A real-estate company with a speculative building in the New Albany International Business Park slated to house about 500 employees is planning to construct two more buildings to attract manufacturing and distribution tenants.
VanTrust Real Estate in December finished construction on a 302,880-square-foot facility at 9750 Innovation Campus Way, said Phil Rasey, vice president of development for VanTrust’s Columbus office.
Construction began last May, he said.
Rasey said many potential tenants were interested in that first facility.
“We were overwhelmed with the success,” he said.
New Albany’s business park is a good long-term investment, Rasey said. Tenants want access to labor, amenities and infrastructure, and the park is a natural place to expand a business, he said.
Now, VanTrust is planning to build two more buildings in the business park, at 250,000 square feet each. The buildings will be at 8200 and 8300 Innovation Campus Way West, about a half mile from the first building, he said. Each building could accommodate one to three tenants, he said.
The first building is going to be leased by Hims Inc., a direct-to-consumer e-commerce health and personal-care company, Rasey said. Hims will begin hiring for about 500 jobs during the second quarter of this year, he said.
Meanwhile, city leaders have awarded VanTrust an incentive package for the two new buildings.
New Albany City Council on Feb. 18 approved a Community Reinvestment Area agreement with VanTrust.
According to the legislative report to council members, the proposed project will involve the two speculative manufacturing-production buildings that will have a total of 498,000 square feet on 33 acres north of Innovation Campus Way West.
The agreement provides a 100% real property-tax abatement for 15 years, according to the legislative report. The original building received the same abatement.
The project has an estimated investment of $17 million, according to the report, and it is expected to generate a minimum annual payroll of $15 million.
Over the term of the new agreement, the New Albany-Plain Local School District will receive a minimum of $1.8 million, the city general fund will receive $1.8 million, the New Albany Community Authority infrastructure fund will receive $1.56 million, the TIF fund will receive $600,000 and the New Albany East Community Authority will receive $829,000, according to the report.
Income taxes are the revenue source for funds received by the school district, the city general fund and the infrastructure fund, said Jennifer Chrysler, community-development director for New Albany.
Property taxes are the revenue source for the TIF fund and the New Albany East Community Authority, she said.
Chrysler said the VanTrust team has been “great to work with.”
“We appreciate their understanding of the manufacturing/production market, and we look forward to their continued investment and growth in the community,” she said.