Commission approves resolution backing Old City Hall tower project, commissioner recuses

The Metropolitan Development Commission on March 5 approved a resolution authorizing a lease agreement and related city financing for the Old City Hall redevelopment, clearing a key step for a mixed-use tower and renovation of Old City Hall.

The resolution, introduced as item 20 25 R-013, passed after a roll call in which seven commissioners voted yes and Commissioner Dylan recused. President Dillon called for the motion; Commissioner Garver moved and Commissioner Hergett seconded.

The project team, led by TWG Development, described the proposal as a combined tower and Old City Hall redevelopment that would include residential units, condos, a boutique hotel, office space and a public art museum. Chase Smith, vice president of market-rate development at TWG, told the commission the plan now under consideration includes 86 apartments, 23 condominiums and 56 hotel rooms, with retail at the ground level. "We anticipate breaking ground in July of 2025 and taking about 3 years, for completion of the entire project," Smith said.

Smith said the development team has landed multiple capital sources, including state and National Park Service historic tax credits, $75 million in private equity and construction debt. He said the project still had a financing gap that would be closed if the commission approved a $50 million loan from the city. "That $50,000,000 loan from the city of Indianapolis, should you all approve it, closes that gap with us and allows the project to be financially feasible," Smith said.

Megan Vukasic, director for the Department of Metropolitan Development (DMD), framed the project within city priorities. She said the Old City Hall RFP was issued in 2022 as part of Mayor Joe Hogsett’s downtown resiliency strategy to add downtown density and street-level activity. The project team also reported approval from the Indianapolis Historic Preservation Commission for the design.

The developer said a guaranteed maximum price contract with Myron Agin/Power Construction would be signed in the coming weeks, and that the project’s hard costs are budgeted at about $205 million. TWG said the hotel partner will be 21c, a brand that is part of Accor.

Commission discussion at the public hearing was limited; the record shows a detailed presentation and questions in a pre-meeting session. President Dillon called the roll for the resolution; the roll-call recorded Garver, Herget, James, Lyle, Moriarty, Murphy and Robinson voting yes and Dylan recusing. The resolution was approved.

The commission’s action authorizes the lease execution and supports the proposed municipal financing structure; final loan documents, terms and council approvals (if required) would be resolved in later steps.

Project contact and developer representatives were present for the hearing and sworn testimony. The commission’s approval at this hearing was a resolution-level action to permit the project to proceed through the city’s redevelopment and financing process.

Key project figures cited to the commission include: 86 apartments, 23 condos, 56 hotel rooms, approximately $205 million in hard costs, $75 million private equity commitment and a developer-requested $50 million city loan to close a financing gap. Groundbreaking was described as anticipated in July 2025, with an approximately three-year construction timetable.

The commission record shows Commissioner Dylan recused from the vote; the resolution otherwise carried. Additional approvals and contract signings identified by the developer remain subject to later execution and any required external approvals.

For more detailed project materials the developer referenced design approvals from the Indianapolis Historic Preservation Commission and awarded tax increment financing that was previously approved by city council and the commission.