Gahanna officials review 141,000‑square‑foot speculative industrial project, hear tax‑abatement details and job guarantee

Gahanna officials on June 23 heard details from the development team behind a proposed speculative industrial building and discussed a requested 80% tax abatement for 12 years to make the project financially feasible.

The project team said the building would be roughly 140,000–141,000 square feet with estimated hard construction costs of about $13.5 million and a minimum guarantee of 37 new jobs. “We’re underwriting upper $9 a foot,” said Jonathan Postweiler, development representative with KBC Advisors, adding that without the abatement the pro forma rents would fall below levels required by the project’s capital partners.

The city’s economic development presenter said the request would still yield a roughly 69% return on investment to the community when jobs and tax…