Dive Brief:
- Facing mounting public criticism over tentative plans for a $500 million medical and sports complex on 130 acres of vacant airport land, the Indianapolis Airport Authority voted unanimously to reject all proposals and canceled the project, according to the Indianapolis Business Journal.
- At the top of the airport board’s list of worries was startup developer Athlete’s Business Network’s (ABN) lack of experience in the real estate business and its ability to finance and manage such an extensive project.
- ABN said its proposal — which it made public a month ago and includes a 20,000-seat stadium, several medical buildings and two hotels — would have created 3,000 jobs for the community.
Dive Insight:
Ever since ABN revealed the scope of its plans for the mammoth complex of medical and sports/hotel facilities, Indianapolis officials, community leaders and Indiana University Health executives have reportedly been quick to express their concerns about its feasibility and "seriousness."
Board officials said they will now start over and reopen bidding for the land. "We will leave our options open and continue to search for the optimal project that will provide significant benefits to Central Indiana and especially the west side of Indianapolis," the board said in a statement.
The Business Journal said the board essentially had no choice but to cancel the ambitious project. In the construction industry, it's difficult enough to build such formidable complexes with experienced managers at the helm, never mind first-timers — as ABN had never built a real estate project.