Marian University seeks rezoning of former hospital complex, plans educational district

The Larue D. Carter Memorial Hospital campus at 2601 Cold Spring Road. (Image courtesy of Wikimedia Commons)

Marian University hopes to turn the site of a former state hospital complex on the west side of Indianapolis into an educational district that would serve as an extension of its nearby campus.

The private Catholic university, through affiliated entity Cold Spring Innovation Corp., is seeking approval from the city of Indianapolis to rezone the Larue D. Carter Memorial Hospital campus at 2601 Cold Spring Road to a designation that would allow for a variety of uses, including education and housing.

An initial plan shared by the Indiana Economic Development Corp. through its public transparency portal indicates as much as $154 million could be invested in the property in coming years by Marian University and other entities.

The Riverside Education Innovation District would repurpose some existing structures including the historic Building No. 1 that served as the main hub for the hospital during its operation. The plan also calls for the demolition of other undisclosed buildings on the 22.3-acre site.

The property also is known as the Indianapolis Veterans Administration Hospital. Facilities on the campus largely were developed between 1930 and 1951 using the Colonial Revival and Classical Revival styles, according to its registration form for the National Register of Historic Places.

It also assumed the name of the Larue D. Carter Memorial Hospital when the downtown hospital of the same name closed in the mid-1990s and the patients were moved to the complex at 2601 Cold Spring Road. It served in that role for more than two decades before closing in 2020.

IBJ reported in 2019 that Marian was interested in taking over the hospital site with hopes of redeveloping the area as an extension of its campus.

The district project, first reported by public broadcaster WFYI, would include educational spaces for Marian University and other partners, as well as the creation of a career and technical education space by Vincennes University within the 69,000-square-foot main structure.

The proposal also calls for the development of an early childhood education program and various housing options. According to WFYI’s reporting, the district is intended to focus on literacy and community education initiatives, including adult education.

A representative for Marian University did not return phone calls Monday and Tuesday seeking comment on the project.

The project would be partially funded by a $25 million grant from Lilly Endowment Inc., awarded in August, that allows for the renovation of some buildings on the campus, relocation of university programs and offices and engagement with various local and youth-serving nonprofits.

According to the IEDC filings, a study conducted by Indianapolis-based site strategy firm Ginovus determined that about 257 jobs would be generated by the creation of the campus, largely in the nonprofit and education sectors.

The IEDC has also committed $1 million for the effort, largely earmarked for operational costs tied to the upkeep and maintenance of the property. Demolition of other portions of the site is expected to be completed by the end of this year at a cost of $2.43 million. The agency approved plans to contribute to the project on Dec. 30.

According to filings with the city of Indianapolis as part of the university’s rezone request, the property would not be used for low-density multifamily housing such as triplexes or fourplexes; a nursing home; animal boarding; outdoor advertising; light manufacturing; or check-cashing or validation services.|

The request to rezone the property, set to be heard by the Metropolitan Development Commission hearing examiner on Thursday, would allow the property to be moved from the D-S suburban dwelling designation to MU-2, which allows for mixed-use developments.

Few additional details about plans for the property were included in the filings with the city.

Marian University, through its development corporation, acquired the site in 2024 from the Indiana Finance Authority. The hospital closed in 2020 when the state’s Family and Social Services Administration opted for a new approach to mental health treatment.

The university has sought to grow its campus and presence in Indianapolis for several years, including northward expansion toward a tree line bordering Interstate 65 in the 2010s and the addition of new programs and buildings. The campus is about 120 acres overall, and the school has about 3,800 students.