IPS gets 6 bids for Mass Ave. Coke plant

Five development groups are vying to transform the shuttered Coca-Cola bottling plant on the northeast end of Mass Ave. into housing, retail and other uses.

Indianapolis Public Schools on Thursday received bids from developers that want to acquire and redevelop the 11-acre site. The proposals, which also include plans for a hotel and tech-geared office space, would revitalize what real estate experts consider one of the most underutilized properties in the city.

"It really ties in with the momentum you're seeing on the Near Eastside," said Catherine Esselman, the real estate director for Downtown Indy Inc. "It's dead space right now. (Redevelopment) will have a huge impact. It's the most impactful project that I can think of."

Proposals came from some of the biggest names in Indianapolis real estate: Milhaus Development LLC, Strategic Capital Partners, the Hagerman Group and Browning Investments. Hendricks Commercial Properties LLC of Beloit, Wis., also submitted a proposal. Milhaus offered two proposals, bringing the total to six.

IPS confirmed it received the bids but declined to disclose details. Milhaus and Strategic Capital Partners, the groups with the two highest bids, shared some of their plans with IndyStar.

Strategic Capital Partners is pitching a $220 million plan to turn the Coke site into a 1.3 million-square-foot project dubbed Indy Square. The plan would include retail, office and residential space, a YMCA day care, a boutique hotel, a 75,000-square-foot park and a walkway preserving most of the historical structure. It also would add 1,100 public parking spots.

"We believe our project is superior in jobs creation, in tax revenue and in excitement for the neighborhood," Strategic Capital Partners CEO Gene Zink said. "This has the potential to be really unique."

Indy Square would include 140,000 square feet of open retail space and as many as 500 market-rate apartments, 75 affordable units and 30 townhomes.

Zink said former Indianapolis Motor Speedway owner Tony Hulman’s office was in the plant, and his team is working with the Hulmans to place a donated track pylon at the head of the proposed park.

Strategic Capital Partners' plan retains the facade of the building, as well as about 75 percent of the original space.

"We’re very sensitive to the historical preservation,” Zink said. "We’re not trying to replace Mass Ave. We’re trying to complement it. It’s consistent with the history but transformational for Mass Ave. It’s a huge historic preservation project from the Coke plant. Whoever does it will have an amazing opportunity.”

Milhaus is proposing 825,000 square feet of development, including housing, retail and tech-geared office space. Milhaus would partner with former ExactTarget CEO Scott Dorsey's tech studio, High Alpha, on the office space, Milhaus principal Jeremy Stephenson said.

Stephenson declined to say how much Milhaus' project would cost. The Indianapolis firm, which develops apartment buildings and condos, wants to build a mix of rental and for-sale housing at the Coke site, Stephenson said.

"Things are continuing to move in a direction that people are desiring more for-sale, owner-occupied residential," Stephenson said. "We've responded to that, and we think that will continue to be the case."

Milhaus bid $18 million to acquire the property, Zink said, topping Strategic Capitals Partners' bid of $17.5 million.

Swarens: IPS prepares to shop Mass Ave 'dead zone'

IPS did not provide a timeline for selecting a winning bidder. The school system said in a statement it would review the bids "in the coming weeks to make the best decision for the district and the city of Indianapolis."

Once IPS makes a selection, redevelopment plans would still be subject to the city approval process. Milhaus and Strategic Capital Partners acknowledged their proposals could include requests for tax breaks.

Esselman, of Downtown Indy, said she thinks the site could be redeveloped without incentives.

"For a deal of this scope, the city should be at the table," she said. "However, this is a really good piece of real estate, and I'm not convinced it needs a subsidy."

Businesses near the Coke site have been waiting years to see progress there. Best Chocolate In Town owner Elizabeth Garber was excited about the potential for any mixed-use possibilities but said parking needs to be part of the plan, as Strategic Capital Partners and Milhaus are proposing.

IPS to sell Coca-Cola building on Mass Ave

“I guess my focus becomes the well-roundedness of the area and of the avenue," she said. "It’s kind of just a win-win when it's anything bringing more people to the area."

The main Coke building, almost 340,000 square feet, was at one time the largest Coke bottling plant in the world. Prestigious Indianapolis architects Rubush and Hunter designed the plant, which began construction in the 1930s, and wasn’t finished until the late 1940s.

Coke moved to a new building in Speedway in 1968 and sold the structure, along with the 8 surrounding acres, to IPS for $700,000, when it became the district’s transportation service center.

At the time of its construction, the art deco design was lavish and ornate — with details of flowers, fountains and sun rays. According to the Encyclopedia of Indianapolis, the design was intended to enhance “the hygienic image of the spotless bottling plant.”

IPS announced plans to sell the 85-year-old building last July, with initial hopes of landing a developer by the end of 2015.

Call IndyStar reporter Amy Bartner at (317) 444-6752. Follow her on Facebook, Twitter and Instagram.

Call IndyStar reporter James Briggs at (317) 444-6307. Follow him on Twitter: @JamesEBriggs.