate development company based in Dallas, Texas.
The developer is building the facility with a tenant in mind. An announcement is expected in June, Gabehart said. Construction of the facility is expected to start in June and be completed by November. Operations are set to begin in February, according to the developer’s abatement application.
Mohr requested the tax break to assist with a “relocation in Indiana,” the application said.
Mohr plans to invest $40 million in the building, $4.7 million to buy the property and $10 million to install logistics equipment at the site, according to the application.
Per the terms of the resolution, 49.5% of the taxes will be abated, totaling $5.3 million over the 10-year period. The town will collect $5.4 million in new property tax dollars, compared to the $862,680 that would be collected over the 10-year period on the large vacant lot.
No concrete job numbers were outlined in the abatement application or the resolution authorizing it.
With communities all over the state and nation competing for facilities like this, Gabehart said it is virtually a requirement to offer incentives. Developers expect an incentive based on this trend, he said.
“I don’t think development can happen anywhere without an abatement,” Gabehart said. “(For developers) location is key, financials are key and your workforce is key.”
With consumer habits changing in favor of online shopping, Gabehart said it is becoming increasingly important to attract logistics businesses such as this one.
The town may also consider a future tax credit, but the amount would be determined in a separate agreement depending on what improvements the developer makes to the property that merits it, Gabehart said. For example, one item that may be credited is the developer’s commitment to installing excess capacity in stormwater infrastructure to be built on the property that will relieve flooding in the area, he said.
Due to the size and nature of the warehouse, several neighbors have expressed concerns about the development. At the public hearing Tuesday evening, no member of the public came forward with further objections.
