Several developments in recent days have been thrust into holding patterns, as banks and financial institutions have stopped approving new construction loans for hotels and other projects amid the economic plunge from COVID-19.
Three housing and hotel projects are in the works at the former Fort Benjamin Harrison site in Lawrence, and planners hope these projects will accelerate efforts to redevelop part of the former U.S. Army base.
Nineteen hotel projects have been announced for downtown. If every one of them opens, they would add 4,203 more rooms to the central district of Indianapolis. But that’s not likely.
A Peachtree official said the company bought the land for the development opportunity and is now “evaluating our options to potentially build on the lot.”
Washington Prime Group Inc. has filed a request with the city of Carmel to rezone the 577,614-square-foot shopping center at West 146th Street and U.S. 31 to allow for a variety of new uses.
The Carmel City Council on Monday voted to have its four-person finance committee look into what led to $18.5 million in cost overruns on the Hotel Carmichael project. It rejected a proposal have the entire council involved in the review.
The cost of the 122-room, city-backed hotel has swelled to $58.5 million, up from $40 million when the Carmel City Council green-lighted it two years ago. Some councilors have called for an audit to dig into the details.
Sun Development & Management Co. originally planned to open the Tapestry hotel in the 12-story Jackson Square building where Ike & Jonesy’s had been located. But Sun now has plans to put a different brand in the building, with work starting within several months, and build the Tapestry across the street.
One point everyone can agree on is that, over the past two years, construction costs have skyrocketed, thanks to higher prices for materials and a severe labor shortage. But other developers who spoke to IBJ say those setbacks alone would not explain a nearly 50% increase in the project’s cost.
Original plans called for a 99,000-square-foot, seven-story building with 104 Moxy rooms and 102 AC Hotel rooms. The new plan includes 126 Moxy and 119 AC rooms in a structure of just more than 113,000 square feet.
A double-barrel audit may be the next step in scrutinizing why Carmel’s boutique hotel project, The Hotel Carmichael, is about $20 million over its original budget.
City officials, on Friday night, said the total price tag for the city-backed Hotel Carmichael project has risen to $58.5 million due to rising construction and labor costs.
Correspondence obtained by IBJ between town officials and the developer reveal a tug of war over information on the hotel’s status and a disagreement over whether the company has violated a project agreement.
Progress on the 126-room Wilshaw, at the southeast corner of Main and 16th streets, has been stalled since early July while Indianapolis-based developer Loftus Robinson awaits the release of its first loan installment to finance the project.
After a 36-year run, the owners of the downtown nightlife institution say it will close after its New Year’s Eve party and a “Last Hurrah Celebration.”
