Local economic development officials say a $26.6 million speculative building planned in Franklin would fill a gap in the market.
Indianapolis-based Peterson Property Group is requesting a tax abatement worth $3.5 million to build a 450,000-square-foot building at Mitsubishi Parkway and Jim Black Road, next to Mitsubishi Turbo Engine America.
There is no specific industry in mind for the space and no tenant is under contract yet, said Pat Sherman, a certified public accountant working with Peterson on the project.
It will be built with the option to rent to one or multiple tenants, said Larry Siegler, partner and chief operating officer at Peterson.
Three similar buildings the company built in Greenwood were rented to multiple tenants, as well as other buildings the company developed in Whitestown and Mt. Comfort, he said. Based on current market trends, it is likely the building will be filled in about a year, potentially, with e-commerce-related businesses, Siegler said.
“We are always flexible and not trying to hold out for that big, huge bomber in one tenant. We are deal makers. We like to make deals, so every building we build is able to be multi-tenant,” he said.
With many large buildings going up around the county, this smaller-size building fills a gap in the local market, said Dana Monson, Franklin’s community development specialist. Smaller buildings also tend to attract businesses with skilled labor and higher wages, she said.
“That’s the size we (in Franklin) are really lacking. Really in the whole county, we are lacking that. To have this is fantastic,” Monson said.
Multi-tenant buildings are also welcomed because the smaller spaces tend to bring higher-wage, specialized jobs, she said.
If approved, the 10-year real property tax abatement will save the developer $3.5 million. The company will still pay $9 million in taxes, according to a tax estimate.
The Franklin Economic Development Commission on Tuesday forwarded the proposal to the Franklin City Council with a unanimous favorable recommendation.
City council members on Monday will consider a resolution designating the property an economic revitalization area. The public hearing, the final vote on the revitalization area and the abatement is set for Aug. 2.
If approved, construction would start in March. Following construction, the developers hope to have the building filled within a year, Sherman said.