INDIANAPOLIS, Ind. (Dec. 1, 2015) – As soon as next year, you’ll likely see more restaurants and shops along the downtown canal.
Louisville-based Investment Property Advisors is planning a second phase of their 9 On Canal Apartments. Downtown Indy reps say phase one has already proven successful with restaurants, a coffee shop and a gym.
The second phase will be similar to the first, but the developer said the new phase will have more commercial space. Investment Property Advisors is planning more than 15,000 square feet of retail space with the second phase.
“Our goal is to just create a vibrancy along the canal there that’s going to offer services and shopping opportunities,” explained Chase Sorrick with Investment Property Advisors.
The new addition will be built along West 9th and St. Clair at the site of a current abandoned warehouse. Downtown Indy Development Director, Catherine Esselman, said the current property pays about $6,000 in property taxes. The new site will bring a much larger economic impact to the downtown area. Esselman said that figure is in the millions.
Investment Property Advisors is footing the $37 million bill, meaning the development won’t come at a cost to taxpayers.
“There’s no tax incentives that the city gave for this land,” Esselman said.
Esselman said the developer has requested a unique property tax abatement, helping to promote a more “attractive package” for retailers.
“This way they can offer more attractive rental rates to the tenants of the space as an incentive to locate there, due to the lack of traffic that currently exists,” she explained.
According to Esselman, the abatement would save retailers 40 percent in property taxes for 10 years.
“They’re taking something that generates very little economic activity and creating a great success story there,” Esselman said.
The city is also currently raising funds for a playground along the canal.