8/31/2006
Media Contact:
Justin Ohlemiller, [317] 327-3690 |
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City to pursue new development plan for former MSA site
Vision for high-rise, mixed-use development remains
INDIANAPOLIS – Mayor Bart Peterson announced today that city officials are working on a new development plan for the former Market Square Arena site. Details of the plan will be announced in the fall, but the city’s vision for a condominium tower and lifestyle retail still remains, the Mayor said.
The announcement comes on the day of the target date outlined in the city’s agreement with developer Market Square Partners, LP, which had planned to build a 31-story condominium tower on the north half of the Market Square site. Market Square Partners has acknowledged that it will not meet sales goals to lock in financing for the project in order to close on the property by the end of August, as stipulated in the agreement with the city.
The Mayor said he believed the current plan did not succeed because of the project’s pre-sales requirement. The best way to invigorate buyer confidence in a high-rise development, according to the Mayor, is to create a plan that does not require a pre-sales threshold and enables construction to start shortly after sales begin.
The city has signed a 60-day extension with Market Square Partners, LP to give city officials time to put together a new agreement that will include new developers and a restructured development plan for the site. Market Square Partners’ potential continued involvement is necessitated by the fact they own key parcels of land near the site that will likely be part of a new, broader and more extensive development plan being shaped by the city.
“It’s disappointing that the visionary plan created by Market Square Partners will not move forward, but we still have a tremendous opportunity ahead of us to shape the future of this prime piece of land in the heart of our downtown,” Mayor Peterson said. “The future development of that site has the potential to revitalize the eastern gateway of our downtown and create a ‘market district’ that will draw residents and visitors to our center city.
“While we certainly will act swiftly to create a new plan, our first priority is to ensure whatever development takes shape is one that will meet the great potential of that site.”
Tamara Zahn of Indianapolis Downtown, Inc. agreed that getting the right kind of development is important to Dowtnown’s long-term vibrancy.
“We have one of the best downtowns in the nation because local leaders and stakeholders have been willing to carefully plan and think through the growth and development that has taken place,” Zahn said.
To illustrate her point, Zahn pointed to the development of the Conrad Hotel, which never would have happened if a past plan calling for a three-story retail development on the northeast corner of Washington and Market moved forward as planned in 2000. Believing the site known as Circle Block could yield a landmark development, the Mayor halted the plans for retail and asked city planners and downtown leaders to reevaluate the future of the site. After multiple plans and years of work, the Conrad was constructed and opened its doors earlier this spring.
The Mayor reiterated that the original condominium design will not be part of the new plan under development, but stated that the city’s future vision will include another high-rise tower, as well as retail. In fact, the Mayor stated that there has recently been new “retail interest in the site that could provide some intriguing options” when the city rolls out the site plan later this year.
The Mayor went on to praise Market Square Partners for their bold vision for the Market Square site and said the developers were completely committed to seeing the plan take shape.
“Market Square Partners have invested a lot of time, hard work and money into their plan and they made every effort to see the development succeed,” Peterson said. “It simply proved to be a greater challenge than expected to pre-sell a new product in this market before construction began.”
The city had no taxpayer dollars invested in Market Square Partners development plan. In fact, as part of their agreement with the city, the developers in 2004 made a non-refundable payment of $1-million to the city for the sale of the land. That funding was transferred to the local housing trust fund to promote and support more affordable housing opportunities in Indianapolis.
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