Jeff Swiatek, David Lindquist and Chris Sikich

In a deal that could set off a war among outdoor concert venues, Carmel developer REI Investments will buy the 102-acre former General Motors Stamping Plant site, possibly build a 15,000-seat amphitheater on one half and resell the other half to the city for a new jail and justice center.

The amphitheater plan has raised some hackles for competitive reasons. The stamping plant site lies almost directly across the river from White River State Park, which since 2004 has hosted concerts at Farm Bureau Insurance Lawn, which can hold 7,400 spectators.

In addition, the metro area already has the longtime outdoor concert venue Klipsch Music Center in Noblesville, which seats 24,000.

REI gained control of the property through a purchase agreement announced today with RACER Trust, the Michigan-based entity that disposes of old GM industrial sites and has owned the stamping plant since 2011.

The longtime industrial site is one of the most prominent developable properties in or near Downtown. It fronts the White River just south of Washington Street and the Indianapolis Zoo.

REI president Mike Wells said his company is looking for financing and possibly a partner to develop the outdoor amphitheater and parking for 5,000 vehicles.

If the amphitheater doesn’t fly at the GM site, the back-up plan is to build apartments, restaurants and retail shops, Wells said.

“We’re going to have to come up with a decision in the fall as to what direction we will go,” he said. “And then I think we would start construction probably in the second quarter (of 2015.)”

If the new amphitheater is built, “It's going to be a war,” said Gary Bongiovanni, editor-in-chief of Pollstar, a trade publication for the concert industry. “I don't know, economically, how three outdoor facilities can exist in a market the size of Indianapolis.”

The amphitheater, or whatever REI puts on the east end of the site, also would have to co-exist with a grand plan sketched out by Mayor Greg Ballard to build a consolidated jail and criminal justice facility at a cost of up to $400 million on the western portion of the site.

RACER Trust made the sale to REI contingent on it agreeing to sell half the site to the city for the justice center. If REI doesn’t strike a deal with the city, the property sale won’t go through, said Bruce Rasher, redevelopment manager for the trust.

The trust is still in the process of razing the over 1 million-square-foot stamping plant. After demolition is done, the trust plans to remediate the site to remove underground environmental contaminants and hazards. That could take years, Rasher said, although remediation won’t have to be complete for construction on the new uses to start.

Wells and Rasher wouldn’t divulge a sale price. Rasher said he can’t say yet if the agreed-on price will cover the demolition and remediation costs.

Wells said he attended a public meeting the trust held over a year ago to discuss potential uses for the stamping plant site. At the meeting, Wells spoke up against the idea of renovating the huge plant so it could be put to a new use.

He remained in contact with RACER and REI became one of four companies, out of 11 invited bidders, to submit a proposal to buy the site.

After talking to city officials, and analyzing the four bids with the help of an outside urban development specialist, the trust picked REI as the winning bidder, Rasher said. “We were very pleased with the bids received, but REI was the best,” he said.

GM closed the plant and transferred ownership to the trust as part of the automaker's 2009 bankruptcy. The trust was created in bankruptcy court to clean up and sell for redevelopment 340 former GM parcels. The trust is mandated to sell to new owners who’ll maximize the public benefit through redevelopment, Rasher said. The trust has sold 33 parcels so far.

The trust has set a deadline of mid-2015 to finalize the sale to REI, but the company can take control of the eastern portion right away, he said. “This is a great property in a terrific location. We’re eager to get started and to help create a new and prosperous hub for the community,” Wells said.

Any concert venue at the stamping plant site would compete against concert promotion company Live Nation, which owns and runs Klipsch Music Center and is also a partner in the Farm Bureau Insurance Lawn at White River State Park.

In February, Live Nation pledged to invest $10 million in construction improvements to the Downtown state park venue.

Live Nation Senior Vice President Tom Mendenhall declined to comment on the plan for an amphitheater at the stamping plant site.

The justice center plan has its own early skeptics. They have expressed concern about the price and a location that’s close to residential neighborhoods.

Ballard, a Republican, has yet to persuade the Democratic-controlled City-County Council to go along with the plan. It calls for closing jail facilities Downtown and transferring them to the new site, along with criminal courts and other justice-related offices.

Deputy Mayor Deron Kintner said the city won’t agree to pay more for the land than what REI is charged by the trust, plus any add-on costs such as legal fees.

“It’s potentially a huge deal for the city,” Kinter said. “It opens up a lot of opportunities. We’ll have to work with REI and the market to see what those opportunities are.”

REI is a longtime commercial developer whose projects include the Indianapolis Marriott Downtown.

Call Star reporter Jeff Swiatek at (317)444-6483. Follow him on Twitter: @JeffSwiatek.