A Franklin city board will be responsible for as much as $580,000 of the costs of a new industrial building, but the goal is to get as much of that money back as possible.
The Franklin Redevelopment Commission is partnering with a Shelbyville developer on a shell building, which will be constructed but left unfinished and built without a specific business in mind.
The board approved spending up to $100,000 on expenses such as taxes and interest and $480,000 for 12 acres of land. The city board oversees the spending of property tax money collected from certain businesses, which typically is set aside for economic development projects.
As part of that approval, the board also is putting a lien on the property, so the redevelopment commission would have some guarantee of being paid back when the building sells, according to Rob Schafstall, the board’s attorney.
Runnebohm Construction, the developer constructing the building, would be first to be paid back in a sale. That money would be used for the developer’s costs of erecting the building, including any construction loans. The city board would be second in line to be paid back for its $580,000 investment, Schafstall said.
The agreement ensures that the city board has some say in what happens with the facility, such as to whom the building is sold and for how much, board member Rob Henderson said.
But he said that arrangement also could mean that the city board would not recoup all of its costs, depending on how much the property would sell for or if it never sold.
Since announcing plans for the building, the city, state and the county’s top business recruiter have received multiple calls and contacts from interested companies, he said. When the building is sold to a business, the city will benefit from the value of the building and new jobs, he added.