Potential For Cummins in Indy ‘Off The Charts’
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowPlans by Columbus-based Cummins Inc. (NYSE: CMI) to locate a division headquarters in Indianapolis could be the final piece of the Market Square Arena site puzzle. The building, expected to open in 2016, will leave the former high-profile site fully developed. Indianapolis Deputy Mayor Deron Kintner says the potential long-term benefits of the project are “off the charts.” Cummins plans to house 400 workers in the new development. March 26, 2014
News Release
INDIANAPOLIS, Ind. – Mayor Greg Ballard and officials from Cummins Inc. today announced plans for the company to locate its global distribution business headquarters from Columbus, Indiana and consolidate existing Indy-based employees in a new downtown office building. The global distribution business is one of Cummins' four business units. The company plans to build its new Indianapolis office center on approximately four acres that previously housed Market Square Arena.
“Cummins is a well-respected global leader in technology and innovation,” said Mayor Ballard. “Locating the global distribution headquarters of a Fortune 500 company downtown will bring new people, visitors and recognition to Indy as a worldwide economic center.”
The company's initial plan for the site includes an office building with ground floor retail, a training center, public greenspace and a parking garage on parcels bordered by Market, Alabama, Washington, and New Jersey Streets. The building will initially house up to 400 employees with future expansion possible. The company currently has approximately 100 employees working in two separate offices downtown.
“We are pleased to announce that Indianapolis will serve as our global distribution business headquarters, while Columbus, Indiana, where our company was founded 95 years ago, will continue to serve as Cummins' global corporate headquarters,” said Pamela Carter, President, Distribution Business, Cummins Inc.
Carter added, “The creation of a global headquarters for our distribution business takes a significant step toward our longstanding strategy of transforming the business through an expanded global footprint capable of supporting our customers and providing legendary sales, service and support. The move will facilitate better collaboration among our employees and accommodate growth resulting from the North American distribution business acquisitions.”
Cummins will purchase the property for $4.3 million. Indy will invest $3.3 million in infrastructure improvements and parking on the site and abate 70 percent of the development’s property taxes for ten years.
While design is not yet underway, Cummins is committed to contributing a significant architectural element to the downtown Indianapolis landscape that will be a great environment for its employees and a welcoming presence for the community.
Construction on the new building is expected to begin within the year and open by late 2016.
Sources: City of Indianapolis, Cummins Inc.
Statement From Indy Chamber CEO Michael Huber
“Cummins' consolidation of their global distribution business headquarters to Indianapolis further strengthens our region as a global business destination. Joining the ranks of other regional Fortune 500 companies, Cummins will integrate their culture and investment into the recreation and appeal of our downtown.
“Targeting the Market Square Arena site for its new headquarters, Cummins will add to the landscape and vibrancy of this area of downtown that, until recently, has been underutilized. This infusion of talent will make us more attractive to new companies, jobs, and residents alike.”
About the Indy Chamber
The Indy Chamber is the voice of progress and improvement for the Indianapolis region's business community. With membership of nearly 3,000 businesses representing 230,000 employees in the Indianapolis region, the Indy Chamber is leading the effort to strengthen the business climate, improve the state of education, revitalize neighborhoods and enhance the region's workforce. In 2012, the Indy Chamber merged with Indy Partnership, Develop Indy, and Business Ownership Initiative. For more information about the Indy Chamber, visit IndyChamber.com.
Source: Indy Chamber