Deal Targets High-tech Campus for Ignition Park SOUTH BEND -- South Bend-based Great Lakes Capital has agreed to construct a high-tech campus on 13 acres of land at Ignition Park, the 80-acre technology park south of downtown, in what local leaders describe as further evidence of the citys growing reputation as a technology hub. The Redevelopment Commission approved the project Thursday, voting 5-0 in favor of a development agreement between the city and Great Lakes, which also is involved in a number of other high-profile developments in the county. As envisioned, the campus will provide startups in the advanced stages of incubation, such as those at Innovation Park at Notre Dame, room to grow and develop, creating jobs and tax revenue for the city. This is a great project for the future of South Bend, said Chris Fielding, director of business development for the city. This really solidifies us as a hub for technology companies and startups in the future. The agreement commits Great Lakes to construct three 40,000- to 50,000-square-foot multi-tenant buildings over a period of about three years and at a cost of no less than $18 million. The cost of the land is set at $1 for four of the 13 acres and $25,000 per acre for the other nine acres, for a total of $225,001. The agreement also includes an option for Great Lakes to buy an additional 11 acres at a cost of $26,250 per acre, providing space for up to two more buildings. Great Lakes hopes to break ground on Buildings One and Two sometime this year, Managing Partner Brad Toothaker said Thursday. Work on Building Three could begin as soon as next spring, depending on demand. Each of the three buildings will look substantially similar in appearance, Toothaker said, with Building One serving as a prototype. They will be situated around an open quadrangle on the east side of the park, along Franklin Street. Toothaker said Great Lakes has tentative commitments from a number of startups, including some at Innovation Park at Notre Dame, to lease space in the buildings after theyre complete. Two companies, F Cubed and Emu Solutions, have already agreed to move into Ignition Park in exchange for about $600,000 worth of incentives from the city. Emu works in data storage and F Cubed makes bio-chips. Were in the design phase and the final strokes of commitments with several tenants, Toothaker said. He said he anticipates substantial occupancy of Building One upon completion. For its part, the city has agreed to invest $900,000 in the campus to pay for site improvements and facade enhancements, and to support a seven- to nine-year tax abatement for the project. The money will come from the airport tax increment finance area, which includes Ignition Park. Fielding said the tax abatement is for the benefit of future campus tenants, to buy down the lease rates for the startup companies that would lease space in those buildings. Base lease rates for Building One have been set at $12.87 per square foot for year one, according to the agreement. By comparison, lease rates for Class A office space in the county average about $20 per square foot. Fielding said each of the three buildings is expected to support at least 40 to 45 jobs, for a total of about 120. F Cubed and Emu Solutions are expected to bring about 40 jobs to the park alone. Currently, Ignition Park has one tenant, Data Realty. The data storage company moved into a new, 45,000-square-foot foot building on the south side of the park in 2012. It employs about 20 people. Fielding said the hope is that the new campus becomes a catalyst for even more development at the park, which operates as one-half of a dual-site technology park along with Innovation Park at Notre Dame. Momentum creates momentum, he said. Common Council member Oliver Davis, D-District 6, and Deputy Mayor Mark Neal expressed similar optimism Thursday. Davis district includes Ignition Park. There is a strong talent base here and agreements such as this one with Great Lakes will help South Bend retain and attract even more talent, Davis said in a statement. Said Neal, As Ignition Park continues to develop, South Bend is increasingly becoming a technology hub. This latest agreement … highlights the value of the investment both the city and local businesses have made in the high-tech sector. southbendtribune/news/business/deal-targets-high-tech-campus-for-ignition-park/article_a0272668-b5e1-11e3-9d6d-001a4bcf6878.html EBlasko@SBTinfo 574-235-6187 Twitter: @ErinBlasko
Posted on: Thu, 27 Mar 2014 21:53:10 +0000
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