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Marsh to anchor massive new downtown development

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A local developer plans to build a Marsh grocery store and hundreds of apartments in a massive project that would replace a block and a half of surface parking lots in the northwest quadrant of downtown Indianapolis.

The plan by Flaherty & Collins Properties calls for 487 apartments, the grocery store, a parking garage and additional retail space on properties bounded by Michigan Street, Capitol Avenue, Vermont Street and Indiana Avenue.

Much of the land needed for the development—dubbed "Block 400"—is owned by locally based OneAmerica Financial Partners Inc., which uses it for employee parking. To make way for the development, the city would foot the roughly $13 million cost of building a 930-space parking garage for OneAmerica at the northwest corner of Illinois and New York streets.

The total cost of the development, including the city's contribution from tax-increment financing district revenues, will be about $85 million. The deal will not include a property-tax abatement.

Indianapolis Mayor Greg Ballard, Marsh Supermarkets CEO Joe Kelley and officials with Flaherty & Collins announced details of the project at a press conference Tuesday afternoon.

The new grocery store would be a welcome amenity for the neighborhood and nearby IUPUI campus, and it represents a significant milestone for the Fishers-based supermarket chain. It would be the first new Marsh store since 2004.

Marsh also will continue to operate its location in the Lockerbie neighborhood, a top performer for the chain.

The first step in the project would be to build the OneAmerica parking garage, which would include a skywalk across New York Street to the OneAmerica Tower.

Flaherty's plans call for two mixed-use buildings and a parking garage. The Marsh store would be built at the southwest corner of Michigan Street and Capitol Avenue.

Also included in the project is a triangle-shaped parcel bordered by Indiana Avenue, Senate Avenue and Michigan Street where Flaherty had planned a second phase of the Cosmopolitan on the Canal, the company's $33-million mixed-use project immediately to the north.

A groundbreaking for the new project is scheduled for the summer.

___

Visit the Property Lines blog for more about the project, including a rendering.

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  • Nice
    Encouraging move, I personally didn't care for that parking lot
  • PTL!!!
    Praise the Lord! The surface parking lots around the NW section of downtown are the biggest eyesores in town.
  • Is one america donating land
    So, is One America donating the land in return for the $10 million parking garage it is receiving? Who will own the land and property when all is said and done?
  • Finally!
    This is the best all around development proposal I've seen come along for downtown Indy in what feels like decades. Downtown could easily support 10 more of these housing projects to fill in the holes. Its been painfully slow, but this is extremely encouraging. Don't stop now!
  • Way to Go!
    This is precisely the type of redevelopment our downtown needs. Great public/private partnership to get more tax revenue on the books. Yay for no property tax abatement. Love that a homegrown company -- Flaherty & Collins -- is leading the way. Wouldn't have hated Trader Joe's instead of Marsh.
  • Awesome!
    Great Job FnC!! You guys are an asset to the city!

    Thanks Mr. Mayor for helping to spur this kind of development.
  • Details Matter
    Let me guess.

    The city will pay for the 1,000 space parking garage with TIF or 50 year parking lease proceeds, but will give ownership to Keystone Construction like the new Broad Ripple parking garage by using inflated construction cost estimates.

    Park Indy will extend its 50 year monopoly by managing the garage for the city also.
  • Finally...
    Couldn't agree more Marcus. Downtown needs more grocery options....the mini Marsh (Lockerbie) and a Kroger (16th) that looks like it was set up in a dirty closet just aren't cutting it anymore.
  • Sweet
    JJ, the goal is to bring more residents into Marion county to increase income tax revenue so services can improve and our shared tax burden can be reduced. Did you know over 120,000 people work in Marion county but their income taxes go elsewhere? With the property tax cap, we've got to drastically increase our income tax revenue. This type of high-density development is one of many components needed to attract more young (and old) professionals to live downtown. Fixing public transit and education are a couple of others. :)
  • Great News
    Putting the implications of the One America garage aside; this is great news for the NW side of downtown. I am hopeful this leads to further development in the immediate area and I strongly encourage any retail to face Indiana Avenue. We need to ensure we bring life back to this historical street as there needs to be a physical and meaningful connection between downtown, IUPUI and the 16 Tech corridor. New development should also attempt to tips its hat to the history, heritage and culture of the Avenue as it deserves better than suburban architecture and design (i.e. Canal Overlook).
  • Hallelujah!
    The dead sea of parking lots will finally come to life! And another grocery store in downtown will spur even more downtown residential growth. This needs to happen.
    • WHAT?
      Why am I giving 10mill of my money to a private company. Furthermore, I would like to make sure the company has skin in the game. There is alot of difference between 70 and 90 mill. Give the tax payers a break not your fat cat buds.

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      1. Cramer agrees...says don't buy it and sell it if you own it! Their "pay to play" cost is this issue. As long as they charge customers, they never will attain the critical mass needed to be a successful on company...Jim Cramer quote.

      2. My responses to some of the comments would include the following: 1. Our offer which included the forgiveness of debt (this is an immediate forgiveness and is not "spread over many years")represents debt that due to a reduction of interest rates in the economy arguably represents consideration together with the cash component of our offer that exceeds the $2.1 million apparently offered by another party. 2. The previous $2.1 million cash offer that was turned down by the CRC would have netted the CRC substantially less than $2.1 million. As a result even in hindsight the CRC was wise in turning down that offer. 3. With regard to "concerned Carmelite's" discussion of the previous financing Pedcor gave up $16.5 million in City debt in addition to the conveyance of the garage (appraised at $13 million)in exchange for the $22.5 million cash and debt obligations. The local media never discussed the $16.5 million in debt that we gave up which would show that we gave $29.5 million in value for the $23.5 million. 4.Pedcor would have been much happier if Brian was still operating his Deli and only made this offer as we believe that we can redevelop the building into something that will be better for the City and City Center where both Pedcor the citizens of Carmel have a large investment. Bruce Cordingley, President, Pedcor

      3. I've been looking for news on Corner Bakery, too, but there doesn't seem to be any info out there. I prefer them over Panera and Paradise so can't wait to see where they'll be!

      4. WGN actually is two channels: 1. WGN Chicago, seen only in Chicago (and parts of Canada) - this station is one of the flagship CW affiliates. 2. WGN America - a nationwide cable channel that doesn't carry any CW programming, and doesn't have local affiliates. (In addition, as WGN is owned by Tribune, just like WTTV, WTTK, and WXIN, I can't imagine they would do anything to help WISH.) In Indianapolis, CW programming is already seen on WTTV 4 and WTTK 29, and when CBS takes over those stations' main channels, the CW will move to a sub channel, such as 4.2 or 4.3 and 29.2 or 29.3. TBS is only a cable channel these days and does not affiliate with local stations. WISH could move the MyNetwork affiliation from WNDY 23 to WISH 8, but I am beginning to think they may prefer to put together their own lineup of syndicated programming instead. While much of it would be "reruns" from broadcast or cable, that's pretty much what the MyNetwork does these days anyway. So since WISH has the choice, they may want to customize their lineup by choosing programs that they feel will garner better ratings in this market.

      5. The Pedcor debt is from the CRC paying ~$23M for the Pedcor's parking garage at City Center that is apprased at $13M. Why did we pay over the top money for a private businesses parking? What did we get out of it? Pedcor got free parking for their apartment and business tenants. Pedcor now gets another building for free that taxpayers have ~$3M tied up in. This is NOT a win win for taxpayers. It is just a win for Pedcor who contributes heavily to the Friends of Jim Brainard. The campaign reports are on the Hamilton County website. http://www2.hamiltoncounty.in.gov/publicdocs/Campaign%20Finance%20Images/defaultfiles.asp?ARG1=Campaign Finance Images&ARG2=/Brainard, Jim

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