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CIB financial situation improving

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Year In Review

The past year has been mighty unkind to the Capital Improvement Board, the entity charged with operating the city’s professional sports venues and Indiana Convention Center.

It began the year projecting a 2010 budget deficit of $47 million. The major culprits: $15 million in expected Conseco Fieldhouse operating costs next year and additional expenses involved in operating Lucas Oil Stadium.

A provision that allows the Indiana Pacers to break their lease after 10 years could trigger the additional cost to keep the team in the city. An agreement has yet to be reached, although CIB officials continue to negotiate with the team.

CIB may assume Fieldhouse operating costs from the Pacers. (IBJ File Photo)

Excluding the Pacers dilemma, CIB made great strides in 2009 to shore up its finances and is on target to turn the deficit into a surplus—additional money that could be used in negotiations with the team.

The organization has improved its finances by making $26 million in cuts this year and by avoiding $25.5 million in debt-service reserve payments. It also is poised to collect roughly $11 million more in annual revenue.

CIB has reduced its operating budget from $78 million at the beginning of this year to a proposed $63 million in 2010, although the organization anticipates spending as little as $52 million.

Cuts include:

• $4.5 million in budgeted renovations to CIB-operated facilities.

• $3.5 million in grant awards, including $2 million to cultural tourism efforts and $1 million in city arts funding.

• $2.5 million in salary and benefits costs from job cuts and continuing unpaid furloughs. Eleven positions have been eliminated, and pay cuts range from 5 percent to 15 percent.

• $2.2 million in printing, advertising and supply costs.

• $1 million in maintenance expenses.

In addition, the General Assembly approved a 1-percent increase in Marion County’s innkeepers’ tax, allowing the organization to capture an additional $3.4 million in annual revenue.

Lawmakers also approved expanding the Professional Sports Development Area, which enables CIB to receive $8 million in sales taxes expected to be generated at the new downtown J.W. Marriott hotel.•

 

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  1. A Tilted Kilt at a water park themed hotel? Who planned that one? I guess the Dad's need something to do while the kids are on the water slides.

  2. Don't come down on the fair for offering drinks. This is a craft and certainly one that belongs in agriculture due to ingredients. And for those worrying about how much you can drink. I'm sure it's more to do with liability than anything else. They don't want people suing for being over served. If you want a buzz, do a little pre-drinking before you go.

  3. I don't drink but go into this "controlled area" so my friend can drink. They have their 3 drink limit and then I give my friend my 3 drink limit. How is the fair going to control this very likely situation????

  4. I feel the conditions of the alcohol sales are a bit heavy handed, but you need to realize this is the first year in quite some time that beer & wine will be sold at the fair. They're starting off slowly to get a gauge on how it will perform this year - I would assume if everything goes fine that they relax some of the limits in the next year or couple of years. That said, I think requiring the consumption of alcohol to only occur in the beer tent is a bit much. That is going to be an awkward situation for those with minors - "Honey, I'm getting a beer... Ok, sure go ahead... Alright see you in just a min- half an hour."

  5. This might be an effort on the part of the State Fair Board to manage the risk until they get a better feel for it. However, the blanket notion that alcohol should not be served at "family oriented" events is perhaps an oversimplification. and not too realistic. For 15 years, I was a volunteer at the Indianapolis Air Show, which was as family oriented an event as it gets. We sold beer donated by Monarch Beverage Company and served by licensed and trained employees of United Package Liquors who were unpaid volunteers. And where did that money go? To central Indiana children's charities, including Riley Hospital for Children! It's all about managing the risk.

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