Home > Uncategorized > Company to bring $12.6 million facility to Martinsville

Company to bring $12.6 million facility to Martinsville

Reporter-Times.com

Brian Culp bculp@reporter-times.com
April 30, 2011

MARTINSVILLE

Mainstreet Property Group announced plans Saturday to build a $12.6 million senior care facility in Martinsville in the newly-designated Ind. 37 tax increment finance district with construction beginning as soon as Aug. 1.

The facility will incorporate hotel-style living and social amenities, including a variety of on-site destinations. In keeping with one of the trends in the industry, the property will cater not only to seniors who need skilled nursing and assisted living but also those who require short-term rehab, according to a press release from the company and Mayor Phil Deckard.

The new facility is expected to employ 140 people and have 100 suites, most of them private rooms, the release stated, adding that the total economic impact on Morgan County over the next 10 years, including construction, has been estimated at $120.6 million by the outside firm Applied Economics.

City Engineer Ross Holloway said the deal isn’t done yet because the company still has to put together its financing package and present a deal — first to the Martinsville Plan Commission and then to the common council. He is, however, certain of Mainstreet’s commitment to the project.

“We (the city) have been talking to them since January, but we were unable to get a firm commitment from Mainstreet until after the TIF districts were finalized,” Holloway said. “They wouldn’t have even talked with us in the beginning if we hadn’t started the process of setting up the districts.”

By having the districts, Holloway said, the city won’t have to put out much money for the infrastructure required to build the facility.

“What happens is, the taxes they pay because they are constructing in the TIF district will help offset their financing,” Holloway said. “They take the money and property taxes that this will generate, and it will go back into finance the cost for the infrastructure of this facility.

“That’s the beauty of the TIF district. The city doesn’t have to lay out any money in advance. The project is paying for itself. The economy is such that everyone is vying for these projects. If you don’t have a way to pay for it, then the city is on the hook for this infrastructure. And we don’ have the money to pay for that.”

Deckard agreed with Holloway on the use of the TIF district to attract Mainstreet.

“The taxation on the improvements will be used to improve this district,” Deckard said. He said Mainstreet chose Martinsville “because they are interested in communities that are progressive and are willing to put money back in. In other communities, they have put in sidewalks and other things.”

Zeke Turner, chairman and chief executive officer of Mainstreet, confirmed in the press release that the TIF district indeed played a part in his company’s decision to come to Martinsville.

“Before we make an investment, we make sure it’s true to our goal of investing in properties that serve to enhance lives and improve communities,” Turner said. “Once this facility is completed, seniors will be able to receive the quality care they need in a place they can enjoy.”

There is some small risk in the deal, Deckard said. But he thinks it is minimal and acceptable.

“They’re not asking for abatements yet,” Deckard said. “They will likely ask us to join them in a bond issue, which they will try to pay off in five years. There’s always a slim chance of liability for the city, but this seems to be a great opportunity.”

That liability will be detailed in public meetings as the full plans are revealed, Deckard said.

With some of the details up in the air, Hooloway didn’t discount the timing of the release of this information.

“I would be misleading you if I said no,” Holloway said when asked if the announcement was purposely made ahead of Tuesday’s primary election. “But we have been working with these people for months. This deal didn’t come about just because of the election.”

Holloway also said they hope this get more businesses looking at Martinsville for expansion.

“It’s an even bigger thing than that in that we believe projects beget projects,” Holloway said. “People will see this and decide maybe Martinsville is worth taking a look at.”


About Mainstreet Property Group

According to a press release, Mainstreet Property Group was recently listed by the Indianapolis Business Journal as the third-fastest growing private company in the Hoosier State. In 2010, it was included in the Inc. 500 list of the fastest-growing private companies in America and named one of 41 “Companies to Watch” in the state by the Indiana Economic Development Corp., Purdue University and the Edward Lowe Foundation.

Mainstreet, founded in 2002 and located in Cicero, owns, either solely or in concert with its subsidiaries, 14 properties, including 11 senior housing and care properties. The company also has another six health care campuses in various stages of construction and development in the Midwest. For more information, visit www.mainstreetcap.net.


This artist’s rendering shows the proposed $12.6-million senior care facility Mainstreet plans to build in Martinsville. courtesy art


This artist’s rendering shows the interior dining area of Mainstreet’s proposed senior care facility to be built in Martinsville. courtesy art

Copyright: Reporter-Times.com/MD-Times.com 2011

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Categories: Uncategorized
  1. November 12, 2011 at 2:24 pm

    Just dropped by, like the site 🙂

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