EDC approves financing package for Old City Hall reuse project; recommends council ordinance

The Indianapolis Economic Development Commission voted to approve resolutions recommending a bond ordinance and project report for the Old City Hall reuse project, a $248,000,000 redevelopment that pairs a 29‑story mixed‑use tower with the renovation of Old City Hall for a public art museum and office space.

The vote sends the EDC’s recommendation to Indianapolis City Council for a corresponding bond ordinance. DMD staff and the city’s Office of Minority and Women Business Development told the commission they support the project and its inclusion plan.

Chase Smith, vice president of market rate development at TWG, told the commission the combined project has received a certificate of appropriateness from the Indianapolis Historic Preservation Commission and remains on track to break ground in late summer. “Everything you see here contained within these renderings and drawings is all approved by IHPC,” Smith said. Joseph Lee, contract compliance officer for the Office of Minority and Women Business Development, said the office updated and approved the project’s XBE inclusion plan. “OMWBD approves of this project moving forward,” Lee said. Emily Stumpf, project manager for DMD, said, “DMD staff is in support of the project.”

What the commission approved

The project package presented to the commission includes: - A 29‑story tower with 23 condominiums, 86 apartments (five of which are proposed at 30% AMI under the approved TIF), 56 hotel rooms, 2,500 square feet of street‑facing retail and 208 parking spaces; the tower also includes resident amenities such as a rooftop pool and common spaces. - Renovation of Old City Hall: the first two above‑grade floors and basement will operate as a public art museum affiliated with 21c Hotels; the top two floors will be office space for private tenants. - Public‑private financing: a capital stack made up of the city‑approved TIF, state redevelopment tax credits (RTC) awarded through IEDC, anticipated federal historic tax credits, private mortgage debt and equity, and a proposed bond and internal loan discussed at the meeting. TWG identified a project cost of $248,000,000.

TWG and financing details

Chase Smith and other TWG representatives said cost increases since the project’s original RFP have created a financing gap. The company described a proposed bond not to exceed $66,000,000, which would yield a net amount to the project fund of up to $50,000,000. TWG said the city discussed making the first three years of payments on the loan as a source of additional cash in the capital stack; TWG committed to retire the loan at a capital event, refinance or sale, or within 10 years.

TWG also committed to contribute 1% of the bond amount to the Indianapolis Arts Council (TWG estimated that contribution would exceed $500,000) and reaffirmed a 1% TIF public art commitment (approximately $180,000). The firm said it expects roughly $80,000,000 in equity and approximately $69,000,000 in private sector debt to complete the capital stack, and that it is in ongoing negotiations with national equity and debt providers.

Inclusion, approvals and timeline

TWG stated a 27% XBE utilization commitment for the project and provided examples of prior projects with similar XBE results. Joseph Lee said OMWBD worked with TWG to update the inclusion plan in March 2025 and added that Meyer Najam will serve as construction manager and Power Construction (Chicago) as general contractor. Emily Stumpf of DMD described the development as a public‑private partnership that will connect the Central Business District, the Mass Ave arts district and the Cold Noble neighborhood and reiterated staff support.

Chase Smith summarized prior approvals and milestones: the RFP award occurred in August 2023, a TIF bond and legislative approvals were secured in late 2023, schematic design and detailed pricing advanced in 2024 (with roughly $2,000,000 spent on schematic design), and the project received a certificate of appropriateness from IHPC on October 4, 2024. TWG said it expects to finalize remaining financing details in the next 120 days, begin construction permitting and target a late‑summer 2025 groundbreaking with an estimated 36‑month construction period to completion.

Questions and risk mitigation

Commissioners asked about contingency levels, potential cost escalation from tariffs or supply issues, parking sufficiency and impacts from design changes tied to the 21c brand. TWG and contractor representatives said the project carried an $8,000,000 contingency and that Meyer Najam and Power Construction were engaged early in design to reduce cost uncertainty. Jeremy Dixon of Meyer Najam described supplier coordination steps and examples of early procurement to mitigate code or material changes.

Votes at a glance

- Adopted: Motion to approve the minutes of the Dec. 4, 2024 commission meeting. Outcome: approved. (No individual roll‑call votes were recorded in the transcript.) - Adopted: Motion to adopt EDC resolutions approving the Old City Hall project report and recommending a council special ordinance (bond ordinance). Outcome: approved. The EDC’s action forwards the recommendation to Indianapolis City Council for its consideration.

Next steps

The commission’s vote forwards the resolutions and the recommended bond ordinance to Indianapolis City Council. TWG and city staff said they will continue finalizing financing and permitting, and they reiterated commitments on XBE utilization, public art and affordable units. Public hearings on any council ordinance and any final bond documents will be scheduled through the council process.