100 more housing units coming to downtown Richmond

A nearly $30 million project will renovate five historic downtown Richmond buildings, creating about 100 market-rate apartments and about 20,000 square feet of ground-floor retail space.

The project, which is part of Revitalize Richmond, was brought before Richmond Redevelopment Commission on May 28 for consideration of an economic development agreement, the first step toward using tax increment finance dollars to help fund the project. The commission approved resolution for the agreement 4-0.

Jon Anderson, president of AP Development LLC in Brownsburg, addressed the Redevelopment Commission about the project that includes the former Knollenberg’s department store at 809-817 E. Main St., the Hittle building at 828-832 E. Main St., the former BMO Harris bank building at 728 E. Main St., the Jenkins building at 726 E. Main St. and the Odd Fellows building at 725-735 E. Main St.

In addition, the narrow building at 819 E. Main St., owned and operated by Wayne Township Trustee as the Grassroots Action Resource Center alongside Knollenberg’s, will be used as construction headquarters, then will be torn down to offer seating in a green space.

All of the buildings are under contract for purchase by the developer. Anderson said closings on several of the buildings would occur within days.

Kathy Lucid, chair of the Redevelopment Commission, said the project is a major step for downtown.

“We have seen these buildings vacant and deteriorating for a long time, and we’re very optimistic that they can be restored and be a valuable part of the city,” she said.

Lucid said commission members had reviewed the financials in great detail.

The next steps involve the city creating a downtown allocation district using the footprint of the project’s buildings. AP Development will purchase city-issued bonds, and the city has pledged 100% of the TIF revenues to the developer. AP Development will pay the city $10,000 annually to cover costs associated with administering the TIF district.

In addition to TIF funds, AP Development anticipates receiving historic tax credits and Revitalize Richmond funding, then cover the balance of the costs with a loan. 

“It’s because of projects like this and the commitment of Indiana-based developers that we are able to do all of the incredible things with Revitalize Richmond,” said Dakota Collins, vice president of community relations for Earlham College. “We contribute to projects like this, but the impact they have is so much deeper and greater than just that investment.”

READ: ’25 million reasons to believe’: Lilly grant adds to $83M Richmond restoration

Anderson said the project has been in discussion for about 18 months. His company, which has engaged in similar projects in Union City, Evansville and Crawfordsville, to name a few, will restore the buildings to their original historic appearances, meeting National Register of Historic Places standards to satisfy U.S. National Park Service requirements.

Commission member Alison Zajdel said she’s glad Anderson’s company has experience working in communities about Richmond’s size or smaller. Anderson noted he’s a Seymour native who studied history at Indiana State University before becoming a lawyer and developer.

“These are the towns we work in,” he said.

Historic post cards and photos showing the buildings are guiding design work to restore the facades to their original appearance as much as possible.

Through previous projects, Anderson said he has recruited a specialty crew that offers extensive restoration expertise, but he intends to hire local labor for plumbing, HVAC, electric and other projects, depending on their skills and availability.

He expects the construction will take about 15 months.

The apartments will all be unique, based on each building’s features.

“The buildings tell you what you can do,” Anderson said about the apartments. “You don’t tell the buildings.”

The renovations will also make use of the alleys. Anderson said that energizing alleys is important to create safe spaces. The building planned for demolition will create space for a bakery’s outdoor seating.

The newly announced project complements the 6Main apartment complex and Richmond Neighborhood Restoration’s downtown efforts in the Revitalize Richmond program. Earlham College received $25 million from the Lilly Endowment’s College and Community Collaboration Initiative to better connect the community and college.

The 6Main complex, a key element in Earlham receiving the Lilly money, plans 150 apartments and 3,200 square feet of retail space. Developer Flaherty & Collins planned to begin early civil and foundation work June 2 after the Indiana Economic Development Corp. has delayed closing on the project’s economic development tax credits.

Mayor Ron Oler told commission members that 6Main and other downtown apartments appeal to different prospective tenants. He said 6Main features luxury apartments with included amenities, while other downtown apartments rely on the city’s amenities, such as the multi-modal trail and nearby city parks.

“They have a different feel and a different client,” Oler said. “They blend well together, and they will not compete for tenants.”

Oler said he believes these apartments will especially appeal to creatives who are drawn to Richmond’s arts heritage and current offerings, including the professional symphony orchestra and art museum.

RNR will renovate four downtown buildings through the Revitalize Richmond program. It is nearly finished with the former Readmore building, and will soon start working on the former U.S. Bank building, known for decades as Second National Bank.

During the regular Redevelopment Commission meeting on May 20, Collins spoke about other aspects of Revitalize Richmond aimed at filling the downtown buildings with local entrepreneurs and experienced businesspeople.

Collins said he was close to hiring a full-time small business and entrepreneurship coach who would be based in downtown. The program also is entering into a contract with Retail Strategies and its subsidiary Downtown Strategies for retail and restaurant recruitment.

The Birmingham, Alabama-based business was contracted in 2019 to help the city; however, the contract was abandoned because of the pandemic. It will seek independently owned business that have a model that could lead to success in downtown Richmond and encourage those business owners to open another location in Richmond.

Collins said active recruitment could begin around August.

Eric Dimick Eastman, an Earlham graduate, has purchased 930 E. Main St. to create a nonprofit makerspace, which provides equipment and space for others to work on projects. Building problems have delayed implementation on the basement and second floors. A consultant will be contracted to help create a sustainable business model for opening next year.

More information about the Revitalize Richmond project is available at earlham.edu/revitalize-richmond/

This reporting is made possible in part by WCTV’s community meeting coverage.