The Greencastle Redevelopment Commission recently approved a plan that officials hope will spark new interest in the city's industrial development ground.
Board members ap-proved a contract Thursday with Garmong Construc-tion of Terre Haute to erect a speculation building (or spec building) on 9.76 acres of land known as the Sgt. Cunningham property.
In July, Garmong officials told the City Council that the building would be between 30,000 and 60,000 square feet in size and of Nucor steel construction. The exterior of the building would be complete, however, the interior would be unfinished and made to suit whoever buys or leases the property.
The property is located on the west side of Fillmore Road just north of Lear Corp. and is currently owned by the city of Greencastle.
City Attorney Laurie Robertson-Hardwick said the developer has agreed to pay the city's asking price of $192,600 for the larger of two parcels of land, with an option to buy the remaining one at $95,600. The city set a deadline of Nov. 8 for the completion of the sale.
Prior to that, Garmong will pay to have environmental testing done at the site, to include soil boring, drainage assessment and investigation of a sinkhole located on the property, Hardwick said.
Once the purchase is complete, officials hope to begin construction before the end of the year.
In addition to Garmong's work at the site, the city will have to pay for sanitary sewer lines to be installed and for the construction of a road extension back to the building site, a distance of approximately one-quarter mile.
In July, the preliminary estimate for the cost of the road and sewer lines was said to be between $500,000 and $550,000.
Bill Dory, head of the Greencastle/Putnam County Development Cen-ter, said the Redevelopment Commission has the money to cover the cost.
The commission will also be responsible for securing, or paying, the annual interest on a 10-year loan to construct the building.
Dory estimated the interest at approximately $130,000-140,000 per year. Once Garmong finds a buyer for the spec building, it would pay back the interest to the city.
Garmong has constructed similar buildings in Terre Haute, Plainfield and Shelbyville.