Historic partnership finally sealed
The Town of Zionsville and the Zionsville Community Schools have officially sealed the deal on a special partnership. The two entities have closed on approximately 91.3 acres of land located at 106th Street Parkway, east of Zionsville Road, from the Dow Chemical Company. The sale price was $3,378,100.
History and Remediation
The site was once owned by Pitman-Moore Co. who produced pharmaceuticals from 1913 to 1960. Dow Chemical Co. purchased the site in 1960 and operated the facility until it closed in 1976. Multiple buildings were razed and removed by 1989. The site was identified in the voluntary clean-up program and other related databases. Dow entered into a voluntary remediation agreement on Aug. 9, 1996, which covered investigations and the remediation of the entire 144-acre site, divided into two areas. The remediation of the site addressed contaminants such as petroleum, biological wastes and solvent waste that were found at both surface and subsurface levels. After the excavation of, and analysis of, the site materials were completed, the state issued a Covenant Not to Sue for Remediation in 2005 for Remediation Area with restrictions.
The restrictions state that the site cannot be developed for residential real estate, agricultural use and the extraction of groundwater is prohibited in compliance with the CNTS certification.
August Mack Environmental, Inc. has completed a Phase I and Phase II environmental site assessment and in recent meetings with the Zionsville Redevelopment Commission and ZCS, presented its comprehensive study with results of its subsurface investigation. Samples from a total of 22 borings identified metals and other traces of contaminants found at the surface level but were under the screening levels set by the IDEM. The Phase II subsurface investigation determined that the areas that were suspected to have contamination were not an environmental threat to the proposed development. The investigation concluded that August Mack did not identify any constituents of concern at reporting levels above the IDEM screening levels and found no chemicals of concern above its lab reporting levels.
Why the purchase?
Previous business owners have considered purchasing the property throughout the years but since Dow was unwilling to subdivide the site into smaller parcels, the ability for businesses to purchase a single parcel would have been too expensive. Therefore, a deal like the one made between the town and ZCS made the purchase and development of the site affordable and feasible.
The concept for the partnership was to create ways to reduce the tax burden on Zionsville residents and generate revenue for ZCS and to assist in reducing the school district’s debt.
The funds used for the purchase of the site, of which ZCS will retain nine acres to build a maintenance facility and warehouse, came from the proceeds of a 2005 bond in which the proceeds could not be allocated for any other purpose other than land acquisition and construction projects. Wayne DeLong, director of planning and economic development for the town, spoke on the financing as it relates to the town and ZCS.
“Funding for the purchase will be derived from the use of the Zionsville Community Schools’ available bonds,” DeLong said. “Based on how the purchase is structured, the town would then pay the principle and interest incurred by ZCS for the life of the bond (until its repaid).”
The Town of Zionsville will take title to the remaining property at a price of $3 million and subdivide it for commercial development. The Town will install the necessary improvements for all the property and make installment payments for its portion of the property to ZCS for the land development through 2028, generating revenue for the district.
The development of the land will assist in lowering tax rates, increase the town’s tax base and minimize tax cap losses for the town and other government entities such as the Hussey-Mayfield Library. The town’s ability to subdivide its parcel and sell smaller land parcels will be more attractive to businesses and could stimulate commercial development. In addition, the land acquisition and development are part of the TIF district, and the net costs will be paid with future property tax revenues from future businesses that will locate on the property, easing the burden on the taxpayers.
What’s Next
Indianapolis-based Rockland Development, LLC has been designated exclusive development rights for the Dow site, working with the town and ZCS on the future plans. The first commercial structure on the property is expected to be completed in 2015.
“We are thrilled about the opportunities this partnership will bring to the Zionsville community and our economy,” Town Council President Jeff Papa said. “Thanks to leaders from the RDC and ZCS for persevering, engaging in extensive due diligence, and getting us to this creative solution to complex challenges.”
ZCS Board of Trustees also expressed gratitude for the partnership.
“We are grateful for the Town of Zionsville professional staff, RDC members, and elected leaders on the Town Council,” ZCS Board of Trustees President Jim Longest said. “These are leaders who understand well that we must share in community successes and challenges so as to apply the maximum stretch to every taxpayer dollar.”
