IBJNews

CIB's 2011 budget slated to grow by $10 million

Back to TopCommentsE-mailPrintBookmark and Share

The Capital Improvement Board’s 2011 operating budget is projected to increase by $10 million over this year's budget—the same amount the organization initially will provide to the Indiana Pacers under a new funding agreement reached last month.

But CIB President Ann Lathrop insists funding for the Pacers to help operate Conseco Fieldhouse, which totals $30 million over the next three years, is not the only reason for the larger, $73.1 million operating budget.

Instead, she pointed to $3.5 million in other improvements to the Fieldhouse, which is operated by the CIB, as well as $1.5 million earmarked for renovations and repairs to other buildings it owns.

An additional $1 million in utility costs to heat and cool the 254,000-square-foot expansion of the Indiana Convention Center, set to open in January, also is a factor, Lathrop said.

“It’s easy to point to the Pacers,” she said, “but the reality is, it’s a little more complicated than that.”

CIB members are set to vote on the proposed budget at their 3 p.m. meeting on Monday. The City-County Council needs to give final approval.

The CIB’s decision in July to give the Pacers $30 million drew a sharp rebuke from opponents who criticized the funding as another example of a handout to a professional sports team and its wealthy owner.

Pacers owner Herb Simon bought brother Mel Simon’s share of the team shortly before Mel died in September 2009. The Simons founded retail real estate goliath Simon Property Group Inc.

The CIB expects to balance its larger budget next year with a combination of cuts and anticipated increases in revenue from hospitality and food and beverage taxes.

Personnel costs should decline by $3 million, for instance, with the bulk of it coming from a decrease in salaries and wages due to job cuts undertaken last year.

Lathrop anticipates the amount of funds the CIB will collect from hospitality and food and beverage taxes next year to rise by 3 percent and 6 percent, respectively.

The CIB is banking on the larger convention center attracting more meetings next year, which would translate into increased visitor spending on food and hotels.

Also helping matters is a $9 million loan—one of three installments that would total $27 million—the CIB took from the state this year. The CIB is budgeting another $9 million in 2011.  

Lathrop acknowledged that the budget will be tight, saying, “we will probably end up spending everything we have.”

The CIB is the public agency that manages several downtown facilities, including Conseco Fieldhouse, the convention center, Lucas Oil Stadium and Victory Field.

Higher-than-expected costs to operate Lucas Oil Stadium have helped put the CIB in a financial bind. The 2011 operating budget allocates $3.5 million, the same amount as this year, to the Indianapolis Colts for a share of revenue from stadium events. Another $1.6 million—$100,000 more than this year—will be given to the team to reimburse it for game-day expenses.

Other highlights of the 2011 budget include $300,000 in funding for the Arts Council of Indianapolis, which formerly received as much as $1 million annually, and $300,000 to support local tourism efforts. Most of that funding was cut or reduced in the current budget as the CIB grappled with its budget woes.

In addition, the Indianapolis Convention & Visitors Association is slated to receive $8 million from the CIB next year. Unlike previous years, that the money will not come from CIB revenue but from downtown-development funds. The CIB typically funds about 70 percent of the ICVA’s budget.

Including debt obligations, the CIB’s total budget for 2011 is expected to be $104.4 million.
 

ADVERTISEMENT

  • Send them packing
    I still support sending the Pacers packing. And that comes from a 15 year season ticket holder. Maybe if a few of these cities would tell these professional sports teams NO we could get past this mafia style negotiating style that they have with pay us or we are moving. All we need is a couple cities to call there bluff and they would think twice about squeezing the tax payer for every last dime they can get. But that is just my opinion.
  • Fairy Tales
    The CIB would have us believe that the 10 million dollar increase isn't tied to the Pacers receiving another 10 million dollars; then how about this spin, if we didn't give the Pacers 10 million more dollars their budget would be flat lined.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. How much you wanna bet, that 70% of the jobs created there (after construction) are minimum wage? And Harvey is correct, the vast majority of residents in this project will drive to their jobs, and to think otherwise, is like Harvey says, a pipe dream. Someone working at a restaurant or retail store will not be able to afford living there. What ever happened to people who wanted to build buildings, paying for it themselves? Not a fan of these tax deals.

  2. Uh, no GeorgeP. The project is supposed to bring on 1,000 jobs and those people along with the people that will be living in the new residential will be driving to their jobs. The walkable stuff is a pipe dream. Besides, walkable is defined as having all daily necessities within 1/2 mile. That's not the case here. Never will be.

  3. Brad is on to something there. The merger of the Formula E and IndyCar Series would give IndyCar access to International markets and Formula E access the Indianapolis 500, not to mention some other events in the USA. Maybe after 2016 but before the new Dallara is rolled out for 2018. This give IndyCar two more seasons to run the DW12 and Formula E to get charged up, pun intended. Then shock the racing world, pun intended, but making the 101st Indianapolis 500 a stellar, groundbreaking event: The first all-electric Indy 500, and use that platform to promote the future of the sport.

  4. No, HarveyF, the exact opposite. Greater density and closeness to retail and everyday necessities reduces traffic. When one has to drive miles for necessities, all those cars are on the roads for many miles. When reasonable density is built, low rise in this case, in the middle of a thriving retail area, one has to drive far less, actually reducing the number of cars on the road.

  5. The Indy Star announced today the appointment of a new Beverage Reporter! So instead of insightful reports on Indy pro sports and Indiana college teams, you now get to read stories about the 432nd new brewery open or some obscure Hoosier winery winning a county fair blue ribbon. Yep, that's the coverage we Star readers crave. Not.

ADVERTISEMENT