By Ann Marie Shambaugh
Appraisers valued it at an average of $135,000, but the Zionsville Redevelopment Commission is negotiating to sell 1.6 acres of land on the southeast corner of 106th Street and Bennett Parkway to Scannell Properties for about a third of that price or less.
The disparity will be made up by the work that Scannell Properties expects to do to make the site pad-ready, said Courtney Lehman, Scannell Properties development executive. He told the ZRDC on May 26 that a storm drain that crosses under 106th Street has created issues on the “challenging site” that would require spending upwards of $100,000 to create a new plan rerouting drainage around a future building and mitigate nearby wetlands.
Scannell Properties was the only buyer to make an offer on the site – which went out to bid twice. The company already owns four adjacent acres and plans to combine the two parcels if the sale is approved to create a six-acre lot.
The developer does not have a specific tenant lined up for the site, but Lehman said several companies have expressed interest.
“By bringing these two sites together I’ve had three or four people approach me to lease,” Lehman said, adding that he’s had discussions with retailers interested in the site. The lot is not zoned for retail uses, but Lehman said he expects to seek rezoning in the future.
The ZRDC tapped commissioner Luke Phenicie to negotiate the potential sale with Scannell Properties. During the meeting, Phenicie said he would be in favor of the sale if the buyer paid $42,000 to cover what the town spent in purchasing the land and associated soft costs.