Property developer could lose Greenwood tax abatement

The current owner of an Amazon-leased building in Greenwood is at risk of losing his tax abatement after authorities say the landlord failed to fill out a form.

MREIC Indy IN 3, LLC is the current owner of a 615,000 square foot warehouse located along South Graham Road in Greenwood which is leased to Amazon. In 2018, Scannell Properties, the warehouse’s original developer, received a 10-year tax break of $7 million for the then speculative warehouse. The company was to invest $45 million in property improvements and $35 million in machinery and equipment.

The warehouse will then be leased to Amazon and Scannell will sell the property to Monmouth Real Estate Investment Corporation, or MREIC, in 2019. MREIC was acquired by Industrial Logistics Properties Trust in February. The current owner is MREIC Indy IN 3, a subsidiary of MREIC.

The notarized owner of the land, MREIC Indy IN 3, has been found guilty of non-compliance with the original tax abatement agreement and faces termination due to two issues.

First, the company has not filed a compliance form for next year’s tax benefits. The company had until May to file the form, and failure to complete the form is enough to find the company in non-compliance, said Adam Stone, a member of the city’s tax abatement review committee.

“We reached out; we tried to coordinate communication with the notarized owner,” Stone said. “No response; that deadline has come and gone.

Next, the committee learned from the county assessor’s office that the notarized owner had filed a commercial property appeal for the parcel of land receiving the tax relief. The owner never informed the city of this decision, Stone said.

Under the terms of the reduction, there is a provision that states that if a property has filed a commercial property appeal and fails to notify the city before it is filed, this automatically triggers the termination process of reduction, Stone said.

“Our recommendation to the board at this point is just to go ahead and end the remaining years of their reduction,” he said.

A spokesperson for the current landowner did not respond to a request for comment by the deadline.

MREIC Indy IN 3 officials have been asked to appear at the next regular meeting of the city council on October 3. The company will be asked to provide information on why the discount should not be terminated. If the company doesn’t provide the information or show up at the public hearing, the reduction could be terminated, said Mike Campbell, city council president.

This is the second tax allowance likely to be terminated in the coming months. A 2006 tax abatement for Arbonne International could also be terminated this year after officials said the company was 90% behind on its promise to create more than 400 jobs in the city.

A hearing for this tax abatement will also take place on October 3.

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