Wednesday, February 17, 2016

Developers Bidding For Coca-Cola Property Seeking Huge Government Subsidies

When the first stories broke about the six competing bids from the usual suspects for the opportunity to buy the Coca-Cola property on Mass Avenue and redevelop it, I indicated my belief that bidders offering what appeared to be substantial amounts to acquire the land from IPS would also be seeking large subsidies from the city of Indianapolis to more than offset the cost of acquisition. It looks like I was correct based on an updated report this evening in the IBJ after the specifics of those bids were made public. Bidders are seeking on the low end $2.4 million and as much as $30 million in subsidies. Here's what each bidder is proposing to pay for the material and how much is being sought in public subsidies for their respective development proposals:

  • Milhaus Development-$158 million and $121.5 million investment alternatives
          Plan A-$18 million purchase price/$28.6 million city subsidy
          Plan B-$15 million purchase price/$6.5 million city subsidy
  • Strategic Capital Partners/Schmidt Associates/J.C. Hart-$217.4 million investment
          $17.5 million purchase price/$25 million city subsidy
  • The Hagerman Group-$136.3 million investment
          $2.1 million purchase price/$25 million city subsidy and $8.3 million federal
  • Browning Investments-$106.8 million investment
          $11 million purchase price/$16 million city subsidy, $12 million state/$3 million federal subsidy
  • Hendricks Commercial Properties-$259.6 million investment
          $12 million purchase price/$2.4 million city subsidy for site remediation

6 comments:

Anonymous said...

Pockets, pockets, come hither you parasites and pick our pockets....

Anonymous said...

Wow. If this kind of development is so in demand, why does it have to be subsidized at all?

Gary R. Welsh said...

Exactly, 9:44. And remember that all of the assessed value from the improved development will go to the downtown TIF, not to the various taxing districts so the slush fund will continue to grow and provide more lucre for the mayor to pass out to his campaign contributors.

Anonymous said...


Absolutely to Anon 9:44 and Gary 9:52. It is simple Econ 101, something that eludes critical thinkers forced to support via their tax dollars these projects whose primary goal is fleecing the taxpayers and engorging developers' pockets and Lord really knows who else in the political food chain. Not one local mainstream media type could think of these questions let alone have the guts to put them to elected officials, the developers, the fake city and state "hearing" officials, etc.

Tadd Miller. The new Ersal Ozdimir. I guess bankrolling those "fundraisers" for the various Marion County GOP candidates all those years paid off, Tadd. With Lying Joe Hogsett's administration possibly another name for "Greg Ballard The Corrupt", Milhaus owner Tadd Miller just as easily "works" with crony Democrats.

In my opinion, Artistry's exterior resembles a sun-faded tenement exterior and Circa might be more aptly called "circus", albeit a very expensive big tent in which to call home.

These structures darken the City's streets more than sun-blocking, they are conspicuously cheap looking and hideous in my perspective; they are already look dated and shopworn.

How sad that a once elegant style of the former Coca Cola plant may be turned into a Disney World for the Dilettante Set whether it be Milhaus or any of the others on the list.

Downtown is just about unlivable with so much and so many ram-crammed into spaces that once allowed fresh air and sunlight. Almost any of the contiguous counties seem more enticing by the day than "downtown Indianapolis anything".

Anonymous said...

If a public parking garage isn't placed here, it will be the death of Mass Ave.

Anonymous said...

How in the hell can one bidder propose no subsidies and the others from the low to high millions. Makes no sense. One thing is certain. They City will choose the developer who requires the largest amount of public subsidies!