The proposal of a $2.85 million project to construct a shell building at the south industrial park out at Grissom was discussed at a Miami County Board of Commissioners meeting Monday.
Miami County Economic Development Authority Director Jim Tidd said he is looking to have support from the Board of Commissioners before asking the Miami County Council for CEDIT funds to be used towards the project.
"This is 56,600 square foot building," Tidd said. "Four additions could be made onto it, with a total of 240,000 square feet."
Tidd said the shell building will be constructed and modeled to meet current industrial needs.
"We are proposing 36-foot ceiling heights, which is a little bit unusual, but every year ceiling heights increase for what is allowed by manufacturing," Tidd said. "The walls on two sides would be concrete and the walls on the other two sides would be structural-steel so you can accommodate the expansion."
The proposed location, according to Tidd, would be south of the Discount Tire location in the South Industrial Park along US 31.
"We have initially come up with a budget subject to final designs of $2.85 million" Tidd said. "When you are talking about that you are talking about all the site work done, foundation, the building up, and floor is not part of it because of the anticipation on what the in-user is going to need."
The construction of the shell building will be handled by Runnebohm Construction and GM Development, according to Tidd, who added that (Runnebohm) has been soliciting financing for the project.
"What the bank is offering is a three-year interest only loan on this and then after three years the principal interest would kick in," Tidd said.
Tidd said he would like to ask the Miami County Council to use CEDIT funds to finance the project to pay the principal and interest on the project.
"For the first three years it is $95,000 per year," Tidd said. "After year three, if it would go that long before it is sold or occupied, it would jump up to $203,000 with the principal and interest."
Tidd said he has reviewed the CEDIT funds and said there are "adequate funds" in there for the project.
"In our research, the longest that a shell building has sat on the market has been three years," Tidd said.
Tidd said the idea of a shell building has been in the process since early 2015.
"Some time ago the Commissioners advertised for us to authorize proposals on the development on what we used to call a spec building, but now we call it a shell building," Tidd said.
Tidd said having a shell building in Miami County will potentially bring new businesses and industry to the area.
"We do not have any exiting buildings available that meet the needs of today's industry in manufacturing," Tidd said. "We really need a building to be able to compete."
Tidd said site selectors have informed him that without a shell building Miami County is missing 70 percent of new industrial opportunities.
"The corporate world is moving at a fast past and most businesses want a current building to expand," Tidd said. "Economic development experts say industrial growth hinges on building-availability."
Tidd said the Indiana Economic Digest keeps records from companies who contact the state looking for existing buildings.
According to Tidd, in 2012 67 percent of those records were from companies that were requesting an existing building, with 62 percent in 2013 and 2014, and 70 percent as of June 2015.
"We also looked at the return of investment for the county. Assuming the building would sell in three years once a manufacture came and took the building" Tidd said.
The real property taxes made from the sale of the building would go back into the Tax Increment Financing (TIF) district, according to Tidd.
"We did not assume any real property taxes associated because it goes into the TIF district," Tidd said.
Tidd said the new shell building would invest $8 million in new equipment and add over 100 jobs paying at $15 per hour.
"Those are very conservative numbers based on recent investments we have seen from some companies," Tidd said. "If the building sold after year-one and the county only made the initial investment of $95,000, then the return on investment would be seen in nine-tenths of a year plus an additional $15,000 in income."
Tidd said by the time year-ten comes around, the county's return on investment will increase to $1.1 million in annual income, after the initial investment is paid off.