The Shelby County Redevelopment Commission approved an economic development agreement that has been in development with Sunbeam Development Corporation for about 1-1/2 years on Monday.
The agreement paves the way for the construction of four warehouse buildings in the Pleasant View Commerce Park area on around 300 acres in northwest Shelby County.
The initial public infrastructure requirements include landscaping, interim draining management and public safety equipment to be completed before bonds are issued.
Sunbeam will be required to complete water and roundabout improvements, as well as final drainage and extension of the gas mainline before bonds can be issued from TIF.
The estimated cost is not to exceed $7.9 million under the agreement in a 20-year term, with a maximum 5 percent interest.
Previously, the county established that area as a Tax Increment Financing district, which generates additional tax dollars for companies. That money pays for public infrastructure improvements, principal or interest on bonds, or real estate acquisition, among other things, according to the Indiana Department of Local Government Finance.
Taxes collected from the TIF district will fund the bond that reimburses Sunbeam for what it spends on its investment in infrastructure.
The total estimated uses of funds is $9 million. Broken down, the estimated infrastructure costs is $7.9 million; the capitalized interest fund is $900,000; and the bond issuance cost and rounding is $200,000.
There is “no risk to the county” under the agreement if the TIF doesn’t generate enough, Adam Steuerwald of Barnes and Thornburg told the commission on Monday.
Sunbeam’s development is projected to produce 800 full-time jobs with average annual wages of $51,000, according to the agreement.
The square footage for each building ranges from 772,200 square feet to more than 1.1 million. The first building is targeting to be completed and fully assessed by Dec. 31, 2026, with the second estimated to be completed and fully assessed two years later to the day. Likewise, the third building’s completion date is scheduled for Dec. 31, 2030 and the fourth is three years later to the day.
The County Commissioners previously approved the agreement in January.
In addition to the agreement, the Redevelopment Commission also approved amendments to the Northwest Shelby County Economic Development Area and a pledge resolution for certain tax increment revenue bonds as part of Sunbeam’s project.
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