The Indianapolis Airport Authority plans to sell off the Downtown Heliport and make room for new development. (IBJ photo/Mickey Shuey)
By Mickey Shuey, Indianapolis Business Journal
Fort Wayne billionaire Chuck Surack has acquired a hotel on the east side of downtown Indianapolis in hopes of derailing a plan to redevelop the adjacent Indianapolis Downtown Heliport site as part of a new soccer stadium.
Surack, founder of online retailer Sweetwater Sound, purchased the La Quinta Inn hotel at 401 E. Washington St. for $14.53 million on Aug. 30, according to a sales disclosure form obtained by IBJ. He bought the property through the holding company Washington 401 LLC.
Surack also owns the site of the former Adult and Child Services building at 603 E. Washington St., which also is adjacent to the heliport site. Surack purchased that property for $8.2 million last year.
Both real estate purchases are intended to discourage Mayor Joe Hogsett’s administration from disposing of the heliport so the property could be used to build a soccer stadium. Hogsett’s administration has been working with an anonymous investor group to attract a Major League Soccer franchise to Indianapolis, and it has identified a collection of properties necessary to build the stadium that include the heliport land.
The properties that Surack has purchased aren’t necessarily required to develop the stadium, but he hopes that having an uncooperative land owner on the prospective stadium’s front doorstep will make the city think twice about proceeding.
“I’m not trying to make it more difficult for the city; I just want the city to think about what the right decision is,” related to the future of the heliport, Surack said. “At this point, I would like to think they don’t need it and they [can] go build the MLS stadium somewhere else. If they come to me, I’m not going to sell it outright.”
Lena Hackett, who owns a three-story building at 10 S. New Jersey St., just south of Maryland Street, told IBJ in April she was made an offer on her property by an undisclosed party, which she declined.
The city’s Department of Metropolitan Development has a memorandum of understanding with the heliport’s owner, the Indianapolis Airport Authority, that gives it exclusive rights to acquire the building or select another buyer. The IAA recently began moving ahead with long-delayed plans to decommission the heliport.
Surack’s interest in the heliport and planned stadium stem from at least a couple of sources.
In May, Surack became a part-owner and financier for the Indy Eleven soccer team, which has been at odds with Hogsett since the city walked away from talks to support plans for a $1.5 billion development on downtown’s west side, to be anchored by a stadium for the team.
Surack told IBJ his purchase of the La Quinta was independent of his role with Indy Eleven and came without input from Indy Eleven majority owner Ersal Ozdemir.
Surack also owns Sweet Helicopters, which uses the heliport during major sporting events and concerts, such as the Indianapolis 500 and Indianapolis Colts games.
He said he thinks the heliport remains a valuable asset for Indianapolis as technology for autonomous flying vehicles rapidly advances. Proponents say such technology could make short-distance air travel more commonplace.
Surack told IBJ that the city of Indianapolis would “have to go through eminent domain” in order to acquire the La Quinta Inn, as well as his other holdings in the area.
The La Quinta occupies just under six-tenths of an acre at the intersection of Maryland, New Jersey and Washington Streets. The hotel was previously owned by Shelbyville-based APS Hospitality Inc. According to property records, the building was constructed in 1995. In addition to La Quinta, it’s also been had stints as a Days Inn and Best Western Plus.
Representatives of unnamed prospective buyers have been trying to acquire land in and around the proposed stadium site for months.
Surack said he’s not involved in trying to acquire properties that would be within the bounds of the proposed stadium site, which is generally bounded by Alabama Street to the west, Washington Street to the north, East Street to the east and the CSX railroad lines to the south.
“I’m just trying to keep the heliport open,” he said. “And, you know, we have a lot of people that use it and need access to a close hotel.”
Surack acknowledged that he must determine whether he’ll further invest capital in the hotel sooner rather than later, because a franchise agreement requires the property to be updated in order for it to maintain the La Quinta brand.
While he typically improves properties that he buys, Surack said, he’d rather not waste money if the site is ultimately expected to be acquired by the city via eminent domain.
“I want to be really clear: I’m not trying to hurt the city,” Surack said. “I just want the city to slow down and really think about it. Maybe if there are some obstacles, they’ll go, “Ooh, maybe this isn’t the best place to build the MLS stadium.’”
The MLS soccer stadium ultimately would be held by the Marion County Capital Improvement Board, which owns most of the major sports facilities downtown. The CIB has set aside $66 million as part of its proposed 2025 budget for capital investments tied to a soccer stadium development.
Calls and voicemails to city officials requesting comment for this story were not immediately returned Friday evening.
In April, the Herb Simon family, which owns a majority stake in the Indiana Pacers and Indiana Fever, purchased a 5.2 acre parking lot at 101 Alabama St. considered key to developing the soccer stadium.
The purchase lent weight to widespread speculation that the Simon family is among the investors trying to bring an MLS team to Indianapolis. A representative for the family told IBJ that the family’s interest in the lot “predated soccer” and that the acquisition was entirely separate from the city’s plans.
Pacers Sports & Entertainment, the parent company of the Pacers and the Indiana Fever, has in recent years increased its use of the lot for Gainbridge Fieldhouse-related activities nearby, including parking for staff and television broadcast vehicles.
