Mixed-use Building Proposed to Replace Former Walgreen’s Building on Range Line Rd

Article from YouAreCurrent.com

The Proscenium redevelopment project is coming to life on the northwest corner of Range Line Road and Carmel Drive, and its developer is hoping for similar success in a mixed-use project proposed just across the street.

Proscenium II is proposed on the northeast side of the intersection to replace a former Walgreen’s building currently being used as a Proscenium leasing office. The $18 million project includes 48 luxury apartments, seven for-sale condos, 15,000 square feet of office and retail space and a 120-space parking garage.

The Carmel City Council is considering the creation of a tax increment financing zone for the project, meaning the increase in tax revenue generated by the project in the zone would go to developers to repay the bonds used to finance it. Birkla Investment Group and Nova Development, which also developed The Proscenium, is responsible for the bonds and will receive 100 percent of the TIF funds for the next 25 years to help cover them.

Huntington Bank, which is at 998 S. Range Line Rd. but is being forced to relocate because of the Carmel Police Dept. headquarters expansion, will occupy 4,000 square feet in Proscenium II, which also will include a tap room among its retail offerings.

“We’re really trying to take a parking component and share that amongst uses where you have morning, noon and night traffic, trying to create as much assessed value as possible on a single asset,” said Tony Birkla, owner of Birkla Investment Group and Nova Development.

Carmel Redevelopment Commission Director Henry Mestetsky said Proscenium II is the first project in Carmel to have for-sale condos on its top floor. He said the proposal of the project and The Signature, another mixed-use development planned with apartments, for-sale units and retail being considered by the council for a TIF allocation area, created a “watershed moment” for Carmel.

“It’s going to be a lot of fun negotiating all future deals because this is what they’re going to be judged against as far as for-sale components,” he said.

Both the proposed Proscenium II and The Signature allocation areas will be reviewed by the council’s finance committee before returning to the full council for a vote. A meeting date has not been announced.