A mixed-use development with a hotel, retail, office space and apartments cleared a major hurdle Sept. 16 when the Carmel City Council voted 5-3 to approve up to $19 million in tax increment financing bonds to support the project.

Proscenium III is planned at the corner of Range Line Road and Executive Drive just north of Carmel’s Proscenium development. The $123 million project is a public-private partnership between Birkla Investment Group and the Carmel Redevelopment Commission.

The development includes 151 apartments, with up to 40 being reserved for tenants aged 55 and older in a building on the southwest corner of the site. The age-targeted units were not part of the original proposal, and several councilors said adding them improved the project.

“The age-restricted apartments is a win and adds value to the whole package,” City Council President Tony Green said. “I’ve traditionally been very hesitant on apartments across the board, but it’s just one of those in the right place at the right time.”

Councilor Matt Snyder joined Councilors Anita Joshi and Teresa Ayers in voting against the project. Snyder said many Carmel residents have asked city leaders to stop or slow down efforts to add more apartments. He said he suggested three revisions to the project that removed the apartment component, with his “last-ditch effort” being a proposal for the city to use the TIF bond funds to buy the property and allow for more time to develop a plan that does not include apartments.

“The office space and the hotel helps the people that (already) live in Carmel. I’m tired of doing things that help the people that don’t live in Carmel,” Snyder said. “It’s about time we start taking care of our own, and that means listening to them and not just continuing to add more and more people, at least for a period of time, so we can see what the ramifications are from what’s already been built.”

Snyder also said he does not believe the project has enough parking spaces. The project includes a 508-space parking garage with 80 percent of the spaces open to the public on a first-come, first-served basis. CRC Director Henry Mestetsky said the amount of parking spaces is sufficient because different parking space users will be on-site throughout the day. For example, he expects office employees to take up much of the parking during the morning and afternoon, while those who live in the apartments will use them more in the evenings and overnight.

Proscenium III is proposed to have 60,000 square feet of office space for corporate headquarters and 15,000 square feet of retail space, with 4,000 square feet designated for businesses owned by minorities, women or veterans. It also is set to include an outdoor plaza along Veterans Way and public art. The 125-room hotel will share many of its amenities with Proscenium III residents.

“This will be the first development in Carmel, and it may be in central Indiana, where we’re building a five-star hotel and all the amenities of the five-star hotels can be used by the residential projects, both the non-age-restricted and age-restricted,” said Tony Birkla, owner of Birkla Investment Group.

Mestetsky said construction could start in early 2025 and be complete in two years.