Indy makes request to acquire downtown heliport for proposed stadium district
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The Indianapolis Airport Authority is considering selling the Indianapolis Downtown Heliport to the city by 2026, with the Hogsett administration eyeing the site as a crucial parcel for a plan to build a Major League Soccer stadium.
The city has informed the authority it would like to exercise an option to purchase the site at 51 S. New Jersey St., which has been publicly owned and operated since 1979, as part of a 2021 agreement between the parties.
The non-binding memorandum of understanding allows the city to work with the authority to either find a third-party developer or to sell the property to the city or a related organization.
The authority is expected to consider the measure Friday during its monthly board meeting, although no sale would be finalized until the heliport is fully decommissioned. Airport Authority staff is recommending approval.
The move comes just three weeks after the Federal Aviation Administration said it would support closure of the facility in favor of the site’s redevelopment, as long as the authority met several stipulations like removal of aircraft and sale of the property for fair market value.
The most recent appraisal of the property came in March 2024, when it was valued at $9.5 million, according to a board memorandum. To determine the price to be paid by the city, two independent appraisals must be conducted within six months of the property’s expected closure, per FAA regulations.
While public documents generally show the site being about 4.9 acres, the FAA considers just under 5.4 acres to be under its purview related to the heliport, including the heliport structure, the landing pad and land abutting roadways and train tracks.
If authority officials approve the sale, the city would close on the purchase of the heliport in the first quarter of 2026, according to authority staff.
Before the heliport can be decommissioned and the city can buy the property, IU Health’s LifeLine operation must vacate the site. The sole tenant for the heliport, the entity is expected to complete construction of its new facility at Indianapolis Regional Airport by the end of 2025.
The heliport site has been considered for closure and redevelopment since 2020, but earlier this year Indianapolis Mayor Joe Hogsett said the property would play a key role in a proposed stadium development to accommodate a professional soccer franchise.
The stadium site would include 355 E. Pearl St., a parcel owned by AES Indiana and now the subject of negotiations with the city. The city intends to use several neighboring parcels—including the heliport—to create a stadium district.
It has been working closely with an undisclosed investor group to secure a team in Major League Soccer and is now beginning to assemble land for the stadium district, which is expected to encompass about 17 acres on the near-east side of downtown between Alabama and East streets, south of Washington Street.
Already, the city has agreed to buy a one-acre parcel at 301 E. Washington St., an 80-space parking lot, for up to $4.76 million from a holding company managed by the Herb Simon family. The same group also owns the larger parking lot south of Maryland Street, adjacent to the Virginia Avenue Garage, that is expected to play a role in the site.
While such a district would only come to pass after the city secures an invitation to Major League Soccer (an effort that is still in its infancy), the heliport property is expected to be redeveloped regardless of the outcome. So too will the nearby Jail I property at 40 S. Alabama St., which is being stripped ahead of its demolition over the next several months.
A professional sports development area taxing district was approved by the city in August. The measure, set to be considered by the State Budget Committee in the coming months, is intended to fund a large portion of a stadium through incremental tax revenue generated by downtown properties.
A spokesperson for the city of Indianapolis did not immediately return a message seeking comment on its plan to buy the heliport.