Developer seeks abatement for industrial flex building in Portage
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South Bend-based developer Holladay Properties asked city officials in Portage this week for tax abatements to build an industrial use building in the area’s industrial corridor.
The plan is for Holladay to build an 88,500-square feet flex building that could be used for a variety of industrial uses. The unit would go into the Ameriplex at the Port business park along Daniel Burnham Drive, near the I-94 interstate.
Holladay Properties representative Michael O’Connor told Portage council members there is no tenant in mind yet but businesses are increasingly looking for pre-built space they can move into with only minor adjustments.
“Most businesses don’t plan far enough ahead to wait for a building to be built for them, so having a space there … we just know there’s demand in the market,” O’Connor said.
Holladay is seeking a 10-year tax abatement period with property taxes phasing in gradually over that time. O’Connor estimates the industrial space would bring in a little under $1 million in tax revenue over that time, compared to $4,000 a year the vacant lot currently does.
The trend of developers building industrial space before identifying tenants is becoming more common in recent years. O’Connor said Holladay has done the same thing before in that Portage industrial park—with the Diversey Building and has been able to fill up buildings within a year.
The council will vote on the abatement next month.