Old City Hall project set to receive $66 million in city loan

A signature project that transforms old City Hall into a museum with an adjoining mixed use skyscraper is much more expensive than first estimated. The city is now set to loan the developer about $66 million to complete the build.

When the renovation of the historic building was announced in 2023 it was estimated it would cost around $140 million. Now that price has soared to nearly $250 million. Representatives from TWG Development said the increase is due to a hike in construction costs and interest rates.

The 1910 building, which has a historic designation, has sat empty since 2016 and has been underused for decades.

A City-County Council committee unanimously voted in favor of the investment at a recent meeting. Councilor Jared Evans said the loan is a tool that will benefit all of Indianapolis.

“To help a developer to complete a project which is going to add tax revenue to the base, to be used for other services, that otherwise would not happen without the tool,” Evans said.

The project features art galleries, a restaurant and office space in the old City Hall space. The building will connect to a new 29-story tower that will house a hotel and residential units.

City funding from a TIF district and other local and state assistance tops $50 million for the project. Under the TIF agreement, 10 percent of residential units will be affordable. There is also a public art project as part of plans.

If approved by the full council next month, the project could break ground in July. Developers estimate it could open by 2028. 

Contact WFYI managing editor city desk Jill Sheridan at jsheridan@wfyi.org.