Committee backs developer‑backed TIF bonds for JC Hart’s Riverwalk apartment and parking project

A City committee voted unanimously to send an ordinance authorizing developer‑backed taxable tax‑increment‑financing (TIF) bonds for the JC Hart Riverwalk project to the full council with a favorable recommendation.

Staff said the ordinance would authorize the administration to issue taxable economic development TIF revenue bonds to provide upfront financing for a two‑building, 291‑unit apartment development that includes a wrapped, 398‑space parking garage. The project’s minimum private investment committed in the development agreement was listed at $61,500,000.

The financing structure described to the committee is a project‑based TIF in which 90% of the new incremental property tax revenue over a 25‑year allocation period would be pledged to cover debt service on the bond issuance; an additional 6% of increment (capped at $1,342,000) was negotiated to absorb a portion of Crowe’s parking into the structured garage. Staff estimated the bond issuance would generate about $14.8 million in gross proceeds and roughly $11.9 million in net proceeds after issuance costs and two years of capitalized interest. The wrapped garage was estimated to cost about $10.13 million, and staff said most of the incentive supports that garage construction.

Staff described the structure as developer‑backed, meaning the developer would absorb the risk if tax revenues fell short; city bond counsel also told the committee that a default on the developer obligation would not create a city general obligation or rating impact.

Staff said the project was on an accelerated timeline: the developer aimed to close on the property within the month and to close bonds this year, with a 30‑month construction schedule and demolition of the southern Crowe campus building later this year. The presentation noted that Holiday Corporation currently owns the site parcel in question, with the northern Crowe building remaining under a long‑term lease.

The committee heard that the project had been included in a newly created allocation area earlier and that the infrastructure supporting the site was expected to be partly funded by a READY2 award of $5,640,000 announced by the Regional Development Authority; staff said that award is contingent on a final contract with the Indiana Economic Development Corporation (IEDC).

During the discussion, attendees asked about the developer selection process and the timing and contingency of the READY2 award. Staff said the parcel at issue was privately owned and that Holiday Corporation conducted a private solicitation that led to JC Hart; the READY2 award requires a signed agreement with IEDC but staff did not anticipate an unresolved contingency.

The committee voted to forward the ordinance with a favorable recommendation; no public opposition was recorded.

Action details

Bill 8‑25 — Ordinance authorizing issuance of taxable economic development TIF revenue bonds (JC Hart Riverwalk project) Motion: "I'll make a motion to send Bill 8‑25 to full council with a favorable recommendation." (mover/second not specified in the committee record) Vote: Unanimous roll call; committee recorded all ayes (Committee member Gooden Rogers, Committee member Bolden Simpson, Committee Vice Chair White, Citizen Member Kane Kojetzky, Citizen Member Thomas Gray, Committee Chair Warner). Outcome: Sent to full council with a favorable recommendation.

What officials said

Caleb Bauer, executive director of the Community Investment Office, summarized the structure and estimated proceeds: "What we call a wrapped parking garage, meaning, if you're on the outside of the building, you're not going to see the parking structure itself." Randy Rompola, bond counsel for the city, characterized the financing as common and said, "if the property taxes aren't generating... the city would not be at risk at all."

Why it matters

If the council approves the ordinance, the city will authorize bonds that unlock upfront financing to pay for infrastructure and a large portion of the structured parking garage, accelerating a major private redevelopment on the riverfront. The financing uses a project‑based TIF pledge and assigns revenue‑risk to the developer rather than the city’s general obligation.

Next steps

The ordinance will proceed to full council for consideration and final action. Staff highlighted the need to finalize the contract with IEDC for the READY2 award before disbursement of that grant funding.