IBJNews

Trail Side project faces another hurdle

Back to TopCommentsE-mailPrintBookmark and Share

The would-be developers of an apartment and retail project planned for the 800 block of Massachusetts Avenue are in a race against time to keep the project on track after encountering a delay in its financing.

Trail Side, a $10 million apartment and retail building planned for 875 Massachusetts Ave. on a site owned by the Center Township Trustee's Office, was to have broken ground by now. But difficulty in closing the sale of tax credits that will be used to finance the project could cause the deal to unravel.

The closing must happen soon, probably by the end of the year, to keep the project on track.

The sticking point is the ground lease signed by the Center Township trustee, said Bill Gray, executive director of Riley Area Development Corp., which is co-developing the project with Monument Realty. The ground lease is for 45 years, but the firm lined up to purchase the tax credits wants a 55-year lease.

Gray said he’s optimistic a 10-year extension of the ground lease can be negotiated in the next 45 days. For that to happen, the Center Township board must agree to issue a request for proposals from developers interested in the 10-year extension.

Another option is to find a buyer for the credits who can live with the 45-year ground lease that’s already been signed.

Banks and other investors buy such credits to offset profits. Evan Voight, a financial analyst for Herman & Kittle Properties, a local firm that develops affordable housing using tax-credit financing, said the market for such credits was depressed but has improved this year. Voight's firm is not involved in the Trail Side deal.

The four-story Trail Side project has been in the works for more than two years. Neighbors of the project are eager to see it proceed as a way to add residents and more retail activity to that stretch of Massachusetts Ave.

The development is to include 10,900-square-feet of first-floor retail space and an underground garage with 69 parking spaces. The second, third and fourth floors would house 69 one-bedroom apartments renting for between $325 and $700 a month to tenants with incomes between 30 percent and 60 percent of the median income.

Neighbors initially had opposed the project because of fears it didn’t include enough parking. Plans were changed last spring to add the garage, which eliminated their objections.

One of those neighbors, Tom Battista, who owns a building across the street that houses R Bistro restaurant and several other tenants, was disappointed to hear about the financial snag. “We were hoping they’d get it done as fast as they could,” he said. As it is, his tenants face a vacant, one-story brick building that does nothing to attract more customers to the area.

Demolition of that building, which is owned by the trustee's office and would be replaced by Trail Side, could begin in January if the financial issues are settled, Gray said. Construction would begin immediately after that and take about eight months.

The demolition and building site is adjacent to the newly opened northeast leg of the Cultural Trail. Gray said plans have been made to make sure the trail remains open during demolition and construction.

ADVERTISEMENT

  • Get Moving!
    This sounds like a great plan to add a lot of energy to Mass Ave. I think of all the areas in the city, Mass Ave can truly be our fame or our destination. Let's do what we can to promote its proper development. We need people. Careful not to overload the strip with commercial and especially not chains. Keep up the good work Riley Area Development Corp!

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. How much you wanna bet, that 70% of the jobs created there (after construction) are minimum wage? And Harvey is correct, the vast majority of residents in this project will drive to their jobs, and to think otherwise, is like Harvey says, a pipe dream. Someone working at a restaurant or retail store will not be able to afford living there. What ever happened to people who wanted to build buildings, paying for it themselves? Not a fan of these tax deals.

  2. Uh, no GeorgeP. The project is supposed to bring on 1,000 jobs and those people along with the people that will be living in the new residential will be driving to their jobs. The walkable stuff is a pipe dream. Besides, walkable is defined as having all daily necessities within 1/2 mile. That's not the case here. Never will be.

  3. Brad is on to something there. The merger of the Formula E and IndyCar Series would give IndyCar access to International markets and Formula E access the Indianapolis 500, not to mention some other events in the USA. Maybe after 2016 but before the new Dallara is rolled out for 2018. This give IndyCar two more seasons to run the DW12 and Formula E to get charged up, pun intended. Then shock the racing world, pun intended, but making the 101st Indianapolis 500 a stellar, groundbreaking event: The first all-electric Indy 500, and use that platform to promote the future of the sport.

  4. No, HarveyF, the exact opposite. Greater density and closeness to retail and everyday necessities reduces traffic. When one has to drive miles for necessities, all those cars are on the roads for many miles. When reasonable density is built, low rise in this case, in the middle of a thriving retail area, one has to drive far less, actually reducing the number of cars on the road.

  5. The Indy Star announced today the appointment of a new Beverage Reporter! So instead of insightful reports on Indy pro sports and Indiana college teams, you now get to read stories about the 432nd new brewery open or some obscure Hoosier winery winning a county fair blue ribbon. Yep, that's the coverage we Star readers crave. Not.

ADVERTISEMENT