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A $320 million redevelopment project adjacent to Gainbridge Fieldhouse is expected to receive more than $30 million in tax credits from the state’s economic development arm.
The hotel-and-concert-venue project at 230 S. Pennsylvania St., formerly a five-story CSX maintenance building, was pledged funding by the Indiana Economic Development Corp. under then-Gov. Eric Holcomb’s administration.
The project is being helmed by Boxcar Development LLC, a holding company for a group of investors led by the Herb Simon family, which owns majority stakes in the Indiana Pacers and Indiana Fever basketball teams.
Boxcar’s plans call for redevelopment of the site of the former CSX maintenance building at 230 S. Pennsylvania St. to create a 170-room Shinola Hotel, a 4,000-seat live performance venue operated by Live Nation, an underground parking garage and a skybridge connecting to the fieldhouse.
The project, a revamp of a previous development concept, was first made public in July 2024.
How it works
The IEDC funding—consisting of $23 million in direct redevelopment tax credits and a loan of up to $10 million in additional redevelopment tax credits—was finalized by the Indiana Department of Commerce in late May, according to public documents. According to a slideshow shared with IBJ in February, Boxcar was set to request $29.7 million from the IEDC.
The total sum awarded for the project accounts for about 16% of its qualified investment under state statutes, which generally discounts incentives and other elements from the total construction cost being assessed.
Boxcar will be able to request up to $10 million in each of the 2026 and 2027 fiscal years, which start July 1, and up to $13 million for the 2028 fiscal year. Any remaining credits can be requested during the 2029 fiscal year.
Boxcar will be required to repay any funds that exceed the $23 million threshold—up to an additional $10 million—no later than 2039.
In statements shared with IBJ, Boxcar spokesperson Phil Bayt said the funds were necessary to close a construction funding gap on the project.
He added: “This legacy project will activate a long dormant corner of downtown Indianapolis with a live entertainment venue and a luxury hotel. As with most downtown development, it would not be possible without governmental involvement.”
Bayt said the project will create “hundreds of construction and permanent jobs,” both throughout its development and when it opens.
In the statement responding to a series of questions from IBJ about the IEDC’s decision to award the funding, the agency said the project was “reviewed and approved under the prior administration.”
The statement from Erin Sweitzer, deputy chief of staff and vice president of external communications for the IEDC, also said the agency will “continue to review and evaluate opportunities and look forward to working with communities on a regional basis to support their economic development efforts.”
City commits $25M for remediation
The approval of the state tax dollars came just three months after the Indianapolis Department of Metropolitan Development approved a $25 million forgivable loan for the project, as well as $15.6 million in bond proceedings from a single-site tax-increment financing district.
The general parameters of the city loan call for the funds to be taken from the downtown consolidated tax-increment financing district. The funds would be available over a three-year period, including throughout construction of the project.
The loan funds can only be used for the improvement of property in order to facilitate redevelopment of the site, and there’s a shared appreciation clause incorporated into the agreement, through which the city could reap some financial reward if a future refinancing or sale of part or all of the property meets or exceeds a certain threshold.
Those funds have been earmarked for remediation and demolition of the CSX building, which has already occurred, and to develop an underground parking garage that will be challenged by the narrowness of the site, a nearby railway and stormwater management.
While some asbestos remediation was necessary with the demolition of the CSX building, Boxcar spokesperson Bayt said no additional environmental work is necessary on the project. He said vertical construction will begin soon, with the music venue on track to open by late 2027 and the Shinola hotel scheduled to debut in early 2028.
The Capital Improvement Board of Marion County is expected to fund the skybridge portion of the project—which it will own—with estimates for the connector clocking in around $5 million to $6 million.
Design plans for the project were approved last September by the Indianapolis Historic Preservation Commission.
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State funding for a predatory Live Nation is just unreal,
Agree that monopoly should have never been allowed by the FTC. It should be broken up.
While this will likely be a good development, I really don’t understand the need for State tax credits and a forgivable loan from the City. The Simon family can afford this w/o subsidies. Taxes already pay for Gainbridge and will pay for a new soccer stadium, if built. Also, Braun can try to blame this on the prior admin even though his new people were recently appointed.
And don’t forget we are still paying off the convention center and Lucas Oil Field.
+1
All this info in the article is nothing new, it was all published over the last several months and in 2024.
Plus this group is very smart and very successful in their development projects. No one else could have ever cleaned up that part of downtown unless it was a surface parking lot.
Yeah IBJ has gotten really lazy with their reporting. Most of their stories have been out for a while and they just glob onto someone else’s reporting.
Corey, I guess that’s why IBJ just recently won 10 journalism awards and Journalist of Year was Mickey Shuey. Yup….sounds like they are being lazy to me!
Hurray for Indianapolis. Apologies to other very needy cities and towns who could have benefited from these RTC’s. I am not sure that I would have prioritized this project over many other community developments in County Seats all over the state. If a prosperous Indianapolis is going to consume this volume of RTC’s, then I am in favor of the legislature allocating more RTC’s for the remainder of the state. Happy for Indianapolis. Hopeful for the rest of the state.
This development looks fantastic!