Canal complex wins city incentives

June 26, 2007
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A new apartment and retail complex along the canal has won a 10-year tax abatement worth $2.7 million. Flaherty projectThe Cosmopolitan on the Canal project, by locally based Flaherty & Collins Properties, is slated to include 218 apartment units, 18,000 square feet of retail space and a 338-space parking garage. The $33 million project would be bordered by the canal, Senate Avenue, Michigan Street and North Street. Although downtown apartment occupancy is near 100 percent, city officials say incentives are justified because the project includes canal-level retail, public restrooms and 30 parking spaces dedicated to canal users. Do you agree?
  • On the one hand, it's an abatement on a property that's vacant and generating very little tax revenue right now, so the city isn't losing much. It's not like the city is putting tax dollars INTO the project.

    On the other hand, would the absence of an abatement be deal killer for F&C? Unlikely.

    Public parking spaces, canal-level retail and public restrooms were part of the development when announced. Why is the city giving an abatement and citing existing details?

    If this is any way improves the project or gets it moving faster, I'm suppose I'm for it, but this abatement certainly looks like a hand-out.
  • looks good
  • Without knowing the details I can't say if it's a 'hand-out' or not. However, this property is begging to be developed, and the Cosmopolitan on the Canal project, by locally based Flaherty & Collins Properties, seems as perfect a fit as anything could be. The fact that the project brings retail and public restrooms to the Canal level is huge. The developers bring a solid history of competence and professionalism, and the downtown apartment market is in much need of new stock.

    I hope the groundbreaking is soon, and that the project gets underway so that we can soon have yet another diamond in the jewel of Downtown Indianapolis.
  • Is this the location and the development where the Kansas City firm proposed building over the canal? Is this the same stretch of land or is that still on the table as well?
  • No, this is a different location. The over-the-canal proposal is still on the table. You can read more about it here:
  • There is something else going on other than the 30 parking spaces, retail etc. for a 10-year abatement (which is equivalent to 5 years' savings on a phase-in of taxes over 10 yrs).

    A retail/apartment project on the canal should be big-time successful, unless F&C overpaid for the property. Usually 10-year abatements are reserved for the Lilly type deals, at least in Marion County. I would think the city is largely subsidizing the parking garage, but then they get only 30 spaces????

    Cory, do some digging because the line you're getting fed doesn't add up.....
  • I really like this project and how it brings the Canal into the center of the project. The retail/restaurant space is much needed and hopefully we get some successful restaurants soon. My only complaint is that they should have at least attempted a mid-rise tower of about 10-stories. Flaherty & Collins are doing some terrific tower projects in Charlotte. I see no reason why our 97% occupancy for DT apartments can't sustain a large, 300-unit tower.
  • It looks like a nice building and I'm sure the retail aspect in that part of downtown is welcome.However, if apartment occupancy downtown is so high, WHY are we giving a tax abatement to someone who wants to come into the game? Shouldn't it be a seller's market if the demand is so high?

    Looks like another instance of city government giving away the farm to wealthy developers and continuing to pass the costs on to the individual taxpayers, instead of generating new tax revenue to help fund education and public safety.
  • Great looking project and is my favorite non high-rise project proposed in Indy right now. I would like to know when it is to break ground though? Canal side retail is awesome will do wonders for the canal in the summer in the future!

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  1. Cramer agrees...says don't buy it and sell it if you own it! Their "pay to play" cost is this issue. As long as they charge customers, they never will attain the critical mass needed to be a successful on company...Jim Cramer quote.

  2. My responses to some of the comments would include the following: 1. Our offer which included the forgiveness of debt (this is an immediate forgiveness and is not "spread over many years")represents debt that due to a reduction of interest rates in the economy arguably represents consideration together with the cash component of our offer that exceeds the $2.1 million apparently offered by another party. 2. The previous $2.1 million cash offer that was turned down by the CRC would have netted the CRC substantially less than $2.1 million. As a result even in hindsight the CRC was wise in turning down that offer. 3. With regard to "concerned Carmelite's" discussion of the previous financing Pedcor gave up $16.5 million in City debt in addition to the conveyance of the garage (appraised at $13 million)in exchange for the $22.5 million cash and debt obligations. The local media never discussed the $16.5 million in debt that we gave up which would show that we gave $29.5 million in value for the $23.5 million. 4.Pedcor would have been much happier if Brian was still operating his Deli and only made this offer as we believe that we can redevelop the building into something that will be better for the City and City Center where both Pedcor the citizens of Carmel have a large investment. Bruce Cordingley, President, Pedcor

  3. I've been looking for news on Corner Bakery, too, but there doesn't seem to be any info out there. I prefer them over Panera and Paradise so can't wait to see where they'll be!

  4. WGN actually is two channels: 1. WGN Chicago, seen only in Chicago (and parts of Canada) - this station is one of the flagship CW affiliates. 2. WGN America - a nationwide cable channel that doesn't carry any CW programming, and doesn't have local affiliates. (In addition, as WGN is owned by Tribune, just like WTTV, WTTK, and WXIN, I can't imagine they would do anything to help WISH.) In Indianapolis, CW programming is already seen on WTTV 4 and WTTK 29, and when CBS takes over those stations' main channels, the CW will move to a sub channel, such as 4.2 or 4.3 and 29.2 or 29.3. TBS is only a cable channel these days and does not affiliate with local stations. WISH could move the MyNetwork affiliation from WNDY 23 to WISH 8, but I am beginning to think they may prefer to put together their own lineup of syndicated programming instead. While much of it would be "reruns" from broadcast or cable, that's pretty much what the MyNetwork does these days anyway. So since WISH has the choice, they may want to customize their lineup by choosing programs that they feel will garner better ratings in this market.

  5. The Pedcor debt is from the CRC paying ~$23M for the Pedcor's parking garage at City Center that is apprased at $13M. Why did we pay over the top money for a private businesses parking? What did we get out of it? Pedcor got free parking for their apartment and business tenants. Pedcor now gets another building for free that taxpayers have ~$3M tied up in. This is NOT a win win for taxpayers. It is just a win for Pedcor who contributes heavily to the Friends of Jim Brainard. The campaign reports are on the Hamilton County website. Finance Images&ARG2=/Brainard, Jim