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CIB reports quarterly revenue increase

Scott Olson
May 10, 2011
Keywords
Arts & Entertainment, etc., Capital Improvement Board, Conventions, Government, Government & Economic Development, Hotels, ICVA, Local Government, Taxes, Tourism & Hospitality, Tourism Groups, Travel, Visitor Spending
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An increase in visitors to Indianapolis hotels and restaurants helped the Capital Improvement Board of Marion County see higher revenue in the year's first quarter.

CIB reported at its Monday meeting that revenue in the first three months of 2011 grew 28 percent, to $22.5 million, compared with the same time last year. In addition, revenue exceeded what CIB had budgeted in the first quarter by more than $2 million.

“A lot of that is directly related to the activity we had in the [Indiana Convention Center],” said Dan Huge, the convention center’s chief financial officer.

March was “a very good month,” he said, citing the Fire Department Instructor Conference and the National Truck Equipment Association convention.

The convention center addition that opened in February boasts 350,000 square feet of exhibit space, pushing the overall convention center from 32nd largest in the United States to 16th. The facility, when combined with Lucas Oil Stadium, offers a total of 1.2 million square feet of exhibit and meeting space.

CIB is banking on the larger convention center to attract more meetings, which would translate into additional visitors spending more on food and hotels.

Taxes collected by CIB, which include hotel, food and beverage, and admissions receipts, totaled $16.4 million, a 22-percent increase from the first three months of 2010.

More specifically, taxes generated by admissions to events at CIB-owned facilities grew 27 percent, food and beverage taxes increased 19 percent, and hotel stays improved 18 percent.

Besides the convention center, CIB manages Lucas Oil Stadium, Conseco Fieldhouse and Victory Field.

Despite the increase in revenue, CIB still is running a deficit of $6.6 million through the first three months of the year. That’s largely due to the second of three annual $10 million payments CIB made to the Indiana Pacers to operate Conseco Fieldhouse.

CIB’s decision 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.

CIB said it is under budget by nearly $900,000 through the first three months on salaries and employee benefits, including security costs, due to job cuts.

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


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  1. The lack of street-level retail in this part of the Block 400 development is a huge oversight and somewhat perplexing given the high quality of recent city-backed developments downtown. This portion of an otherwise stellar development is going to have an extremely negative impact on the aesthetics, urban environment, walkability, and livability of the NW quad.

    I'm not sure why One America would oppose including retail. And I find it very hard to believe that the thousands of office workers literally footsteps away wouldn't be able to support new lunchtime destinations and other businesses along Illinois and Vermont. We've got to reconnect the disjointed segments of our blossoming downtown, not create yet another lifeless dead zone that no one wants to walk through. Sadly, that is exactly what this massive ugly single-use structure will accomplish.

    Why not follow the precedent set by the proposed garage in Broad Ripple and create an attractive mixed-use structure? Why does the city get it there but not downtown?

  2. Bear mind that DS is just not another lazy, rich kid. He attended Columbia grad school and was in investment banking for 4 or 5 years before joining his dad's company. An annual grant of stock options at market price would be the correct pay-for-performance program then no one could argue with it.

  3. This comes from an executive who gave his wife a Bentley as a wedding present. He is heir to billions of dollars. He should be working for a dollar a year and stock options only. Seems like a conflict of interest, time to bring in a non-relative as CEO. Haven't met him, but have heard his arrogance is legendary.

  4. If the property is improved, property taxes increase - more revenue. If AUL's employment grows, more income taxes - more revenue. If more people move and/or work downtown, it means more demand for goods and services, more employment, more taxes - more revenue, etc., etc. It's not just the city throwing money at big companies. There's much, much more. Yes, the project has private backing, but apparently not enough to make the deal work and therefore they don't have it covered. And while Marsh is a nice anchor, they are no credit tenant like a Kroger or somebody. And if the police department has a major shortfall, they need to reduce the force. This city has way too many policemen.

  5. It's hard to defend billionaires, but David Simon has created a tremendous amount of value for shareholders since joining the company. He is widely regarded as one of the best CEOs in America. The company is growing and making good strategic decisions. And Indy is fortunate to have SPG HQ'd here. Now, does that merit $120 million (about 15 mil over 8 years or so)? Maybe. But this family and David have truly built a business. Should Zuckerberg be worth $20 bil? Who knows. Hopefully David will be supportive of Hoosier charities like his family has.

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