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City pitching in $38M for $192M Clarian project

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The city is kicking in up to $38 million for infrastructure upgrades to support a massive expansion of the Clarian Health campus at 16th Street and Capitol Avenue.

The $192 million project, which calls for a new neuroscience unit and administrative building, will cover about six city blocks and create about 1,200 new jobs, Indianapolis Mayor Greg Ballard and Clarian CEO Daniel Evans announced Thursday.

Clarian Neuroscience Center renderingClarian's planned Neuroscience Center is a centerpiece of the project. (Rendering courtesy city of Indianapolis)

The project, a partnership between Clarian, Shiel Sexton and Indiana University, also would create about 1,700 temporary construction jobs and move exempted properties back to the tax rolls.

IBJ has reported extensively on the project since January, revealing the number of jobs expected and project cost in one September report and details about the new neurosurgery unit in another.

Shiel Sexton owns all the land east of Capitol Avenue from 14th Street to 16th Street with the exception of Indianapolis Fire Station No. 5 at 155 W. 16th St. The city plans to transfer ownership of the property from the Department of Public Safety to the Department of Metropolitan Development, which in turn will give it to Shiel.

The city's estimated contribution would come from a downtown tax increment finance district, the same source of the city's support for the proposed North of South project. About $6 million would go toward a new fire station to replace Station No. 5, another $1.5 million would go toward remediation of brownfield sites, and the balance would pay for roads, sewers and utility improvements, city officials said.

Construction is set to begin in November with completion in 2012.

Clarian has said the 1,187 jobs it expects to create would have an average annual salary of $46,925. The range would run from $27,000 for clerical staff to as high as $104,000 for management.

The project centerpieces are a five-story, 280,000-square-foot administration building and a five-story, 247,000-square-foot neurosciences center. Also included in the project is a seven-level, 1,100-space parking garage with 35,000 square feet of retail and medical office space on the first floor.

Clarian also is planning to build a bed tower at Methodist. The tower would have 175 to 250 beds and allow Methodist to make all its rooms private. Right now, half of Methodist’s 760 beds are in pairs in shared rooms.

Clarian predicts it could spend $375 million to $500 million on the project, which would not be complete until mid-2015.

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  • Really?
    So you think giving away millions of dollars of TIF money to a priate company that will be taking the properties off the tax rolls is a good investment. Funny if the money is going to roll in, why didn't the private sector invest the money.
  • Fishy Deal
    Do We The People Trust OUR government. This is a Fishy smelling DEAL -again- Who is going to own the buildings? The contractor? SWEET tax deal at our expense. Go Sheil Sexton, CONGRATULATIONS !
  • Facts Keep Getting in the Way
    City Press Release:

    â??This development also means remediation of brownfield sites and unsafe buildings, adding exempt properties back to the tax base, investment in public infrastructure, and investment in public safety.â??

    All phases of the development add up to a $192 million total investment in Marion County and will move previously exempt properties back to the countyâ??s tax base.

    (So why is Clarian's CEO Dan Evans say he may not pay property taxes at the formal announcement?)

    http://www.insideindianabusiness.com/newsitem.asp?ID=44163
  • Good business deal for the City
    I attended this press conference. Great energy because of the optimism for this project. This will boost IU, Clarian and Indianapolis into the big leagues for medical research as a destination worldwide like a Mayo or Cleveleand Clinic. There is WAY more to this than improving streets and sewers. We will become a treatment mecca. And in will flow the money.
  • what's happening?
    We have the city selling (leasing assets) to private contractors because they can't manage them and now invest in 2 private ventures...amazing
  • Peanuts
    This is peanuts. Carmel is spending hundreds of millions on constructing an entertainment venue and probably $7 million every year just to run it. At least, in this case, Indy is responsibly spending money to actually make a difference.
    • Response
      If that's the case, the city apparently is not on board. Here's word-for-word what the mayor's office said in its statement today: "All phases of the development add up to a $192 million total investment in Marion County and will move previously exempt properties back to the county's tax base."
    • You Just Got Mugged
      "Dan Evans, chief executive of Clarian, said financing needs might dictate the ownership be a nonprofit, which means the new buildings would be off the tax rolls."

      http://www.indystar.com/article/20101014/LOCAL18/10140405/City-plans-35M-for-Clarian-neuroscience-site-near-Methodist?odyssey=tab|topnews|text|IndyStar.com
    • Red Flag
      Clarion CEO says property may be non profit, thus will be off the tax rolls.

      So we are giving the Clarion hospital system that runs for profit hospitals everywhere in the state except downtown Indianapolis, tax exempt money backed by taxpayers for a project that will be structured to pay no taxes in the future??????

      Clarion should lose it's non profit status for it's downtown Indianapolis campus as part of this deal.

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