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City picks team for $15M Broad Ripple parking garage

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Mayor Greg Ballard on Monday announced the city’s selection of a developer and operator for a $15 million mixed-use Broad Ripple parking structure planned for the southwest corner of the intersection of Broad Ripple and College avenues.

Indianapolis-based Newpoint Parking, Keystone Construction and Ratio Architects are teaming up with Michigan-based Walker Parking Consultants on the project. Their plan was selected after the city put out a request for proposals in March.

Broad Ripple multi-use parking structure Work on the $15 million project is set to start this summer. (Rendering courtesy city of Indianapolis)

The parking garage will include about 350 parking spaces, with retail space and a police substation on the first floor.

The city will contribute $6.35 million to the project using the upfront payment from the parking meter privatization deal, which must be used to fund infrastructure projects in the downtown, Mass Ave and Broad Ripple areas. The project will not receive a tax abatement and is expected to generate about $350,000 in property taxes per year.

Construction is set to begin this summer and the facility is expected to open by spring or early summer 2012. The site now is home to a Marco's Pizza store and shuttered Marathon gas station.

“Broad Ripple Village has long needed a garage of this magnitude to alleviate parking issues and allow for implementation of a residential parking permit system on neighborhood streets,” Ballard said in a prepared statement. “Visitors to the Broad Ripple area will have a safe, secure, well-lit area to park their cars, while residents and their guests will more easily be able to find on-street parking near their homes.”

Since the request for proposals was made public, interest in the project has been intense, city officials said. Bidders included prominent local developers, including Kite Realty Group and Browning Investments. Another former gas station, the area behind the Vogue nightclub and space near the Riviera building on Westfield Boulebard also were mentioned as possible sites for the parking facility.

“The city of Indianapolis received several proposals for this project and found this proposal offered the best solution to address Broad Ripple Village’s needs for daily and monthly parking,” said City-County Council President  Ryan Vaughn, whose district includes Broad Ripple. “We have worked with the Broad Ripple Village Association and other partners over several years to arrive at a plan that offers great retail space that will be an additional amenity for the community.”

Operators will set rates for parking at the garage, but the city said it will have oversight and the ability to cap the rates. A public meeting in late July will allow residents to provide comment on the plans for the garage. Creation of the garage allows for discussion to begin on a residential-permit parking program, which cannot be implemented until the garage is built to provide parking for Broad Ripple visitors.

All revenue from the garage will go to the private operators.

“This high-performance mixed-use structure will transform an eyesore into an asset and stimulate much-needed infrastructure improvements,” said Broad Ripple Village Association board member Tom Healy. “We look forward to working with the developers and the city to create a dynamic Village gateway.”

Weigh in on the plan at IBJ's Property Lines blog.

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  • Where's Joe Hogsett?
    This is an ambitious and outrageous crime. Were any of us to steal $6 million from the City, cops would track us to the ends of the earth.

    If, however, the City colludes in the theft and launders $6 million in criminal proceeds through a building project, the rubes are too dumb to see that a massive crime occurred.

    What regularly occurs in Indy would be shocking if it occurred anywhere else. How can you people not understand that you are being embezzled by your government? The City regularly transfers taxpayer dollars to private parties, and you people can't understand that one of the largest crimes in American history is ongoing, right under your noses.
  • oh, I think I get it
    So taxpayers pay for a portion of a parking garage that wouldn't ever have been built if not for the state subsidization? I think that's a pretty decent deal, considering the problems that this parking issue has caused Broad Ripple for the past number of years. I find the benefits of this parking structure to be far more beneficial to Indianapolis residents than the parking meter deal.

    It's just my opinion. I'm here stating it like you're stating yours, Fred. But I also work to make things better instead of just posting about them online.
  • The point it...
    Justin, you missed the point. The problem is not the project. The problem is the City's taxpayers putting in $6 million to build the thing and getting no ownership interest and no income. And a big contributor of the Mayor and employer of his former Deputy Mayor, Paul "I Love to Spend Taxpayer Money" Okeson, Keystone Construction got the contract.
  • I like it
    I am in favor of this project. Once the permit parking goes into effect (on the residential streets) this will greatly alleviate the the issue that has kept Broad Ripple in the headlines for the past few years: crime. Tom Healy said it best: "this structure will not fix every parking issue in Broad Ripple, but it's a big step in the right direction."

    If the city waited on a proposal that made everybody happy, nothing would ever get done. There is a reason that the committee which reviewed the proposals allowed two "civilian" members from the BRVA board of directors to join (this has never happened before an Indy project to my knowledge). The committee members chose the project that is best suited for the community. I think they did a great job and that the positives greatly outweigh the negatives.
  • Not a Bid
    Joe, this job was not bid out as that term was used. They did an RFP. I don't know why you think this deal is better than the parking meter deal, which admittedly was awful. We are paying 40% of the cost of the building and getting no ownership and no revenue off the building. Only Mike Huber and Paul Okeson would negotiate such a deal that screws over the city that badly. Of course they probably both worked on the deal.
  • FYI
    Keystone Construction is owned by Ersal Ozdemir, who is pretty active in Republican party.
  • Who negotiated this deal?
    I am not an insider, so I am just using publicly available info. The project manager who is overseeing the RFQ process is Kurt Fullbeck. Once the bids were submitted, the city’s selection committee, which included a pair of Broad Ripple neighborhood leaders, chose a concept. My guess is that Michael Huber, the city’s deputy mayor for economic development, played a large role in the whole process. Considering the awful deal they negotiated for the parking meters, this one is not bad. And I am surprised how little time it took them from the bidding process to finish (if we can trust the dates provided in this article).
  • Business as Typical
    The problem is the taxpayers are putting up nearly half of the money on this deal. We get no ownership of the building and we get no revenue off of it. The only thing we taxpayers get, arguably, is more property tax revenue. Who is "negotiating" these deals for the City?
  • not my point
    Fred - I was just showing an easier way to calculate return on investment for the city, regardless of what you expect the property tax to be. I have no idea if that number is realistic or not, and I doubt your guess is any better. In most cases, building a parking garage requires a city subsidy.
    Again, in my perfect case scenario, we would not even need a garage, but we would be focused on increasing density and developing mass transit. But I understand that's unrealistic to expect in Indy. So, I am giving this project a tentative B grade for now. Of course this grade takes into consideration limitations of local government, local mentality, financial constraints, housing recession, etc... In other words, I have learned to have low expectations.
    At least, now we have both ends of BR avenue developing (east end with recent additions of Three Wise Men and another restaurant soon to be open).
  • Shame
    Agree with Joe and Bird. This is a prime location for a mixed-use development that could involve residential and commercial space, as well as ample parking. While the first-floor retail keeps this from being total dud, is this really the highest and best use for such a critical intersection, also fronting the canal? Does it help promote residential density and pedestrianism in a city that generally lacks it? Whether this would be needed if Indy had decent transit is open to debate, but a parking structure--if they are to build one--hardly needs to be front and center like this, regardless of need. People will find it and use it if it's in a back alley.

    From the rendering, it looks like a Walgreens. Horrible site selection.
  • This works but a 2nd Garage $ Retail is needed on the East End
    Do the same thing where the old lumber yard use to be next to the trail and then you have the answer for all parking whohs in Broadripple and some great added retail
  • Funny Math
    Joe, I'm sorry, I was lost on YOUR funky math assuming they'll get $350,000 in property taxes a year. Here's a hint. The City lies A LOT.
  • parking
    It's about time.
  • Projections For Suckers
    This property will most likely not produce $350,000 in taxes each year.

    The assessed value based upon market value or income approach with property tax cap reflect this number a very optimist projection.

    How much did Chad Miller say the parking garage on Market Street was projected to pay??? How much are they really paying?

    Point made.
  • Terrible Location
    I agree that the location would be better served by mixed use. No matter how the designers handle this, and they are capable, it is a parking structure. There are better locations to place a needed deck. This continues the sad demise of BR's potential to be a beautiful hub of activity. Thanks Ballard
  • Ownership
    Will the city own the garage? If not, why is the city providing $6.35 million?
  • MARKET value
    Our assessments are based on market value, not income value. The garage assessment would be based, ostensiblly, on what someone would be willing to actually pay for the garage and/or land -- NOT on the income the property might/might not produce.

    The location of the garage troubled me at first due to the crazy corner, traffic, etc. That said, it is certainly in the one spot everyone passes before they get to "the strip." That should encourage use. Were the garage in a hidden or obscured spot in BR,it would be more of a hassle and, perhaps, be less used.
  • ?
    Your math doesn't add up...firs, you are ignoring 1st floor which is retail, and secondly, if you want to measure return on investment for the city, then you should take $350K / $6.35M = 5.5%. This is very simplistic, because it doesn't take into account other benefits of this investment, but it's better than whatever "funky math" you did.
  • 350K in property taxes
    Based on the 3% commercial property tax cap, that must mean our legislators are anticipaing a assessment of $11,666,666. Since our assessments are supposed to be based on market value, that means each parking space is "worth" $33,333. That also means each and every parking space will have to claim AT LEAST $200 bucks a month. Although it will probably take closer to $250 a month. That equates to $8.33 a day per space. And that doesn't even take into account that a lot of spaces will be vacant sometimes. If they are going to eliminate street parking, this might work. This seems like a poor investment of tax dollars.
  • good, not best
    Anything is better there then the eyesore, but that PRIME location would be better suited for mix of residential/commercial development. Nevertheless, I live about 2 min walking distance from there and I welcome the investment.

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