Two new buildings that will eventually house up to four small businesses are coming to Greenwood, and the city council on Monday approved a quarter million dollar tax break for the developer.
The two proposed buildings are being developed by 1173 Airport Parkway, LLC, a new company formed by Jeff Smith and Joel Fritz, owners of local southside businesses, Projects Plus and Commercial Team Construction, respectively.
Once complete, both buildings are intended for lease by small businesses, something the developers say is needed in the rapidly growing city versus more large corporations, said Dustin Huddleston, a local attorney representing the developers.
Each of the buildings will be 24,000 square feet on about 3.6 acres of land at 1173 Airport Parkway, south of County Line Road and west of the airport, near Dermatology Inc.
"These are going to be smaller buildings versus what you see on the other side of the interstate," Huddleston said at the March Greenwood Redevelopment Commission meeting. "Both gentlemen believe this is something needed in the area."
The city council voted 7-2 to approve the $250,000 tax abatement over a 10-year period. Council members Ron Bates and Bradley Pendleton voted against it.
The developer will not pay any real property taxes on the buildings for the first year, but will pay an additional 5% to 15% each year over the 10-year period, eventually paying full property taxes.
Bates does not support abatements for speculative buildings, he said. There are no businesses lined up for the two buildings, and there was too much uncertainty to support a tax break without knowing what exactly will move in there, he said.
"We did not have what types of employers would be there, we didn’t know what types of jobs they are going to deliver, and we didn’t know the wages," Bates said. "It’s just one of those things that some people overlook, or they don’t have any problem with it."
The city’s redevelopment commission unanimously approved both abatements. Greenwood Mayor Mark Myers showed support for the project at a council meeting earlier this month.
"This type of a building is a building that will prove to be one where, generally, the salaries will come in above what the county’s median salary is," Myers said.
The two buildings, a $3.6 million investment, will house two office spaces each.
The company purchased one parcel of land for the first building, and plans to purchase land next door for the second building by next year. Construction on the first building is expected to begin by spring 2021. The second phase will begin in spring 2023. Both will be completed by December 2023, according to city documents.
