IBJNews

CIB standing firm against city plan to tap reserves

Back to TopCommentsE-mailPrintBookmark and Share

The Capital Improvement Board hopes a formal proclamation it adopted Monday will deter some City-County Council Democrats from moving forward with a plan to tap its coffers to plug the city’s budget gap.

Council Vice President Brian Mahern is leading a charge among Democrats who want to collect “payments in lieu of taxes” on CIB-operated properties in Indianapolis.

The so-called PILOT fees would be collected on properties that are exempt from property taxes, including the Indiana Convention Center, Lucas Oil Stadium, Bankers Life Fieldhouse, Victory Field, Capital Commons and a Virginia Avenue parking garage.

It's not yet clear how much the payments could raise. City officials are looking for ways to close a $65 million shortfall in Indianapolis' $595 million general fund, which covers daily operating expenses.

The once-cash-strapped CIB expects to have a balance of about $67 million by year’s end. But the municipal agency’s president, Ann Lathrop, insisted that much of the reserve—$52 million—is earmarked for debt payments and improvements to the properties.

“Once you peel those two out, you still have mall investors and a state loan,” Lathrop said of the CIB’s additional obligations.

More than $33 million in Circle Centre mall investor loans come due in 2017 and a pair of $9 million state loans mature in 2019 and 2020, adding to the CIB’s debt obligations. In addition, city tourism bureau Visit Indy needs financial help to replace a $2.5 million grant to market the Indiana Convention Center.

And without sufficient cash reserves, the CIB likely would cut contributions it provides to the Indiana Black Expo, Indiana Sports Corp. and Indiana Arts Council, Lathrop argued.

CIB members voted unanimously to pass the resolution, reiterating their stance against any attempt to tap the agency’s reserves. City-County Council President Maggie Lewis, a CIB member, was absent from the Monday meeting.

The council’s municipal corporations committee, meanwhile, could vote Thursday on the PILOT proposal. If approved, the measure would be included when the full council votes on the city budget Oct. 15.

Mahern said the additional CIB funds could be used to fund a police department recruitment class and to help offset a proposal from Republican Mayor Greg Ballard to eliminate the homestead credit to save $8.1 million in the budget.

Both Mahern and fellow Democrat council member Monroe Gray, who chairs the municipal corporations committee, think it’s only fair that the CIB provide some assistance. They say the city provided the CIB funds from the downtown tax-increment financing district when it needed help.

“Personally, I wasn’t excited about giving the CIB a helping hand a few years ago,” Mahern said, “but we did.”

Gray said Democrats aren’t targeting the CIB’s entire $67 million reserve but declined to reveal an amount that would suffice.

“At this stage, it’s just a discussion,” Gray said. "We haven’t even polled the Democrats on who would be able to support it. But it would probably be a party-line vote.”

Five Democrats and three Republicans make up the municipal corporations committee.

Facing a $47 million deficit in 2009, the CIB recovered financially by cutting millions in operating expenses and getting help from the state that included the $18 million in loans.

Now that the CIB is on better financial footing, members are reluctant to take any risks, especially when it involves skimping on building improvements that could jeopardize the city’s ability to attract large conventions.

“Our buildings are what we win with,” Visit Indy CEO Leonard Hoops said. “People are not beating down the door to get to Indianapolis because we’re Indianapolis.”

ADVERTISEMENT

  • More Data
    Re: Bob Desautels, since Linkedlin lists Bob Desautels as the Senior Manager, Convention Service at ICVA perhaps he will share with us the percentage of rooms booked over the last few years as that data is not part of the Visit Indiana web site.
  • A Priceless Moment
    The best moment of the last council budget meeting with the CIB was when Councilor Brian Mahern suggested that the CIB had not been good stewards of the taxpayer money. Anne Lathrop, the President of the CIB, looked crushed. I don't think anyone on the council had ever talked to her like that. But the fact is what Mahern said is absolutely true. The CIB has been horrible stewards of our tax dollars. Whenever CIB officials are involved in negotiations on behalf of taxpayers, they act like advocates for the other side seeing how much they can give away. They never stand up for taxpayers. The CIB needs to be disbanded.
  • CIB Rogue
    This organization has been rogue for quite some time. I thought Ballard and Daniels agreed it needed to be disbanded. They are just hoarding $$ and giving them to un-deserving recipients. They need to be accountable to tax payers and Council.
  • Wish I had that option
    I wish as a taxpayer I had the option to say no to property tax because my money is earmarked for other things.
  • Dead Wrong
    Comments that the CIB needs to dial down money provided to Visit Indy (formerly ICVA) to promote the city for conventions, etc. is foolish and dead wrong. Bookings of conventions have gone up significantly in the last two years. In addition, hotels have seen increases in usage. You don't build a 1000 room hotel on a whim. In essence, Visit Indy is a significant engine to bring revenue to the city.
    • Look at the ICVA
      The CIB also needs to dial down the dollars the ICVA receives as well. We haven't noticed an increase in conventions in Indinapolis nor have the hotel had an increase in room rentals.
      • Mayor Ballard 2nd Big Decision
        The other difficult conversation Mayor Ballard and Ann Lathrop needs to have is with Circle Centre mall investors about their "evergreen" loan that has no hope of ever being paid off. CIB will not be able to meet the next balloon payment deadline that keeps being extended. They need to write down their investment and be realistic.
      • Mayor Ballards Big Decision
        Maybe the CIB should collect the $30 million "loan" they gave the Pacers, and have the Colts finally pay their fair share of Lucas Oil Stadiums operating expenses. Ann Lathrop's idea to cut CIB's almost non existent contributions to the Indiana Black Expo, Indiana Sports Corp. and Indiana Arts Council is not only misguided, but doesn't even make business sense. Go ahead and cut that funding. You still have a huge tens of million dollar budget hole that needs to be fixed. Ann Lanthrop and Mayor Ballard need to have a difficult conversation with Mr. Simon and Mr. Irsay about passing along the Payments in Lou of taxes to them as CIB tenants. They both are both on solid financial footings now with new player contracts and TV revenue sharing deals.

      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. Of what value is selling alcoholic beverages to State Fair patrons when there are many families with children attending. Is this the message we want to give children attending and participating in the Fair, another venue with alooholic consumption onsite. Is this to promote beer and wine production in the state which are great for the breweries and wineries, but where does this end up 10-15 years from now, lots more drinkers for the alcoholic contents. If these drinks are so important, why not remove the alcohol content and the flavor and drink itself similar to soft drinks would be the novelty, not the alcoholic content and its affects on the drinker. There is no social or material benefit from drinking alcoholic beverages, mostly people want to get slightly or highly drunk.

      2. I did;nt know anyone in Indiana could count- WHY did they NOT SAY just HOW this would be enforced? Because it WON;T! NOW- with that said- BIG BROTHER is ALIVE in this Article-why take any comment if it won't appease YOU PEOPLE- that's NOT American- with EVERYTHING you indicated is NOT said-I can see WHY it say's o Comments- YOU are COMMIES- BIG BROTHER and most likely- voted for Obama!

      3. In Europe there are schools for hairdressing but you don't get a license afterwards but you are required to assist in turkey and Italy its 7 years in japan it's 10 years England 2 so these people who assist know how to do hair their not just anybody and if your an owner and you hire someone with no experience then ur an idiot I've known stylist from different countries with no license but they are professional clean and safe they have no license but they have experience a license doesn't mean anything look at all the bad hairdressers in the world that have fried peoples hair okay but they have a license doesn't make them a professional at their job I think they should get rid of it because stateboard robs stylist and owners and they fine you for the dumbest f***ing things oh ur license isn't displayed 100$ oh ur wearing open toe shoes fine, oh there's ONE HAIR IN UR BRUSH that's a fine it's like really? So I think they need to go or ease up on their regulations because their too strict

      4. Exciting times in Carmel.

      5. Twenty years ago when we moved to Indy I was a stay at home mom and knew not very many people.WIBC was my family and friends for the most part. It was informative, civil, and humerous with Dave the KING. Terri, Jeff, Stever, Big Joe, Matt, Pat and Crumie. I loved them all, and they seemed to love each other. I didn't mind Greg Garrison, but I was not a Rush fan. NOW I can't stand Chicks and all their giggly opinions. Tony Katz is to abrasive that early in the morning(or really any time). I will tune in on Saturday morning for the usual fun and priceless information from Pat and Crumie, mornings it will be 90.1

      ADVERTISEMENT