In a rare move this week, a business said no to a multi-million-dollar tax break.
The Greenwood City Council approved a resolution that would reverse a previously established, multi-million-dollar tax break for a speculative warehouse, as a new business prepares to move in.
Last May, the city council approved a $1.8 million tax break for a 338,000-square-foot speculative warehouse that would be built in the Southpoint Business Park, directly behind the Ulta Distribution Center, just east of Interstate 65 in Greenwood. The building was a $13.7 million investment and sits on about 26 acres.
It is the third speculative building by the developer, Indianapolis-based Shear Property Group, at the business park. Projections for the building at the time showed that it would bring at least 33 jobs that pay at least $19 an hour to the city.
In August, the developer approached the city with an unusual request. They had a tenant who wanted to move into the now completed warehouse, but they did not want to use the whole building, and they did not want the abatement, said Adam Stone, a consultant for the city.
The tenant only wants to use 42% of the building, and is interested in signing a five-year lease for the space, Stone said.
Due to the change, the developer had to lower the number of new jobs to 19. The starting pay for the positions will be $19.50 an hour, according to city documents.
The potential tenant wants to buyout the savings from the tax break and would pay the city for the buyout. The tenant’s move into the warehouse was also contingent on the council agreeing to modify the abatement, Stone said.
By removing the tax break, the tenant would pay full taxes on the space, and the name of the tenant would be made available to the public, Stone said.
In a series of votes, the council voted unanimously, with one member absent, to suspend the rules of procedure and advance the resolution for the reversal of the tax break to second reading.
“It’s nice to hear that a business wants to come to Greenwood without an abatement,” city council member Michael Williams said.
In other news
Also this week, city council member Mike Campbell announced that the petitioner for a proposed annexation of more than 155 acres on Greenwood’s far southeast side withdrew their application.
Grand Vista East, a 242-home subdivision, would have been built on the 156.45 acres of land northeast of Worthsville and Griffith roads, which needed to be annexed into city limits. It is not clear why the petition was withdrawn, but several neighbors had opposed the annexation.
A plan to change the speed limits along portions of Madison Avenue, north of Main Street, was also introduced.
After a major road project is completed, the state recommends cities and towns review the speed limits on the road that was worked on. A speed study was conducted from Sept. 1 to Sept. 8 in conjunction with Greenwood police and found that changes were needed on Madison Avenue, said Daniel Johnston, city engineer.
The proposed ordinance would decrease the speed limit to 25 miles per hour from 30 for traffic on Madison Avenue from Main Street to approximately 600 feet north of Noble Street. The speed limit would increase to 35 miles per hour for traffic on Madison Avenue from approximately 600 feet north of Noble Street to the Fry Road intersection. The speed limit is currently 30 along Madison Avenue.
Council member Brad Pendleton said he was concerned there would be a 10 miles per hour speed limit difference between the two changes. He was also concerned about how the changes would affect pedestrians walking along Madison Avenue.
The council voted 6-2 in favor of suspending the rules, moving the ordinance to first reading, and then advanced the ordinance to a second reading in a 5-3 vote. The council will vote on it again at its next meeting.
The city is also considering purchasing additional land along West Cutsinger Road near Freedom Park.
The landowner reached out to the city and asked if they would like to add to the city’s park system. The land, which is zoned agricultural, shares a boundary with Freedom Park, said Rob Taggart, parks and recreation director.
If the council agrees to purchase the land for $25,000, it would add to the nearly 120 acres of city-owned land in the immediate area, including both Freedom Park and the new Fire Station No. 93.
Council members also asked for an update on other road projects throughout the city, including planned work to increase safety in school zones.
The city recently received funds from the state for safety projects, but supply chain issues due to the coronavirus pandemic have affected the costs of the projects, Johnston said.
The lowest bid for projects this year is nearly 48% higher compared to the lowest bid the city received last year. The $589,000 bid would be used at 14 schools to include new school zone signs, including pedestrian crosswalk flasher signs.
Due to the supply shortages, nearly a third of the schools would receive the flashing signs. All school zones have standard signage that is compliant with state law, he said.
