The new hotel being built next to Ball State University in the Village has been given a tax abatement for the next decade. But as IPR’s Stephanie Wiechmann reports, an agreement with the developer means Muncie coffers will see some money from the project in that time.
Ball State University, as a state government entity, is exempt from property taxes.
It’s owned most or all of that land near the corner of McKinley and University avenues since 2014. In 2012, Ball State announced it planned to build a university-owned hotel and restaurant. After an eminent domain case with the lone local business located there was withdrawn in 2013, Ball State bought the final lot it needed in 2014 for that project. Then the McKinley Commons project was quietly canceled and the land became a gravel parking lot.
Now, Ball State has leased the land to private developer Fairmout Properties for the current hotel project and property taxes can be collected.
Matt Ehinger with Ice Miller represents the hotel developer.
“This [abatement] will allow the hotel to get up and running during that initial 10 years, because the projections indicate that some assistance is needed for it to become stabilized.”
Under the agreement, instead of paying property taxes, the developer will give Muncie $50,000 a year for the first five years and $60,000 a year for the second five.
Ehinger says the project’s initial investment is $43 million, and it would be hard to project now what property taxes would end up being on the finished project.
Councilman Brandon Garrett said the agreement is more than the city is getting now.
“I like the parking lot being a hotel that we get taxes on. I mean, that’s what we kind of do, is to try to bring businesses to build up our core.”
Tax abatements are common with new business developments. But the vote wasn’t unanimous, with councilman William McIntosh, Sr. voting no.
Ball State has said construction on the hotel and performing arts center will wrap up sometime in 2026.
Stephanie Wiechmann is IPR's Managing Editor and “All Things Considered” Host. Contact her at slwiechmann@bsu.edu.
This article is republished as part of a collaborative content-sharing agreement between Ball State Unified Media and Indiana Public Radio, established to expand access to high-quality journalism and to better inform and serve the public through trusted, in-depth reporting.
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