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Indiana Convention Center expansion plan includes 2 new hotels

INDIANAPOLIS (WISH) — City leaders unveiled plans Friday for an expansion of the Indiana Convention Center and the addition of two hotels from Hilton Hotels & Resorts, but it could be a while before city and state leaders sign off on the proposal 

The Capital Improvement Board unanimously approved a resolution to move forward with negotiations with local development firm Kite Realty

“We believe that if we are not planning for tomorrow today, we’re already going to fall behind our competitors,” said Melina Kennedy, president of the board. 

Renderings show how Kite plans to transform the 3.25 acres around the Pan Am Plaza with the two hotels. One would stand 38 stories high and include a “skybar” and about 800 rooms. The other hotel would be smaller and near Union Station with around 600 rooms. 

“We are not announcing the specific Hilton brand but we are clarifying that it will be Hilton luxury brands,” said Kite president Thomas McGowan. 

Plans also call for a 50,000-square-foot ballroom, green space, meeting rooms, restaurants and retail space. 

“We’re really thrilled about it. We think having looked at the renderings and the plan of how the towers work and how the podium works, it’s just a really well-thought-out, well-put-together plan,” said Leonard Hooop, CEO of the local tourism effort called Visit Indy

According to Kite, it will take another year before an official agreement is made with city and state leaders.

Hoops said about the chances for an agreement, “I’m very confident. I really believe in the leadership at the city and CIB (Capital Improvement Board) levels. We’ve gotten to this point.”

The city’s portion, around $120 million, would cover infrastructure improvements and construction of a publicly owned facility and connector. Officials said the money would come from reducing funds earmarked for Visit Indy as well as a new tax-increment-financing effort, which would redirect property taxes collected in an area solely to the project. But, the project would not create new taxes, including new food and beverage or hotel taxes, the Capital Improvement Board said.

The amount coming from investors would be much more, but that total has not been determined the board said.

After an agreement has been secured with city and state leaders, construction would take about three years. That timeline means the project could be completed by 2023 at the earliest. 

The hotels would be on each side of the Pan Am Plaza, one at West Georgia and South Illinois streets and the other just south on Illinois Street. 

If approved, the project would be the sixth expansion of the convention center since it opened in 1972.