INDIANAPOLIS -- City and neighborhood leaders are speaking out against a plan to replace an east side prison with a work-release facility.

Indiana Department of Correction Commissioner Edwin Buss said the department will gain more than 2,000 beds with a plan that includes relocating the Indiana Women's Prison near downtown to the former juvenile facility, and moving the Plainfield Re-entry Educational Facility to that location.

But city leaders and neighborhood groups told 6News' Jack Rinehart that they're concerned a second work-release center in the area will be a hindrance to area redevelopment.

"It is sort of clear that (the work release facility is) not the thing that's going to encourage new families to move in nearby," said David Wu, policy director for Indianapolis Mayor Greg Ballard.

The city has invested more than $10 million in the area in the past four years, construction new sidewalks and sewers, as well as housing and commercial development. It also plans to invest $2 million to buy, repair and renovate abandoned homes along the corridor.

"The addition of a 500- or 600-bed work release facility is really counterproductive to us being able to attract new homebuyers to our neighborhood," said James Taylor, CEO of the nearby Boner Community Center.

Greg Neff is proud of the sweat-equity investment he's made in a once-vacant property a block from the prison. Now he's concerned what the work-release center will mean for the future of the neighborhood.

"That just kind of stops us here, because that's going to be the difference between people wanting to come down here and have home ownership," he said.

Residents have started a petition drive to try to stop the inmate transfer, but state officials said Tuesday that the move is already under way.