Downtown development at former CSX building site to receive $15 million in city support

A downtown development project is moving quickly through the city approval process. A new proposal provides more than $15 million in city support for the $300 million development.

The project razes the old CSX building to build a new hotel and entertainment venue across the street from Gainbridge Fieldhouse, where the Pacers play.

The Metropolitan and Economic Development Committee recently passed a new tax increment financing, or TIF, proposal to help fund the project. Councilor Jared Evans voted in favor but noted the development could have gone further.

“If the pandemic taught us anything, we can not be a downtown of hotels,” Evans said. “We have to have people living downtown and I would have loved to see this thing going up 20-30 stories tall with the residential component a part of it.”

The 13-story boutique hotel adds 170 rooms in downtown Indianapolis. More than 2,000 new hotel rooms are currently planned, including 800 at the Signia Hotel, a project the city had to take over after developers backed out.

Simon family development company Boxcar leads the CSX project that includes a new 4,000 seat theater supported by Live Nation.

After a presentation, Councilor John Barth had questions about whether or not the Live Nation venue would encroach on other midsize venues in Indianapolis.

“I would have some concerns about the city subsidizing one particular venue over another if they were going to be going for the same market but it sounds like what you just described is completely different,” Barth said.

Smaller venues in the city, including the Vogue and HiFi, host between 1,000 to 2,000 people. An expensive underground garage project had to be added for venue needs.

The project in Indy’s Wholesale District received approval from a historic preservation commission in September. Numerous studies indicated it was not feasible to redevelop the historic CSX building.

Developers will work with the city’s Office of Minority and Women Business Development to ensure contracts are provided to a diverse group of companies.

Construction is expected to start next year.

Contact WFYI Managing City Editor Jill Sheridan at jsheridan@wfyi.org