The Franklin City Council approved a tax break worth $3.5 million Monday for a speculative building.
Indianapolis-based Peterson Property Group requested a tax abatement to build a 450,000-square-foot building at Mitsubishi Parkway and Jim Black Road, next to Mitsubishi Turbo Engine America.
The real property tax abatement will save the developer $3.5 million over the course of 10 years. The company will still pay $9 million in taxes, according to a tax estimate.
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.
The company built three similar buildings in Greenwood, which were rented to multiple tenants. 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.
With many large buildings going up around the county, the smaller 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.
