INDIANAPOLIS BUSINESS JOURNAL, Lindsey Erdody, August 4, 2017
Zionsville is selling its amenity-rich Creekside Corporate Park to a local developer for $6.15 million.
The agreement with Rockland Development LLC will allow the town to continuing paying its debt associated with the office park and avoid having to market the property itself or hire a firm to help sell the land. And the developer with the company, Paul Kite, has been interested in the property since the very beginning of Creekside.
Rockland will also pay the town an annual maintenance fee for common areas of $944 per acre. If Rockland fails to meet its obligations, the town has the right to repurchase the property for the amount it sold it for, plus any improvements made.
Several Redevelopment Commission members initially expressed concerns about whether the development could be built out in a timely manner, but ultimately the board unanimously approved the final agreement.
Kite told IBJ in December that he thinks the park could be built out in two to three years. The overall investment could be more than $100 million.
The sale will allow the town to pay back Zionsville Community Schools by the end of 2018—10 years ahead of schedule.
A financial plan prepared by Crowe Horwath LLP for the Zionsville Redevelopment Commission shows that revenue from the sale of the property and estimated tax increment financing dollars should be enough to cover debt payments in most years, but it would fall short in 2019, 2028, 2029 and 2030.
Town officials were OK with the deal though, because the commission is expected to have more than enough in cash reserves to cover the shortfall.
“I like the idea of getting this off the RDC’s plate,” commission member Luke Phenicie said.