Thursday, October 25, 2012

City "Sells" Massachusetts Avenue Property to Developers for $5.4 Million, Gets Nothing in Return

Only in Indianapolis would city leaders claim to "sell" public property for $5.4 million, yet the taxpayers end up with nothing.
A brightly colored, five-story building of mixed uses will replace the Indianapolis Fire Department station at Massachusetts Avenue and New Jersey streets in Indianapolis, according to designs unveiled today. 
The turreted building front will feature changing electronic images — a la  Times Square  — welcoming visitors to the arts district with its shops, taverns and restaurants.
The project, expected to cost $43 million, will include up to 235 apartments, 40,000 square feet of ground-floor retail and two levels of underground and surface parking, Mayor Greg Ballard said at today’s announcement. A development team consisting of J.C. Hart Co., Strongbox Commercial (led by Paul Kite) and Schmidt Associates will oversee the projects.
This is my favorite part, however:
The city is selling the property to developers, officials said, for $5.4 million. Those funds will be placed in escrow, according to a release, and can be accessed by the developer to help fund construction on the site...
When will these giveaways of the taxpayers' money stop?


guy77money said...

Until our local (throw in state and national) politicians realize that all of the money they give away is the taxpayers and not Monopoly money there won't be any major changes in how things work downtown until they are so broke that they will have to raise taxes. Maybe the mayor will decide to leave the city in such bad shape that when the Democrats get control of the mayors office they can sit back and say hey it's the Democrat's problem. Then we can all say look we have a beautiful downtown area as the rest of Marion County slowly deteriorates and becomes crime ridden and businesses and people start exiting the county in even bigger numbers.

Flogger said...

I was just pondering. Is there anything that can be built by a business in this City or State that does not require a big helping of Corporate Welfare??

I just read an article in the BBC that the New York Times printed an article about Premier Wen Jiabao's relatives have accumulated billions of dollars. Both the NYT's Chinese and English sites are being blocked inside China.

The Indianapolis Star does the next best thing by hyping up on Corporate Welfare Projects as "Partnership" between the Public and Private Sectors.

Jon said...

The Star is doing a disservice to the citizens of Indianapolis by being unabasedly a proponet of the pay to play mentality of this administration. If the mayor has a wish or a whim then the Star touts it as the next best thing since slice bread.

We never hear the down side just the up side, when the rose colored glasses finally come off and the the city is belly up in bad debts then it will be too late.

Anonymous said...

They got coined on that one. Nothing hurts a state than a city or state property getting tangled on legal problems. According to conveyancing, there were studies that pre-empted ROI based on the sales.