UPDATE: Tax break sought on $11M Keystone Crossing building

Indianapolis-based PK Partners LLC is seeking a six-year tax break from the city worth about $830,000 to help it develop an $11 million office building and 300-space parking garage at Keystone at the Crossing, the city disclosed Monday.

The building, to be built east of River Crossing Boulevard, is part of a planned 15-acre development near the Fashion Mall that includes office buildings, apartments, a hotel and retail space.

According to city documents, the building will be about 120,000 square feet, and the Gene B. Glick Co. and PK Partnersare likely to occupy about 35 percent of the space.

Wes Podell, vice president of leasing and development for PK Partners, said the building is likely to be closer to 100,000 square feet, with Glick taking 24,000 square feet and his company taking about 4,000 square feet.

Glick, an Indianapolis-based property management company headquartered at 8425 Woodfield Crossing Blvd., hasn't officially signed a lease, but is in active negotiations, Podell said.

The developer said the project would help retain 100 existing jobs at Gene B. Glick and create at least 200 jobs over the next five years at companies that lease the remaining space. The jobs will pay an estimated average of $22 per hour.

Even more jobs will be created by the rest of the development, officials said.

PK Partners said the development is likely to include a 190-unit multifamily residential building and a 125-room hotel.

City documents say the plans include a five-story, 120-room hotel; a five-story, 121-unit apartment building; a mixed-used building with 28 condos; a four-story, 47-unit apartment building; and a 54,000-square-foot office and retail building.

The city said PK Partners plans to spend at least $27 million on the apartments and retail space, and $500,000 to improve River Crossing Boulevard and infrastructure.

The total development is projected to cost $60 million to $80 million, PK Partners told IBJ in February.

The tax break would apply only to the office building and parking garage portion of the development. Department of Metropolitan Development staff estimated PK Partners would save about 60 percent on real property taxes over the six-year abatement.

PK Partners would still pay an estimated $554,000 in real property taxes during the abatement period, in addition to $72,620 now being paid. After the abatement period, the building owner will pay an estimated $303,000 in real property taxes annually, the DMD said.

The tax break is set for preliminary consideration at Wednesday’s Metropolitan Development Commission meeting. If it receives approval from the MDC and the City-County Council, it could receive final approval at the Dec. 17 MDC meeting.