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Group launches $15M loan fund for housing near IndyGo stops

Hayleigh Colombo

The Indianapolis Neighborhood Housing Partnership has launched a loan fund intended to create and preserve affordable housing along the city’s public transportation lines. 

The $15 million Equitable Transit-Oriented Development Fund was launched in collaboration with Michigan-based Cinnaire, a community development financial institution with offices in Indianapolis, which will manage the fund. 

INHP will be the fund’s sole borrower and will acquire existing buildings or vacant or underused properties, with the goal of maintaining or developing mixed-use, mixed-income housing.

The ultimate objective of the fund is to preserve or spur development of 1,000 affordable housing units within close distance of an Indianapolis transit stop over the next five years. The units would be leased to eligible tenants.

“We believe everyone should have equal opportunity to live in a neighborhood with easy access to employment, health care, child care, education, food and support services,” said INHP president and CEO Moira Carlstedt.

John Marron, director of strategic planning for IndyGo, said the fund would help “ensure housing costs remain affordable in locations with easy access to transit” as the IndyGo bus service undergoes an expansion in Indianapolis with an increase in service and creation of three bus rapid transit lines. 

The fund is composed of $12 million in lending capital from First Merchants Bank, National Bank of Indianapolis, Lake City Bank and First Financial Bank. It also has $3 million in equity funding: $1.5 million from the INHP, $1 million from the city of Indianapolis and a $500,000 grant from JPMorgan Chase. The fund already has $5 million in lines of credit contributed by banks; and the rest is in various stages of closing, according to INHP.

The idea of the fund is to give the INHP access to more low-interest financing to complete more projects. 

Rick Laber, Cinnaire’s executive Vice President for new ventures, said he is encouraged by the initial interest from banks to participate in the fund. 

“This couldn’t happen without the bankers having a heart for the mission of what we’re talking about,” Laber said. “This needed to be low-cost, patient capital. The banks have stepped up with low-cost, patient capital.”

The city of Indianapolis’ contribution comes from Department of Metropolitan Development funds, according to a city spokesperson.

“Today is a fantastic day for the city of Indianapolis,” Mayor Joe Hogsett said. “This tremendous partnership will make our city a more equitable city, a more thriving city, and … one that is a prime example of a public drive partnership done well.”

So far, INHP has acquired two properties using the fund, 401 Southern Avenue near Garfield Park, and 2163 N. Illinois St., which is north of downtown. Both stops are close to future IndyGo Red Line stops.

“We’ll see activity on these parcels hopefully soon,” said Carlstedt.

The initiative comes as the result of an idea INHP heard during the community visioning process called Plan 2020 from Indianapolis resident Gary Reiter, who thought the city had a problem with a lack of affordable housing, especially around transit routes.

INHP then conducted studies that showed his hunch was correct. It also found that transit and housing costs were eating up an average of 46 percent of Indianapolis residents’ income.

“The vision he had was to combine the ever-growing transit system with the problem he saw as a shortage of affordable housing,” said Joe Hanson, INHP’s executive vice president for capital development and strategic initiatives. “This tool is intended to address both of those challenges. It addresses the lack of supply of safe, decent affordable housing but more importantly, aligns that with high-quality, frequent, reliable transit. It’s about creating those opportunities for inclusive economic mobility.”

Carlstedt said the fund was also made possible because of a $26.6 million grant in 2015 from the Lilly Endowment to INHP, which helped fund INHP’s contribution.

“They said to the board and staff, ‘Seize opportunities, be innovative and do more of what you do well,’” Carlstedt said. “The equitable transit fund is an example of seizing opportunity and being innovative.”

Indy, Wayne Township Schools Launch Partnership

By Alex Brown, Multimedia Journalist, Inside Indiana Business 1/28/2019

The city of Indianapolis and the Metropolitan School District of Wayne Township have unveiled a partnership focused on workforce development and improving neighborhood quality of life. The city says it will allocate $300,000 to fund adult education programs for Marion County residents in opportunity job sectors that are in high-demand but have unfilled positions. An additional $90,000 will go toward the district’s Area 31 Student Construction Vocational Program.

In an interview with Inside INdiana Business, Indianapolis Mayor Joe Hogsett said the partnership shows the power of the public and private sectors coming together to not only help adults find jobs, but prepare young people for high-wage jobs that are currently in demand.

“I don’t think that there is anything that warms my heart, and I’m sure I speak for many, many parents throughout the Indianapolis community, for a young person who’s about ready to graduate from high school to truly have many, many different options and many opportunities. That’s what we ought to be giving each and every one of our young people.”

The city says the adult education programs target industries including HVAC, welding, clinical certified medical assisting and dental assisting.

The Area 31 Student Construction Vocational Program provides students with real-world work experience in high-wage, high-demand jobs in Marion County. Monday’s announcement took place at a home built by students enrolled in that program. Area 31 students have built two homes, with a third set to be complete by the end of the school year and construction on a fourth to begin in August.

The city and school district say economic and development nonprofit Indy Gateway played a key role in putting the agreement together. The organization pushes for the revitalization of westside neighborhoods.

Here’s what’s going up at Fifth and South in downtown Lafayette: A $10-million development

Dave Bangert, Journal and Courier Columnist 10/1/2018 10:45:00 AM

LAFAYETTE – Say goodbye to Lafayette City Hall’s parking lot at Fifth and South streets, developers prepare to build a complex of apartments and retail space in downtown Lafayette.

The city closed the parking lot on Monday to clear the way for Star City Crossing, a five-story mixed-use project expected to feature 76 apartments and 7,900-square-feet of commercial and retail space on the first floor, plus a parking facility. A timeline for the project wasn’t immediately available.

Construction of the $10.5 million project comes at a time when a city-generated study, released this summer, suggested that downtown Lafayette will need to have 550 to 800 more housing units by 2022 to meet the demands of the growing population.

 

State approves $50 million tax credit for Fort Wayne’s GE project

Dec 15, 2017

The first phase of the “Electric Works” is expected to cost more than $213 million. (Courtesy image)

Efforts to redevelop Fort Wayne’s General Electric campus received a huge boost Thursday when the Indiana Economic Development Corp. (IEDC) board of directors yesterday approved a conditional tax credit to support the mixed-use project called “Electric Works.”

Based on an expected initial investment of more than $213 million for phase one of the project, which is expected to begin next year, the IEDC board approved an Industrial Recovery Tax Credit (DINO) of up to the lesser of $50 million or 25 percent of the total qualified investment. This tax credit is conditional, meaning that investment in the redevelopment must be made before the project is eligible to receive any incentive. DINO is intended to promote the reuse of old industrial buildings. The former General Electric campus comprises 39 acres, 18 buildings and more than 1.2 million square feet of space.

“We are grateful to Gov. Holcomb and the IEDC for their support of this transformational project as we invest in the future of Fort Wayne and northeast Indiana,” said Jeff Kingsbury of RTM Ventures developer of the project, said in a statement. “Fort Wayne is creating a nationally recognized, vibrant regional economy, and Electric Works will build on the history of innovation that is the legacy of this community to create jobs, and support Indiana’s economic development strategy.”

DINO credits are available to owners, developers, and certain lessees of buildings located in an industrial recovery site which contains a building or buildings that are at least 15 years old; have at least 100,000 of total square feet; and are at least 75 percent vacant at the time the application is filed. The GE campus is more than a century old.

Elaine Bedel, president of the IEDC, said in a statement that “The reuse of the former GE campus is a bold vision and will be transformational in shaping the future of Fort Wayne.”

A recent economic impact study on Electric Works estimated the project to generate at least $219 million in state tax revenues over its first 20 years. In addition, the project is expected to create more than 2,000 construction and related jobs during its development and support 2,800-plus jobs during its operation. It’s also expected to generate nearly $400 million in annual economic impact once operational.

RTM Ventures is a joint venture of Baltimore-based Cross Street Partners, Indianapolis-based Greenstreet Ltd., and Decatur-based Biggs Development; the team purchased the property in September. The first phase of the project will focus on the west campus and will feature 224,000 square feet of office space; 113,000 square feet of institutional/education space; 83,000 square feet for retail/restaurants and a food hall; 83,000 square feet of dedicated innovation space/facilities; 82,000 square feet of residential space; and 31,000 square feet of amenity/recreational space.

The project is also expected to seek funding from the city’s Legacy fund and $3 million from the Capital Improvement Board for environmental remediation.

For more information, visit https://fortwayneelectricworks.com/