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Historic downtown building poised for overhaul

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A minority-owned engineering and architectural services firm will spend almost $2.3 million renovating a century-old building at Delaware and Maryland streets that it bought to house its local headquarters.

DLZ Indiana closed on the purchase of 157 E. Maryland St. in September and expects to begin construction in late December, said Mark Jacob, a vice president at DLZ who runs the local office for the Columbus, Ohio-based firm. The total project cost, including the purchase price, is $3.3 million, he said.

When the project wraps up in August, the firm will have a headquarters with 31,000 square feet of office space, more than double the size of its current office. DLZ will occupy the basement and the entire second, third and fourth floors of the four-story building. It will eventually occupy the entire first floor but initially will find another professional services firm to lease a 2,900-square-foot, street-level space .

DLZ will move from 14,900 square feet it leases in the Century Building, at 36 S. Pennsylvania St. Jacob said the firm has been a tenant in the Century Building for at least the last decade and has been a downtown renter of office space for more than 30 years.

It has applied for a property tax abatement that is expected to save the firm almost $66,000 over the five-year term of the abatement. Develop Indy, Marion County’s economic development organization, has recommended that the abatement be approved. Final approval is expected from the Metropolitan Development Commission Dec. 15. DLZ said in its abatement application that it will add six people to its local staff of 54.

It also plans to seek LEED Silver Certification, an environmental designation. A complete overhaul of the building, including reuse of existing building materials and a water-use reduction system, is expected to help it achieve that designation. Jacob said completely recasting the building’s interior makes it possible to do such things as install the heating and cooling system in floors rather than ceilings, which is more energy efficient. The building also will have facilities to accommodate employees who wish to bicycle to work.

The building is located in the historic Wholesale District, where building improvements require approval of the Indianapolis Historic Preservation Commission. That approval, which came in November, required some compromises in the firm’s pursuit of an environmentally friendly headquarters. For example, rather than replace the building’s historic windows, DLZ will install thermal glass in the existing frames.

The firm has been looking for a downtown building to buy for four or five years, Jacob said. Some properties it considered, including the building at Washington Street and Virginia Avenue that now houses Broadbent Cos., were too big. Others were too small or too far from the heart of downtown.

Jacob said owning and renovating a building gives the firm an opportunity to hire minority-, veteran- and women-owned contractors for everything from construction to building maintenance. “We want to use as many minority -wned firms as possible in this project.”

That is the firm’s way of giving back economically to a city where its business has grown steadily over the last 10 years. The company’s Indiana headquarters is in South Bend. It also has locations in Burns Harbor and Fort Wayne.

It employs more than 300 people in Indiana who work primarily on government infrastructure projects. Among its projects is a new juvenile corrections facility in Pendleton, a correctional complex in Elkhart and the LaPorte County Jail.

DLZ is the lead consultant for the wastewater and stormwater management programs of the city of Indianapolis. Jacob said the stability of government contracts gave the firm confidence it was OK to invest in a headquarters building.

Built in 1909, DLZ’s new headquarters was designed by the firm Rubush & Hunter, a prominent firm at that time that also designed the Murat Centre, the Madame C.J. Walker Building and the Hilbert Circle Theater. The first tenant in the building was Kothe Wells & Bauer Co., a vegetable canning business.   

The building has been occupied since 1989 by Marion County Community Corrections, which operated a work release program on the building’s second, third and fourth floors until February 2009. Those floors are vacant. The first floor is being vacated this week when Community Corrections moves a processing center to the former Lawyers Title building at 140 E. Washington St.
 

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  • MBE vs DBE
    I think Kent is confusing MBE with DBE. The MBE designation indicates that 51% or more of the ownership is by a federally recognized minority group (or groups). There is no size minimum or maximum. DBE is the designation for a "disadvantaged business enterprise" and is typically a small business that is minority- or woman-owned.
  • More is Better?
    With property tax caps, why de we need abatements anymore? When a firm has at least $45 Million in City contracts, why another favor? In fact, how are they still a MBE firm when they when they are alleged to gross +- $100 Million a year statewide mostly from taxpayer based contracts? That is no hardship, disadvantaged, or underpriviledged business operation. The LEED thing is good, and a rehab of the building is fantastic, and I'm sure they would have done all this without another handout from the governement, the same government that does expect political contributions.
  • Green Tax Abatement
    MDC should *require* LEED certification when granting tax abatements. Too many businesses are granted abatements simply because they are in business. DLZ would likely stay downtown and add 6 employees without the $66K bonus.

    Meanwhile, many non-profit Community Development Corporations struggle to pay property taxes on parcels they are holding for future development (because PTBOA has denied exemptions...) , even though the CDCs contribute more to the local economy in the long-term than private companies seeking abatement.

    How much longer will it take for Indiana legislators recognize that neighborhood development is economic development?
  • Great News
    Nice....this will add some much-needed life to that area. Between the jail, two parking garages, a parking lot, and the back door service entrance to Scotty's, this corner is a pedestrian disaster.

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  1. With Pence running the ship good luck with a new government building on the site. He does everything on the cheap except unnecessary roads line a new beltway( like we need that). Things like state of the art office buildings and light rail will never be seen as an asset to these types. They don't get that these are the things that help a city prosper.

  2. Does the $100,000,000,000 include salaries for members of Congress?

  3. "But that doesn't change how the piece plays to most of the people who will see it." If it stands out so little during the day as you seem to suggest maybe most of the people who actually see it will be those present when it is dark enough to experience its full effects.

  4. That's the mentality of most retail marketers. In this case Leo was asked to build the brand. HHG then had a bad sales quarter and rather than stay the course, now want to go back to the schlock that Zimmerman provides (at a considerable cut in price.) And while HHG salesmen are, by far, the pushiest salesmen I have ever experienced, I believe they are NOT paid on commission. But that doesn't mean they aren't trained to be aggressive.

  5. The reason HHG's sales team hits you from the moment you walk through the door is the same reason car salesmen do the same thing: Commission. HHG's folks are paid by commission they and need to hit sales targets or get cut, while BB does not. The sales figures are aggressive, so turnover rate is high. Electronics are the largest commission earners along with non-needed warranties, service plans etc, known in the industry as 'cheese'. The wholesale base price is listed on the cryptic price tag in the string of numbers near the bar code. Know how to decipher it and you get things at cost, with little to no commission to the sales persons. Whether or not this is fair, is more of a moral question than a financial one.

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