HOBART | Following months of discussion, the City Council on Wednesday approved a tax abatement request for a medical center/office off 61st Avenue.
The two-phase construction project will cost an estimated $8 million to $10 million, Dr. Barry Ring said.
Ring plans to house his pain management clinic in the 23,000-square-foot building, the larger of two buildings planned in the 6100 block of Marcella Boulevard.
It's still to be determined what businesses or services will occupy the adjacent 10,000-square-foot building planned for phase two, Ring said.
The tax abatement request made by Covel Investments had been tabled for several months by the City Council.
City Attorney Anthony DeBonis said the resolution approved Wednesday is a new version that embodies the latest agreement between the city and Covel Investments representatives.
Under the new agreement, Covel Investments will be required to pay a 15 percent abatement fee into a nonreverting fund.
Proceeds from that fund must be used to pay for acquiring property for suitable right of way to the south. It is necessary for access to the property from 62nd Avenue, DeBonis said.
"They must do this during the next two years or we get to keep the fee," DeBonis said.
The City Council earlier this year unanimously decided to designate property at 6188 Marcella Blvd. as an economic revitalization area for the new medical/office center.
Ring had told the council he will be moving his Hobart-based pain management clinic to the building to be known as Hobart Square. He also plans to rent out about 8,000 square feet of office space.
Several council members said they wanted appropriate traffic requirements in place before they would grant the 10-year tax abatement request.
City Councilman John Brezik, D-5th, who worked on the negotiations, said the agreement worked out between the two parties will address heavy traffic on Marcella Boulevard and pave the way for expected growth in that area.