ANDERSON — Plans for the construction of a spec building for a potential manufacturing company location on the former Guide property got the green light from the Anderson City Council.
The council on Thursday unanimously passed a resolution to expand the Tax Increment Financing (TIF) District to include the northern portion of the Guide property at 25th Street and Dr. Martin Luther King Jr. Boulevard.
TIF districts are created so that property taxes from new commercial, industrial and manufacturing businesses are captured and spent on infrastructure improvements within the district or to benefit the district. Those improvements are then used as an economic development tool to lure more businesses to the city.
The property is currently owned by the RACER (Revitalizing Auto Communities Environmental Response) Trust, which was created as part of the General Motors (GM) bankruptcy proceedings to dispose of the company's abandoned real estate.
Greg Winkler, director of the Anderson Economic Development Department, said the city is working with a developer on the construction of a 141,000-square-foot building on the site.
The cost of a building was estimated at between $4 million and $5 million. Plans are to design the building for a future expansion to 300,000 square feet.
“We believe we have a tenant for the property,” Winkler said.
The city may provide assistance to a company to locate in the facility by paying the lease for three years at an estimated cost of $1.4 million, he indicated.
The city is also working with the Indiana Economic Development Corp. (IEDC) to reactivate the rail spur leading to the property, Winkler said. The IEDC will provide 50 percent of the funding and the Anderson Redevelopment Commission will provide the remainder of the funds.
The estimated cost to activate the rail spur is $600,000.
“There are few rail served sites in Indiana,” Winkler said. “This will assist in the marketing of the property.”
The resolution adopted by the city council also expands the TIF District to include the proposed site for senior living on the Madison Church of God property on Columbus Avenue. It includes the property to the east of the church and south along Ind. 109.
“We believe the area is ready to expand,” Winkler said. “There won’t be any development until the necessary infrastructure is in place.”