New Zoning Ordinance to Allow Mixed-Use Development on East Washington

INDIANAPOLIS — The Indianapolis City-County Council approved a new zoning ordinance Monday night that will allow mixed-use development along a two-mile stretch of East Washington Street, paving the way for residential and commercial projects in the historic corridor connecting downtown to the Irvington neighborhood.

The ordinance, which passed by a 16-9 vote, rezones properties between Rural Street and Arlington Avenue from primarily industrial to mixed-use, allowing developers to build apartment complexes, retail spaces, and office buildings within the same structures. The change affects approximately 150 parcels along the busy thoroughfare.

Economic Development Focus

Supporters argue the rezoning will breathe new life into underutilized properties while providing much-needed housing options near downtown Indianapolis. The corridor has seen limited development in recent years, with several vacant lots and aging industrial buildings dotting the landscape between the Holy Cross and Near Eastside neighborhoods.

"This is exactly the kind of forward-thinking policy we need to address our housing shortage while creating vibrant, walkable communities," said Councilwoman Maria Rodriguez, who represents District 10 and sponsored the ordinance. "East Washington Street has incredible potential to become a model for sustainable urban development that serves both longtime residents and newcomers."

The Department of Metropolitan Development estimates the rezoning could facilitate up to 800 new residential units and 200,000 square feet of commercial space over the next decade. Priority will be given to projects that include affordable housing components, with developers required to set aside at least 15% of residential units for households earning 80% or less of the area median income.

Community Concerns

However, some residents worry the changes could accelerate gentrification and displace longtime community members. Several dozen neighbors attended Monday's council meeting to voice concerns about increased traffic, parking shortages, and rising property values.

"We're not against development, but we want to make sure it benefits the people who have called this area home for decades," said James Thompson, president of the Near Eastside Community Organization. "We've seen what happened in other neighborhoods when development comes in without proper community input. We can't let that happen here."

The ordinance includes provisions requiring developers to hold community meetings before submitting proposals and establishes a $2 million fund for infrastructure improvements along the corridor, including sidewalk repairs and new bus stops.

Next Steps

The Metropolitan Development Commission will begin accepting development proposals under the new zoning guidelines starting April 1. The first projects are expected to break ground by late 2024, with initial focus on properties near the intersection of East Washington and Sherman Drive.

Mayor Joe Hogsett praised the council's decision, calling it "a crucial step toward building a more inclusive and economically vibrant Indianapolis for all residents."