Carmel considers spending up to $5M for downtown parking garage

The city of Carmel is considering paying up to $5 million for another parking garage attached to a downtown redevelopment project.

The 200-space parking structure would be located at the corner of 1st Street SW and 3rd Avenue SW as part of the $20 million mixed-use development known as Monon & Main.

In addition to the garage, the development will include a three-story building anchored by an upscale restaurant, a three-story office and retail building, townhomes and a park along the Monon Greenway.

The Carmel Redevelopment Commission on Wednesday approved an installment purchase contract of up to $5 million for the garage.

CRC Executive Director Corrie Meyer said the exact terms of the purchase agreement, including the exact amount, length of time it would be in place and the interest rate, are still be negotiated.

She said the arrangement allows the developer, Ritz Charles owner Chuck Lazzara and his son, Anthony, to construct the garage, and then the city will buy it back.

The homes that had previously occupied the Monon & Main property have been demolished, and construction is expected to begin soon.

The installment contract also requires approval from the Carmel City Council, which could vote on the measure Monday.

Earlier this month, the City Council approved $21 million in bonds for two other ongoing projects.

A $15 million bond will be used for a 370-space garage in Midtown West, which is a $60 million project by Indianapolis-based Barrett & Stokely Inc.

Midtown West, which could break ground this year, covers six acres on the west side of the Monon Greenway, across from Old Town Development’s $150 million Midtown East development.

Plans for Midtown West include a $25 million headquarters for Merchants Bank of Indiana and a 167-unit apartment complex. The 100,000-square-foot office building would include 13,000 square feet of retail space along the Monon.

The bond will be backed by tax increment financing revenue. If the tax revenue is not enough for the bond payments, Barrett & Stokely would be required to pay the difference.

Another $6 million bond that received approval will be used for infrastructure improvements around the Sunrise on the Monon development near 99th Street and Westfield Boulevard.

The project, led by Old Town Development, includes 148 single-family homes and a 265-unit upscale apartment complex.

The bond will be used to pay for design, acquisition and construction of improvements along Westfield Boulevard, Evenstar Boulevard, 96th Street and Ream Creek.

Under the agreement, the developer will obtain the bonds and will be allowed to use 75 percent of the TIF revenue to make payments. The remaining 25 percent of TIF dollars will remain under CRC control.