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The city of Carmel plans to seek outside funding for a proposed development that could feature a food hall, office space and apartments on the southern end of the former Monon Square shopping center site.
Outside funding would be a requirement for Monon Square South to be built north of City Center Drive, west of South Rangeline Road and east of the future expansion of the Monon Greenway, according to Carmel Redevelopment Commission Executive Director Henry Mestetsky, who discussed the potential development at Monday’s Carmel City Council meeting.
Plans call for the project to cost an estimated $47 million and feature a food hall, community gathering space, 45,000 square feet of office space, a 190-unit apartment building and a 602-space public parking garage.
Mestetsky emphasized to city councilors that everything about the project is preliminary, including its costs.
To cover the cost of Monon Square South, Mestetsky said the city will seek $10 million in Regional Economic Acceleration and Development Initiative, or READI, grant funding; a $7 million Hamilton County Tourism grant; an $8 million construction loan; and $22 million in tax-increment financing bond proceeds.
The Central Indiana Regional Development Authority received a $45 million READI 2.0 grant last week. Central Indiana was one of 15 regions across the state to receive part of a $500 million allocation. The state plans to work with each region to determine which of their projects will receive funding.
Mestetsky said the Monon Square South project will not be built if it does not receive outside funding. If the project moves forward, it would be “a true partnership between the city, the private sector, the county and the state,” he said.
“This project is a completely unique thing that nobody has proposed,” Mestetsky said. “The hope is that the state sees the importance of a project like this and gives us as much money as possible.”
The Carmel City Council voted 9-0 to support a resolution encouraging the request for outside sources for Monon Square South. The city plans to partner with Carmel-based developer Pedcor Cos. on the project.
“Right now, what we’re doing is supporting the idea to help us try to secure outside funding,” City Council member Adam Aasen said.
Monon Square South would be anchored by a two-story food hall called The Union, which Mestetsky described as “a student union for the city.”
Early plans for The Union feature eight hot-food vendors, six specialty vendors, an entertainment stage, a video screen, artificial turf, a play area for children, a “social stair” connecting the first and second levels where people could sit, and 4,000 square feet of event space.
Mestetsky said the food vendors would not compete with area restaurants and would instead provide a quicker option.
“[We want to] create a place where people want to spend time whether they’re hungry or not,” he said. “That’s the difference between just a food hall and a true civic space that benefits the entire city.”
Mestetsky said The Union could attract people who enjoy The Garage Food Hall, a 36,000-square-foot restaurant and retail space that opened in 2021 at the Bottleworks mixed-use real estate development in the Mass Ave Cultural Arts District in Indianapolis.
“You can imagine the entire north side of the city of Indianapolis, instead of driving to downtown Indianapolis, [they] can receive the same kind of experience coming to Carmel instead, which is what we want to encourage,” he said.
A proposed timeline for Monon Square South shows the city will seek outside funding sources between May and August this year. If the city receives outside funds, the City Council would consider city funding late this year or early next year. Construction could begin in late 2025 or early 2026.
Carmel-based developers J.C. Hart Co. Inc. and Stirsman Property Group are redeveloping the northern section of the former Monon Square shopping center.
Monon Square North is expected to feature a $70 million project on the northwest quadrant of the site that will include 21,000 square feet of office and retail space, 249 multifamily units and a 390-space parking garage.
Plans also call for a $30 million northeast quadrant that will have 122 multifamily units, retail and restaurant space, for-sale condos, and a 79-space parking garage.
The Great American Songbook Museum plans to construct a museum west of the former Monon Square site on 3.7 acres at the northeast corner of City Center Drive and 3rd Avenue Southwest. Carmel also plans to expand and widen the Monon Greenway near the site from 14 feet to 140 feet between Walnut Street and City Center Drive.
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Correction needed for the map inset: the development will be on the NORTHWEST corner of City Center Drive and South Rangeline Rd. The southwest corner is Carmel City Center that already exists.
Good catch, Kelvin. Thanks for letting us know.
Need close scrutiny as to tax implications on property taxes. More more more taxpayer oblige. Who’s on the hook long range? Just like round a bouts long term upkeep and maintenance needs to be evaluated for burden on taxpayers.
Need close scrutiny as to tax implications on property taxes. More more more taxpayer obligations. Who’s on the hook long range? Just like round a bouts long term upkeep and maintenance needs to be evaluated for burden on taxpayers as well as initial costs.