One established and one new-to-Franklin company were granted tax abatements Monday for planned investments totaling $72 million.
Cold Summit, an Idaho-based real estate developer, was approved for a 10-year real property abatement on a $70 million speculative cold storage building to be located at Graham Road and Earlywood Drive on Franklin’s northside. The 350,000-square-foot building would sit on a 36-acre property that was annexed into the city and rezoned industrial light in 2021, city documents show.
The company exclusively develops cold storage facilities that are strategically placed at ports, population centers and where food is grown. This will be the company’s first project in Indiana, said Joe South, Cold Summit’s development director.
The company has built multiple one-tenant and multi-tenant cold storage buildings around the country over the last three years. The Franklin facility would be divided into several storage spaces that can be used to grow small to mid-size businesses in the cold storage industry, South said.
“The whole idea is the tax abatement program will allow again young companies or growing companies to have a strategic advantage here and then be able to bring more jobs into your community,” South said. “So that’s really what it’s all about for us; we want to build the best facility possible and we want to be able to go out to the market and have the widest range of high-quality tenants in here who can create long-lasting jobs in the community.”
There are no tenants signed on for the facility yet, but city officials and the developer are confident spots will fill quickly, as the market for cold storage is hot right now, said Dana Monson, Franklin’s community development specialist. This cold storage facility is also attractive because it can house a variety of tenants, whereas the existing cold storage facility in Franklin, Interstate Warehousing, houses only food, she said.
With the abatement, Cold Summit will save $9.3 million, while they pay $11.6 million in taxes during the 10-year abatement period.
Right now, the property owner pays $1,600 per year in taxes, which would be $16,600 over 10 years and $33,200 over 20 years. Whereas with this investment the city will bring in $11.6 million in taxes over 10 years, and $32.5 million in 20 years, tax estimates compiled by the city show.
“When we have those kinds of increases in the (assessed value) amount that comes in, it spreads the costs for everyone and helps to keep our tax base lower for our residents,” Monson said. “And it allows us to continue to provide the same quality services and go above the quality services that we have always had.”
Instead of the typical 2% economic development fee that the city asks of companies that receive a tax abatement, the company requested to donate 5% of their gross revenue to benefit students at Franklin Community Schools. The council unanimously approved the abatement with this alternative arrangement.
The company donates 5% of revenue to the school district everywhere the company builds a speculative building, South said. In addition, the company typically owns the property where their buildings are built, and if the property is sold, the company also donates that revenue to schools, he said.
Cold Summit has also pledged to commit $500,000 to help the city improve the intersection of Graham Road and Earlywood Drive, a project that is expected to cost $1 million, said Mayor Steve Barnett. The road would be used by the public and would provide to access the building, he said.
GMI Corporation, 700 International Dr., was also approved for a five-year personal property abatement on $2.7 million in new equipment. The company, originally called Greenwood Machine, was founded in 1990 and has had a manufacturing facility in Franklin for 17 years.
The equipment will speed up existing manufacturing processes and allow the company to produce a component of a medical device used for breast biopsies significantly more quickly, said Jeff Osler, GMI’s director of finance. Work that now takes people operating seven machines 24 hours per day for seven days per week will be completed on two shifts, over five days using the new machinery, he said.
This efficiency will allow the company to expand into new product lines and plan for further growth at the facility, Osler said.
“But the more impressive thing is we’re going to free up seven additional machines that we’re using now for additional capacity, which is going to open up our market,” Osler said. “A few months ago we bought the property we’re currently in. We bought (nearly) two acres next door — 1.7 acres. So we’re looking to expand and we’re looking to grow GMI and this is a great opportunity for us to be part of Franklin and help grow up employment.”
To run the new machine, the company also plans to add six new jobs at an average starting wage of $18 per hour which would increase to $24 after training, city documents show.
The abatement will save GMI $98,200, while the company pays over $179,000 in taxes over the five-year abatement period. The company will also pay a 2% economic development fee to the city.
