In another major Downtown renewal project, the city is locking down a deal with an urban developer for a $7.2 million transformation of the McCurdy building. The planned result: more than 80 upper-end apartments and commercial space.
Downtown restaurateur Tim Mills, owner of Madeleine's, already has spoken for commercial spaces on the McCurdy's first two floors. At a Monday news conference called to announce the reinvention of the building opened in 1917 as a luxury hotel, Mills said he'll open a 1920s-style steakhouse and piano bar and a Japanese bar featuring an ancient form of hibachi cooking.
The Redevelopment Commission is expected today to approve a development agreement with Indianapolis-based Kosene-Hilliard-Kosene, which, since 2003, has developed at least six major residential projects in Indianapolis. The agreement includes an incentive package potentially worth more than $1 million.
Kosene's portfolio includes a mixed-income 50-home project in the Fall Creek area, site of seismic redevelopment over the past decade. The firm completed in 2005 a $15.7 million development of exclusive town houses in the capital city's trendy Broad Ripple section, and is building a $32 million mixed-use development in Belleville, Ill.
Mayor Jonathan Weinzapfel, who announced the McCurdy deal with Kosene officials, said it amounted to "the keystone of our residential efforts in Downtown Evansville."
It marked the fourth major Downtown residential-commercial redevelopment in two years.
Stephen Scott, Kosene president, said the firm selected Evansville because of strong city leadership and community leaders "who through the Redevelopment Commission have taken some steps already to revitalize the Downtown."
Asked about possible completion of the project, Scott replied, "People will recognize the McCurdy as a new Downtown destination by the end of' '08."
After "several months" to close the purchase of the building, the development agreement stipulates a construction start within six months. Renovation, Scott said, will take a year.
Allison Comstock, attorney for the McCurdy's ownership, said the sale would be completed in "60 to 90 days."
The Downtown landmark - built with $750,000 raised by a local business consortium responding to an appeal from then-Mayor Benjamin Bosse - is owned or co-owned by heirs of Newton Claypool, who acquired the McCurdy in 1925.
Current ownership is split between a trust managed in Indianapolis and seven co-owners who make up Claypool LLC.
"I'm glad my clients had patience to wait for the right deal to come along that was in the best interests of the city," Comstock said.
Scott said public financial help is "imperative There are buildings like this all over the country that end up being torn down because you can't financially structure a situation that makes it work."
The Redevelopment Commission, which normally adopts mayoral recommendations, has been asked by Weinzapfel to provide a $10,000 grant for each apartment unit developed - a total of between $800,000 and $920,000.
In addition, the city has agreed in the proposed development agreement to provide up to $72,000 to underwrite interest on money borrowed by Kosene. Metropolitan Development Director Gregg LaMar said the sum could amount to a 3 percent interest reduction for the developer.
Another incentive was parking space. The city worked a deal with Old National Bank to give up its 123 Main St. lot to the McCurdy in exchange for 60 employee parking spaces in the city's Sycamore parking garage.
Scott said monthly rent for the apartment units would run "in the $750 range," which he considered the upper end of the market in Evansville.
He added Kosene will be looking "for the next several months" for additional businesses for McCurdy's lower floors.
Asked what sorts of enterprises would be a good fit, Scott mused, "Perhaps a coffee shop. Maybe even a Kinko's."