The Federal Aviation Administration has officially approved closing the downtown Indianapolis heliport, capping off a yearslong decommissioning process and clearing a hurdle for the Major League Soccer stadium that Mayor Joe Hogsett hopes to one day develop on the site.

Three years after the Indianapolis Airport Authority submitted a request to decommission, or shut down, the heliport, the FAA ultimately agreed, determining closing the heliport would not impact air operations in Indianapolis and was “a net benefit to civil aviation,” according to a Nov. 25 letter signed by FAA Associate Administrator for Airports Shannetta Griffin and addressed to the IAA Executive Director Mario Rodriguez.

IAA officials said the heliport, which opened in 1969, has seen a decline in demand, tenants and revenue along with mounting expenses in recent years, according to the letter.

The fate of the heliport has become publicly intwined with Mayor Joe Hogsett’s efforts to bring a Major League Soccer team to Indianapolis, as the heliport sits at the center of a mile-wide site the city identified as a potential soccer stadium district after ditching a $1 billion development proposed by Indy Eleven owner Ersal Ozdemir. The city has exclusive rights to buy and redevelop the heliport site from the IAA under a memorandum of understanding signed in 2021.

The proposal to close the heliport sparked opposition across the state. In comments to the FAA, hundreds of aviation enthusiasts, politicians and business owners, including former vice president Mike Pence, opposed the plan, citing the benefit of the heliport’s easy access to downtown.

“There is literally nowhere to land a helicopter in Indianapolis now,” said Fort Wayne entrepreneur Chuck Surack, who owns the helicopter charter service Sweet Helicopters. “Any leading world class city has a heliport or a way to land downtown. You need it for safety and for the public good.”

Surack, who joined Indy Eleven as a co-owner and investor for a now-defunct private Indy Eleven soccer stadium development, bought the nearby LaQuinta Inn and Suites property at 401 E. Washington St. three months ago to encourage more dialogue over the location of the stadium, he told IndyStar.

Over the past three years, the FAA said no buyer came forward to acquire the heliport from the Indianapolis Airport Authority to keep it in operation.

Flight data at the heliport is limited, but the most recently available Department of Transportation show 1,696 arrivals and departures. That number hasn’t exceeded 2,600 since 2011. 

The heliport’s last official tenant, IU Health, agreed to cease operations there eventually in a deal finalized with the IAA in June. Public and private companies still use the site and may do so until it closes.

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What happens next?

It’s not known exactly when the heliport will close. IU Health’s LifeLine emergency medical transportation will continue to operate at the heliport through 2025 before it moves to the Indianapolis Regional Airport at the corner of West Airport Boulevard and North Aviation Way in Buck Creek Township, some 18 miles east of downtown.

Other outstanding heliport infrastructure, such as hangars or fueling stations, will move to the Indianapolis International Airport or another airport in the area, according to the FAA letter. State officials have expressed concerns over the future of electric helicopters, or EVTOL, if the site closes. According to the agreement, the IAA will build a vertiport site at Indianapolis International Airport to support EVTOL use around Indianapolis.

The IAA signed a memorandum of understanding in 2021 giving the city exclusive rights to purchase and redevelop the site. Under the FAA agreement, the IAA must provide two appraisals and an independent review appraisal within six months of the closing date to determine a fair market value. After that, the airport must publicly sell the land at that value and reinvest the money into the Indianapolis Regional Airport. The Indianapolis Airport Authority also operates the Eagle Creek Airpark, Indianapolis Metropolitan Airport and Hendricks County Airport.

As for a potential soccer stadium, the State Budget Committee is expected to vote on a proposal to create a special taxing district at the site in the coming months. The city has said an MLS ownership group would be announced before such a vote takes place.

The city has been quietly inquiring about multiple buildings within the tax district. On Wednesday, the city will consider buying a surface parking lot in the stadium taxing district.

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Alysa Guffey covers growth and development for IndyStar. Have a business story or tip? Contact her at amguffey@gannett.com.