Weak demand, economy slow Indy redevelopment plan

INDIANAPOLIS — Big plans to redevelop eyesores near downtown Indianapolis have been slow to get off the ground because of a weak market and sluggish economy, but city leaders say they're confident the projects will move forward — eventually.

Mayor Greg Ballard has proposed redeveloping the empty Bush Stadium, an idled GM stamping plant, a crumbling housing complex and land near Eli Lilly and Co. headquarters into new neighborhoods with homes within walking distance of jobs, restaurants and stores.

But high unemployment and low housing prices are making those projects a tough sell, and even Ballard concedes that the projects could take up to 20 years to complete.

"It takes a while to get there," he told The Indianapolis Star. "You can't just snap your fingers and make it happen."

Some experts say the time is right nationally to focus on urban redevelopment.

Pennsylvania-based economist Kevin Gillen says home prices are falling more in the suburbs than within cities, and high gas prices are spurring more people to look for homes closer to their jobs in urban centers.

Terry Sweeney of Downtown Indianapolis Inc. said there is a strong demand for places to live near downtown offices, shops, restaurants and other attractions. He noted that 95 percent of downtown apartments are occupied.

"Downtown has a solid foundation of being a clean, accessible and safe urban area," he said. "It's very compact and pedestrian-friendly."

But the commercial vacancy rate is still at 20 percent, which could create hurdles for new projects.

Indianapolis also could be hurt by a lack of effective public transit, a requirement for walkable cities.

Jeff Speck, a Washington-based city planner and architectural designer who consults nationally, said he's surprised by how Indianapolis' downtown looks given the lack of a good transit system.

"It's an anomaly that suggests that a real transit investment is a good idea if Indianapolis wants to be a star in what everyone is now calling the urban century," he said.

Transit advocates are pushing the Indiana General Assembly to allow residents to vote in 2012 on whether to raise taxes to upgrade the IndyGo bus service and add train service.

The city has committed millions for the Lilly-area project and the Bush Stadium overhaul. More public funding is possible for the Keystone Towers and GM stamping plant projects.

"When a city is making public investment," said Deputy Mayor Mike Huber, "it gives significant confidence to developers and companies that they can take risks, because the city will work with them."

Ballard's opponent in the mayoral election, Democrat Melina Kennedy, says the city is taking too much risk and suggests some of the money could be better used for more basic services, such as restoring hours at local library branches.

"The city has not had a strong, overarching vision of where we are going with these projects," she said. "They seem to be one-off projects without an overarching view and vision of how we move the economy forward."

But Carmel Mayor Jim Brainard, also a Republican, thinks Ballard's play will pay off.

"The national economy has suffered, and not much development is taking place," Brainard said. "When you see an aggressive move by a city, you know they (city officials) believe in Indianapolis and in Indiana."