GM stamping plant site showdown: What we know about the dispute between Ambrose and city

The developer of the GM stamping plant site, Ambrose Property Group, and the city of Indianapolis are embroiled in a dispute over the future of the property that was envisioned as a $1.4 billion mixed-use development. Here's a look at what was planned, why the project fell through and what's ahead.

Who is Ambrose Property Group?

Ambrose Property Group is an Indianapolis-based real estate and development company founded by Aasif Bade, who is CEO. Properties under its ownership, according to its website, include the 12-story Landmark Center Downtown, the 403,000-square-foot Hanzo Logistics headquarters and distribution center in Plainfield and the 545,000-square-foot Gordmans distribution center in Hendricks County. The company sold the Allied Insurance building in Carmel earlier this year and is pursuing the sale of the MJ Insurance building.

How did Ambrose become the developer of the former GM stamping plant site? 

A trust known as RACER, Revitalizing Auto Communities Environmental Response, formed in 2011 to clean up and sell former General Motors plants following the automaker's 2009 bankruptcy. GM shuttered the Indianapolis plant by 2011, and most of the buildings were demolished by 2014. Ambrose in May 2017 agreed to acquire the land. The company was one of four bidders.

What did Ambrose propose at the site?

Ambrose proposed a $550 million project with apartments, offices, retail, hotel rooms and green space. The developer expanded those plans in October 2018 when it nearly tripled its planned investment to $1.4 billion.

What is Waterside?

This is what Ambrose called the expanded project.

Why did the Waterside project fall through?

Ambrose said in September that it wanted to sell the property to focus on its e-commerce and industrial real estate business. Bade in a statement said the company's strategy is moving away from mixed-use and office projects.

How is the city of Indianapolis involved?

Indianapolis officials agreed to contribute $26.7 million for phase 1 infrastructure toward the Waterside project. Ambrose later sought tens of millions of dollars more in public subsidies as project cost estimates tripled. But when Ambrose said it intended to sell the land, the city issued an ultimatum to Ambrose: allow the city to acquire the property through negotiations or have the property taken through eminent domain.

What is eminent domain?

Eminent domain is a government's ability to take ownership of private property for public use. The Fifth Amendment of the U.S. Constitution states the government may not take private property without "just compensation." Mayor Joe Hogsett's chief of staff, Thomas Cook, told IndyStar the city would use eminent domain only if Ambrose refuses to sell the property.

How much taxpayer money so far has been spent on the project?

Cook estimated that the city has spent hundreds of thousands of dollars on infrastructure designs for the site. 

Why does the city now want the land?

After not submitting a bid for the property in 2013, city leaders said they now want to obtain the land so they can guide and control how it is developed and take advantage of low interest rates and current Downtown market conditions.

The GM stamping plant closed in 2011.

What's happening now?

Ambrose has accused the city of committing title slander and breach of contract. The developer says the city's threat of eminent domain is deterring potential buyers of the site and the project agreement prevents the city from seizing the land by force. Ambrose on Oct. 22 filed a notice of tort claims to formally announce its intention to sue the city,  which is required by state law. City officials say they still hope to reach some resolution.  

What is the GM stamping plant property worth?

That's the big question. Property tax records indicate that Ambrose bought the property in four parcels for a total of $3 million. Ambrose says the city on Oct. 23 offered to buy the land for $6 million. Ambrose says it values the property at $65 million to $100 million based on third-party appraisals and discussions with potential buyers, though the company did not elaborate on how it arrived at those figures. 

IndyStar reporting from James Briggs, John Tuohy, Vic Ryckaert, Tim Evans, Jon Murray and Jeff Swiatek contributed to this report.

Call IndyStar digital producer Ethan May at 317-444-4682 or email him at emay@indystar.com. Follow him on Twitter @EthanMayJ.

Contact IndyStar reporter Alexandria Burris at aburris@gannett.com. Follow her on Twitter: @allyburris.