Port Authority backs financing for new ‘spec’ $23M warehouse

Dayton-Montgomery County Port Authority trustees agreed this week to help finance a new industrial site/warehouse in Englewood with a “capital lease” deal that shields the project from an estimated $500,000 in state and local sales taxes.

The 249,955-square-foot building will be built on 19.4 acres on Lau Parkway near Interstate 70 in Englewood, across from the facility operated by auto parts supplier Hematite.

The $22.8 million building is being raised “on spec” — meaning no user or tenant has been immediately identified, Joseph Geraghty, Port Authority executive director, told trustees in a meeting Monday.

“They’ve asked us to participate in this project, very similar to what we’ve done for many of those warehouses up in the northern part of the county, with this capital lease structure,” Geraghty said.

In the area around Dayton International Airport, distribution centers have increasingly appeared, beginning with Procter & Gamble’s $89 million, 1 million-square-foot center in Union, first built in 2014. A 570,000-square-foot center on 2800 Concorde Drive near the airport quickly followed that project, followed by several others, including a big Amazon fulfillment center being built today in Union.

This week, Tipp City Council approved a community reinvestment area tax abatement to NorthPoint Development for two proposed industrial warehouse buildings totaling more than 1 million square feet west of Interstate 75.

The new Englewood facility is expected to create 20 construction jobs and 20 full-time jobs, the Port Authority said in notes on the project.

Nearby, the Hematite facility, which the Port also helped finance, continues to operate. The Canadian-owned company uses recycled materials to treat vehicle under-bodies and craft acoustic components that affect how much noise penetrates a vehicle. The business also makes air- and water-management parts.

Capital lease transactions are deals that allow the Port to shield new construction projects from state and local sales taxes on the purchase of construction materials used in those projects, then leasing the improvements to an occupant company on a capital lease basis.

The developers of the new Englewood center are Oakridge Development Co. and Elford Development, both based in Central Ohio.

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