Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
Indianapolis-based Keystone Group accused Mayor Joe Hogsett’s administration on Thursday of “walking away” from the company’s efforts to develop a $1.5 billion mixed-use district anchored by a soccer stadium along the White River—despite supporting the project publicly as it got underway.
In a lengthy statement issued Thursday, the Ersal Ozdemir-led company said the city has instead been “shopping” the state legislation that made funding for the soccer stadium possible as well as undisclosed publicly owned land to potential bidders—without requiring that those bidders work with Keystone or Ozdemir’s Indy Eleven soccer team.
City officials did not immediately respond to a request for comment about Keystone’s statement. But the Mayor’s Office announced that at 5:30 p.m., Hogsett would make a “significant announcement about the future of sports in Indianapolis.”
Ozdemir lobbied for years for passage of the legislation, which authorized the Indianapolis City-County Council to create a professional sports development area that would capture tax revenue generated within it to fund a soccer stadium. After the legislation passed, Keystone Group purchased the former Diamond Chain manufacturing site on West Street at Kentucky Avenue for Eleven Park, which was to include the stadium, a hotel, office space, retail and apartments. Keystone broke ground on the project last May with a ceremony Hogsett attended.
“Unfortunately, after years of good-faith negotiations and recent bipartisan approvals from the City-County Council, Mayor Joe Hogsett’s administration is preparing to walk away from the state and city leaders who entrusted him with this project and the neighborhoods who are depending on the progress Eleven Park represents,” the company’s statement said.
“These actions by Mayor Hogsett’s administration are a concerning departure from what the Indianapolis business community stands for: integrity, trust, and the expectation that one is true to their word,” the statement said. “A dangerous precedent is being set for how city negotiators conduct themselves.”
In addition to its claim that the city has stepped away from negotiations on the project, Keystone alleges that after the City-County Council approved the professional sports development zone that would help fund the project, the Hogsett administration “refused” to submit the accompanying map of development area to the State Budget Committee, a requirement for Keystone to secure funds for its proposed 20,000-seat soccer stadium.
The city did not immediately respond to IBJ’s requests for comment about Keystone’s statement. However, IBJ had previously requested an update from the Capital Improvement Board, which has been working on a financial report related to the PSDA. On Thursday, Monica Brase, a spokeswoman for the board, said that study had not been completed.
The PSDA had been expected to provide as much as 80% 0f the development cost of the soccer stadium, which was to be used for concerts and other events, in addition to soccer games. Most of the tax revenue that would have been captured for the PSDA was expected to be generated by business activity within Eleven Park.
This story will be updated.
Please enable JavaScript to view this content.
why can’t Pot Hole Joe just focus on repairing our roads instead of impeding development that will make the city more vibrant?
the roads have to due with the state formula for road funding. I dislike Joe as much as the next guy but its the state’s fault our roads are so bad but some rural road in Howard County is prestine.
No doubt the mayor just discovered that one or more or the proposed apartment buildings would be more than 5 stories and we simply cannot have that in our city.
JH’s 5:30 announcement better have legal ground on which to stand. Considering that the promises were made publicly only weeks ago and massive pre construction has begun…..this better be good.
He was a top law school graduate and a former US attorney. I think he’s lawyered-up. You can rest easy.
Turns out it wasn’t good.
Too busy having his cheesy grin over the hotel at Pam Am plaza we have no business paying for. Going to be a really long and horrible next 3.5 years. So, to those who voted him back in, I guess you get what you ask for………or, maybe its “be careful” what you ask for. Nothing like being blindsided back stabbed by good buddy Joe.
3.5 more years!!!! That’s a sobering thought!
🙁 Why is it the “Joe’s” of the political world suck?
Better than the “Donald’s”…
All the MAGA hate on here is hilarious. It’ll certainly be interesting to see what the announcement is. There’s no reason to just believe whatever Keystone has to say without hearing from the City too.
All the MAGA hate? 1 comment?
The comments are jumping to a lot of conclusions without any facts other than Keystone’s whining. Just like most big developers, they constantly have their hands out for other people’s money. They need to put their big boy pants on and develop their property with their own damned money.
There’s a boondoggle retail/parking complex in BrRipple which Keystone “persuaded” the former mayor to invest in.
So we shouldn’t cry any crocodile tears for Keystone. Any time soon.
I agree with your comment Robert. Who needs a bunch of developers asking for handouts! I say let’s have the city do all the major development projects, such as the Signia hotel, because the city has more money (and the ability to raise more money) than any of us and never asks anyone to contribute to their coffers.
Well said, privatize profits and socialize losses is their standard motto.
The mayor should consider all costs and impacts regarding the development. And for all the griping, and shameful MAGAesque namecalling reflecting sophomoric behaviour, Joe Hogsett was elected by a majority. And one may not like him. But one should ask if an opponent, ans per the tone of most comments — a republican had been elected, then every issue would be wonderfully address, every pothole would be filled, and every individual would be magically elevated to prosperity.
Think also that Indianapolis is basically the only large major city in Indiana, a previously primarily industrial city, a city with declining taxes which provide revenue for many of the services (apparently most are concerned with potholes) and infrastructure. Also note that the city is relatively poor and undereducated and wages are relatively low — it’s not Columbus OH or Nashville TN. And Indianapolis faces a relatively hostile environment at the at the statehouse as opposed to peer state capitals where peer state are more interested in supporting the capital city and other cities. Sadly, much of the vitriol is due to the fact that citizens exercised their rights to elect whom they wished and some policies and laws were enacted to seek to thwart the will of the people and to economically punish the city.
Indianapolis faces big city problems and issues as most major cities in this nation. It is not a wealthy, predominantly homogeneous, high wage community that has massive revenues available to readily fund a development wish list.
Now with respect to moneyed developers with hands our for greater public subsidies (one recognizes that some contracts must be signed while many hold their respective noses), a second look is due. Yes, the Eleven Development seems most appealing and the sketches are indeed tantalizing, but at what cost and given current condition will the long-term viability be likely achieved. Perhaps some changes should be implement to the scale, scope or schedule and further negotiation is deemed necessary.
And perhaps this one is mistaken, but are there not many building in Indianapolis downtown with 5 stories or more! Apparently Mr. Hogsett does not have a fear of [building] height.
well said. Use public money and keep their books private. nothing weird going on here.
Bob C, I take exception to that…maybe Joe H, but not Joe B (to whom I assume you are referring)
Free drinks, perhaps?
I bet they found an unmarked graveyard.
No.
Let’s wait to see what the announcement is at 5:30. Maybe Hogsett has secured a commitment for a MLS franchise (expansion or move from another city) and Ozdemir is being cut out of the deal. The USL is a minor league and MLS is the major league. If the city can get a MLS team, this would be a better opportunity for the city.
I would love for us to have an MLS team, but I would ask two questions: unless it’s a relocation of an existing team with owners in place, who better to lead the ownership group of a new franchise than Ersal? Second, where would they play – not Lucas Oil, Carroll Stadium, Butler Bowl, or University of Indianapolis? So where? Seems extremely unlikely (make that impossible) that this is the case and Ersal knows nothing about it.
Just when you finally get excited about a potential MLS team in Indy…oof
The city better has a number of very solid reasons to be doing this at seemingly such a late stage. I feel for Ozdemir – Indy Eleven is his baby and he’s been really patient with this project over the last 10 years or so. It would be a shame to see him screwed over in the end by the city.
I’m not sure how, with all of the legislation passed, there were no assurances that he’d be developing the project in the end, though.
White Sox?
I’m down with that. Otherwise Nashville will beat us out again.
If we lose the new soccer stadium because of political machinations, it would not sit well. Soccer continues to grow with young people especially.
12 million illegal aliens will create interest, unfortunately they are not funding this project!
the non-alcohol bar that failed in fishers is now moving into this space, doubling the employee count from 2 to 3 and expanding the concept to include a carbon monoxide bar
This is the world we live in now, all the chatter and speculation and no one even knows the facts of the situation yet. Really??
So, it is 5:38pm and the mayor just concluded his major announcement. The city intends to pursue an APPLICATION for an MLS franchise. Pretty sure that has already been done a couple years ago and the process continues by non-governmental persons. Didn’t mention where the new team if awarded might play. Keystone was leading the efforts. Now the Keystone Cops are leading the efforts.
Nice of the mayor to take questions after his statement.
Gutless.
The entire purpose of building the stadium was in order to secure an MLS team in the future. No outdoor stadium, no MLS team. Its pretty simple.