City to refer old Ivy Tech building and adjacent lots to Redevelopment Commission for RFPs

City staff described options to put the former Ivy Tech building at Eastgate back into productive use and recommended referring the property to the Redevelopment Commission (RDC) to manage appraisals and issue requests for proposals.

The staff presentation said the city owns the large structure and adjoining parking parcels and has shown the building to potential investors. Staff described a significant roof and structural need and estimated that substantial rehabilitation could be required; one staff speaker characterized the building as currently a "liability" because of the roof condition and vacancy. The property includes a large parking area that could be subdivided; some investors have indicated interest in carving off a portion of the lot for new commercial use.

Staff recommended the standard approach the city has used on similar parcels: transfer the property to the RDC, have the RDC issue RFPs, evaluate proposals and negotiate terms that could include reduced purchase price in exchange for committed investment and rehabilitation. Staff said this approach allows the RDC to require investments before ownership transfers tax‑benefit accruals and to use facade or other partnership programs where appropriate.

Committee members asked about existing interest, potential demolition if no tenant is found, and limits on tax incentives. Staff said the city has had prospective tenants but that concerns about rehabilitation costs—particularly an estimated major roof expense—have reduced interest. The committee voted to move the recommendation forward to refer the property to the RDC for RFP issuance and to pursue appraisals and related work.