Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
Fort Wayne billionaire Chuck Surack has acquired a hotel on the east side of downtown Indianapolis in hopes of derailing a plan to redevelop the adjacent Indianapolis Downtown Heliport site as part of a new soccer stadium.
Surack, founder of online retailer Sweetwater Sound, purchased the La Quinta Inn hotel at 401 E. Washington St. for $14.53 million on Aug. 30, according to a sales disclosure form obtained by IBJ. He bought the property through the holding company Washington 401 LLC.
Surack also owns the site of the former Adult and Child Services building at 603 E. Washington St., which also is adjacent to the heliport site. Surack purchased that property for $8.2 million last year.
Both real estate purchases are intended to discourage Mayor Joe Hogsett’s administration from disposing of the heliport so the property could be used to build a soccer stadium. Hogsett’s administration has been working with an anonymous investor group to attract a Major League Soccer franchise to Indianapolis, and it has identified a collection of properties necessary to build the stadium that include the heliport land.
The properties that Surack has purchased aren’t necessarily required to develop the stadium, but he hopes that having an uncooperative land owner on the prospective stadium’s front doorstep will make the city think twice about proceeding.
“I’m not trying to make it more difficult for the city; I just want the city to think about what the right decision is,” related to the future of the heliport, Surack said. “At this point, I would like to think they don’t need it and they [can] go build the MLS stadium somewhere else. If they come to me, I’m not going to sell it outright.”
Lena Hackett, who owns a three-story building at 10 S. New Jersey St., just south of Maryland Street, told IBJ in April she was made an offer on her property by an undisclosed party, which she declined.
The city’s Department of Metropolitan Development has a memorandum of understanding with the heliport’s owner, the Indianapolis Airport Authority, that gives it exclusive rights to acquire the building or select another buyer. The IAA recently began moving ahead with long-delayed plans to decommission the heliport.
Surack’s interest in the heliport and planned stadium stem from at least a couple of sources.
In May, Surack became a part-owner and financier for the Indy Eleven soccer team, which has been at odds with Hogsett since the city walked away from talks to support plans for a $1.5 billion development on downtown’s west side, to be anchored by a stadium for the team.
Surack told IBJ his purchase of the La Quinta was independent of his role with Indy Eleven and came without input from Indy Eleven majority owner Ersal Ozdemir.
Surack also owns Sweet Helicopters, which uses the heliport during major sporting events and concerts, such as the Indianapolis 500 and Indianapolis Colts games.
He said he thinks the heliport remains a valuable asset for Indianapolis as technology for autonomous flying vehicles rapidly advances. Proponents say such technology could make short-distance air travel more commonplace.
Surack told IBJ that the city of Indianapolis would “have to go through eminent domain” in order to acquire the La Quinta Inn, as well as his other holdings in the area.
Representatives of unnamed prospective buyers have been trying to acquire land in and around the proposed stadium site for months.
Surack said he’s not involved in trying to acquire properties that would be within the bounds of the proposed stadium site, which is generally bounded by Alabama Street to the west, Washington Street to the north, East Street to the east and the CSX railroad lines to the south.
“I’m just trying to keep the heliport open,” he said. “And, you know, we have a lot of people that use it and need access to a close hotel.”
Surack acknowledged that he must determine whether he’ll further invest capital in the hotel sooner rather than later, because a franchise agreement requires the property to be updated in order for it to maintain the La Quinta brand.
While he typically improves properties that he buys, Surack said, he’d rather not waste money if the site is ultimately expected to be acquired by the city via eminent domain.
“I want to be really clear: I’m not trying to hurt the city,” Surack said. “I just want the city to slow down and really think about it. Maybe if there are some obstacles, they’ll go, “Ooh, maybe this isn’t the best place to build the MLS stadium.’”
The MLS soccer stadium ultimately would be held by the Marion County Capital Improvement Board, which owns most of the major sports facilities downtown. The CIB has set aside $66 million as part of its proposed 2025 budget for capital investments tied to a soccer stadium development.
Calls and voicemails to city officials requesting comment for this story were not immediately returned Friday evening.
In April, the Herb Simon family, which owns a majority stake in the Indiana Pacers and Indiana Fever, purchased a 5.2 acre parking lot at 101 Alabama St. considered key to developing the soccer stadium.
The purchase lent weight to widespread speculation that the Simon family is among the investors trying to bring an MLS team to Indianapolis. A representative for the family told IBJ that the family’s interest in the lot “predated soccer” and that the acquisition was entirely separate from the city’s plans.
Pacers Sports & Entertainment, the parent company of the Pacers and the Indiana Fever, has in recent years increased its use of the lot for Gainbridge Fieldhouse-related activities nearby, including parking for staff and television broadcast vehicles.
Please enable JavaScript to view this content.
Quote of the article: “I’m just trying to keep the heliport open,” he said. “And, you know, we have a lot of people that use it and need access to a close hotel.” (…. the La Quinta?)
Out of town billionaire throws tantrum. Maybe Surack should make up the funding deficits that caused the city of Indianapolis to walk away?
Here’s the reality – Ozdemir ain’t even gonna be the majority owner of an MLS team. They don’t want him. We can either have a forever second-division team in a stadium that we as taxpayers are going to pay out the nose for, that doesn’t make economic sense … or we can have an MLS team. Pick one.
I’d like to see the Venn diagram of people who are rich enough to own a helicopter … who stay at a downtown La Quinta that gets reviews like this (from TripAdvisor):
“Maybe the worst hotel I’ve ever stayed at. Sheets were dirty/ stained, elevator broken, we put in for 2 queen beds and got 2 fulls (what hotel even has smaller than queen beds?!?!), not enough parking, NO CRIB for our 8 month old (wtf… a hotel without a crib…), no real door to the bathroom (sliding door that doesn’t stay shut). DO NOT STAY HERE…”
“ After my card was processed was told hotel Flooded and Elevator was broken. then after turning in for the night found out the AC sounded like a LearJet taking off as fan motor bearings were shot.”
“The continental breakfast was lukewarm microwaved egg mix, watery coffee, no fruits to speak of and the gym was not in useable condition”
Maybe eminent domain and demolition is the best option.
Thank you Chuck!
LOL. You think he did this to benefit the city?
He’s just trying to make a few dollars off of it!! Goof!
Sorry sloppy Joe but you need to go!!
We keep the heliport!
The City will be thanking this guy years from now.
Foolish move to decommission the only downtown helicopter in a growing city and metro area.
As the city grows, it gets less and less usage.
“Information from the Indianapolis Airport Authority shows that in 2019, the most recent year for which data is available, the heliport saw just under 1,700 total operations—takeoffs and landings—compared to nearly 3,400 a decade earlier.”
I know when I think of hallmarks of a growing city, attractive to other people, they always think about the heliport.
Let’s just set the soccer stadium angle aside, That whole quadrant of downtown is a dead zone right now and the heliport is a big part of standing in the way of any kind of development.
The leaders of other Midwest cities, who, by the way are lapping Indy right now are laughing at the short sighted investors and the uninformed citizenry that support them.
I wish I had a rundown hotel to sell for 3 to 4X market price.
This is what happens when you have a mayor that’s gone rogue.
He is doing the same thing to a future vibrant area on the near east side.
Huge housing planned by 1820 Ventures. Multiple apartment complexes already on Washingon. 600k homes at Shelby and Engish, Garoldine’s steak house on Shelby. Now, the Mayor proudly announces the purchase of land on Shelby and Georgia for some elaborate homeless shelter. This would have been a great corridor to Fountain Square.
His soldiers didn’t discuss it with us. That tells us he new it was a bad idea. Anyone want to buy us out living next to mr. Hogsets new adventure?
He deserves this MLS hickup.
🙄🥱
This won’t make anybody think twice about anything. It does not impact stadium plans at all. Surack knows he’s fighting a losing battle, so he’s going to turn into a developer.
Either that, or he’s just really, really dumb.