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A proposal to develop a Major League Soccer stadium on the east side of downtown Indianapolis is facing some early resistance from the owner of a historic property in the heart of the proposed development area.
The city is eyeing the Indianapolis Downtown Heliport property and several neighboring parcels for the venue as part of an effort to secure a MLS franchise, including a three-story building at 10 S. New Jersey St., just south of Maryland Street.
But the off-market building is owned by Lena Hackett, an acquaintance of Keystone Group founder Ersal Ozdemir, whose Eleven Park development the city has spurned in favor of pursuing a pro soccer franchise with another group of investors.
Hackett told IBJ she has received a written offer for the 0.3-acre parcel on Thursday from the Indianapolis office of Cushman & Wakefield, which is representing an undisclosed buyer. She declined to disclose the offer amount, but said she turned it down.
The 13,600-square-foot building was constructed in 1916 and was listed on the National Register of Historic Places in 1986. It was developed by businessman Fred F. Heier as Heier’s Hotel and built by noted contractor William P. Jungclaus.
Today, it is home to Hackett’s firm, Community Solutions Inc., as well as business management consultant Plaka & Associates and Flowers Law Practice.
“I’m not interested in selling my building,” she said, “and I am not interested in being any part of whatever is going on.”
Hackett said she could not recall when she was first approached about her property, except that it was earlier this year. She said she was called three times by broker Bo Leffel before he sent her a formal offer letter.
She said when she expressed skepticism to him during one of those calls over interest in the property—noting the would-be buyer had not toured the structure—Leffel told her the plan was to demolish the building, but did not say why.
Leffel, who has also been involved in the Indiana Economic Development Corp.’s efforts to buy thousands of acres for the LEAP Research and Innovation District in Lebanon, told her that he did not know the identity of his client. Neither Leffel nor a spokesperson for Cushman & Wakefield returned messages requesting comment Monday.
Hackett, who previously served on the city’s Metropolitan Development Commission, said she has only heard unsubstantiated rumors about who might be trying to buy up properties in the neighborhood, but said she expects the move is connected to the city’s MLS endeavor.
Hackett said she has known Ozdemir for several years, recently discussing with him the possibility of joining the Eleven Park project as a consultant on community development. She said that relationship, paired with her desire to retain her building, could make it difficult for the city or other parties to take over the property.
“I sound really Pollyanna when I say this out loud but, you know, there’s just so much money in the world that you need,” she said. “And I’m good.”
Other nearby property owners did not immediately return calls requesting comment.
According to its listing in the National Register, the building has significant historic significance:
“Heier’s Hotel is the sole surviving example in Indianapolis of an unusual, early 20th century building type: a hotel combined with ground floor commercial storefronts,” the listing says. “It is one of only two hotels to survive in a three-block area along East Washington Street that once held one of the city’s greatest concentrations of hotels, a factor related historically to the National Road.
“Much of the architectural significance of this building derives from the fact that its facade has survived intact to the present day with no significant changes. The current excellent state of preservation attests to the quality of its construction by the William P. Jungclaus firm, one of the most prominent contractors in Indianapolis’ history, and the skill of Charles Byfield, a little-known architect of the early 20th century.”
Byfield (1873-1935), who worked for prominent firm of Rubush and Hunter before opening his own office, also designed the Wulsin Building at 222 E. Ohio St. and The Davlan Apartments at 424-436 Massachusetts Ave.
The basement tavern area in the Heier’s Hotel building served as the headquarters of the powerful Indiana Democratic Club from 1955 to 1963. According to the historical listing, political strategies plotted at the site helped lead to the elections of Indianapolis mayors Philip Bayt Jr. and Charles Bosell.
While city officials have said that the Diamond Chain Manufacturing Co. site where Ozdemir has started developing Eleven Park remains an option for an MLS stadium, it appears the heliport area—and in particular the more than 500-space parking lot directly to its west, at 355 E. Pearl St., is a more distinct possibility.
Two sources told IBJ on the condition of anonymity that the city would prefer to decommission the heliport and redevelop that area. In that scenario, Hackett’s property would be among those that would have to be demolished to make way for a stadium.
The Indianapolis International Airport Authority owns the heliport and has taken steps to decommission it and make the property available for development, but that process has proven controversial among some who want to maintain the landing pad, which is regularly used by IU Health for lifeline flights. It already has a memorandum of understanding with the city that includes measures by which local government could take over the property.
Keeping the heliport intact, the city has said, could stifle larger developments surrounding the property because of federal height restrictions and setback requirements tied to aviation uses.
Hogsett administration officials said they plan to work with the potential team-ownership group to determine which site is preferred, but one source called that characterization a “formality,” because the heliport site will be picked if a new taxing district is approved.
That district, known as a professional sports development area, would collect state retail taxes, local and state income taxes, and food and beverage taxes to pay for the public portion of the stadium, which allows up to $9.5 million per year in debt service toward the venue’s construction, with the rest covered by the developer.
The city’s MDC will vote Wednesday on preliminary approval for the new district.
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She will sell… just wait!
Maybe, maybe not. Hurst Beans did not wish to leave their McCarty St. location at the time Lucas Oil Stadium was being built, and successfully stopped the city from taking over their property. She may also just want to stay where’s she at for now and resist being rolled over by the city and developers.
…where she’s at…
Hurst Beans did not stop the government from taking its property per se. They just got publicly loud and the powers that be at the time blinked. If it is for a public use – and a public stadium is just that – then the government can take your property and the only question is how much money they will have to pay you for it.
Good. Dictator Joe needs to pump the brakes.
Or, the Mayor is watching out for the city in good fashion.
Screwing over the Westside and Old Southside isn’t exactly watching out for the city in good fashion.
This just keeps getting better. Eminent Domain will probably settle this.
Won’t matter if the NHL doesn’t like the offer. I doubt they’re interested in being involved with long litigation, a poor location and ‘speculation’…….from an ‘application’ from a city they weren’t interested in, in the first place, making their league have 31 odd numbered teams. Very poorly thought out. The ONLY way that Indy even gets a ‘sniff’ of an MLS club is if Indy 11 Park is built and they have a 32nd team to join the league.
Government funds can’t be used to demolish a property listed on the National Register. I imagine that, if this comes to pass, the building will be moved — similar to the Indiana Oxygen building was twenty-odd years ago.
Federal dollars maybe. Just pay for the demolition with state dollars.
There is no restriction on state or local dollars. It just means the federal funding could not be used, and it is unlikely a stadium would qualify for federal funding.
Maybe, while they are deleting the heliport, our current city leaders could work their “traffic calming” magic at the Indianapolis International Airport. I’m picturing bumpouts and planters in the runways, possibly also some nice branding with curlicue patterns and the names of rich donors on the runways and tarmac.
It’s not the 1950s. Things change. And the only people who use the heliport are the wealthy. IU Health won’t need the heliport once it’s new campus is complete.
Notably, Ms Hackett was member of the MDC until recently. The same MDC that votes this Wednesday on approving this new stadium district.
Lena is a long-time contributor to the community. Good for her.
Nothing about the heliport site looks like it ready. After hosing Ozdemir, the city deserves a speed bump like this. Especially if this has been in the works for a while.
Nothing has come out of the ground yet at the Diamond Chain site, but I do know that to just get to this point, the development cost have to be in the six figures, or higher. While the Diamond chain real estate will still have good value, it might not make up for the already sunk costs if the project has to be abandoned and the property is sold.
So what you are saying is that Keystone got ahead of itself and then demanded that the city get aboard and expend tax dollars to assure they could complete their project. The developer doesn’t have the resources to pay a MLS franchise fee or to build the stadium.
Anyone have recommendations for folding chairs? What about preferred brands of popcorn? I already have a popcorn bowl, thank you.
Looks like Hogsett definitely did his due diligence
This building does not look at all architecturally significant. Eminent Domain.
I suggest again that a great l8cation for a soccer stadium would be in the area of Lafayette Square.
There seems to be empty space for a stadium and parking areas. Wide surface streets exist in that area as does access to interstates and the airport..This area could use some revitalization and already has an international restaurants and shops. Not all new development needs to be downtown.
I think this is a wonderful idea!
If nothing else, this clearly shows poor preparation and arrogance by Hogsett and his ‘cartel’. Local TV interviews make it clear that Hogsett did not consult with the current Keystone Group. Now this! Talk about knee ‘jerk’ and cutting off your nose to spite your face. ANY reasonable approach would have included Keystone in any behind the scene talks, then take THAT group to New York. Frankly, at this juncture Hogsett needs Keystone and not the other way around. They have the land, the blueprints, and the soccer club. The Pearl Street location is ridiculous, and now it may be nearly physically and legally impossible. This may be the most boneheaded move any city Mayor has singularly tried to initiate. Not just here, but anywhere. It’s like a hockey team trying a ‘power play’ with three of the players in the penalty box. Hahaha.😆
The current keystone group is 0/3 on local developments succeeding…. they were right to pull it from them
Since Keystone put out a press release hours before the mayor’s announcement it seems that there were talks.
By trying to pull a ‘power play’ by eliminating Keystone’s plans it is very possible that the entire great development connected to the soccer stadium will be lost. 😡 Kind of like Aesop’s fox with a mouth full of 🍇 …..he saw the reflection in the water and dropped what he had in order to ‘secure’ bigger, juicier grapes…….that didn’t exist. Foxy Joe.
What camp would I be in if I’m befuddled by the city’s motives but I also don’t trust Keystone/Ozdemir and think his projects generally suck?
The sane camp. Welcome. We will get you a chair.
Good for you Ms. Hackett. At least you have the historic society. I didn’t have the same luxury when Hogsett’s soldiers bought the property abutting my neighborhood for his homeless camp. They didn’t even consult us. Plus they don’t have the money or an operator. look at how they are managing the homeless shelter at Ohio and East. 6 letters to the Mayor go unanswered. Now my wonderful neighborhood is stuck. I know your building. Hang in their.
You have my sympathies 100% for this City-sanctioned heroin haven, which will be a blot in that area, making it look akin to LA’s Skid Row, completely with trash, feces, needles, and zombies wandering into the street. Gonna be lovely.
But isn’t the homeless shelter at Ohio and East part of Wheeler Mission? And–correct me if I’m wrong–but since Wheeler Mission actually has standards, meaning they won’t openly admit active drug users (which is most of them), the rejects just end up hanging out nearby?
Even I can admit that this new junkie junction might, for a brief time, divert all the homeless filth from Monument Circle. But only briefly. Once the junkies of Scott County and elsewhere in Indiana (and KY and OH and MI and IL) hear that Indy has a place where they can shoot up freely and still get three hots and a cot, they’ll take the first Greyhound over. It’ll be at capacity within months if not weeks after opening.
As for the building in question, it looks nicely maintained and is more interesting than anything around it. Does downtown really need another sporting venue? Not saying it wouldn’t be nice to have MLS or NHL, but can’t they in an area with revitalization potential that’s not within spitting distance of two other sports parks?
Anyone familiar with MLS and Don Garber knows Hogsett is being played as a fool.
Ersal OPM at it again!
So why can’t we have the MLS team at Eleven Park? Why do we need to build an additional stadium?
I always love it when people say they “won’t sell” before they talk price. She’s either really stupid or…. really stupid.
They made her an offer. She declined. I’m sure the offer had a number on it. Not saying with a big enough number she wouldn’t but she has FU money and doesn’t need theirs. Only way she does is if she is eminent domain’d and with with a building on the historic register, good luck to Joe and his cronies.
Under Section 106 of the National Historic Preservation Act, any proposed project using federal dollars that would affect a building listed on the National Register of Historic Places is subject to review by the Department of the Interior (which has delegated this review authority to the Indiana Department of Natural Resources). In determining effect, the relevant study area would be the professional sports development area, which would include the heliport over which a federal agency has regulatory authority and with respect to which federal dollars have been used. In addition, the direct or indirect use of federal transportation dollars with respect to any part of the professional sports development area would trigger Section 4(f) review under the National Transportation Act.
How can this proceed if the building is protected as an historic site?