Owner of historic building in possible stadium development area says she won’t sell
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A proposal to develop a Major League Soccer stadium on the east side of downtown Indianapolis is facing some early resistance from the owner of a historic property in the heart of the proposed development area.
The city is eyeing the Indianapolis Downtown Heliport property and several neighboring parcels for the venue as part of an effort to secure a MLS franchise, including a three-story building at 10 S. New Jersey St., just south of Maryland Street.
But the off-market building is owned by Lena Hackett, an acquaintance of Keystone Group founder Ersal Ozdemir, whose Eleven Park development the city has spurned in favor of pursuing a pro soccer franchise with another group of investors.
Hackett told IBJ she has received a written offer for the 0.3-acre parcel on Thursday from the Indianapolis office of Cushman & Wakefield, which is representing an undisclosed buyer. She declined to disclose the offer amount, but said she turned it down.
The 13,600-square-foot building was constructed in 1916 and was listed on the National Register of Historic Places in 1986. It was developed by businessman Fred F. Heier as Heier’s Hotel and built by noted contractor William P. Jungclaus.
Today, it is home to Hackett’s firm, Community Solutions Inc., as well as business management consultant Plaka & Associates and Flowers Law Practice.
“I’m not interested in selling my building,” she said, “and I am not interested in being any part of whatever is going on.”
Hackett said she could not recall when she was first approached about her property, except that it was earlier this year. She said she was called three times by broker Bo Leffel before he sent her a formal offer letter.
She said when she expressed skepticism to him during one of those calls over interest in the property—noting the would-be buyer had not toured the structure—Leffel told her the plan was to demolish the building, but did not say why.
Leffel, who has also been involved in the Indiana Economic Development Corp.’s efforts to buy thousands of acres for the LEAP Research and Innovation District in Lebanon, told her that he did not know the identity of his client. Neither Leffel nor a spokesperson for Cushman & Wakefield returned messages requesting comment Monday.
Hackett, who previously served on the city’s Metropolitan Development Commission, said she has only heard unsubstantiated rumors about who might be trying to buy up properties in the neighborhood, but said she expects the move is connected to the city’s MLS endeavor.
Hackett said she has known Ozdemir for several years, recently discussing with him the possibility of joining the Eleven Park project as a consultant on community development. She said that relationship, paired with her desire to retain her building, could make it difficult for the city or other parties to take over the property.
“I sound really Pollyanna when I say this out loud but, you know, there’s just so much money in the world that you need,” she said. “And I’m good.”
Other nearby property owners did not immediately return calls requesting comment.
According to its listing in the National Register, the building has significant historic significance:
“Heier’s Hotel is the sole surviving example in Indianapolis of an unusual, early 20th century building type: a hotel combined with ground floor commercial storefronts,” the listing says. “It is one of only two hotels to survive in a three-block area along East Washington Street that once held one of the city’s greatest concentrations of hotels, a factor related historically to the National Road.
“Much of the architectural significance of this building derives from the fact that its facade has survived intact to the present day with no significant changes. The current excellent state of preservation attests to the quality of its construction by the William P. Jungclaus firm, one of the most prominent contractors in Indianapolis’ history, and the skill of Charles Byfield, a little-known architect of the early 20th century.”
The basement tavern area in the building served as the headquarters of the powerful Indiana Democratic Club from 1955 to 1963. According to the historical listing, political strategies plotted at the site helped lead to the elections of Indianapolis mayors Philip Bayt Jr. and Charles Bosell.
While city officials have said that the Diamond Chain Manufacturing Co. site where Ozdemir has started developing Eleven Park remains an option for an MLS stadium, it appears the heliport area—and in particular the more than 500-space parking lot directly to its west, at 355 E. Pearl St., is a more distinct possibility.
Two sources told IBJ on the condition of anonymity that the city would prefer to decommission the heliport and redevelop that area. In that scenario, Hackett’s property would be among those that would have to be demolished to make way for a stadium.
The Indianapolis International Airport Authority owns the heliport and has taken steps to decommission it and make the property available for development, but that process has proven controversial among some who want to maintain the landing pad, which is regularly used by IU Health for lifeline flights. It already has a memorandum of understanding with the city that includes measures by which local government could take over the property.
Keeping the heliport intact, the city has said, could stifle larger developments surrounding the property because of federal height restrictions and setback requirements tied to aviation uses.
Hogsett administration officials said they plan to work with the potential team-ownership group to determine which site is preferred, but one source called that characterization a “formality,” because the heliport site will be picked if a new taxing district is approved.
That district, known as a professional sports development area, would collect state retail taxes, local and state income taxes, and food and beverage taxes to pay for the public portion of the stadium, which allows up to $9.5 million per year in debt service toward the venue’s construction, with the rest covered by the developer.
The city’s MDC will vote Wednesday on preliminary approval for the new district.