November 7, 2008 - Fairmount Properties, Fisher IN

FISHERS, Ind. -- The crashing economy has taken a $100 million development down with it -- for now.

Developer Fairmount Properties cited the credit crunch as the reason it couldn't acquire the land to build Fishers Town Center.

The failed deal came as an Indiana University study predicted commercial construction would struggle as businesses become more wary of the economy.

Despite the forecast, town leaders want to continue the project with input from residents and business owners. A public meeting in December will kick off discussion about the area along 116th Street just west of the busiest stretch of I-69.

Town Center required Cleveland-based Fairmount to buy and destroy 125 homes to make room for several hundred thousand square feet of office, retail and residential space and possibly a hotel. Fairmount would have earned money by leasing the space to the center's tenants. Fishers would have used tax income from the new development to help pay for it.

Town officials first became irritated when Fairmount missed its spring deadline to begin buying houses.

"They admitted that they had not really done anything on the project for various reasons, including the economy," said Fishers Town Manager Gary Huff. "I would say they were very honest about their reasoning."

Fairmount principals did not return calls for comment but, in a news release from the town, admitted they couldn't afford the project.

"Due to the current state of the economy, combined with the number of homes (that) would need to be acquired to create this project along with the existing credit markets, we would find it difficult to execute this project to either our, or the town's, standards," Fairmount Properties principal Randy Ruttenberg said in the release.

Town Center joins a list of several large commercial projects that have stalled in Fishers, mostly because of the struggling economy, said Martin Scribner, a town planning official. RiverPlace, Fishers Marketplace and Hamilton Proper would cost a total of nearly $1 billion to build, but all are on hold.

Plus, office vacancy rates on the Northside and in Carmel and Fishers ranged from 11 percent to 17 percent from July through September.

Residents' reactions to Fairmount's departure were mixed, but some thought the project has needed more planning since it was announced in 2007.

Jim Landes, who lives a few miles west of the site, said the town should gain residents' support for a new plan.

Another resident, Dean Walker, lives just south of the project site. Walker said he wasn't surprised the deal fell through, but he thought the center could be beneficial because it would make downtown distinctive. He said the center's new plan should be based on what's in demand in the slumping market and that an experienced developer -- not the town -- should make those decisions.

"I think the politicians have a hard time figuring out what it needs to be," Walker said. Developers' "desire to make it happen will be profit-driven, so I think they have a greater chance of doing what's best for the area."

Original story - IndyStar.com