Committee Clears Way For MSA Project

Indianapolis is committing up to $23 million for an $81 million project on the site of the old Market Square Arena.

But, some wonder if it’s worth it.

The project is for a 28-story mixed used development that would include 300 luxury apartments, retail and 550 parking spaces.

Deputy Mayor Deron Kintner says it’s a beneficial investment.

"It produces $1.8 million in new revenue for the city for schools for IndyGo for libraries, etc. that everybody is sharing in," he said.  "This will be a major boon for the taxing units of this city and provide much needed budgetary relief for them."

The Metropolitan and Economic Development Committee approved funding for the project last night.

But, it didn’t receive unanimous support.  Some members – including City County Councilor Zach Adamson – are concerned about the city’s financial commitment.

"That's $23 million in free cash not to mention the $5 million in land that we are donating to the cause not to mention the $15 million in interest liability that we are taking on," said Adamson.  "That's substantial.  The whole project is only $81 million.  We are getting to that 40 to 50 percent mark of the total cost of this for zero ownership for zero return to the public."

Other concerns about the project were the commitment to local hires.

Developer Flaherty and Collins Properties say they have a goal of 30 percent, but are committing to 25 percent.

If the company fails to reach that amount, it will be penalized.

The project now goes to the full council.