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Up to $7 million will go to the estimated $40 million project through special bonds, paid back based on the amount of revenue the city brings in through property taxes.
Drew Daudelin/WFYIThe Indianapolis City-County Council approved an ordinance on Monday to help fund real estate developments near Massachusetts Avenue.
The money will support two projects – a new five-story building on North East Street will include a parking garage, apartment buildings and a retail and restaurant space, and a new six-story building on Park Avenue will offer retail, office and restaurant space.
The project is coming to District 17, represented by Democratic Councilor Zach Adamson. He says a nonprofit that owns one property also maintains the historic 19th century Athenaeum Building, home to the Rathskeller restaurant, and has had trouble maintaining it.
"So this proposal allows them to have a revenue stream from a property that they really hadn’t been able to fully realize the benefits of," Adamson says.
As a result of the council's ordinance, up to $7 million will go to the estimated $40 million project through special bonds, paid back based on the amount of revenue the city brings in through property taxes.
"But if the tax does not equal at least the debt service, the developer is on the hook for that," Adamson says. "So that way the city is never really out any money."
The councilor says he’s also happy to support a project that replaces a surface lot, which he calls a “horrible use of property” in what should be a dense, vibrant area.
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