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CIB prepared to give Pacers another $11 million

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The Capital Improvement Board of Marion County is prepared to give Pacers Sports & Entertainment another $11 million to offset losses from operating Bankers Life Fieldhouse.

CIB President Ann Lathrop said Wednesday afternoon that the $11 million payment could be delivered in July 2014, after the current agreement with the Pacers expires. All told, the Pacers will receive $21 million from CIB next year, including money it will receive for repairs to be made to the fieldhouse. The CIB board voted 8-0 Wednesday afternoon to approve the funding.

In a July 2010 contract, CIB agreed to give the Pacers $33.5 million over three basketball seasons to offset losses from operating the venue. In December 2012, the CIB extended the contract for another year and gave the Pacers an additional $10 million.

The CIB and the Pacers are negotiating a long-term contract that could keep the team in the city for several more years, Lathrop said. The current lease expires in 2019.

“Both sides are negotiating in very good faith,” Lathrop said. “I feel very confident that between now and the end of the year, we’ll have an agreement.”

The CIB has allotted money to continue supporting the Pacers, but also is under pressure to cut expenses from the city, which faces budget shortfalls into 2014. The CIB is a municipal corporation that manages the fieldhouse, Lucas Oil Stadium, Victory Field and the Indiana Convention Center.

The additional $11 million CIB is prepared to give the Pacer’s will swell its 2014 operating budget by $35 million from this year’s budget of $80 million, including other expenses.

CIB has earmarked $13.7 million for repairs to the Indiana Convention Center, $10 million in improvements to Bankers Life Fieldhouse and $6.2 million it is expected to give to the city for its share of admissions and auto rental taxes.

In January, the City-County Council approved increases to both the admissions and auto rental taxes.

The admissions tax rose from 6 percent to 10 percent, and the county tax on rental cars increased from 4 percent to 6 percent. Combined with state rental and sales taxes, the total tax on rental cars is 17 percent.

The tax hikes are projected to generate $6.7 million for the city’s general fund this year. In the future, most of the money will flow to CIB.

To cover the $35 million budget increase, CIB will use money from its renewal and replacement account and operating reserves, Lathrop said.

“We absolutely planned for this,” she said. “In my mind, that’s prudent.”

All carpeting and flooring at Bankers Life Fieldhouse will be replaced, per the 1999 lease agreement. In addition, at the convention center, seven air-handling units installed in 1984 will be replaced, as will original roof sections installed in 1992 and lighting control units in all exhibit halls that are nearly 30 years old.

The metal exterior and siding of the convention center’s north section will be painted, hot water piping will be retrofitted to connect it with the convention center addition, and exterior steel structures at Lucas Oil Stadium will be painted.

The City-County Council is set to consider the CIB budget at its Oct. 14 meeting.


 
 

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  • Totally Disgusting
    I agree with almost all the comments expressing disgust with yet another example of corporate welfare. The mayor clearly has his priorities mixed up. I plan to write my council member immediately. The situation is deplorable.
  • Books & Records
    Having had the opportunity (or, misfortune?) of seeing the CIB's books one time many years ago, it's amazing the millions of dollars that flow-through that shell entity every year, none of which are ever accounted for. Colts & Pacers are, by far, the largest hands-out organizations in our state, yet we continue to throw more and more funding their way to make them happy. Consider this, Mr. Ballard: How many of the owners and players of your pet projects actually reside within Marion County and pay your taxes?
  • How ironic, or moronic
    It never ceases to amaze me how fast the city rushes to keep our sports teams happy, or even to solicit new sports ventures (everyone plays cricket in Indy, right?). However, the first funding to get cut by our fine right wingers is for the arts. Shame on you, CIB!
  • Tipping point...
    This is the tipping point. The City County Council still must approve this silly adventure. The gallery should be packed with irate citizens. The CIB is useless and run by idiots.
  • Here's your mass transit funding
    The next time I voice opposition to taxing workers more to fund mass transit, I would like mass transit advocates to think of this article first before hurling insults and names my way. There is serious abuse of the taxpayers' money by this city government, and both corrupt parties share the blame because each party has led this city one time or another. Productive citizens and homeowners should not be taken for granted. There is a tipping point- ask the people of Detroit.
  • Sports obsession
    How come the people that want smaller government and less bailouts seem to have no problem with subsidizing sports teams? This city is absolutely obsessed with propping up their professional teams.
  • They Are
    Without making a value judgment, when it comes to the economics of entertainment dollars, the arts in Indianapolis are second or even third class citizens to professional or major collegiate sports.
  • Selective Hearing
    So I always find it humorous and sad that we can find ways to subsidize professional sports teams and their athletes but yet the politicians don't feel it is appropriate to interfere with contract negotiations for the orchestra. They are treated as 2nd class citizens and it is time the city starts treating everyone with respect.
    • Dead Animal
      I can't get a dead animal removed from the street in front of my home. Welfare is for the well-off, not the neediest. Preachers as usual take no notice.
    • Homestead taxes
      So, we can afford to give money to the Pacers, but Mayor Ballard is asking to take away my homestead credit. Like I have the money in my back pocket. What's wrong with this picture?
    • Bad Investment
      "I don't have a problem with the city subsidizing professional sports." So you don't have a problem with a city spending money on an investment that every economist says is a bad deal for taxpayers?
    • renegotiate
      I don't have a problem with the city subsidizing professional sports. That's an expected part of living in a city which has teams. What I do have a problem with is giving teams the option of renegotiating the terms of their deal every few years. If the team is not willing to commit to staying in town under set terms for at least 20 years then let them move.
      • Pence
        Last year when SB 621 was signed into law Governor Pence made note of the Democrats attempt to make the CIB pay a PILOT because of all the police resources. The Governor implied that it was wrong to pick on the CIB. Gov. Pence got extremely bad advice in sticking up for the CIB. The CIB is an agency engaged in out-of-control spending, the very sort of thing he has spent his political career railing about. Pence ought to be leading the charge to shut the CIB down. Hopefully this latest outrage will cause him to get the message. We taxpayers need his help and the help of the General Assembly.
      • GRAFTER ALERT
        Wow Corporate Welfare continues with no consideration for City Finances... Where is John Q. Public ( who cannot afford to go to professional games with his family's) handout? So because of the this scummy accounting hiding money in different city corporations the city is short $55,0000,000? Ballard wants a tax increase on John Q. Public and his Republican cronies are attempting to steal another $1.5 Billion of tax base thru creation of yet another TIF (southside). Haha they failed to create last nite at the CCC MEETING. All the TIF properites need to be put back in the General Fund? This city government is totally corrupt the way it operates it is like the Mafia and extorts $$$ from John Q. Public. All Revenues in and then figure out what your priorities should be.
      • CIB Gives Away $21M
        Its actually $21M. But we are short 700 policemen and our streets are broken. How long can CIB run wild and out of control. Long past time to abolish it and give this management to City Council...the people we voted for.

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