Downtown gas station owner planning apartments, retail next door

The owner wants the city to vacate its right to an alley between the properties, which he says has become a “safe haven for crime and inappropriate and lewd behavior.” (Image courtesy of Google)

A downtown Indianapolis property owner is in the early stages of redeveloping a surface parking lot in the northeast quadrant of the Mile Square into residential and retail space.

Mohammed “Moe” Hanif, who operates the Sunoco fuel station and adjacent convenience store building at 441 E. Ohio St., plans to invest at least $8 million to build a new structure on the surface lot directly next door at 419 E. Ohio St.

While plans for the site are still in their infancy, Hanif expects the project to include street-level retail and parking, with apartment units above.

As part of his proposed development—specific details for which have not been filed with the city—Hanif is requesting a rezone of nearly four-tenths of an acre from industrial to a CBD-2 designation, which would allow for multifamily and retail.

Additionally, he is asking the city to vacate an alley that runs between the gas station site and property he wants to rezone, which he says is no longer used by vehicles and instead has become a “safe haven for crime and inappropriate and lewd behavior.”

Lastly, he is seeking a variance of development standards to allow for sight-line encroachment on abutting streets and alleys.

Conceptual floor plans show as many as 42 units and 30 parking spaces for the project, along with a small gate-controlled surface parking lot with 10 spaces directly behind the filling station’s convenience store, along Wabash Street.

Hanif told IBJ he would like to redevelop the lot because there’s been a sharp drop off in parking there since the pandemic, and he believes there’s a better use for the property than surface parking.

City officials have been encouraging developers to find ways to redevelop surface parking lots downtown with new uses that augment a high-density, pedestrian-friendly vibe.

Hanif said redevelopment would also benefit neighbors, including those living in a residential property across Ohio Street, because it would eliminate an area for illicit activity.

“It is pretty early to say what’s gonna happen, … but we’re definitely looking for a blessing from the city to vacate the alley,” he said. “Doing that will limit the problems there.”

As part of the project, a former two-story law office building in one corner of the 419 E. Ohio St. site would be demolished. Currently, Department of Metropolitan Development staff is recommending approval for the rezone but denial of the other two requests—in part because a full plan for the property has not yet been filed.

Hanif’s attorney Misha Rabinowitch, with the Indianapolis office of Dinsmore, said the conceptual idea submitted to the city as part of the request delivers a strong overview of the improvements his client is proposing.

“They’re not final but I think they certainly show from an overall perspective that … it serves a number of purposes and is consistent with what the city is trying to do, to eliminate surface parking lots,” he said. “It’s pretty consistent with that strategy.”

A full plan for the project would need to be approved by the Regional Center Hearing Examiner, which evaluates design proposals for downtown.

Hanif has owned the gas station property for years and has spent about $1.37 million to acquire neighboring parcels—including the proposed development site—starting in 2013, according to city property records. In fact, he owns the entire quarter block bounded by Cleveland Street to the west, Ohio Street to the north, East Street to the east and Wabash Street to the south. His holdings are under Moe’s LLC and Feroze and Sons LLC.

The rezone, vacation and variance requests are set to go before the Metropolitan Development Commission Hearing Examiner on Thursday.