Amid urban walkability push, zoning stalls some projects

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City officials say the new Damien Center headquarters, which opened in June at 1420 E. Washington St., is an example of development along the Blue Line that meets transit-oriented specifications. (IBJ photo/Chad Williams)

Development restrictions along the route of IndyGo’s future Blue Line intended to foster transit-oriented development have created difficulties for two projects along East Washington Street.

At the corner of Shortridge Road and Washington Street, a property owner has been working since 2023 to execute a deal with convenience store chain Wawa. About 3 miles east on Washington Street, Dutch Bros Coffee planned to open a store where a burned-down Golden Corral once stood in front of Washington Square Mall.

Under the transit-oriented development restrictions, both national chains had to design projects that deviated from their standard site plans. The zoning restrictions generally require buildings to sit closer to roads and pedestrian paths, with drive-thrus and parking lots behind.

That’s because the goal of transit-oriented development is to maximize pedestrian access not just to public transportation, including buses, but to residential, retail, educational and workplace options as well. The Indianapolis Metropolitan Planning Organization has designed transit-oriented development plans for each of its rapid-transit bus lines that it says are meant to “promote more in-demand (and under-supplied) walkable urban villages.”

The Blue Line—which is scheduled for completion in 2028—will run 24 miles east and west along Washington Street, connecting the Indianapolis International Airport on the city’s west side to the town of Cumberland on the east side. A transit-oriented development overlay—the term used to describe the zoning plan for a specific area around a transit route—is in effect along the route, as well as along IndyGo’s Purple Line, which opened last year, and Red Line, which opened in 2019.

Andy Nielsen

Some community real estate developers see the zoning restrictions as barriers—and they point to the variances the Wawa and Dutch Bros Coffee projects needed as evidence.

But supporters of transit-oriented development say the zoning plan along Washington Street will help maximize the impact of the $378 million investment in IndyGo’s Blue Line—money that came from federal transportation funds and local taxpayers. The goal is to encourage higher-quality investments along the high-traffic corridor.

Indianapolis City-County Councilor Andy Nielsen, a Democrat, isn’t opposed to locating a Wawa along the Blue Line. But he said he would prefer that it replace an existing gas station on East Washington Street. The area already has a high concentration of fueling stations, and Nielsen said his constituents don’t want another one.

He said a benefit of the transit-development overlay is that it requires more community engagement for projects to be approved.

Michael-Paul Hart

“I can respect that, from the developers’ perspective, that sometimes that may be seen as kind of an extra hoop,” he told IBJ. “But I think over the long term, it is obviously what’s best for the community and best for the neighbors who are adjacent to these developments.”

Michael-Paul Hart, the Republican city-county councilor who represents the district in which the Dutch Bros would stand, disagreed.

He said he heard positive comments from local residents and small-business owners about the proposed coffee shop and felt it could act as a “domino” for investment near the mall. But the project has been on hold since November, and Hart is concerned the area, which has already seen disinvestment, will remain full of empty lots and storefronts if city development officials deny projects that prioritize car traffic.

Megan Vukusich

“I don’t think we’re in a position to be so picky that it has to be transit-oriented at this point,” he told IBJ. “We should be just arms wide open, taking—certainly what’s going to fit the community—but not turning [projects] down because [the city doesn’t] want drive-thru lanes.”

Indy development officials don’t think it has to be either car-oriented development or transit-oriented development.

In fact, Megan Vukusich, director of the Department of Metropolitan Development, said developers and others looking to execute projects along the transit corridor should talk with agency officials early in the process. Although the DMD must ensure the development complies with the city’s comprehensive plan, which includes the transit-oriented policies, she said the staff is “willing to help and be creative.”

Representatives of Wawa and Dutch Bros did not respond to IBJ’s request for comment.

Wawa’s case

Roy Switzer is the Richmond, Kentucky-based owner of an 8-acre parcel on East Washington Street between Shadeland Avenue and Shortridge Road. He wasn’t interested at first when a gas station called to inquire about a portion of the land he was leasing—and had been attempting to fill for at least 20 years—but that changed when he learned the company was Wawa.

The Pennsylvania-based convenience store chain opened its first Indianapolis location in June. The brand has a cult-like following and offers built-to-order food such as hoagies and breakfast sandwiches, beverages and coffee drinks. The company previously told IBJ that each store is about a $7.5 million investment.

In June, the Department of Metropolitan Development staff strongly recommended denial of Switzer’s petition to divide up his 8-acre parcel for the Wawa project. In meeting documents, DMD staff wrote that the design “undermines the intent of the [transit-oriented development] overlay by promoting a car-centric land use” along the Blue Line.

The DMD argues that project violates many specific standards in the city’s transit-oriented development policy. For example, Wawa was seeking to install double the maximum of eight gas pumps allowed under the policy, and too much surface parking would sit too close to Washington Street. DMD also has requirements that are meant to ensure that passersby see mostly the building, not parking. DMD also requires that roughly half of the first floor of the building be composed of windows.

Switzer said the planning department is “overreaching” in requirements, though he said Wawa is trying to meet the standards.

A hearing examiner’s decision on the project is delayed until at least Aug. 14 as DMD staff review a new site plan submitted by Wawa.

Copy-and–paste emails to media outlets from neighbors—the modern version of form letters—accuse DMD of “actively blocking” the Wawa project. That’s “despite clear community benefits: jobs, grocery access, and revitalization along the public bus route,” the emails read. IBJ had received 10 such emails from different addresses as of Monday.

“We’re so desperate, we’re so wanting development on this side of town,” Ron Phillips, president of the Warren Township Development Association, told IBJ. The association has submitted letters in support of the Wawa.

Dutch Bros on hold

When Chicago-based property owner Andy Goodman’s company bought 2 acres in front of Washington Square Mall more than three years ago—including an abandoned Golden Corral—he anticipated flipping it into a modern shopping center over about a year and a half.

Now he thinks the development might take more than five years.

His first proposal for the property included an urgent care center. But while he was trying to secure variances for two other parcels—a bank and a fast-food restaurant—the urgent care tenant dropped out.

“In my business, time kills deals,” Goodman said. “So when deals drag on, developments get shelved and tenants go away, and it becomes a very painful process.”

Then he landed Dutch Bros—or so he thought. On Nov. 19, the city’s Board of Zoning Appeals denied variances for the project related to the drive-thru, transparency of the building’s first floor, and the building’s setback and front-line width.

DMD staff recommended the denial of the variances, noting that the project would be within 100 feet of a planned Blue Line station. The transit policy permits drive-thrus less than 600 feet from a rapid-transit bus station only if the drive-thru is fully behind a building.

The DMD staff said the site has already been granted several deviations from the transit-oriented zoning ordinance.

Staff wrote that the coffee shop “would result in auto-centric development fully antithetical to relevant ordinance and comprehensive plan guidance” for transit-oriented development areas. The document also emphasized that the need to follow the guidelines without variance was even greater when the properties were essentially adjacent to a current or future bus stop.

Goodman’s project will still move forward in some capacity. His company has plans for a bank tenant, two retail spaces and two restaurants.

Still, he said he is frustrated that he has had to ask national tenants to create non-traditional layouts—with the building, rather than the parking, closest to the street—even though existing development on Washington Street doesn’t follow those rules.

It is difficult to explain, Goodman said: “If you look up and down the street, I don’t think there’s a property that meets any of the zoning overlay requirements.”

The work also created a delay in development that would benefit the greater community, he said. The Golden Corral closed in 2020. In 2024, the building was heavily damaged by a fire that created an unsafe space. Goodman said he delayed demolition because he was finalizing the development plan, but the city ultimately ordered the structure to be demolished a few months ago.

Goodman said Dutch Bros is still interested in the spot and an eventual deal is possible. However, he’ll have to wait a year before he can petition DMD again on the variances.

But the DMD’s Vukusich said some projects have opened along the Blue Line that fit the transit-oriented development specifications.

For example, Damien Center opened its new headquarters, the Mosaic building, in June. The 56,000-square-foot clinic and community center sits at 1420 E. Washington St.

Fitting with the zoning overlay’s goal of encouraging dense housing development, Horizon House built the 36-unit Compass on Washington, which opened last November at 1133 E. Washington St. The building is permanent supportive housing, which is reserved for people exiting homelessness.

“We have a lot of good examples of projects that are kind of like our ideal versions of what we’d like to see along the transit-oriented development overlays,” Vukusich said.•

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22 Comments

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  1. Between the Historical Assn and the Zoning board, it’s amazing anything viable gets done. How’s that ‘redevelopment’ of the blighted Irvington Plaza going? 🥴

    1. Neither historic designation or zoning is the reason that plaza remains decrepit and underused.

    2. The City doesn’t have ownership or control of Irvington Plaza. It is owned by an absentee landlord who has indicated they have no interest in actually cooperating with the City or meaningfully engaging with the community. Don’t spread disinformation.

  2. These clowns think they know what is best for us.

    Take out traffic lanes for unused bike and Red/Blue Bus lanes. If they make driving so miserable maybe we will be forced to use their stupid busses.

    Wrong, we move to the suburbs and let your crime paradise rot.

  3. I’m all for improving our bus transportation but the reality is that the vast majority of people in Indy get around by car. To say that you don’t want car centric businesses is telling me majority of businesses that you don’t want them.

    1. I get where you’re coming from and think many of these urban-obsessed ideas are goofy.

      But to shrug your shoulders and say “Indy is a car city” seems to be what helps put gas stations at busy street-corner intersections where a cute little brick building used to be….or how we have all those strip malls right near the IU(PU)I campus…a campus environment that is becoming LESS commuter based–rather than more–because they realize they can never meet the kids’ demands for parking for all their cars.

      A new business can still accommodate cars but not be hostile to pedestrians. There IS a middle.

  4. These land owners should try getting developments done in HamCo. They have just as many restrictions that change the look of a national chain standard plan ( must be all brick, signs can’t be standard or tall,etc.)

    1. Which is why it doesn’t look like a clown show in Hamilton County. We appreciate the guidelines.

  5. Stalling real investment for a bus line that no one will use, even with failed free ridership periods. Indianapolis is car commuter city and always will be. Adding lane restrictions, bike lanes no one uses and no turn on red downtown just makes it a miserable drive.

    1. Oh boo-hoo. There’s no meaningful traffic in Indy. At most, you’ve had to adjust to some slightly different roadway configurations. Don’t be a baby about it.

    2. Do you think Carmel built a successful downtown out of nearly nothing because it created a bunch of busy streets where people could go 40mph and not be inconvenienced by bikes and people?

      Did people keep coming back to Main Street Zionsville because it was so pleasant for driving?

      Has Noblesville enjoyed its on-going renaissance because traffic controllers made sure the central square was easy to drive through quickly?

  6. This project is such a ridiculous overspend. It takes lanes out of streets that are already busy with traffic. And let’s be honest–people aren’t going to pay to ride the bus. They won’t ride if when it has free/reduced rates!

    The goal to give riders the option to get from one side of town to the opposite side is not a need. If somone needs to get that far the find a ride or take a taxi/uber. I can’t imaging living in Cumberland and planning to ride a bus across town to catch my flight, dragging my luggage and manging a couple of carry-on bags. That is not going to happen!

    And let’s talk about safety for a minute. The islands where passengers load and unload are in the middle of the street. Pedestrians have to cross traffic to get on or off the bus. That is dangerous for pedestrians and slows the already constricted car traffic flow–making drivers even more frustrated, impatient and makes them dangerous. Isn’t there a safety group that is working on the most dangerous intersections for pedestrians. Have they seen/reviewed these bus ‘stations’?

    1. JM R you are preaching to deaf ears. when this whole bus line fiasco finally goes down in flames it will be a case study in horrible city management. the oncoming autonomous cars are going to make this all obsolete. if we had forward thinking leaders we would have gotten ahead of infrastructure for that and partnered with Google/Tesla/Amazon and moved into the future. instead we are trying to re-create a “trolley” system that went away 100 years ago.

  7. If it were so easy and such a great investment, the developers would be lining up to do these deals. As usual, the ones who tell you how simple it is aren’t the ones putting their money where their mouth is.

  8. The East Washington Street area is starving for new Commercial investment. Blocking any proposed new investment is a disservice to the residents of the East side.

  9. Did anyone think about the fact that Washington Street is a Federal highway? And the “board” wants to dissuade auto traffic for their buses? Really? The Wawa and Dutch Bros coffee would be welcome changes to these areas. And the “rules” listed are way too overreaching. Stay in your lanes people, and just work on your fancy bus line.

  10. This is more proof the ivory tower planner mentality has no idea of reality over ideology. From Shadeland to Cumberland, Washington Street is a suburban highway, not urban. A ‘forced’ mandate of transit oriented development along this route is an immature, idealistic and academic approach for this forced Blueline route. The far eastside has been waiting for years for new development on these derelict properties, and the planners want their utopian pipe dreams. Again, this is not an urban transit-oriented highway, and never will be!

  11. Sorry only poor non-driving folk allowed on the unused color bus route plans, regular businesses need to stay away. The city wants the poor to stay poor. Let the Governor take over.

    1. Because he’s doing such a great executing his promised agenda (?); what exactly has Braun done to warrant additional responsibilities?

  12. National chains should have to comply with local rules. They just want to use a cookie cutter design like many of the home builder’s to save costs. If Wawa and Dutch Bros. really want to build in those locations, then they can make some changes from their “normal” designs. As an example, the Lowes on 146th Street in Carmel has a “second floor” to conform to the Carmel requirements, so it can be done.

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