Franklin grants tax break to developer of Indy to build speculative building
Franklin City Council on Monday approved $ 3.5 million in tax relief for a speculative building.
Indianapolis-based Peterson Property Group has applied for a tax break to construct a 450,000 square foot building at Mitsubishi Parkway and Jim Black Road, next to Mitsubishi Turbo Engine America.
The reduction in the property tax will allow the developer to save $ 3.5 million over a period 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 tenants are yet under contract, said Pat Sherman, a certified public accountant working with Peterson on the project.
It will be built with the option of renting to one or more tenants, said Larry Siegler, partner and chief operating officer at Peterson.
The company built three similar buildings in Greenwood, which were let to several tenants. Based on current market trends, it’s likely the building will be filled in about a year, potentially, with businesses related to e-commerce, Siegler said.
With many tall buildings being built across the county, the smaller building fills a gap in the local market, said Dana Monson, Franklin community development specialist. Small buildings also tend to attract companies with a skilled workforce and higher wages, she said.