Terre Haute rezonings pave the way for apartment compex, fraternity house, hotel
The Terre Haute City Council approved three rezonings Thursday that help pave the way for a new, $26.5 million multi-family apartment complex, a fraternity house renovation project and the renovation of an old school building into a hotel, with added retail space.
The rezoning of property bounded by East Margaret Avenue, South First Street, Arleth and Wheeler streets, from regional commerce to general residence, would be for 120 multi-family apartment units across two residential buildings.
It will include on-site management, a clubhouse, playground, fitness center, and various activities and programs for residents.
It would be called Wabash Place Apartments.
Marisa Conatser, development director for TWG Development based in Indianapolis, said the project involves workforce housing, but it is for all ages. Several units will be ADA accessible.
The development has been submitted to the Indiana Housing & Community Development Authority for funding. If awarded funding, it will use IHCDA's Affordable & Workforce Housing Tax Credits, Conatser stated in an email.
Funding awards will be announced in November. If awarded, "We will begin construction in May 2025 and would be completed toward the end of 2026."
The current total development cost is $26.5 million, she said.
Council member Todd Nation said, "I'd like to thank you for investing in Terre Haute." The addition of the 120 housing units "is important for Terre Haute," he said.
He asked about income restrictions.
Conatser said there will be income restrictions, and those are updated annually. For 2024, the incomes are $34,000 to $66,000.
Currently, rent is in the $700 range for one bedroom, $800 range for two bedrooms and $1,000 for three bedrooms, she said. Section 8 vouchers will be accepted.
The tax credits, if approved, will help keep the rents affordable. "We maintain affordable rents for 40 years," she said.
The project sits on five acres of land.
The addresses for the rezoning are 50 E. Margaret Ave., 2 E. Margaret Ave., 2929 S. First St., 2914 Arleth Street, 2900 Arleth Street and 2901 S. First St.
Fraternity house
A rezoning at 231 Blakely Ave., from regional commerce/special use to general residence, would be for the renovation of the former William O. Weldele School into a fraternity house for the Rose-Hulman Theta Xi fraternity Kappa chapter.
The fraternity plans a $1.2 million renovation of the facility, which is located on Terre Haute's eastside and closer to Rose-Hulman, said attorney Eddie Felling, who represented the Theta Xi Kappa Alumni Association Corp. Currently the group has a house in the Farrington's Grove neighborhood.
The former school building, constructed in 1910, has been empty for many years.
Upon completion, the fraternity hopes to have 16 finished rooms and the site will have 17 parking spots. The fraternity hopes to have the project done in 18 months.
Currently, the fraternity is located 902 S. Sixth St. and wants to re-locate closer to campus, Felling said.
"I think it's going to be a really nice building once it's complete," Felling said.
Nation, who represents the Farrington's Grove district, thanked the fraternity for "figuring out someplace else to go," a comment that drew laughter. He said the new location was a good fit and location for the fraternity.
Council president Tammy Boland said of the proposed fraternity renovation project, "It looks gorgeous."
Future hotel
A rezoning at 145 East Voorhees Street, from general residence to restricted central business district, is to facilitate a future hotel, with added retail space and possibly storage space.
The existing building, the former Greenwood School, would be renovated into a hotel.
Attorney Richard Shagley II appeared on behalf of Russ Enterprises LLC, the owner of the property, which wants to sell it to a developer.
The developer wants the property rezoned to rehab the former Greenwood School into a hotel. The developer would also like to build new retail space along Voorhees.
There also is the possibility of the developer building storage units on the property, "if all goes as planned," Shagley said.
Nation noted that the building is another old school that has needed a "next use for a long time. I'm delighted" with the project, he said.
About a year ago Nation toured the property. "It has great potential," he said.
Boland said she was encouraged by the proposed project. Council member Kandace Hinton commented, "I, too, have high hopes for that building ... I'm hopeful this project will come to fruition."
The former Greenwood School closed as a school in 1988 and was added to the National Register of Historic Places nine years later.
In a phone interview, Tommy Kleckner, director of Indiana Landmarks western regional office, said the school "is a recognized landmark, and we hope the developer will treat the building respectfully and retain the wonderful historic features," he said.
If the project is a privately-owned, income-producing use, "the developer may want to look at federal rehab tax credit incentives that are available," Kleckner said.
The housing project and proposed hotel project are in Hinton's council district, and she presented both re-zoning ordinances.
"I'm excited. I ran [for office] on improved housing and developing commercial and retail and providing jobs and infrastructure in my district," Hinton said.
Both projects will serve those goals, she said.
