A Greenwood board approved a request to help pay for the infrastructure improvements needed for a new office and a warehouse space east of Interstate 65.
The Greenwood Redevelopment Commission unanimously approved giving the Allen Commercial Group a grant of $252,000 for infrastructure projects for the first of four warehouse and office buildings. The developer is planning the projects on 11 acres of land it owns on Main Street, a quarter-mile east of I-65.
The first phase of the project is a 28,000-square-foot building to be used as an office or warehouse space on 3.5 acres. Office space is projected to make up 20 percent of the building, with the remainder being warehouse space. The total cost of the project — including infrastructure and the building — is estimated at $2.7 million.
The developer received preliminary approval for the grant from the redevelopment commission for the project. The Allen Commercial Group will began searching for tenants and come back to the city board by Aug. 1, 2017, with additional details to sign the final agreement.
The timing of the project is dependent on finding tenants. The Allen Commercial Group would need to be able to fill about half of the building to get bank financing, developers said.
Another three buildings may be added at later dates for what will be called the Greenwood Business Center.
Allen Commercial Group requested $252,000 from the city to fund sanitary sewer extensions, a stormwater retention pond and drainage system, an access drive on the west end of the property, and engineering and permit costs. The total cost of the infrastructure and site preparation work will be $354,000.
The city funds for the project will come from the east side TIF, tax-increment financing, or district, which collects property tax dollars from certain developments on the east side of Greenwood and sets aside he money for infrastructure and economic development.