IBJNews

City backs string of high-profile real estate projects

Back to TopCommentsE-mailPrintBookmark and Share
Year In Review
More
Stories
State's economy stuck
                              in neutral Indictment: Durham looted Fair Finance Ballard cruises to second term City backs string of high-profile projects Manning's injury sends Colts into tailspin Downtown mall stung by loss of Nordstrom Right-to-work battle derails legislative session General Assembly overhauls K-12 education Real estate meltdown leaves developers reeling Spate of Indiana firms lines up for IPOs Rolls-Royce relocated 2,500 jobs to downtown Openings launch new era for tourism biz Patent expirations up pressure on Lilly Las Vegas crash saps IndyCar momentum


Newsmakers
Simon
                              takes on Amazon.com Melangton Daniels White in crosshairs as reformers target IPS

The administration of Mayor Greg Ballard found its stride in the final year of its first four-year term, at least when it comes to major publicly supported real estate projects.

The largest by far was CityWay, a $156 million mixed-use development now under construction at Delaware and South streets.

The complex, to be built primarily on Eli Lilly and Co.-owned parking lots, calls for a boutique 157-room Dolce hotel, a YMCA branch, 320 apartments and 40,000 square feet of retail and office space, all developed by locally based Buckingham Cos.

Taxpayers are acting as the project’s bank, putting up nearly every dollar used to build it, chiefly by loaning $86 million raised from the sale of municipal bonds.

As IBJ reported in April, taxpayers are shouldering most of the risk in the no-bid deal, while the potential for a tangible profit rests squarely in private hands.

Buckingham stands to cash in every step of the way, earning fees for all three of its divisions—development, construction and property management. And Lilly gains a new amenity for its corporate campus while cashing out of a 20-year-old arrangement with the city that required the company to make periodic payments on infrastructure bonds.

Elsewhere in Indianapolis, the city agreed to kick in $6.3 million toward a new parking garage in Broad Ripple that also will feature first-level retail. The project would replace a long-vacant service station and help alleviate a parking crunch in the area.

But critics of the $15 million project, including members of the Broad Ripple Village Association, question the new retail space and the rationale behind such a rich city subsidy.

City officials refused to share financial projections for the construction and operation of the 350-space parking garage, describing the documents—which developer Keystone Construction filed as part of its bid—as a “trade secret” exempt from public disclosure.

In a 2007 study, Walker Parking had reported the selected site would be inappropriate for a parking garage and that such a structure should cost about $15,000 per space. The $6.35 million subsidy for Keystone works out to more than $18,000 per space.

Construction has begun on a project to convert the former Bush Stadium into 268 apartment units, whose rents will range from $480 to $1,400 per month. The stadium’s façade will be preserved.

The $23 million project, led by developer John Watson, is set to get a $5 million infusion from the city.

Finally, the city sought bids for the redevelopment of a 1.45-acre property at Massachusetts Avenue and New Jersey Street occupied by the Indianapolis Fire Department. The city had not yet picked from among five bidders. The project is expected to cost $30 million to $50 million.•

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Angela IS the best RD

  2. We are a nation of speed. All of our younger lives are filled with deadlines, quotas and bottom lines. We start to ease out of the pressured rat-race when we finally see "retirement." The most enjoyable travel on the planet is passenger rail service. Indy to Chicago does not beat Megabus or Southwest Airlines in speed. Passenger rail however has the best seating, mammoth legroon, seat backs that recline to more than 45 degrees and employers that really want you to return as a customer. Indiana municipalities need to maintain subsidies to support this transportation mode. Losing it is loss for all of us.

  3. Good day! I just want to testify how i got my loan from Mr. Eric Lefkofsky after i applied several times from various loan lenders who claimed to also testify right in this forum,i thought the testimonies where real and i applied but they never gave me loan. I was in need of an urgent loan to start a business and i applied from various loan lenders who promised to help but they never gave me the loan. Until a friend of mine introduce me to this popular Mr. Eric Lefkofsky who promised to help me and indeed he did as he promised without any form of delay. I never thought there are still reliable loan lenders until i met Mr. Eric lefkofsky who indeed helped me with the loan and changed my belief. I promised to share this testimony after I got my loan. I don't know if you are in any way in need of a genuine and urgent loan,free feel to contact Mr. Eric Lefkofsky via their email{grouponfunding@hotmail.com}

  4. Its a THUG issue. Bleecker Street and NYX are thug bars. They attract thugs of all races. Places that attract thugs need to be kicked out of Broad Ripple. Ain't nobody got time for that!

  5. Hello everyone, My name is Marian Gareth, I am from the Texas, United State, am here to testify of how i got my loan from Mr Andre Frank {frankloancompany@yahoo.com} after i applied Two times from various loan lenders who claimed to be lenders right in this forum,i thought their lending where real and i applied but they never gave me loan. I was in need of an urgent loan to start a business and i applied from various loan lenders who promised to help but they never gave me the loan.Until a friend of mine introduce me to Mr Andre Frank the C.E.O of Andre Frank Loan Company who promised to help me with a loan of my desire and he really did as he promised without any form of delay, I never thought there are still reliable loan lenders until i met Mr Andre Frank, who really help me with my loan and changed my lief for better. I don't know if you are in need of an urgent loan, free feel to contact Mr Andre Frank on his email{ Frankloancompany@yahoo.com} for help

ADVERTISEMENT