Indy seeks development ideas for City Market plaza and soon-to-be former jail

Indianapolis is seeking development ideas to reuse the plaza east of City Market and the soon-to-be vacant privately run jail along East Washington Street, two properties critical to the ongoing effort to reinvigorate the downtown area known as the East Market District.

The downtown district, running primarily along Market and Washington streets, has been bursting with change over the past few years: the 360 Market Square and Whole Foods project opened in 2018. The city last month reopened E. Market Street right in front of City Market after months of construction to rehabilitate the road. The historic Old City Hall and the City-County Building — which will soon be 50% vacant due to employees moving to the new Community Justice Campus — also await redevelopment.

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Now, the city is soliciting proposals to reuse Jail II at 730 E. Washington St., near Sun King, and for the largely empty space next to City Market. Funding could come from a variety of federal grants or other tax tools such as a payment-in-lieu-of-taxes agreement or a tax increment financing district that uses the increase in property values to cover the cost of the improvements.

The city seeks a housing-focused redevelopment in the market's east wing, while offering more mixed-use possibilities for the jail.

“These redevelopments represent a monumental opportunity to define the next era of downtown Indianapolis,” Mayor Joe Hogsett said in a statement. “It is no secret that COVID-19 has created unique challenges for downtown districts around the country. However, with strategic investments in housing, retail, and public spaces, we can build a more resilient urban core.”

Affordable housing in City Market

The plaza east of City Market holds potential to attract more customers to the historic building, which struggled during the pandemic with a loss in foot traffic and the ongoing construction at its front door.

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An analysis presented to the City Market board in October suggested that the plazas surrounding the market be used as public spaces. For instance, the market's east wing could feature an outdoor rock-climbing wall or an indoor-outdoor playground, the report suggested.

But the city instead will seek to develop housing in the east wing of the market, according to the request for proposals. At least 5% of the housing units should be leased to tenants making 30% of the area's median income, or 10% of units listed for tenants making 50%, the request for proposals states.

The wing's first floor must offer retail space for the bike hub that currently exists there, according to city guidelines in the request for proposals document. The YMCA location in the wing has closed.

The market's east plaza, meanwhile, could be used as a public space.

Another requirement: making the area inviting and accessible to potentially boost business to tenants in the market.

"The lack of visibility and clarity around public parking creates the perception of a lack of parking," the request for proposals states. "This challenge will need to be overcome through a creative approach that works to minimize the addition of new parking to the area."

The city also hopes to make more pedestrian use of the alley north of the market, half of which is privately owned.

Proposals for the site are due March 11.

Engaging business in former jail

The Jail II site and Arrestee Processing Center, located at 730 E. Washington St. and 752 E. Market St., respectively, will both soon be empty as inmates are transferred to the new Community Justice Campus.

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Both buildings were initially manufacturing sites for the Cole Motor Car Company, constructed between 1911 and 1922, according to the request for proposals. The business later closed in 1925, but the building continued to house a number of industrial tenants, including the Service Supply Company.

Indianapolis acquired the building in 1996 to house its second jail.

The city is open to a wide range of uses for the site, from housing, hotel and office space to public-facing commercial businesses. The historic façade of the building should be maintained, the city outlines in its request for proposals.

The project would ideally strengthen "the gateway between the downtown and the near east side," the request for proposal states.

"Uses that are more passive in nature and minimize activity at the site, such as self-storage facilities, are not desired," the proposal states.

Marion County's other jail near the Pacers' stadium, which is now empty of detainees, will still house the forensics lab until the new lab is built at the Community Justice Campus. There is not yet an immediate plan for that building's redevelopment.

Proposals for the Jail II site are due April 1.

Call IndyStar reporter Amelia Pak-Harvey at 317-444-6175 or email her at apakharvey@indystar.com. Follow her on Twitter @AmeliaPakHarvey.

This article originally appeared on Indianapolis Star: Indianapolis City Market plaza, Jail II building to be redeveloped