Southeast Gateway study also proposes an innovation corridor along the west side of downtown.
Mar. 16, 2026 at 6am. INDIANAPOLIS – A coalition of civic leaders today released a bold vision for reimagining a key section of Downtown Indianapolis’ highway system to pave the way for increased economic development, better connectivity, and increased safety and quality of life.
A new report from the City of Indianapolis, Indy Chamber, and Rethink Coalition on the I-65/I-70 Southeast Gateway Planning Study calls for recessing and capping critical portions of the interstate between Washington and Prospect streets to the north and south and East and Shelby streets to the west and east. This section of Downtown interstate is among three that need to be updated over the next decade to replace aging infrastructure.
“As Indiana prepares to invest billions in interstate reconstruction, we have the chance to unlock economic development, reconnect communities, improve safety and quality of life, and create space for housing, small businesses, and innovation,” said Brenda Freije, President & CEO of the Rethink Coalition. “This study illustrates both opportunity and responsibility.”
When the north split of the interstate’s reconfiguration was planned nearly a decade ago, Rethink Coalition and Indy Chamber negotiated a compromise with the Indiana Department of Transportation (INDOT) to reduce the interchange’s footprint, eliminate proposed embankment walls that would have cut off neighborhoods, save historic properties, and improve landscaping, trails, and public spaces.
The study, informed by extensive community input and supported through a federally funded partnership among the City, Indy Chamber, Rethink and INDOT, evaluated three conceptual approaches for redesigning the Southeast Gateway and identified the preferred option based on performance across five community-defined priorities: improving quality of life, increasing connectivity, enhancing safety, reducing environmental impacts, and creating economic development opportunities. Recessing the interstate to below grade in that area will unlock additional acreage for parks, trails, businesses, housing, and mixed-use development.
The study also recommends creating an innovation corridor along West Street, linking major assets including Downtown universities, regional hospitals, corporate headquarters, 16 Tech, and downtown cultural destinations along an urban spine. By leveraging Indiana’s existing Innovation Development District (IDD) statute, the state and city can help fund long-term infrastructure and public-benefit investments generated by corridor growth. Report authors likened the West Street Innovation Corridor and its companion interstate infrastructure to other transformative projects, such as developing the Indianapolis Cultural Trail, rejuvenating the Downtown Canal, and removing Market Square Arena.
“This is about aligning infrastructure with the future of Indiana’s economy,” said Taylor Hughes, Chief Strategy Officer & Chief of Staff at the Indy Chamber. “Downtown Indianapolis has a rare concentration of assets across life sciences, higher education, sports, tourism, advanced manufacturing, technology, and healthcare. By investing in reconnecting these assets and strengthening the urban core, we can ensure this corridor supports innovation, talent attraction, and long-term regional and statewide competitiveness.”
A 30-year benefit-cost analysis of the recessed approach found that benefits exceed costs, with projected returns of $1.10 to $1.40 in benefits for every dollar invested. Peer cities that have pursued similar infrastructure approaches, such as Cincinnati, St. Louis, and Columbus, Ohio, have generated investment ranging from $100 million to $2 billion.
“This is Indiana’s competitive opportunity,” Freije said. “We will rebuild the Inner Loop in the coming decades. The real question is whether we simply replace outdated infrastructure or use this moment to build something better for our communities and our economy.”
The report outlines a phased roadmap for moving from study to implementation, including continued stakeholder engagement, corridor planning and feasibility analysis, and coordination with INDOT’s long-term reconstruction planning for the Inner Loop.
The full report and supporting materials are available through the Rethink Coalition and partner distribution channels. For more information, visit Southeast Gateway Planning Study — Rethink Coalition.
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About the Indy Chamber
The Indy Chamber serves as a regional voice for progress, uniting business and community to strengthen the Indy region’s economy and quality of life. Through bold advocacy, economic development, and small & mid-size business support, we help fuel growth, expand opportunity, and position the region to compete and thrive. Working alongside civic, corporate, and community partners, the Indy Chamber focuses on attracting investment, developing talent pathways, and elevating the Indy region’s story. Guided by our core values – Love Indy, Dream Big, and Move Together – we bring leaders together to shape the conditions for growth and build a future where the Indy region leads the Midwest and competes on a global stage.
About the Rethink Coalition
Rethink Coalition is a non-partisan group of residents, neighborhoods, businesses, civic leaders, professional organizations, lawyers, urban and transportation planners, architects, and landscape architects. Their mission is to create a restorative and transformative vision for Central Indiana in connection with the necessary reconstruction of the aging I-65/I-70 Interstate Inner Loop that encircles downtown Indianapolis.
They advocate for recessing the Inner Loop and seek to educate, advise, and collaborate with leaders, stakeholders, and residents to understand how a recessed interstate can improve Indiana’s long-term economic viability and help ensure Central Indiana is positioned as a world-class region with a vibrant urban core for the next 50 years and beyond.
