Four new apartment-dominated development projects totaling $324 million are in the works for Carmel’s central core.
The Carmel Redevelopment Commission and developers will present plans for the projects to the Carmel City Council at its meeting Monday night.
They will also ask the Carmel Economic Development Commission and the council to approve up to $54.5 million in developer-backed tax increment financing bonds to fund the projects. Those approvals could come as soon as April 25.
If all four projects are developed according to their plans, they would add 872 new apartment units and more than 1,600 parking-garage spaces to the city.
Carmel Redevelopment Commission Director Henry Mestetsky told IBJ the four projects include Carmel’s first significant workforce housing development in the city’s core, a large number of for-sale condo units and new headquarters for both Carmel-based Merchants Bank of Indiana and Indianapolis-based Pure Development Inc.
“It’s tough to not be excited about a giant corporate expansion and the new corporate headquarters for Pure Development coming. The economic development person in me is just geeked out about that,” Mestetsky said. “But, then, the urban planning person in me is just hyped for workforce housing right in the core.”
Mestetsky said the projects would generate $430,000 a year in tax dollars for Carmel schools. Each of the four projects would also include a solar component.
Carmel taxpayers would not be directly responsible for the costs associated with the developer-backed TIF financing if the council decides to approve it, Mestetsky said.
“Each of them have something about them that makes them different than anything else, whether it’s condo units, or workforce units or a corporate headquarters component,” Mestetsky said.
The council will consider the following projects:
The Concourse is a $55 million mixed-use project that would be built just south of the water tower in Midtown near the Monon Greenway by Carmel-based Pedcor Management Corp. It would include 99 luxury apartments, 23,000 square feet of office and commercial space, and a 229-space public parking garage.
Mestetsky said 22% of the building’s apartment units would be classified as workforce housing and be offered at a reduced rate for households who make 50% of the area median income relative to the Indianapolis-Carmel-Anderson metropolitan statistical area. Median household income in the MSA is $63,545, according to 2020 Census statistics.
“There’s sometimes a stigma associated with trying to bring affordable units to a part of town,” Mestetsky said. “There’s sometimes people with their pitchforks who show up and people have this idea about what affordable or workforce housing looks like, and it doesn’t look like this project.”
Pedcor is asking the city to issue up to $9 million in developer-backed bonds for the project. It would receive 90% of the TIF funds for the life of the bond. Indiana limits new TIF bonds to 25 years.
AT&T site development
Pure Development Inc., Merchants Bank of Indiana, Indianapolis-based Buckingham Cos. and Indianapolis-based Third Street Ventures plan to redevelop the site of the former AT&T building at 210 3rd Ave. SW.
The $133 million project would include 244 luxury apartments, an 80,000-square-foot Merchants Bank corporate headquarters expansion, a 37,000-square-foot boutique headquarters—including for Pure Development, two single-family homes that would replace existing homes at the site and a 443-space public parking garage.
The companies requested a TIF of up to $20.5 million, although Mestetsky said the bond size will likely be closer to $16 million. The developers would receive 95% of the TIF funds for the life of the bond.
ERS Old Meridian and Main
Carmel-based Edward Rose & Sons is proposing a $76 million development that would include 266 luxury apartments, 22 for-sale condo units, 9,720 square feet of office and commercial space and a 581-space public parking garag
The project would replace an old shopping center, Eastridge Plaza, at the corner of Old Meridian and Main streets.
Edward Rose & Sons is asking for a TIF that would not exceed $15.5 million. It would receive 90% of the funds for the life of the bond.
Old Meridian Apartments
Carrollton, Texas-based Cross Development is planning a $60 million project between Bru Burger Bar and Home2 Suites by Hilton on Old Meridian Street that would include 263 luxury apartments, 10 for-sale condo units, 9,000 square feet of office and commercial space, and a 395-space public parking garage.
The TIF would not exceed $9.5 million and the developer would receive 75% of the TIF funds for the life of the bond.
Mestetsky said the parcel currently pays $120 a year in taxes. Once the project is built, it would generate $784,000 of increment tax financing. The assessed value per acre would also increase from $1,000 to $9.65 million, he said.