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City leaders look to 16th Street as future tech hub

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City officials on Thursday unveiled a long-term plan to redevelop an industrial stretch northwest of downtown with the goal of attracting hundreds of residents and dozens of high-tech companies to the area.

The ambitious urban renewal effort, dubbed the 16 Downtown Technology District, builds from a strategy discussed over more than a decade to turn the corridor between IUPUI and 16th Street into a life-sciences research hub.

City leaders, including Mayor Greg Ballard and representatives from Develop Indy, the city’s economic-development arm, say the time is ripe—even in an economic slump—to bring the plan to life.

The idea is to create a trendy urban district where residents can live within blocks of work. The project could require $15 million to $20 million in public investment and hundreds of millions of dollars in private investment. It is expected to take 10-20 years to complete.

The plan relies heavily on being able to lure companies interested in locating near what some say already is an emerging technology-and-life-sciences hub near Indiana University research facilities.

“Companies and the creative class want to be in an environment like this,” said Nancy Langdon, who is leading the project for Develop Indy. “We want to broaden our viewpoint so we attract a variety of high-tech businesses.”

Langdon and others say a few building blocks already are taking shape for the project.

Officials said a final agreement is near for the redevelopment of the historic Bush Stadium site, which is wedged between 16th Street and the White River near Harding Street.

Developer John Watson will build 268 units around the stadium façade, which will be preserved, and near the baseball diamond where the Indianapolis Indians played until 1996. Rental rates for the units will range from $480 to $1,400 per month. The project is expected to be complete by August 2013.

The city is contributing about $5 million to the $23 million project, including tax dollars generated in the area and more that will be transferred from the consolidated downtown tax-increment financing district. Watson said he also is seeking a federal loan to help finance part of the project.

Indianapolis also will invest another $3 million in public money to renovate Indiana Avenue from roughly 10th Street to 16th Street with new landscaping, walking paths, bike lanes and other streetscape elements designed to brand the area. That funding will come from initial proceeds from the sale of the city’s water and sewer utilities to Citizens Energy Group.

Other projects already underway—including a $3 million expansion of the Herron School of Art and Design and mixed-use apartment projects being built near Indiana Avenue by developers Buckingham Cos. and Trinitas Ventures—also signal energy in the area, leaders of the initiative say.

“You’re going to really start changing the way people view this area,” said Brad Hurt, a Crawfordsville-based economic development consultant who worked on the project. “There’s been a lot of momentum established already.”

A lot more movement is needed, though, for the ambitious plan to become reality.

The city is promoting about 120 acres in the area as available space for development or redevelopment. About two-thirds of that is owned either by the city or Indiana University or its affiliates, which have been a partner in the effort.

The rest are privately owned, and it will take effort—and possibly a public subsidy—to acquire and assemble those properties, said Dennis Dye, executive vice president of Indianapolis-based commercial real estate firm Browning Investments.

Lots of public money also will be needed for infrastructure. The city has not yet solidified a funding source, but if the pending utilities sale is approved by state regulators, that could free up tens of millions.

Despite the tough economy, experts such as Dye say the venture is a timely opportunity for the city to undertake.

“There’s probably no better time to do it,” Dye said. “The private side of the world can’t do it without an initiative like this occurring.”

To see renderings of the plans, visit IBJ's Property Lines blog.

 

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  • 16 Tech and Taxpayer Money
    It is grossly unfair to charaterize all recipients of Medicaid and other government funded programs as people who don't want jobs. In my long life I have known many many people who would love to be able to work. So, don't generalize.
  • OK
    Corporate investment has a far broader impact than social investment..i.e. medicaid and pp. i think it's great that the city is using taxpayer money to grow jobs instead of waste it on those that dont want to look for them.
  • Developers' Contribution
    So, Riverside Resident, you actually believe the investor will put up 75%? What proof do you have that will ever happen?

    It's just a numbers game, and the City has a history of lying about the numbers. This is all about sweetening the pot with taxpayer money.
  • Dead Zone
    I'm glad there is finally some movement to build a downtown technology park. However, I can't imagine anyone wanting to live along 16th and Indiana Ave -- it's dreary and there is nothing to do around there. Regardless I hope its successful and brings more residents and quality jobs closer to downtown.
  • Developer Putting up 75% of the cost
    Fred, In case you did not notice, the developer is putting up 75% of his own money to make the project move forward. That certainly does not fall in the range of making the tax payers take all the risk.
  • Plan Is About Handing Out Taxpayer Money
    Let's be real. No private lender would ever support this project because it's too risky. Instead the developer gets the City, i.e. we taxpayers, to put up our hard-earned money and take all the risk. In the meantime, some campaign contributor the Mayor's, like Keystone Contrustion, makes out like a bandit.
    • Encouraging
      This is very encouraging news for the near-northwest side. Regenerating this area from industrial to tech/residential is a strong plan and one which should be sure to protect the existing neighborhoods in the area.

      There are a number of long-term residents, especially north of Attucks, which the city should work with to ensure they can remain in their homes while development occurs around them. We should look for opportunities to combine the history of the area with new development. The residents of this area bring a face and heart to the area which should not be blindly paved over.

      From a purely physical aesthetic and interactive perspective, we should also do everything possible to ensure the renovation of Indiana Avenue stretches south of 10th all the way to New York Street. IUPUI and downtown must be physically connected to this effort to ensure employees and residents of the tech area interact with the residents and students of IUPUI as well as the residents and employees of downtown Indianapolis.

      Looking forward to seeing this area develop and stengthen the connection with downtown over the coming years.

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      1. Apologies for the wall of text. I promise I had this nicely formatted in paragraphs in Notepad before pasting here.

      2. I believe that is incorrect Sir, the people's tax-dollars are NOT paying for the companies investment. Without the tax-break the company would be paying an ADDITIONAL $11.1 million in taxes ON TOP of their $22.5 Million investment (Building + IT), for a total of $33.6M or a 50% tax rate. Also, the article does not specify what the total taxes were BEFORE the break. Usually such a corporate tax-break is a 'discount' not a 100% wavier of tax obligations. For sake of example lets say the original taxes added up to $30M over 10 years. $12.5M, New Building $10.0M, IT infrastructure $30.0M, Total Taxes (Example Number) == $52.5M ININ's Cost - $1.8M /10 years, Tax Break (Building) - $0.75M /10 years, Tax Break (IT Infrastructure) - $8.6M /2 years, Tax Breaks (against Hiring Commitment: 430 new jobs /2 years) == 11.5M Possible tax breaks. ININ TOTAL COST: $41M Even if you assume a 100% break, change the '30.0M' to '11.5M' and you can see the Company will be paying a minimum of $22.5, out-of-pocket for their capital-investment - NOT the tax-payers. Also note, much of this money is being spent locally in Indiana and it is creating 430 jobs in your city. I admit I'm a little unclear which tax-breaks are allocated to exactly which expenses. Clearly this is all oversimplified but I think we have both made our points! :) Sorry for the long post.

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