How Hat World’s new headquarters impact Zionsville
By Maggie Smith
All eyes were on Zionsville with the announcement on Jan. 10 that Hat World, Inc. would relocate its corporate headquarters and technology center to Zionsville. Currently, Hat World, which manufactures apparel and operates retail stores primarily under the LIDS brand, operates its corporate functions from leased office space in Park 100 and has a warehouse on 76th Street on the northwest side of Indianapolis.
“The announcement that Hat World will become the first tenant in our Creekside Corporate Park sets us on the right path for growing our business base and attracting more jobs to Zionsville,” Town Council Jeff Papa said. “We should thank our dedicated community volunteers, including our Redevelopment Commission and Economic Development Commission members, and the dedicated team at Town Hall assisting them for making this happen. We will continue to build on this success.”
According to the joint announcement by Gov. Pence and representatives from Hat World, the company will spend $21.8 million to construct and equip a 150,000 square-foot office to house its headquarter operations at the Creekside Corporate Park in Zionsville. The deal is contingent upon Town permits being granted and incentives being approved by the Town.
The Zionsville Redevelopment Commission discussed their review of the 17-page real estate purchase agreement at their meeting on Jan. 13 and recommended the Town of Zionsville approve the purchase agreement. In addition to specifying the purchase price of $37,000 an acre for the 15.6 acres of land located along the south side of 106th street just west of Bennett Parkway, the agreement outlines obligations for the Town of Zionsville and Hat World.
Since the deal with Hat World precedes the finalization of the master plan for the 82 acres of land Zionsville Community Schools, in partnership with the Town, purchased from Dow Chemical Co. last year, exact figures for how much the town will pay are not available yet, according to Wayne DeLong, Director of Planning for the Town of Zionsville.
At the Redevelopment Commission’s meeting last week, much of the discussion revolved around drainage and future expansion. The purchase agreement gives the Right of First Offer on the 8.6 acres of adjacent land to Hat World, Inc. This land is owned by Dow Chemical Co., but the Town has an option to purchase this land that will be transferred to Hat World as part of the deal.
Business Impact
While hard numbers aren’t available, realtors and restaurants think Hat World will be good for business. According to Chad Sweeney, spokesperson for Hat World present at the RDC meeting, Hat World’s employees will total approximately 450 with 300 transfers from their current facility in Indianapolis and approximately 150 new jobs created in the first phase by 2018. Up to 758 new jobs will be possible through an expansion by 2025. The Statement of Benefits filed with the State by Hat World, Inc. on Jan. 10 shows $23.4 million in estimated annual salaries, with an average salary of $52,000. In the immediate future, the bulk of the 450 employees at the new facility won’t require new housing in Zionsville, but if the company grows as planned, local realtors could see the benefit.
“The Hat World development is a win-win event for our community. I am excited for their arrival,” Julia Evinger a realtor from Century 21 Scheetz said. She applauded town officials for securing the deal. “Jeff Papa, Zionsville Town Council President, and the Indiana Economic Development Corporation have done a wonderful job securing the Hat World Headquarters move to the new Creekside Corporate Park in Zionsville.“
One direct impact in the near future will be on local restaurants and shops as Hat World employees will go out for lunch or meet after work, which will mean increased business for local establishments.
Scott Barnes of The Friendly Tavern and member of the Zionsville Chamber of Commerce added, “I think it’s great. It (Hat World) will bring more customers into The Friendly, especially for lunch. How would any local business owner think it’s bad?”
When asked about traffic and parking Barnes said, “I’m sure the town and the developers will work out a solution. Yes there will be more traffic but that means more business and everyone can benefit.”
Impact on Schools
Superintendent of Zionsville Community Schools Dr. Scott Robison said the schools will benefit from the diversification of the tax base with new development and does not see the potential increase in enrollment as a burden on the schools. According to Robison, if Hat World executives decide to make Zionsville their home, ZCS is capable of accommodating new students. “The Indiana Business Research Center at IU (IBRC) did our demographic study to determine capacity. This study is available on our main website and accounts for growth that would include potential new enrollment from development of the Creekside Corporate Park,” Robison said.
ZCS is mentioned in the purchase agreement between Hat World and Zionsville as one of the required stipulations outlined by Hat World: “confirmation of the relocation of the Zionsville Community Schools Corporation proposed bus maintenance facility to a location outside Creekside Corporate Park.” When asked about the new location, Robison said, “This is still a matter of collaborative discussion among leaders of the Town, Redevelopment Commission, and Board of School Trustees.”
As for the project as a whole, Robison concluded, “The creative collaboration that made the former DOW property available for this development was the original brainchild of current ZCS Board of Trustees President Jim Longest. The years of collaborative discussion and study of the matter are now set to pay dividends for the community. Leadership that is creative, bold, and simultaneously cooperative and pragmatically persistent is a real thing in Zionsville, Indiana. This is a main reason why Zionsville is an exceptional community.”
What Zionsville Will Pay
Estimates for all the items weren’t available at press time from Zionsville officials, but the purchase agreement lists at least $267,000 worth of incentives for Hat World.
Money received by the Indiana Economic Development Commission (not greater than $250,000) pursuant to the grant application the City of Zionsville filed with the state.
Brokerage fee to Summit Realty that will be approximately $17,000 (3% of the final purchase price, which is approximated at $577,200).
Other expenses yet to be determined: (dollar value not available from Zionsville officials at press time)
Storm water drainage and retention facility on Hat World’s property
Storm water drainage and retention facility on land adjacent to Hat World’s property
Construction of median, sidewalks, and deceleration lane on 106th Street
Waiver of fees for road impact, sewer connection, and improvement location permit, which is signage
Personal property tax abatement (50% for 10 years)
Real property tax abatement (50% for 10 years)
What Hat World Will Pay
All fees will be calculated at the current project scope estimate of 150,000 square foot building
Approximately, $577,200 for the land (the final price, based on $37,000 acre will be determined when the survey is finalized).
$16 million for corporate headquarters facility which will also house the company’s information technology, data center, and technical support operations. (Source: Statement of Benefits Real Estate Improvements)
$3 million in new telecommunications, information technology, and data center equipment. (Source: Statement of Benefits Personal Property)
Plan Commission Filing Fee: $2,160
Board of Zoning approval filing fee – may not be necessary
Fire Department Review Fee
Storm Water Department review fee
Professional engineering review fees
