A lumber company owner said the city of Noblesville withdrew a $ 5.5 million development deal because it would not close the adult-only children's store it also owns.
Ryan Polokoff, owner of WoodTurningz, reached an interim agreement last October to reduce property taxes if he builds a new location at 15405 Endeavor Drive. The incentives are part of a larger agreement with Texon Towel and Supply, Co. to build the same building next door for $ 5.5 million.
When city officials learned that he owned My Inner Baby, a store that sells adult diapers and other baby clothes, they abandoned the WoodTurningz business because "it was not in line with the morality of the city," Polokoff said.
City officials are currently trying to close the children's shop or force it to move to the adult entertainment district, claiming it is a "sex shop". Polokoff has challenged the appointment and a hearing is scheduled for Monday before the Zoning Appeals Council. (Read the results of the audition here).
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City officials deny they canceled the deal with WoodTurningz because Polokoff did not want to close the children's store, even though city emails indicated that this was the reason. Officials said Polokoff was unwilling to pay the salary the city demanded, but did not provide evidence to support the claim. The emails show Polakoff accepting a higher salary.
The owner offered some concessions, but it wasn't enoughAccording to Polokoff, WoodTurningz, which sells turning fixtures, handle sets and store supplies, has been based in Noblesville at 15248 Stony Creek Way for 20 years, but needs to grow. He purchased the lot on Endeavor Drive for $ 446,500 and estimated that the construction of the 52,000-square-foot building would cost an additional $ 5.5 million.
WoodTurningz guarantees that the city will find 10 employees in the next 10 years and the city offers a tax credit that will save approximately $ 1 million in property taxes over eight years. Polokoff said he could not afford to carry out the project without tax breaks.
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According to Polokoff, city officials initially tried to get out of the WoodTurningz deal by demanding that Polokoff meet the $ 58,300 annual salary Texon expects for new workers. Polokoff said he did so within five minutes of the November 19 meeting he and developer Jim Kent had with Noblesville's director of economic development Andrew Murray.
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City officials then asked Polakoff to promise not to move My Inner Baby to the new WoodTurningz building, which he refused to do because he thought he could store baby things there. "Why can't I use the space I have?" he says. But three days later, Polakov accepted that too.
Polokoff, who owns the business with his girlfriend Sabina Kissi, acknowledged the obstacles My Inner Baby faces and told officials he was ready to give up the property. But he says the city limits the people who can outsource their business; That includes a wife, boyfriend or boyfriend, he said.
Eventually, Polokoff said, city officials asked him to shut down My Inner Baby or move it out of Noblesville to honor the development agreement. According to him, he refused and the deal was broken.
Noblesville once "fell in love" with WoodTurningz.When the interim deal was announced in October 2021, Mayor Chris Jensen hailed it as an example of the city's partnership with local businesses.
"We are delighted to see two of the Noblesville businesses thrive with this new investment and work in our community," Jensen said in a press release. "As new investments continue to flow into Noblesville, working with companies that are already here is critical to providing them with the best growth opportunities."
When IndyStar asked Deputy Mayor Matt Light if the deal was canceled because Polokoff had My Inner Baby, city spokeswoman Emily Gaylord said in a statement there were other reasons.
"These early economic developments are not progressing, based on feedback from the steering committee and further analysis of the fiscal component, including relevant average wages," he said.
The email contradicts the city's statement as to why the deal was successfulIn an email on December 28, Deputy Director of Economic Development Chuck Haberman told Kent that the children's store had canceled the deal, acknowledging that Polokoff had met other requirements.
"The city has decided not to increase business," Haberman wrote. "Although they appreciate rising wages and jobs and abandoning ownership, they still feel uncomfortable joining MIB (My Inner Baby)."
Kent, Westfield's chief of design and engineering, told IndyStar that talks became heated as new "barriers" emerged, but Polokoff agreed to make concessions.
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"Whenever he agrees on something, they come back with something different, and things get worse," Kent says, "and they always come back to the baby shop."
When IndyStar unveiled the email's content, the city insisted that wages and other issues were the reason for removing the tax break.
"It doesn't reach the normal average wage threshold," Gaylord said. He said he was "unaware" that city officials asked Polakoff not to move the children's store to WoodTurningz or to relocate the store.
In another November 24 email, Kent said Polokoff was baffled as to why baby shops were an obstacle.
"Knowing that we were able to solve the big proposed salary problem in five minutes, what we were told was a small problem with his ownership of My Inner Baby seems to be turning into a big problem," Kent wrote. . to Murray. "He never thought My Inner Baby would be so disruptive to his independent Woodturningz business."
Kent said Polokoff made a "significant investment" in the project beyond the cost of ownership, including new hires, equipment, steel contracts, bank valuation fees, and building design costs.
"Now that he has agreed to meet and resolve any issues ... he is asking for his tax break proposal to be pushed forward," Kent wrote.
Polokoff has owned My Inner Baby for a year in the light industrial estate at 37 State Road near 154th Street. This is a self-proclaimed medical supply store that sells adult diapers and incontinence products, as well as baby bottles, pacifiers, soft toys, coloring books, pajamas, and adult rompers.
In April, the same day Polokoff informed his landlord that he wanted to renew the lease, he and his landlord received a notice from the city that My Inner Baby was now considered a sex shop and could not. reside in the building. The owner of the house then told Polakov that he wanted to kick him out.
Kent said Polokoff is considering moving WoodTurningz out of Noblesville and exploring other potential locations.
This article originally appeared in Indianapolis Star: Noblesville foiled a $ 5.5 million adult store development deal.