Indianapolis Bond Bank proposes $66M for Old City Hall redevelopment financing

The Metropolitan and Economic Development Committee of the Indianapolis City Council convened on March 10, 2025, to discuss a significant financing proposal concerning the redevelopment of Old City Hall. The meeting featured a presentation by the executive director and general counsel of the Indianapolis Bond Bank, who outlined the details of the proposed issuance of economic development lease rental revenue bonds.

The proposal seeks authorization for the issuance of bonds not to exceed $66 million, which will be utilized to finance the redevelopment project. The city plans to loan up to $50 million of these proceeds to the developer, with the loan structured to include three years of capitalized interest, a surety for debt service reserve, and costs of issuance. The developer will be responsible for debt service payments after the initial three years, with a corporate guarantee from TWG backing the loan payments.

The timeline for the project includes several key dates: approval from the Metropolitan Development Commission (MDC) was secured on March 5, with further approvals scheduled for March 19 and April 12, leading to a final council vote on April 7. The anticipated bond bank approval is set for the May board meeting.

During the meeting, council members raised questions regarding the financial structure of the loan, particularly concerning the capitalized interest and the implications of the project on city revenues. The executive director clarified that the loan would be entirely repaid by the developer, with no city funds being used for repayment.

Additionally, discussions touched on the project's art component, with a commitment to contribute 1% of the bond proceeds to the Arts Council for neighborhood grants, rather than a direct investment in public art installations near the site.

The meeting concluded with a clear understanding of the project's financial framework and its implications for the city, setting the stage for the upcoming approvals necessary to move forward with the redevelopment of Old City Hall.