Henry County shell building a go
Tuesday, July 31, 2012
A Henry County board has completed the final step remaining before a facility can be built to attract new businesses.
The Henry County Redevelopment Commission recently finalized an agreement with a contractor selected to build a shell building.
The agreement means that Runnebohm Construction, the RDC's development partner, can begin working on the $1.4 million to $1.6 million structure. Bob Grewe, president and CEO of the New Castle-Henry County Economic Development Corp., wants to have a groundbreaking ceremony in the coming weeks.
The groundbreaking was originally scheduled for July 13, but it was delayed when the agreement between the two entities was still pending.
Now, Grewe said everything is a go.
"To finally have this inked is the culmination of a whole lot of planning and work on behalf of the RDC," he said. "We're excited."
A shell building, also called a speculative building, is a facility built for the sole purpose of marketing it to prospective businesses. Grewe has said it's a priority because most businesses looking to relocate aren't interested in building their own facility.
Without a building available, Grewe has said he can't compete with other counties seeking businesses.
Then in January, the RDC voted to spend property tax dollars set aside for economic development to hire Runnebohm for the project.
Members picked a 12.6-acre site in the New Castle-Henry County Industrial Park, at the intersection of Brooks Drive and Road 400 South.
The building will be about 50,000 square feet, with the capability of being expanded to 200,000 square feet. For the most part, the ceilings will be about 32 feet high.
The way the development partnership works is the RDC has given Runnebohm the title to the land where the building is slated to be built. That gives the company the right to start construction, Grewe said.
Runnebohm will pay for the construction costs, and the RDC is making the interest payments. The plan is for Runnebohm to be paid back when the building is sold.
Plans had been in motion since January, but the agreement giving Runnebohm the title to the land was the last remaining step, Grewe said.
He said some work may begin before the official ground-breaking ceremony.
source: The Courier Times