Clay Terrace owner files for bankruptcy; what it means for the mall
The company that owns Clay Terrace filed for bankruptcy on Sunday.
Washington Prime Group, Inc. announced on Sunday that it has filed for Chapter 11 bankruptcy with the U.S. South District Bankruptcy Court, according to a press release from the company.
But a company spokesperson said in an email to IndyStar on Tuesday that Clay Terrace’s operations in Carmel are not expected to be affected, which includes active rental and redevelopment plans.
“The COVID-19 pandemic has created significant challenges for many consumer-facing businesses, including Washington Prime Group,” a company spokesperson said. “The company has determined that the Chapter 11 route is the most effective next step in resolving the company’s unpaid debt as we emerge from the pandemic. “
Washington Prime Group plans to continue its operations “in the normal course of business for the benefit of our customers, tenants, stakeholders and colleagues,” Lou Conforti, CEO and Director of Washington Prime Group said in a company press release.
In 2020, representatives of the Washington Prime Group presented redevelopment plans for Clay Terrace in the town of Carmel.
In December, Carmel City Council approved an ordinance modifying the development of the planned Clay Terrace unit, allowing for the redevelopment of the site.
Plans for the first phase of the project include the demolition of buildings around Mitchell’s old fish market. The area will be replaced by shops and restaurants on the first floor and topped with luxury apartments. Covered parking with around 500 spaces is provided nearby.
Washington Prime Group plans to build a hotel and another building near where the dog park is located.
Plans are also in place for a new office building at the south end of Clay Terrace.
“While Clay Terrace plans to continue to successfully transform any vacant space, more difficult and uncertain times are likely to come in the retail industry as the full impact of the ongoing COVID-19 pandemic is still unknown. “Steven Hardin, an attorney representing Washington Prime Group, wrote in a letter to the City Planning Commission last year. “These events clearly show that for Clay Terrace to remain an asset to the community, immediate steps must be taken to develop a unique environment with a vibrant synergy of uses.”
IndyStar reporter Kaitlin Lange contributed to this story.
Contact IndyStar reporter Carmel and Westfield Brittany Carloni at firstname.lastname@example.org or 317-779-4468. Follow her on Twitter @CarloniBrittany.