FOR IMMEDIATE RELEASE
December 17, 2020
Greenwood, Cummins finalize new agreement for property at I-65, County Line Road
Cummins to purchase land, determine future development use in light of pandemic
GREENWOOD, Ind. – The City of Greenwood and Cummins Inc. (NYSE: CMI) have finalized a new agreement for the previously announced Cummins development project. The agreement calls for Cummins to purchase 31 acres of property – located off Interstate 65, south of County Line Road – for $4.5 million. The previous agreement was structured for Cummins to receive the property for a $10 nominal fee as an incentive to build office space.
Given challenges related to the COVID-19 pandemic, changes in the industry, and remote working arrangements becoming more common, Cummins requested more time and greater flexibility to determine the best future use for the property. The $4.5 million land purchase provides that flexibility while also compensating Greenwood for expenses related to property acquisition, improvements and professional fees.
“This is a significant accomplishment given the circumstances created by this unprecedented pandemic,” said Greenwood Mayor Mark W. Myers. “Cummins has been a great partner throughout this process, and we appreciate the productive collaboration. This agreement provides a structure for Cummins to retain the potential to develop while allowing the city to recoup expenses and move forward with redevelopment of the surrounding property.”
“We are thrilled to secure the property and want to extend our gratitude to the city and the Redevelopment Commission in this effort,” said Lawrence McCormack, Director, State Government Relations, Cummins Inc. “Cummins shares the city of Greenwood’s vision for this area, and we are continuing to evaluate uses that will ultimately contribute to development that is beneficial to the city and surrounding areas for the long term.”
Cummins will continue to support Central Nine Career Center, to help develop career opportunities for local youth through a robust digitally-focused curriculum.
The Greenwood Redevelopment Commission (RDC) and city officials continue to receive and vet proposals for redevelopment of the surrounding property, including professional buildings, retail, hospitality and other commercial development. To facilitate the Cummins project and additional development of the area, the RDC purchased more than 95 acres, securing the ability to facilitate future private development for one of the city’s most attractive properties.
“Similar to the RDC’s purchase of the former Greenwood Middle School property, this was a rare opportunity for Greenwood to take control of its own destiny,” said Myers. “While we had hoped for Cummins to serve as an immediate anchor, our decision to purchase all of the land was clearly the right one. Previous attempts to parcel individual pieces of the property for development impeded successful outcomes. Once fully matured, the tax revenue generated from the entire property will allow our citizens to continue benefitting from economic growth while also enjoying Indiana’s fourth lowest tax rate.”
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