Indianapolis Scraps Plans for Old City Hall Redevelopment

Developer TWG Development LLC missed financing deadline for $250 million project, leaving city to seek new proposals.

Apr. 13, 2026 at 10:54pm

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A photorealistic studio still life featuring a polished, geometric metal model of the Old City Hall building, dramatically lit to convey the abstract challenges of revitalizing historic structures in the city.A symbolic representation of the financial and logistical hurdles that have stalled the redevelopment of Indianapolis' historic Old City Hall building.Indianapolis Today

The long-planned redevelopment of Indianapolis' historic Old City Hall building and an adjacent parking lot has been called off after the developer, TWG Development LLC, failed to secure financing by an April 2 deadline. The nearly $250 million project was set to transform the 1910 building into a boutique museum, office, hospitality, and retail space, alongside a new 29-story residential, condominium, and hotel tower. With this latest setback, the city will now reopen the site for new development proposals.

Why it matters

The failure of this high-profile redevelopment project is the latest blow to the city's efforts to revitalize the area around the City-County Building. Just last year, another developer walked away from plans to redevelop the nearby City Market. Indianapolis' aging historic structures continue to pose challenges for developers, who often encounter unexpected issues that affect construction costs and viability.

The details

The redevelopment of Old City Hall and the adjacent parking lot was first proposed over a decade ago under former Mayor Greg Ballard, who had planned a deal with 21c Museum Hotels. That plan fell through, only to be revived in 2023 under Mayor Joe Hogsett and TWG Development. TWG's proposal included not only renovating the historic building, but also constructing a 32-story tower with apartments, condos, and a hotel. However, the developer was unable to secure the necessary financing, even after the city agreed to separate the Old City Hall renovation from the tower plans.

  • In 2023, TWG Development LLC revived plans to redevelop Old City Hall and an adjacent parking lot.
  • On April 2, 2026, TWG missed a deadline to confirm financing for the nearly $250 million project.
  • After the missed deadline, the city decided to reopen the site for new development proposals.

The players

Greg Ballard

Former mayor of Indianapolis who first proposed redeveloping Old City Hall over a decade ago.

Joe Hogsett

Current mayor of Indianapolis who revived the redevelopment plans in 2023.

TWG Development LLC

The developer that failed to secure financing for the $250 million redevelopment project.

Megan Vukusich

Director of Metropolitan Development for the city of Indianapolis.

Brian Epstein

A downtown Indianapolis real estate specialist.

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What they’re saying

“Even with that level of city support, the project was still not able to get financed.”

— Megan Vukusich, Director of Metropolitan Development

“As you do your due diligence, you're always coming across issues that affect the bottom line and construction costs and remodeling and asbestos in a building or any sort of thing like that. It feels like this site is just a tad north and a couple blocks outside of the epicenter of what's going on with the energy downtown.”

— Brian Epstein, Downtown real estate specialist

What’s next

The city of Indianapolis will now reopen the Old City Hall site for new development proposals, seeking to find a viable plan to revitalize the historic building and surrounding area.

The takeaway

This failed redevelopment project highlights the ongoing challenges Indianapolis faces in revitalizing its aging downtown infrastructure and historic buildings. Despite the city's efforts to support the project, the developer was unable to secure the necessary financing, underscoring the financial hurdles that can derail even high-profile development plans.