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Carmel is in wait-and-see mode for funding to turn plans for another major development into reality.
Last April, members of the Carmel City Council proposed that outside funding would be a requirement for the $47 million Monon Square South project at the southern end of the former Monon Square shopping center site, which is north of City Center Drive, west of South Rangeline Road and east of the future expansion of the Monon Greenway.
Plans unveiled last year called for a food hall, community gathering space, 45,000 square feet of office space, a 190-unit apartment building and a 602-space public parking garage. Carmel Clay Parks & Recreation could also relocate its headquarters to Monon Square South.
To cover the cost of Monon Square South, the city would seek $10 million in Regional Economic Acceleration and Development Initiative, or READI, grant funding; a $7 million Hamilton County Tourism grant from the Business of Entertainment, Sport and Tourism Investment Fund; an $8 million construction loan; and $22 million in tax-increment financing bond proceeds.
However, Carmel Executive Director of Economic Development Nick Weber on Monday told City Council members that Hamilton County Tourism turned down the city’s grant application for the food hall project. Carmel was awarded $4 million from the READI 2.0 program, but that funding is not yet available to the city.
The Hamilton County BEST Investment Fund supports projects that “induce new visitor spending—especially from hotel overnights—and create a positive long-term impact on the local tourism economy,” according to Hamilton County Tourism’s website.
Weber said the project as it is currently planned “didn’t quite qualify under that structure.”
“I think that was one of the challenges in their analysis of a standalone food hall is whether people would come to Carmel, use the food hall and then spend the night,” he said.
Members of the Carmel City Council voted unanimously last April to support a resolution encouraging the city to seek outside funding sources for Monon Square South, which would be anchored by a two-story food hall called The Union at Monon Square. The city plans to partner with Carmel-based developer Pedcor Cos. on the project.
Councilor Matthew Snyder said the Monon Square South project would be built on “one of the last iconic parcels of land” along the Monon Trail that has not been redeveloped. He said he does not want to see another mixed-use apartment building at the site.
“We have funded everything in Carmel in some creative way,” Councilor Matthew Snyder said. “So, to hear that there’s not a way to build something purely for the community would blow my mind.”
City Council President Adam Aasen encouraged the city to “keep the conversation going” because, he said, Carmel needs projects that appeal to all residents of the city.
“Fishers, Westfield, Noblesville, they’re continuing to develop,” he said. “I think we’re still the best city in Hamilton County, but they are coming after us, and if we want to stay great, we have to continue to add amenities that everyone can enjoy.”
Carmel-based developers J.C. Hart Co. Inc. and Stirsman Property Group are redeveloping the northern section of the former Monon Square shopping center.
Monon Square North is expected to feature a $70 million project on the northwest quadrant of the site that will include 21,000 square feet of office and retail space, 249 multifamily units and a 390-space parking garage.
Plans also call for a $30 million northeast quadrant that will have 122 multifamily units, retail and restaurant space, for-sale condos, and a 79-space parking garage.
The city purchased the Monon Square Shopping Center in 2018 for $15 million. The 8.7-acre property at 620 S. Rangeline Road had about 75,000 square feet of leasable space. Tenants at Monon Square included Union Brewing Co., Ristorante Roma and Antique Emporium. The shopping center was demolished in 2022.
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Hmmmm…it is almost like Carmel didn’t realize they were spending money hand over fist for the last couple decades and now aren’t able to fund projects. I wonder if this will cause problems for the Hamilton County Smell Your Own Farts Emporium.