The Westfield City Council received a standing ovation from a pass capacity crowd when it unanimously approved an economic development partnership with Westfield Washington Schools on May 12. The city will provide the schools with $2.5 million to expedite its move off land at the northeast corner of U.S. 31 and Ind. 32 and build a new community stadium behind Westfield High School.
Supt. Dr. Mark Keen told the Westfield City Council that for $2.5 million the city could turn school land into assessed value and taxes. The funding allows the district to accelerate its timetable to sell 9.6 acres to developers, build a new football stadium and provide the city with a new tax base, projected as $40 million.
“You will start getting back your investment within two and a half to three years and then will be going forward with additional revenue,” Keen said. “The $2.5 million does not build a stadium. It gets us off the ground so the land can be developed.”
“It’s not a hand out or a gift,” said Nick Verhoff, WWS executive director of business and operations. “This is economic development in the purest sense. It regenerates itself.”
Earlier this year, the district agreed to sell 14 acres just east of the U.S. 31-Ind. 32 interchange to a group of local Westfield investors. On the 9.6 acres west of Shamrock Boulevard, development plans include a three- to four-story office building and a hotel, whose name has not been released. The area is the current site of the school district’s football stadium and track and a baseball diamond.
“The value of the construction is approximately $40 million and they want to commence construction as soon as possible. The buildings could impact 2016 payable taxes,” Keen said. “Land taxes would generate $80,000 and taxes on the commercial structures would generate $900,000.”
Verhoff said the 4.5 acres east of Shamrock Boulevard is where the administration office is located. He said the district has the ability to remain in that space for five more years.
Officials said the football team will remain at the current stadium until the new one is built, which Keen projects to be during the season. While the stadium will not be completed, it will be capable of hosting games.
“We hope some football games will be played there this fall. Not in August but some playoff games,” Keen said.
Mayor Andy Cook said funding for the project will come from the proceeds of the utility sale. He said the city would pay $1.5 million now and the other $1 million “when vertical improvements have begun.”
Council President Jim Ake said he received hundreds of positive responses and just one negative email, which did not state a reason why.
“I don’t know of a better win-win than this,” he said. “We can help them without any tax dollars being spent. Our investment will be returned to us in full and can be used later for other projects in the future. Who wins in this? I think it is our school system, our business community, the construction worker, the taxpayer and I think it is every Westfield citizen of any age.”
A group of Westfield developers have proposed a project called “The Junction” for the 14 acres that is currently home to the stadium, track, baseball fields and administration building. A medical office building, family entertainment center, hotel/meeting space, retail and fitness center all are envisioned by EdgeRock Development LLC.
“We see an opportunity for that property not only to generate significant new tax revenue for the city and schools, but also to meet retail (restaurant and related services), medical and meeting space needs of students, parents, nearby residents and the entire Westfield community,” stated Randy Zentz of EdgeRock. “The project is estimated to have a value in excess of $40 million, and also will generate jobs for our community. There has been a tremendous amount of interest from a variety of medical services providers and investors to locate on the property anchored by the school operations.”
EdgeRock said it expects an announcement on a medical office building joint venture development to be made in the near future as it is in active conversations with several medical service providers.
