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Council OKs 90‑day LOI with SC Bodner for Merow property; developers propose 206-unit multifamily plan
Summary
Fortville authorized its town official to sign a 90‑day letter of intent with SC Bodner that focuses on a multifamily-led build of the Merow property and a town infrastructure commitment; developers propose 206 units and staff estimated town infrastructure costs of roughly $6–$8 million, subject to a taxpayer agreement and final numbers from the town finance consultant.
Fortville’s town council voted to allow a town official to sign a 90‑day letter of intent with SC Bodner that would give the developer exclusivity while the parties negotiate a binding development and taxpayer agreement. The LOI focuses on the multifamily portion of a previously approved planned unit development (PUD) and the town’s potential infrastructure commitments to extend South Madison.
The LOI calls for a 90‑day exclusivity period and sets a 30‑day target to assemble a proposed development agreement, town staff said. Developer Michael Garvey said the current concept proposes “156 units in the threestory product” plus about 50 single‑story units to transition to the adjacent neighborhood, for a total of 206 units — under the PUD cap of 220. He said garages and parking fields would be placed behind the buildings to limit frontage impacts.
Town staff and developers said early estimates put the town’s infrastructure obligations (road extension, sewer, utilities and related work) in the roughly $6 million to $8 million range, though final numbers will come from the town’s finance analysis. The LOI includes a provision that SC Bodner will reimburse the town’s legal costs up to a capped amount if negotiations end without an agreement.
“This LOI provides security to SC Bodner that the town is going to be exclusively dealing with them,” a staff member said during discussion, framing the document as a step toward a binding taxpayer agreement and development agreement. Council members and staff said the arrangement is meant to reduce the risk the town faces if public bonds or infrastructure are advanced but private development does not follow.
Planning staff warned that the developer’s revised plan could require a PUD text amendment or a development‑plan review before the plan commission and council, and that any material changes from the recorded PUD will be processed publicly. The town’s financial adviser is preparing numbers to show how anticipated incremental tax revenue (TIF/TIFF) from the multifamily piece would service any bonds issued for infrastructure.
Councilmember Tony Davis moved to allow Tanya to sign the LOI, a motion the council approved. Councilmembers and the developer said they expect to return with a draft development and taxpayer agreement — and Buzz Cone’s financial analysis — in the following weeks.
If the council approves a final agreement, it would commit the town to defined infrastructure work and timelines; if terms cannot be reached, the LOI’s legal‑fee reimbursement would reduce the town’s out‑of‑pocket risk. The council also noted that the eastern commercial parcel may be sold or developed by a separate party and that any such developments could be covered by separate agreements.
