This story originated from notes taken by Documenters Kelli Jack-Kelly and Mark McLean, who covered the April 13 meeting of the Metropolitan and Economic Development Committee. 📝 Read more about what happened.
A real estate developer will get a tax break of about $1.5 million to make improvements at a low-income apartment complex downtown.
The developer, TWG, got the approval for the deal for 707 North Apartments from the City-County Council on May 4.
The tax break comes amid complaints from residents at some of TWG’s 42 Indianapolis properties about issues ranging from broken appliances to mold. Residents laid out their concerns during a town hall in March.
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City-County Councilor Jesse Brown, who helped organize the town hall, said at a council committee meeting in April that residents were happy to become part of the solution at TWG properties.
“Residents literally cried tears of joy,” he said.
Brown, a Democrat, voted in favor of the tax break. He wrote in an email to constituents that he voted for its approval because TWG committed to working with a residents’ association.
Marisa Conatser, TWG’s senior development director, told the committee that upgrades at 707 North Apartments will include replacing the roof and putting a washer and dryer in each unit.
Residents will also get access to services such as financial literacy courses.
Construction is expected to start this summer and be completed in the second half of 2027.
How the tax break works
The tax break TWG will get is known as a payment in lieu of taxes, or PILOT.
The agreement has become a common incentive from city government for projects that are also financed by low-income housing tax credits from the state.
With the tax break, TWG will make annual payments over a 15-year period instead of paying property taxes. The payment period starts in 2028.
The estimated savings for the company is $1.4 million.
Conatser said in April that TWG would lose out on help from the state if the local tax break wasn’t approved. If that happened, apartments would be listed at market rate.
“Without this PILOT, the development is no longer financially feasible,” she said.
If TWG violates the agreement, the city could terminate the tax break after a notice period. The company also has to report how many people use the programs and services offered, with a goal of at least 25% of residents participating.
707 North Apartments was built in 2009 and has 40 units. Some are rented at market rate, while others are reserved for people making between 50% and 60% of the area median income. For a family of four, 50% is equal to about $55,000 a year.
As part of the deals with the state and local governments, market-rate units will be converted to income-restricted units.
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Mirror Indy reporter Tyler Fenwick covers housing and labor. Contact him at 317-766-1406 or tyler.fenwick@mirrorindy.org. Follow him on X @ty_fenwick and Bluesky @tyfenwick.bsky.social.
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