Indianapolis Chooses MSA Site Redevelopment Project

“The redevelopment of Market Square Arena will reshape the face of downtown Indianapolis and be a catalyst for economic development on the entire eastside of downtown,” Mayor Bart Peterson said. “We look forward to working with Market Square Partners to take the next step in redeveloping this important site.”

“This project also will give us the tremendous opportunity to make sizable and lasting gains in our effort to create more safe, attractive and affordable housing options for many citizens of our city,” the Mayor added. “This affordable housing component is equally important to the future of Indianapolis.”

About the project. The site will be developed in two phases, involving the north and south halves of the site. As a part of the first phase, the city will transfer the north half of the site to Market Square Partners for $2 million.

The city will direct that $2 million to the Indianapolis Housing Trust Fund to support Mayor Peterson’s priority of providing affordable housing opportunities across the city.

Market Square Partners and the city will work together to meet a series of benchmarks to keep the project moving forward, while also providing opportunities to adapt the project accordingly.

“We’re honored to have the opportunity to partner with the City of Indianapolis and to make the former Market Square Arena site a residential and commercial center that not only will benefit the people who live and work there, but also will play a key role in Indianapolis’ ongoing growth,” said Mike Comparato, project director of Market Square Partners.

The Market District. The redevelopment plan calls for:

The Residences at Market Square, including 200 condominiums on the north half of the site in three buildings: a 22-story tower, a six-story building and a four-story building. After successful development of the first phase, the developer will begin focusing on the second phase, which contemplates another 200 units on the south half.

The Shoppes at Market Square, which includes ground level retail and commercial space in two phases.

Market Commons, 1.5 acres of open space extending to the City Market plaza, offering a public gathering space for intimate or large public fairs, festivals or outdoor concerts. This includes space in both phases.

The MSA site could spur development on the whole eastside of downtown, creating a “Market District” and anchored by City Market on the western corner of the district, Peterson added.

Affordable housing component. The city will direct $2 million of the purchase price to the Indianapolis Housing Trust Fund, which supports affordable housing projects in Indianapolis. In addition, Market Square Partners will:

Donate $1,000 per unit sold, up to $400,000, to fund for down-payment assistance for qualified families; Set aside 10 percent of units built for buyers earning less than 80 percent of average median income of Marion County; and Provide in-kind assistance to affordable housing projects through a community development corporation or other not-for-profit.

Background. Since the implosion of MSA in July 2001, the city has been actively planning for the redevelopment of the site and surrounding areas.

The process kicked off in April 2001, when an extensive reuse plan and market study began, involving local neighborhood associations, businesses and residents, city planners and other experts in real estate and economic development. That plan was released in September of that year.

At the same time, the city’s Department of Metropolitan Development, along with the Greater Indianapolis Progress Committee, Indianapolis Downtown, Inc. and Ball State University, conducted community workshops with eastside residents and businesses to add public input to the planning process.

The city requested proposals for the redevelopment in November 2002, which included design guidelines for the site that are consistent with future planning initiatives in the area, as well as priorities set forth by the Mayor, such as:

The creation and use of public open space;

Parameters regarding building height, grade level retail and integration with the street; Standards regarding the type of materials that can be used consistent with materials used in existing downtown buildings; Recommendations on the integration of parking, including the design and location of spaces; and The inclusion of pedestrian-friendly corridors and streetscape environment.

Proposals. In February 2003, the city received six proposals for development of the site. An internal city review committee, working with outside real estate, development and financial consultants, narrowed those proposals to two in December and to Market Square Partners in the past several days.

Market Square Arena Redevelopment Timeline

April 2001 MSA Site Redevelopment Group is selected to conduct Market Square Reuse Plan and Market Study.

July 2001 MSA imploded. National Environmental Services begins clean up activities.

Sept. 2001 The Market Square Reuse Plan and Market Study is released. The city’s Department of Metropolitan Development, in conjunction with Ball State University’s College of Architecture and Planning, holds planning workshop and public meetings for design charrettes.

Nov. 2001 Clean up at the site.

March 2002 RFP for a Market Square Vicinity Implementation Plan is issued. Site is available for parking on a temporary basis.

April 2002 PKG, Inc. begins I-70/Market Street Study.

May/June 2002 Rundell Ernstberger Associates, LLC in association with Axis Architecture, PKG, and RLR Associates are selected to conduct Market Square Vicinity Implementation Plan.

July/Aug. 2002 I-70/Market Street Ramp Initial Feasibility Study completed. Market Square Vicinity Implementation Plan steering committee convenes.

Aug./Sept. 2002 I-70/Market St. Ramp Initial Feasibility Study presented to Indiana Department of Transportation (INDOT) and Federal Highway Administration (FHA).

Oct. 2002 Metropolitan Development Commission approves public offering of former MSA site, designates site as a “redevelopment area.”

Nov. 2002 City issues request for proposals from potential developers. Market Square Vicinity Implementation Plan completed. Feb. 2003 Deadline for proposals from potential developers for the MSA site. City receives six proposals from potential developers.

March 2003 Potential developers make presentation to city review team.

Dec. 2003 Proposals narrowed down to two.

Feb. 2004 Market Square Partners selected as development team. Pre-construction activities, including marketing and sales, begin.

March 2004 I-70/Market St. Ramp Justification Report to be submitted to INDOT and FHA.

Summer 2004 Project agreement completed.

Fall/Winter 2004 50% of Phase I condos pre-sales on completed. Closing on construction loan. Construction begins.

Summer 2006 First move-ins to Phase 1 condos.

Source: Office of Mayor Bart Peterson