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Indianapolis settlement with condo complex could lead to its demolition

INDIANAPOLIS (WISH) — The legal battle over the Towne and Terrace condominium complex on the city’s far-east side is over, the Indianapolis city government says.

Indianapolis Mayor Joe Hogsett on Thursday announced a global settlement to end the long-running dispute in connection with the 1960s housing complex off East 42nd Street and Post Road. The settlement allows the city to become a voting member of the homeowners’ association, ends litigation against the city, and resolves the bankruptcy case.

Hogsett says the settlement is just the beginning. The Democrat mayor said in a news conference, “The significance of this announcement today is the litigation is finally over and we can and are for the first time in a decade are in a position to go forward and that’s exactly what the city intends to do.”

The city government says the first steps include making contact with residents, and installing cameras and lights from Indianapolis Metropolitan Police Department.

There’s no official word yet on any demolition plans.

News 8’s Danielle Zulkosky will have reports on News 8 at 10 and 11 p.m.

News release

INDIANAPOLIS – Today Mayor Joe Hogsett announced that the City of Indianapolis has signed an agreement with the Towne & Terrace Corp., resolving the corporation’s long-running dispute with the City.

“‘This development ends a decade-long legal battle, removing a significant barrier to addressing the public safety and quality-of-life issues plaguing residents of Towne & Terrace,’ said Mayor Joe Hogsett. ‘Today, once again, we say ‘enough’ to the circumstances that lead our neighbors to feel trapped in substandard housing.’

“The global settlement includes:

“– The City of Indianapolis, as the largest property owner in Towne & Terrace, gaining voting power and other HOA member rights

“– An end to the long-running litigation where the HOA was pursuing claims against the City

“– Resolution of the bankruptcy case that stalled the City’s efforts to address vacant and unsafe buildings within the HOA boundaries

“Currently, the City of Indianapolis stands as the largest property owner at Towne & Terrace with 102 properties total. Seventy-one are part of the HOA, the vast majority of which automatically came under City ownership when no buyer purchased them at tax sale. The City first took legal action against the Towne & Terrace Corp. board in 2013, and the board responded with claims against the City.

“The Towne & Terrace condominium complex contains severely dilapidated buildings and substandard living conditions for Far Eastside residents. Persistent illegal drug activity and gun violence have reduced the quality of life for residents and the surrounding neighborhood.

“Outside of the global settlement, the City has also secured an agreement from Towne & Terrace Corp. to install IMPD security cameras. The City will also install additional lighting at the complex.

“‘Today’s announcement is a step in the right direction to ensure the health and safety of residents in Towne and Terrace after years of neglect,’ said Councillor La Keisha Jackson. ‘I am committed to continuing to work alongside the Administration to engage with residents to address the neglect in the apartment complex and guarantee a better future for families.’   

“In 2021, the Indianapolis City-County Council appropriated $5.4 million in American Rescue Plan Act funds to support community engagement, redevelopment, and public safety at Towne & Terrace. In the next month, DMD intends to launch a Towne & Terrace outreach effort, connecting residents to critical services and community resources, such as workforce programs, mental health services, and legal support. “

Indianapolis city government news release