City-County Councilors approve loan to private developer to renovate Old City Hall

Indianapolis City-County Councilors approved lending a private company the funds to redevelop the Old City Hall and construct a new mixed use building.

The project includes a public art space, hotel, restaurant and affordable housing.

The highly anticipated development hit a road bump last month when TWG Development, the developer selected for the project, asked the city for a more than $60 million loan citing rising construction costs. That loan is now moving forward, after Monday night’s vote. It will be issued through a bond that the company will pay back.

While pleased that the city is using revenue bonds for the loan, Democrat Jesse Brown was the only councilor to vote 'No.' He questioned if the company truly needed it while giving thousands of dollars in campaign contributions to Mayor Joe Hogsett and Governor Mike Braun.

“I think most of our constituents would agree we’re fine subsidizing economic development for companies that need it,” Brown said. “When you can donate $80,000 to politicians, I don’t think you need it.”

But Democrat Jared Evans, who serves on the committee that unanimously approved the bond, said it’s not that simple, and with rising costs for supplies the city needed to find a way to help make the project happen.

“These developers are walking away with very thin margins,” Evans said. “That’s why they’re seeking incentive in the first place.”

With approval of this loan, minority leader Republican Councilor Michael-Paul Hart wanted to know if the same lending blueprint could be used to get redevelopers to invest in projects in other parts of the city.

“The Washington Square Mall is landmarked in my district, and I know there’s – everybody on this council has a massive landmark in their district that could probably use some attention of this nature, right?”

Department of Metropolitan Development Director Megan Vukusich said there would be some requirements for it to be possible, including the building being owned by the municipality and having a private developer signed on to do the project.

The council also unanimously approved an updated snow removal plan. That will require the Department of Public Works to plow residential streets when there are four or more inches of snow. The plan was proposed following a winter storm in January that left numerous residential streets unplowed.

Contact WFYI All Things Considered newscaster and reporter Samantha Horton at shorton@wfyi.org.