A new luxury apartment tower is coming to downtown Indianapolis. That’s according to Mayor Greg Ballard, who unveiled plans redeveloping the north lot of old Market Square Arena downtown on Tuesday.
Ballard and developers say the Market Square Mixed Use Development project will cost about $81 million.
Flaherty & Collins Properties CEO Dave Flaherty says the building will be a 28-story tower that will include 300 apartments, first-floor retail space and 500 parking spaces. One and two bedroom apartments will range from $1300 to $2400 a month.
Flaherty says the project will generate $1.3 million in new property tax revenue and $40 million in payroll taxes during the first five years.
Indianapolis Downtown Inc. President Sherry Seiwert says the project is in keeping with IDI’s efforts to promote more downtown housing. Seiwert says their latest survey shows more people want to live downtown and 64 percent of them are from outside of Indianapolis.
The former Market Square home of the Indiana Pacers was demolished in 2001, but efforts in 2004 and 2007 to redevelop the site fell through before breaking ground.
“The first two times they actually put out and tried to develop both the north and the south lots at the same time,” says the mayor’s spokesman, Mark Lotter. “You tend to get a much larger development in terms of its scale, but that also raises the risk.”
Construction is set to begin next spring and finish in 2016.