Simons’ downtown hotel, entertainment project gets green light for forgivable $25M city loan

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15 thoughts on “Simons’ downtown hotel, entertainment project gets green light for forgivable $25M city loan

  1. “The loan bridges a gap faced by the billionaire owner of this project that he is unwilling to fill personally. The largesse of the people of Indianapolis is greatly appreciated in this extraordinary environment of high construction costs and interest rates.”

  2. When rates were down developers said the same thing. Billionaires build and everyone else pays for it. As a small fry investor with a couple rentals it feels like a never ending game of musical chairs.

    1. I agree 100%. Im also a small fry amongst the BIG boys. Unless you got BIG pockets and well connected, you’re just on the outside looking in.

    2. Exactly what Simon-backed investment in this city, has gone sour? Answer: none. Not one.

      This deal may be unusual but their track record, and their civic posture, combine for an excellent overview.
      Evidently: such is the nature of corporate real estate financing in today’s world.

  3. Sometimes you gotta’ think big to be big. Not crazy about giving money and power to billionaires. Wait a minute, who did we just elect President? I’m sure he’ll give little guys a tax break. Sorry about getting a little political here, but that’s how it often works, whether you’re D, R, or I. As for the Simon project, sometime you have to give a little. We’re already getting outclassed by regional competitor cities: Cincinnati, Columbus, Nashville to name a few. Maybe I’m wrong, but there’s a no-pain no-gain element at play here. You may hate and envy the millionaire/billionaire class, but they tend to bring jobs, growth, and other measurable assets to to the table. Just make sure they do.

  4. Where’s Nate’s Flock? Joe B and the boys must be having internet issues. If the company benefiting was owned by Braun instead of Simon the howling would be deafening. This combined with the handout for the Fever’s playpen is over $100M of handouts to Simon.
    As always, IBJ, looking forward to the next Focus where Ed Delaney and Kip Tew write columns Democrat splaining how $100M to their biggest benefactor is definitely NOT quid pro quo, but a great use of taxpayers money

    1. Chuck, I already shared my complaints with the Fever project being a poor use of downtown real estate.

      It still cracks me up that you find this a flaming liberal rag because the Republican owner isn’t Republican enough. I mean, Ersal Ozdemir gets far better coverage despite ruining thr cities chance of getting an MLS team, and there’s nary a mention of Sardar Biglari running Steak and Shake into the ground … we used to get quarterly updates on how poorly he was doing under previous ownership… what wrong, not what you meant?

  5. looking at the total cost of about $320M, before they really get going and have to work on foundations and sewers and such, and the total of anticipated governmental support of less than $100M, it appears the private developer is taking on about 2/3 of the cost. In return for its investment, the City gets a great new facility, another reason for people and performers to come to Indy, and cleans up an eyesore in the immediate downtown neighborhood adjacent to other new development and the basketball arena. Local construcion jobs for a year or so. Permanent jobs, admittedly probably mostly low paying, and a reason for companies to come back downtown instead of Key stone at the Crossing or Carmel by the Cornfield. And ultimately, property tax revenue, plus sales taxes on the hotel stays, the tickets, and all the restaurant sales taxes. Seems like a bargain.

    1. the exactly correct outlook…and the ratios are likely even more stark than you state. Our crumbling, old downtown infrastructure includes sewer and water pipes over 100 years old. That situation doesn’t exist in Carmel, or Fishers. The fixed foundational costs for any developer would likely far exceed $25 million.

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