By IBJ Staff Report
Indianapolis Business Journal

VOL. 24 NO. 47, JANUARY 26-FEBRUARY 2, 2004


Construction trailers and orange fencing could replace wintering tulip bulbs on the northeast corner of Washington and Illinois streets by the end of February.

The city's Metropolitan Development Commission on Jan. 21 unanimously approved a 54-page agreement spelling out construction and financing details of a $93 million, 23-story Conrad Hotel and condominium tower to be built on the vacant corner by local developers Kite Cos. and Mansur Real Estate Services.

"I think it's fantastic," said MDC member James J. Curtis, following a presentation from the site's developers. "This will be a heck of a landmark downtown."

Mansur and Kite expect to close construction financing for the deal on or about Feb. 20, paving the way for locally based general contractor Hunt Construction Group to move in.

The final tab for public funds to develop the site came in at nearly $24.3 million, including $18 million in previously approved cash incentives, $2.5 million to construct two levels of parking in the tower, and $3.75 million the Indianapolis Economic Development Commission will pay for an 8-percent equity stake in the hotel itself.

The city plans a bond issue to pay for the incentives, pending City County Council approval, said Indianapolis Bond Bank Director Robert Clifford. Interest on the bonds will be paid with proceeds from revenue from the lease on the city's portion of the parking garage, plus funds generated by the tax increment financing district created as part of financing for Circle Centre mall. The hotel project is within the district's boundaries.

Construction on the site is expected to move quickly, said Kite principal Tom McGowan, so the 243-room Conrad Hotel will be open in time for the Indianapolis 500 in 2006. The upper six floors of the tower will become some of the city's priciest condominiums. They will be built at the same time as the hotel and finished as they are sold.

The agreement approved Jan. 21 does not include final details for the $6 million renovation of the Taylor and Goodman buildings at 26 and 30 W. Washington St. into 30 market-rate apartments. That agreement will be signed in the next few weeks, said Mansur President Charles R. Cagann. Those apartments may be finished before the hotel opens next door.

Kite and Mansur will jointly own both the hotel/condo tower and the apartments, but Kite is spearheading development of the tower and Mansur is the lead developer on the apartments. The companies' bid for the site was accepted by the city in February 2003.