Speedway’s town council is finally putting the brakes on a long-stalled construction saga, voting on March 30 to start the process of reclaiming the Wilshaw Hotel site and get something done at one of the town’s most high-profile corners. The half-built structure at West 16th Street and Main Street, just steps from Gate 1 of the Indianapolis Motor Speedway, has sat largely untouched since work stopped in 2019.
Town Authorizes Appraisal And Targets June Decision
Under the resolution, the Speedway Redevelopment Commission is instructed to secure an independent appraisal of the property, make a fair offer based on that number, and enter into good-faith negotiations with the current owner. Officials set a decision point for June, giving themselves a tight timeline to figure out whether a deal can be reached. The idea is to prioritize a negotiated agreement while keeping eminent domain in their back pocket if talks fall apart, in line with state law. The Town of Speedway spelled out the six-step process in a public release.
Years Of Delays, Ownership Shifts And Money Trouble
The Wilshaw started as a mixed-use concept built around a five-story, 127-room hotel with apartments next door. The apartments moved forward, but the hotel portion has been stuck for years after changes in ownership and a series of financing setbacks. Construction stopped in mid-2019 and the exposed structure has since become a very visible reminder of the stall along Main Street. In February 2024, the mortgage holder filed a foreclosure action, claiming more than $7.6 million is owed on the loan, adding a legal tangle to the financial mess. Coverage by the Indianapolis Business Journal has traced that on-again, off-again history.
Town Lays Out Its Playbook
Local leaders say the new process is about getting the site moving again, whether that means helping the current owner finish the project or putting it into different hands. Options on the table include selecting a new development partner or issuing a request for proposals if the town ultimately takes control. Council members have been clear they are looking for a result that lines up with community priorities and supports the cluster of small businesses on Main Street, not another multi-year pause with a rusting shell as the welcome sign. WRTV walked through the steps the council approved and the scenarios the town is weighing.
Neighbors And Businesses Say They’re Out Of Patience
Folks who live and work nearby have been blunt: they want that corner cleaned up and put to good use. Some residents and business owners told reporters they still like the idea of a hotel near the track. Others say they would rather see green space or a totally different use if the current concept cannot be salvaged. “It’s just sat there, rusted completely out,” Barbecue and Bourbon owner Marley Mann said, summing up the mood on Main Street after the council vote. The resolution also makes clear that town dollars will cover the cost of the independent appraisal, according to post-meeting coverage. Yahoo gathered many of those reactions from residents and business owners.
Legal Fine Print: Eminent Domain As Last Resort
Town officials are careful to say eminent domain is not their first choice, but they are openly keeping it on the table. Any attempt to acquire the site that way would have to follow Indiana law, starting with an independent valuation and payment of fair market compensation to the owner. “This has taken far too long,” Town Manager Grant Kleinhenz said in the town’s statement, emphasizing that Speedway would rather reach a negotiated agreement than end up in court. The Town of Speedway highlighted those legal guardrails in its announcement.
On paper, the next steps are simple: finish the appraisal in roughly six weeks, then make the call in June. In practice, residents and Main Street merchants will be watching closely to see whether the Wilshaw finally gets built out, is reimagined as something new, or becomes the focus of a full-blown acquisition fight.
