Indianapolis Mayor Greg Ballard and officials from Cummins Inc. today (March 26) announced plans for the company to locate its global distribution business headquarters from Columbus, Ind., and consolidate existing Indianapolis-based employees in a new downtown office building.

According to a press release, the global distribution business is one of Cummins’ four business units. The company plans to build its new Indianapolis office center on approximately four acres that previously housed Market Square Arena.

The company’s initial plan for the site includes an office building with ground floor retail, a training center, public greenspace and a parking garage on parcels bordered by Market, Alabama, Washington, and New Jersey Streets. The building will initially house up to 400 employees with future expansion possible. The company currently has approximately 100 employees working in two separate offices downtown.

Cummins will purchase the property for $4.3 million while Indianapolis will invest $3.3 million in infrastructure improvements and parking on the site and abate 70% of the development’s property taxes for 10 years. While design is not yet under way, Cummins said it is committed to contributing a significant architectural element to the downtown Indianapolis landscape that will be a great environment for its employees and a welcoming presence for the community.

Construction on the new building is expected to begin within the year and open by late 2016.

“We are pleased to announce that Indianapolis will serve as our global distribution business headquarters, while Columbus, Indiana, where our company was founded 95 years ago, will continue to serve as Cummins’ global corporate headquarters,” said Pamela Carter, president, Distribution Business, Cummins Inc.

Carter added, “The creation of a global headquarters for our distribution business takes a significant step toward our longstanding strategy of transforming the business through an expanded global footprint capable of supporting our customers and providing legendary sales, service and support. The move will facilitate better collaboration among our employees and accommodate growth resulting from the North American distribution business acquisitions.”