The current owner of an Amazon-rented building in Greenwood is at risk of losing his tax break after officials say the owner failed to file a form.
MREIC Indy IN 3, LLC is the current owner of a 615,000 square foot warehouse on South Graham Road in Greenwood that is leased to Amazon. In 2018, Scannell Properties, the warehouse’s original developer, received a 10-year, $7 million tax break on the warehouse, speculative at the time. The company should invest $45 million in property improvements and $35 million in machinery and equipment.
The warehouse was later leased to Amazon and Scannell sold the property to Monmouth Real Estate Investment Corporation or MREIC in 2019. MREIC was acquired by Industrial Logistics Properties Trust in February. The current registered owner is MREIC Indy IN 3, a subsidiary of MREIC.
The registered owner of the property, MREIC Indy IN 3, failed to comply with the original tax break agreement and faces possible termination due to two issues.
First, the company didn’t file a compliance form for next year’s tax benefits. The company had until May to file the form, and not filing the form is enough for the company to be found to be non-compliant, said Adam Stone, a member of the city’s Tax Relief Review Board.
“We have reported; We have attempted to coordinate communications with the transferring owner,” Stone said. “No answer; that deadline came and went.”
Then the committee learned from the County Assessor’s Office that the registered owner of the property benefiting from the tax break had applied for industrial ownership. The owner never informed the city of that decision, Stone said.
Under the terms of the reduction, there is a provision that says if a property has filed a commercial property complaint and fails to notify the city prior to filing, that automatically triggers the reduction process, Stone said.
“Our recommendation to the council at this point is to just move on and finish the remaining years of their mitigation,” he said.
A spokesman for the current landowner did not respond to a request for comment before the deadline.
MREIC Indy IN 3 officials have been asked to appear at the next regular City Council meeting on October 3rd. The company is asked to provide information as to why the cut should not be terminated. If the company doesn’t provide the information or show up for the public hearing, the cut could end, said City Council President Mike Campbell.
This is the second tax break that may be canceled in the coming months. A 2006 tax break for Arbonne International could also end this year after officials say the company is 90% behind on its promise to bring more than 400 jobs to the city.
A hearing on this tax reduction will also take place on October 3.