Carmel City Council reviews North End phase 2 bond request for senior living units

The Finance, Utilities, and Rules Committee of the Carmel City Council convened on May 13, 2025, to discuss significant developments regarding the North End phase 2 project. The meeting featured presentations from key stakeholders, including Henry Mesteski, Carmel's redevelopment director, and representatives from Old Town and Avenue Development.

The session began with Mesteski introducing Justin Moffatt from Old Town, who outlined the progress and challenges faced in advancing the North End development. Moffatt highlighted the impact of rising construction costs and interest rates, which have complicated the project's timeline since its initial phase launched in 2021. He emphasized the success of phase 1, which included apartments, townhomes, and community spaces, particularly noting the initiative for attainable housing.

Moffatt explained the unique financing structure of the North End project, which involved crowdfunding from local residents to create a community asset rather than a traditional investment model. This approach allowed for a focus on long-term sustainability and community benefit, with a trust established to manage the asset.

As the discussion shifted to phase 2, Moffatt presented plans for 72 rental units designed as townhome-style buildings, aimed at achieving a sustainable development model. He noted that the project would include a senior living component, developed in partnership with Avenue Development, which aims to address the growing need for affordable senior housing in Carmel.

Mike Mattingly, co-founder of Avenue Development, further elaborated on the senior living aspect, emphasizing the importance of affordability and community engagement for residents. He shared insights from their existing projects, highlighting the demand for such housing options and the potential for residents to contribute to community initiatives.

The committee reviewed a request for approximately $75 million in funding, which would support infrastructure development for the project. Moffatt clarified that the request included a commitment to ensure that 10% of the new units would be priced for workforce housing, reinforcing the project's community-oriented mission.

The meeting concluded with a positive reception from committee members, who expressed support for the multigenerational aspect of the development and the focus on affordability. The next steps will involve further discussions and evaluations as the project moves forward, aiming to enhance the North End community while addressing housing needs in Carmel.