A project to redevelop old City Hall in downtown Indianapolis is canceled. The most recent effort to overhaul the historic site will not move forward because of funding issues.
When TWG Development announced plans for the project in the summer of 2023 it was estimated to cost $140 million. That price has since soared to about $250 million, and TWG was unable to secure financing.
Megan Vukusich, director of the Indianapolis Department of Metropolitan Development, says even with support from the city through TIF and revenue bonds the project became unfeasible.
"This was a project that we were excited about, and I think that shows in our commitment and the approvals that we had given to the project throughout the last three years," Vukusich said. "And so, yeah, certainly a disappointment."
The project was to feature an art gallery, a restaurant and office space in old City Hall. The building was planned to connect to a new 29-story tower that will house a hotel and residential units.
The city worked with TWG to save the project over the last year. Contract talks considered removing old City Hall as part of the agreement because it was going to be so expensive to redevelop.
Vukusich said the decision to kill the project ultimately hinged on the historic site.
"The love of old City Hall and the importance of it is exactly what led to the decision for us to pivot in this direction so we can make sure that we get some investment and development going in the area," she said.
The 117-year-old neoclassical building has sat empty since 2016 and has been underused for decades. The city will open a new request for proposals on the entire site.
Contact WFYI Managing City Editor Jill Sheridan at jsheridan@wfyi.org
