Indy to consider $66 million in bonds for Old Indianapolis City Hall INDIANAPOLIS (WISH) — A proposal for $66 million in bonds for redevelopment of the Indianapolis Old City Hall awaits final approval from the City-County Council in April. The bonds would be a loan to Indianapolis-based TWG Developers. TWG was chosen to redevelop the property and build a mixed-use development on the neighboring parking lot. The bonds would cover a funding gap due to rising costs. Chase Smith, the vice president of market rate development at TWG, earlier this month presented the proposal to the Metropolitan and Economic Development Committee. The $66 million must be paid back to the city in 10 years. Smith said, “Construction costs are up, anywhere between 25% to 50 %. Interest rates are also way up.” “I think each of those, interest rates, different financial market conditions, have an ability on what amount of debt we can go get.” The city government would pay $9.3 million in interest on the bonds in the first three years. This would be funded by the bonds and paid back by TWG, according to a city spokesperson. The developers would connect the Old City Hall to a new skyscraper by building a connection between them on the north side of the building. It would be the only change to the historic structure. The four-story Old City Hall was dedicated in 1909, and used for city government offices until the City-County Building opened in 1962. Since then, it’s served multiple purposes, including once being the sites of the Indiana State Museum. The redeveloped property would have 23 condos, 186 apartments and 156 hotel rooms. Nine apartments, or 5%, would be reserved for people making 30% of the area’s medium income. There would also be retail and commercial space, a parking garage, and a 20,000-square-foot art gallery. City-County Council Minority Leader Michael-Paul Hart said he’s concerned with the constant funding going into downtown and not to outlying areas, and others share in his concern. “One of my big concerns and a lot of the councilors’ concerns is we see millions of dollars go downtown all the time. We just got a $66 million loan pending for a large hotel in the Old City Hall. What are we going to do for these things out here in the townships.” “The thing about the hotels is there is a level of importance because we are a convention city, we are an event city. We have to have it,” Hart said. Hart was not at the March meeting to vote on this issue. City-County Councilor John Barth, a Democrat, said, “I do support this project. I think there’s a reasonable and thoughtful point to be made that we spend a lot of time downtown, and there are a lot of economic development opportunities in other parts of the city.” Barth added, “I’m absolutely excited about this project. We have an opportunity to save what I consider a historic site for our city.” The council could take a final vote to approve the bonds at their next meeting, 7 p.m. April 7 in the City-County Building. ...read more read less