POWELL — Roughly 11 acres of city-owned land on Home Road is now under control of the Powell Development Corporation (PDC), the city’s community improvement corporation.
Powell City Council approved the land transfer at their Tuesday meeting. The city obtained the land in October 2024 for the purpose of future economic development.
The land sits on Home Road between the DelCo Water tower and Liberty Park, and in front of the Redwood apartments.
The PDC plans to develop the land into a flexible technology park, which will bring high-paying jobs in fields such as technology, healthcare, and research and development.
PDC already has potential developer and site user
Flex-tech parks are adaptable, multi-use buildings combining traditional office space with light industrial use, warehouse space, research and laboratory facilities.
They allow for administrative work and product development in the same unit and are attractive to businesses in the technology and research and development industries.
“We do have economic development interest in the property. We’ve talked to several developers; one rises to the top,” said Sean Hughes, Powell’s economic development administrator and executive director of the PDC.
“We actually have a potential end user; it’s a technology-based user,” he said. “It would be a headquarters for research and development, sales, a showroom and an educational facility.”
The PDC board approved the land transfer Aug. 25, which allows the organization to select a party it thinks best fits the project — whereas if the city wanted a developer for the land, it must solicit requests for proposals or qualifications.
Councilman Leif Carlson questioned the need for the sale.
“I just don’t understand why it needs to be done and how much fluidity that gives you guys to make a deal,” Carlson said. “I guess I don’t understand why the ownership change is so crucial to spurring a deal.”
Powell Law Director Yaz Ashrawi explained PDCs can expedite the development process and can discuss development in private.
If the city sought to develop the land, it would have to request proposals, allow for a certain amount of review time and the matters would be much more public-facing.
Flex-tech park could bring in over 200 jobs
Hughes anticipates the flex-tech park will support a 135,000 square-foot building or buildings and attract 231 jobs, generating an annual payroll of almost $16.2 million.
“From my experience — and I’ve been doing industrial parks for a very long time — these smaller tech flex buildings actually outperform larger industrial buildings in per square foot and payroll,” Hughes said at the Aug. 25 meeting.
Hughes pointed to the $23.7 million Edwards Farms Innovation Center in Hilliard as an example, which wraps office space and warehouse space into two buildings comprising 151,800 square feet.
He envisions Powell could do something similar, estimating a flex-tech park in Powell would also generate payroll taxes of $323,400 at the city’s current 2% income tax rate, according to a memo sent to city council.
After 15 years, Hughes estimates the total return on investment will be 118.02% and the campus would generate $4.85 million in income taxes.
Hughes hopes to get the ball rolling with a developer by this fall, with the flex-tech park operational by late 2027 to mid 2028.
PDC may use land sale revenue for self sufficiency
If the PDC chooses to sell the property, which is one of several options to move forward on development, Hughes suggested the PDC keep the proceeds for two purposes.
One, the PDC would split the proceeds to help fund its operations, “which could reduce the obligation of the city through the CIP (Capital Improvement Plan) process to fund the PDC,” Hughes said.
Right now, the PDC relies heavily on the city to fund its operations. Per the CIP funding policy, up to 5% of the city’s prior-year municipal income tax revenue will be available to fund economic development activities through the PDC.
Second, the PDC would use the remaining funds to invest in other real estate opportunities throughout the city for economic development.
“That becomes especially important as we look at downtown revitalization and all the other things that we want to do in the community,” Hughes said. “Giving the PDC that kind of seed money is a great opportunity for us to take one good thing and make it even better.”
Carlson asked if that means the PDC will request a reduction in CIP funding from the city. Hughes said yes, that’s the goal.
If the PDC sells the land for what the city paid for it, that means a little over $2 million would come back to the PDC.
