Tax break approved for distribution center

A 500,000-square-foot distribution center was approved for a tax break, but tenants aren’t lined up yet for the property.

Opus Development Co., a Minneapolis-based real estate, design and construction firm, plans to build a $12.5 million distribution center on 31 acres of land at 703 N. Graham Road, south of County Line Road.

The by the Greenwood City Council approved 6-2 a $1.6 million tax break over a 10-year period. The property is expected to generate $4.2 million in property taxes over that time. Council members Bruce Armstrong and Dave Lekse voted against the tax break. Council member Brent Corey was absent.

The building will be constructed on a speculative basis, as no tenants have agreed to rent the property. Once complete, the tenants at the property would employ between 50 and 200 people, developers have said.

With no set tenants, the project is too much of an unknown, Lekse said.

Construction will begin in the first quarter of 2017 and be complete by the third quarter. Opus expects to have one tenant in the building after construction is completed, and another within the next year.

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Jacob Tellers is a reporter at the Daily Journal. He can be reached at jtellers@dailyjournal.net or 317-736-2702.