A multi-million dollar sports and retail complex planned in Greenwood is no longer coming after the developers backed out of the project last month.
Last summer, Indianapolis-based developer Gershman Partners and Indy Fuel owners Jim and Sean Hallett agreed to a joint $40 million project to turn an undeveloped 105-acre property southeast of Interstate 65 and County Line Road into a sports complex and shopping center.
But the project has been cancelled as the Halletts informed the city last month that they were going to pull out of the development, which would have added a 175,000-square-foot sports complex, for unspecified reasons after a year of negotiations, Greenwood Mayor Mark Myers said.
“After switching initial sites and months and months of negotiations, with the incentives that we were going to get at the second site and the cost of construction – financially the model simply did not work for us.” Jim Hallett said in a statement.
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Gershman Partners, which planned to developer a shopping center with a movie theater, entertainment venue and about a dozen other stores or restaurants, pulled out of the project after the Halletts withdrew, said Scott Langdon, the broker for the property.
In return for the investment, the Greenwood Redevelopment Commission had agreed to provide the developers with $8.5 million in financial incentives, over half of which would go toward infrastructure improvements at the site and nearby intersections. None of the money had been given to the developers, as the Halletts withdrew from the project prior to a final contract between the developers and the city being finalized, Myers said.
A group of investors who own the land, County Line 101 Partners LLC, were planning to sell the property for the project, but will now begin a search for a new buyer starting next week, Langdon said.
“We are starting over from scratch,” Langdon said.
Langdon and Myers said the decision by the Halletts to withdraw from the project came as a surprise. Through a spokesperson, the Halletts declined to be interviewed. Gershman Partners was not able to be reached for comment.
“The Halletts haven’t given us anything other than the fact that they are no longer pursuing the project,” Myers said. “I thought everything was resolved and ready to go.”
The number of separate groups involved in the negotiations made that process more challenging, Myers said.
“We have exhausted our efforts in an attempt to facilitate a successful project. It is unfortunate that circumstances outside of our control have created an unworkable deal structure. As those in commercial development know, with many parties working together, one wrinkle has the ability to create significant ripple effects,” Myers said in a statement.
Multiple previous projects proposed for the same site have failed to come to fruition.
Prior to the most recent proposal, the 105 acres east of I-65 were planned as the Greenwood Town Center to be developed by Gershman Partners as a $90 million, 700,000-square-foot shopping center, which Gershman Partners reduced to a $15 million initial project with its planned partnership with the Halletts. Before that, the site was proposed as a new location for Cabela’s, an outdoor sports retailer, then an indoor sports complex and hotel, but each of those plans fell through.
Initially, the Hallets proposed building a 115,000-square-foot complex with four ice rinks on six acres of land south of the Freedom Springs Aquatics Park, but the project was moved due to public opposition.
With that relocation, the project also grew to a 175,000-square-foot sports complex with four ice rinks, five basketball courts and a 4,000-square-foot fitness and training facility, with the possibility of also developing up to three, eight-story hotels at the site.
Gershman Partners planned to spend $15 million to develop a retail and entertainment center with two anchor tenants: Xscape Theatres and Main Event Entertainment, which has activities such as bowling and laser tag, with the possibility of further retail development later on.
Work on the project was supposed to begin after a final contract was negotiated by the end of August 2017, but the contract was never finalized and negotiations were still underway in June.
Developing the area remains a priority and the city wants to continue to work with the landowners and future developers, Myers said.
“We need to totally regroup and decide which direction we need to go,” Myers.
“We understand that this is a key intersection for the city. We want to make sure whatever we put there will benefit the city of Greenwood.”
That will include the consideration of financial incentives for future developers at the site, Myers said.
The $8.5 million in financial incentives that the redevelopment commission had approved included $3 million to be given out over 10 years to the Halletts, with the condition that the sports complex remain open during that time, $3.7 million to Gershman Partners to cover infrastructure improvements, such as roadwork and utilities, and $1.8 million for work to County Line Road and Graham Road, including new traffic signals at the I-65 interchange.
Given the property’s location next to the interstate, as well as its proximity to downtown Indianapolis, the area is still one that property owners believe is prime for development, Langdon said.
But with the downturn in the retail industry, having the entire property devoted to retail uses is unlikely, Langdon said. Mixed use with hotels, restaurants, entertainment venues along with some retail businesses is a much more likely option for further development, he said.
Starting off development with a hotel, which would be well-suited to the location right off the interstate, could help in attracting further development at the site, Langdon said.
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About 100 acres of land southeast of the County Line Road interchange on Interstate 65 has long been eyed as a potential spot for development, but it has remained vacant. Here is a look at past proposals to develop the property:
June 2007: Cabela’s announces plans for a Greenwood store and indoor water park as part of a 100-acre retail and entertainment project.
July 2009: Cabela’s drops plans for the Greenwood store, citing a decision to cut costs due to the tough economy.
April 2014: GoodSports Enterprises Global hotel and athletics complex proposed.
November 2014: Goodsports announced the project is canceled after the company couldn’t secure funding for the project.
October 2015: Gershman Partners announces plans for the Greenwood Town Center, a $90 million, 700,000-square-foot shopping center
June 2017: Indy Fuel Owners Jim and Sean Hallett proposed developing a $25 million, 175,000-square-foot sports facility. Gershman Partners proposed a movie theater, entertainment venue, stores and restaurants as the first phase of its development at the property.
June 2018: Indy Fuel Owners Jim and Sean Hallett informed the city that they will no longer be developing a sports complex at the site. Gershman Partners also withdrew their plans. The owners of the property announced that they will begin a search for a new buyer.
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