The city of Greenwood and Columbus-based Cummins Inc. (NYSE: CMI) have finalized a new agreement for the manufacturer’s previously-announced $35 million office building. Under the agreement, the city says Cummins will purchase 31 acres off Interstate 65 for $4.5 million.
As a result of the COVID-19 pandemic, changes in the industry and remote working arrangements, the city says previous agreements were adjusted to give Cummins additional time to evaluate the best future use of the property. The prior agreement was set up for the company to receive the property for a $10 nominal fee as an incentive to build office space.
“This is a significant accomplishment given the circumstances created by this unprecedented pandemic,” said Greenwood Mayor Mark Myers. “Cummins has been a great partner throughout this process, and we appreciate the productive collaboration. This agreement provides a structure for Cummins to retain the potential to develop while allowing the city to recoup expenses and move forward with redevelopment of the surrounding property.”
The purchase provides flexibility while also compensating the city for property acquisition, improvements and professional fees.
“We are thrilled to secure the property and want to extend our gratitude to the city and the Redevelopment Commission in this effort,” said Lawrence McCormack, director of state government relations at Cummins. “Cummins shares the city of Greenwood’s vision for this area, and we are continuing to evaluate uses that will ultimately contribute to development that is beneficial to the city and surrounding areas for the long term.”
The city says Cummins will continue to support Central Nine Career Center, an effort to help develop career options for youth.
“While we had hoped for Cummins to serve as an immediate anchor, our decision to purchase all of the land was clearly the right one,” said Myers. “Previous attempts to parcel individual pieces of the property for development impeded successful outcomes. Once fully matured, the tax revenue generated from the entire property will allow our citizens to continue benefitting from economic growth while also enjoying Indiana’s fourth lowest tax rate.”
The Greenwood Redevelopment Commission and city say they will continue to receive and vet proposals for redevelopment of the surrounding property, including professional buildings, retail, hospitality and other commercial development.