City staffers seek more details on contentious Devington Plaza revamp, recommend denial of rezoning

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Developer Skysoar says it is pausing its plan to seek city approvals until it meets with neighbors to address concerns about the project’s heavy emphasis on apartments. (IBJ photo/Mickey Shuey)

The contentious effort to redevelop the 36-acre Devington Plaza shopping center on the east side of Indianapolis isn’t out of the woods.

Staff with the Department of Metropolitan Development late last week updated their recommendation for a rezoning that would pave the way for a proposed $100 million overhaul of the dilapidated site, located at the northeast corner of East 46th Street and Arlington Avenue, to recommend denial.

New York-based developer Skysoar has submitted a request to the city’s hearing examiner to rezone the property, which is scheduled to be presented on Thursday.

The latest staff guidance largely cites uncertainty about the current status of the project. Skysoar Capital Partners hasn’t provided additional details on its proposal, including a finalized site plan.

“Nothing new has been submitted and no communication has been received from the petitioner or their representative,” the staff report said. “After further consideration and without more requested information, staff is recommending denial of this request.”

The company’s most recent proposal to the city calls for a two-phase, $100 million revamp consisting of more than 500 apartments, 35,000 square feet of retail and restaurant space, townhouses, a hotel, an esports facility and various community spaces.

The company has told IBJ it’s been working to scale back the apartments and make other concessions to neighbors. That  includes looking for ways to accommodate senior housing—something that residents (who have largely opposed the entire proposal) have said they’d prefer over multifamily development.

Last week, the company said it planned to request a continuance of its rezoning request to March as it pins down details of its development and pursues a compromise for the project.

In a statement to IBJ on Tuesday, Clark Katz, principal of Skysoar, said: “We have heard the community’s concerns and understand the importance of responsible development that aligns with the neighborhood’s character and long-term growth. Our goal is to create a project that enhances the area while addressing concerns about its impact on residents, traffic, and overall livability.”

“We are fully committed to working with and actively engaging with the Department of Public Works to ensure that necessary infrastructure improvements, including road access and drainage considerations, are properly addressed,” Katz continued. “Most importantly, we will use the time granted to us to carefully evaluate community input and put forth a revised plan that aligns with the needs and priorities of the neighborhood.”

The company, which has had the property under contract almost continuously since 2022, has said it has not yet reached an accord with neighborhood residents on best uses for the property, but is hoping to make progress on that front.

The city’s recommendation to deny Skysoar’s project includes several caveats to restore a positive outlook for the project, including the finalized site plan, landscaping plans and details on the project’s connection to pedestrian and public transit amenities—something that Skysoar expects could take several months to secure.

The commitments sought by city staff also include specific dedicated right-of-ways and other easements; a westbound turn lane on East 46th Street; reconstruction of sidewalks that are disrupted by redevelopment; and continuous upkeep of a redevelopment site.

Last week, members of the Devington Redevelopment Task Force—a self-appointed group of neighborhood leaders—laid out their own ideas for the property. But the task force doesn’t have money of its own and has no agreement with a developer that would allow it to make the proposal a reality.

Its laundry list of suggestions includes a large community health and wellness complex and grocery store, an amphitheater, parking connected to the Arlington Middle School campus, a multi-use sports field, a small retail center and senior housing.

While the developer and the task force have acknowledged an ongoing impasse related to commercial components of a redevelopment, both parties agree that the site requires a complete demolition of the existing 192,000-square-foot shopping center.

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6 thoughts on “City staffers seek more details on contentious Devington Plaza revamp, recommend denial of rezoning

  1. Good for city staff! The right development doesn’t come easy or without taking a stand for what is best for the local community and the infrastructure that supports it.

  2. Isn’t there a grocery store right around 38th and Arlington as well as a huge eskenazi clinic wellness center? Everything the community is wanting is going to require lots and lots of money for upkeep and I don’t think this investment company is in it to spend money and not make any. That’s the reason they want to do a hotel and apartments. I would hope the apartments would be market rate and completely fenced with gated access along with a component of senior living.

    1. Yes, though the 38th and Arlington grocery is the one funded by Cook as part of its investment on 38th St. and it is apparently not doing well. There is also a Walmart Neighborhood Market at 56th and Emerson, and a Sav-a-Lot near Franklin and Pendleton. And the site is about halfway in between YMCA “health and wellness” facilities at 39th and Rural and 59th and Lee Road.

      Tune up the Stones’ “You Can’t Always Get What You Want”.

  3. In all likelihood this company simply wants to build a massive, cheap, low-amenity apartment complex and nothing else. The east side has plenty of those.

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