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To provide enough space for Hobby Lobby at The Marketplace of Warsaw, additional square footage will be added to the shopping center.
Monday, to help solidify the redevelopment of the building, the Warsaw Common Council unanimously approved an economic development memorandum of understanding (MOU) with Sullivan Wickley, the owners and developers of the The Marketplace, along with a revolving fund loan agreement.
Jeremy Skinner, Warsaw community and economic development director, told the council, “After much conversations over quite a few years - different ideas, different locations - we were able to work with Sullivan Wickley and present to Hobby Lobby a plan that would put them in The Marketplace of Warsaw. So this MOU outlines our contribution to the project. If you remember correctly, we did a bond issue for The Marketplace of Warsaw when it basically was about 90% empty.”
At this point, Sullivan Wickley has been able to get Gabe, Beals, Planet Fitness and Ollie’s in there. With the addition of Hobby Lobby, Skinner said, it is hoped Sullivan Wickley will then be able to fill the little spaces remaining with some additional tenants.
“Our contribution, or what I’m asking of you, the MOU is part of what we’ve done on other EDIT (economic development income tax) Revolving Loan Funds where we have already approved the process of the Revolving Loan Fund, so step one would be approval of the MOU and then, as you can see, we would approve the actual Revolving Loan Fund that would be granted for this project,” he explained.
The loan amount from the fund of $250,000 will be forgiven at the completion and issuance of the Certificate of Occupancy for the Hobby Lobby. Of the $250,000, there would be $100,000 coming out of the 2025 budget and the additional $150,000 would be provided in the 2026 budget.
“So they would have steps to do to get the original $100,000 this year, and the remaining in 2026 to make up that $250,000 that would be our contribution to the project,” Skinner said.
Hobby Lobby will occupy from the left of Planet Fitness and over, including what used to be Shoe Sensation and the BMV. That area of The Marketplace will be torn down and “a new 50,000-ish (square foot) building will be built, connected to that shopping center. I think it’s roughly around 20,000-some that’s there now, so they’ll be tearing down around 20-25,000 and be replacing that with around 50,000 square feet,” Skinner estimated.
Mayor Jeff Grose said they’re projecting adding 35 to 50 new retail jobs, and he thanked Skinner for his work.
“And thanks to the Redevelopment Commission,” Skinner said. “I know we’ve talked over a number of different iterations of this project and Hobby Lobby. To be able to work with Sullivan Wickley and get it at this location particularly, because of trying to invigorate that shopping there and the money we’ve already spent, and especially for the price - the $250,000 compared to the anywhere from $3.5 million that those other projects were looking at.”
Councilman Mike Klondaris pointed out the MOU - while it didn’t require the Redevelopment Commission’s approval - was unanimously approved by the commission earlier Monday. He made a motion to approve the MOU and Councilwoman Cindy Dobbins seconded the motion, which passed 6-0. Councilwoman Diane Quance was absent.
Skinner then presented the Revolving Loan Agreement for $250,000. It sets out the parameters for the project. If they take the loan but don’t complete the project by August 2027, the loan would have to be paid back to the city with interest, but Skinner said he didn’t foresee that happening.
“Right now, I think the plan is to have the site ready by March, so they would start construction this year. I think Hobby Lobby would try to complete the project before the holiday of next year, so some time around October of 2026,” he stated.
Council President Jack Wilhite made the motion to approve the loan agreement, saying, “This being probably the most desired and highly anticipated redevelopment in our recent history.” Klondaris made the second for the motion, which was approved 6-0.
In other business, the council:
• Approved a declaratory resolution reducing 2025 appropriations totaling $1,151,600.
• Approved the general, police, fire and elected official salary ordinances on second reading, as presented by Human Resource Director Denny Harlan. The council approved the ordinances on first reading at their last meeting.
• Held a public hearing for the voluntary annexation of the property at 3624 N. Ind. 15, Warsaw. No members of the public spoke for or against the annexation. City Planner Justin Taylor said the process will continue at the council’s next meeting.
• Approved on first reading the ordinance for the voluntary annexation of the Chandler Williams property located along Husky Trail in Wayne Township, as presented by Skinner. The petition for the voluntary annexation was introduced to the council at their Aug. 18 meeting and a public hearing was held Oct. 6. The fiscal plan was presented to the council and approved on Oct. 6.
“Hopefully, we can work with Mr. Williams and redevelop that property into some higher use,” Skinner said.
• Approved a resolution to transfer $7,000 for road maintenance in Oakwood Cemetery, as requested by sexton Hal Heagy.
