The Carmel Redevelopment Commission is working with Old Town Companies to redevelop the southeast corner of Range Line Road and City Center Drive.
The Magnolia development is proposed to include luxury condominiums, two-story city homes and covered parking for homeowners, according to Old Town’s website. Condo units will range from 1,800 to 2,800 square feet in a series of six buildings.
“For the last few years Old Town has been looking for walkable site in Carmel’s downtown where we could launch our first condo development,” said Justin Moffett, founder of Old Town Companies. “This location is a great place for a new home type that transitions from an existing residential neighborhood to the City Center neighborhood to the west.”
CRC Executive Director Henry Mestetsky said Old Town was the only developer to submit a project in response to the city’s request for proposals.
The site is home to Mohawk Landing, a nearly 40-year-old shopping center purchased by the City of Carmel in 2017 for $2.8 million, in part to make way for a new roundabout at Range Line Road and City Center Drive. The city transferred the property to the CRC in mid-2018.
Old Town now owns the property and two existing homes east of the shopping center it purchased to make way for the project. In 2019 the city designated the project site as a tax increment financing district. Mestetsky said TIF funds are not expected to be used for Magnolia but declined to comment further, as incentives are still being discussed. Moffett said Old Town will only request TIF funding if the project won’t work without it.
Tenants at the site include Kim’s Alterations, Pizza Hut and Thai Castle. A National Guard recruiting center recently moved from the building to 1 E. Carmel Dr. Old Town will work to relocate tenants.
“First and foremost, we’re going to give them plenty of notice prior to starting re-development of the site,” Moffett said. “We will work to find alternate locations for several of the tenants in other developments we’re affiliated with in the downtown Carmel area.”
Mestetsky said the CRC will also provide relocation assistance, possibly at the nearby Monon Square shopping center. The city purchased Monon Square for $15 million in 2018 but isn’t expected to redevelop it “for some time,” Mestetesky said. He said the CRC mandated that Old Town provide month-to-month tenants of Mohawk Landing at least 12 months’ notice of any redevelopment.
“This is a much better transition than would be provided under any scenario where the CRC is not involved,” Mestetsky said. “We have seen the kind of care Old Town takes to respect the community and local businesses as part of its projects.”