EVANSVILLE — Developers of the Fifth and Main project are focused on breaking ground before the end of the year, and the city is going to give them a financial boost.
The Evansville City Council approved two $12 million bonds to go toward the building of the mixed-use development and its underground parking garage, but only about $9.5 million will be the city's responsibility. The rest will be on the developer, CRG Residential, to handle.
City attorney Marco Delucio said the first bond will be a "developer purchase bond," which means CRG will use tax increment financing from the area to pay that bond.
The second, which will specifically fund the garage, will be paid out of the Downtown TIF by the city.
The Evansville Economic Development Commission held a public hearing earlier in the day during its first meeting of the year regarding the Fifth and Main property. The board voted 3-0 to approve a resolution on bonds for the project which would send it on to city council for final approval.
The board is comprised of mayoral appointments, two of which are nominated by the Vanderburgh County Council Maytes Rivera and county councilor John Montrastelle, as well as Tynesha Smith, Ted Ubelhor and Loren Huck. Montrastelle and Smith were absent Monday.
Parking garage
The city will handle construction of the parking garage, using predominately organized labor, Mayor Lloyd Winnecke told city council Monday evening.
Parking will be underground and will include around 183 parking spaces.
"This project remains our number one downtown priority," Winnecke said.
Fifth and Main:
There will be no less than 150 apartments in the four-story development, all at market rate.
Ross Merder, development director with CRG, said an average rent will be around $1,300.
The build will also have commercial space on the bottom for a restaurant.
When will construction begin?
Developers are expecting the designs to be complete and ready for bid to by August or September.
A groundbreaking is tentatively expected in December.
The timeline to now
September 2019: Domo Development Co. of Carmel, Indiana said they were planning a redevelopment of the 18-story building. It would cost between $25 million and $30 million, with construction starting in spring 2020 and lasting for 18 months.
April 2020: COVID-19 impacts the project's timeline, making it unlikely groundbreaking will start in the spring as earlier projected.
October 2020: Developers discover "basically everything" will need to be replaced in the building. Demolition was announced.
January 2021: It's announced a park will be a part of the final vision of the redevelopment of the block.
May 2021: CenterPoint announces $1 million donation to to build "CenterPoint Energy Square" park.
November 2021: 420 Main Street is imploded.
July 2022: CRG Residential becomes the developer on the project.
April 2023: Mayor Lloyd Winnecke shared updates on the project during his final State of the City address.
Overall the plans for the project have changed since it was first announced. There will now be more apartments and less commercial space, but Winnecke said the restaurant will stay as planned on the first floor.
Underground parking is also planned, as well as the park at the corner of Fourth and Main.
The project has had its share of issues, with construction costs, interest rate increases, supply chain shortages and a a change in developers impacting its progress.
"But progress is being made," Winnecke said.
With Indiana-approved tax incentives, CRG Residential is working on construction drawings. The process was estimated to take six to eight months.