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CIB to fight council's attempt to take $15 million

Kathleen McLaughlin , Scott Olson
November 1, 2012
Keywords
Capital Improvement Board, City Government, City-County Council, Government, Government & Economic Development, Local Government
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A $15-million payment from the Capital Improvement Board of Marion County to the city of Indianapolis is looking unlikely for 2013.

The board’s directors voted Thursday afternoon on three actions that will circumvent the $15 million payment-in-lieu-of-taxes, or PILOT, which the Indianapolis City-County Council included in the CIB’s budget.

Council Democrats were counting on the PILOT to fund a police and firefighter recruit class and to help close a gap in the city’s roughly $1 billion 2013 budget. The CIB is a municipal corporation that runs downtown properties, including Banker’s Life Fieldhouse and Lucas Oil Stadium, which are exempt from property taxes.

Without the $15 million, the city will have to spend more of its rainy-day fund than Mayor Greg Ballard had anticipated in his version of the city’s budget. Ballard and the council are at odds over imposing the fee on the CIB, but Ballard opted to let the board fight its own legal battles.

The CIB’s directors voted unanimously to appeal the property-tax assessment that resulted in the $15-million PILOT. CIB officials argue that Marion County Assessor Joseph O’Connor should have assessed the properties by March 1 if the city wanted to impose a PILOT for 2013. Further, the CIB’s leadership said they haven’t even received the assessment yet.

The CIB will also ask the State Board of Accounts to determine whether its budget was properly approved by the council, and whether to follow the 2012 or 2013 budget in the meantime.

“We’re kind of walking new ground here,” CIB Chairwoman Ann Lathrop said.

The CIB’s vote was 7-0 with two members absent: City-County Council President Maggie Lewis and Jay Potesta.

If all else fails, the CIB would consider taking legal action, Lathrop said.

“We just don’t believe it’s prudent,” she said of the PILOT. “We’re on our way to solvency and this would derail that.”

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

The council scheduled a special meeting Thursday evening where it will attempt to override Ballard’s line-item budget vetoes. Democrats are the majority with 16 members on the council, but it takes 20 votes to override a veto.
 

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  • Irresponsible
    JerryNovember 2, 2012 8:33 PM
    I think everyone is happy to see someone standing up to the irresponsible appointees on the Capital Improvement Board who don't care about wasting our public's money. I wish it was our Mayor doing it, but our Mayor has never demanded any accountability from the CIB so I guess we shouldn't be surprised.. The CIB's handling of the Pacer $33.5 million giveaway three years ago was reprehensible, a complete abdication of the public's trust. The Legislature should dissolve the CIB and send Lathrop and her worthless crew packing.
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  • CIB?
    InformedNovember 2, 2012 7:49 AM
    it would be a shame for CIB BOD to not have ther 250,000 a year salary with a 500 dollar a month car allowance and there city gas cards. Lets not forget that they all drive hundred thousand dollar cars and get kickback from companys they grant contracts.If you ever met a CIB BOD you would know without knowing by there egotistical statements of ownership of the city as well as the cleshay " Do you know who i am ".
    Reply to CommentFlag Comment
  • CIB $$
    FletchmonNovember 1, 2012 8:45 PM
    ITS NOT THEIR $$. ITS OURS. This organization is so egotistical and filled with conflict of interest as to be ridiculous. Look at the bios for each of the CIB members and you'll see what I mean. But hey, taxpayers don't seem to care.
    Reply to CommentFlag Comment
    • CIB=MAFIA
      Wilbur ShooterflyNovember 1, 2012 5:21 PM
      Amazing how Ann and her cronies screw over Joe Citizen. It's not their money and now the taxpayers get to pay BT legal fees. These peeps must be transplanted from East Chicago/Gary. No ethics and certainly no morals. If you live in the suburbs all you are a slave to the power elites that run this banana republic. You get a Mayor and his cronies who fraudulently give taxpayer assets like a fire station and land to developers and call it a sale when there are NO SALE PROCEEDS. The city takes property from the tax rolls and places it in TIFFS (Mayors private slush fund for his crony pay to play buddies) and then coughs and says to Joe Citizen we need to raise your taxes! UNETHICAL!
      Reply to CommentFlag Comment

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    1. liek the rest of America

    2. These quaint,obsessed musings by the stalkers are certainly entertaining, but I'm trying to figure out what, if anything, all the yelping below has to do with Zak Brown.

    3. It's evident that Moffett was pushing the right buttons and corporate America is now trying to squash him. He just wanted to withdraw the free pilot services provided to the company by the pilots to try and put some pressure on a company that has not been interested in negotiating a contract in over 5 years. The company does not provide a contract because not having one has saved them a bundle of money. Shame on any Republic pilots not standing behind their union leader just because things are getting tough, can you not see such strategic moves by the company as putting the last union president in a corporate position and into THEIR pocket. Do you really believe the last union president is so appalled at the attempts by Moffett, do you not remember his oppositions to the company? We stood behind him. It has been proven over and over again for thousands of years without fail, a man cannot serve two masters. Anyone that believes people vote contrary to their paycheck and livelihood deserve to be taken advantage of, the recent statements by the former union president are laughable as he denounces the current union president from his new corporate position. Have you ever seen a drafted sports player score points for his previous team, it cannot be done, he is not on the pilots side anymore, he gets his money a different way now than you and I do, and he should not be allowed to remain on the seniority list. A drafted player brings strength, credibility, tactical knowledge, and a strategic advantage to his NEW team, he would not be drafted or paid were it otherwise. We are all forced to choose only one side to play for and support, not doing so has many references in life such as insider trading and shaving points, all illegal for good reason. This basic fact is why corporate moguls, scientist, and engineers all sign non-discloser agreements and non-compete clauses, as protection in case they are lured into switching sides as our former union president has done. No NFL coach ever drafted a player so that both teams could benefit and better understand each other, they are recruited to win the game against that former team, period. Likewise the company does not recruit the former union president by accident or mutual understanding, its strategy. Don't confuse playing the game with good sportsman-like conduct in support of common business and prosperity goals, with the requirement to only play for one side. Good men we all love and favor fall subject to this manipulation, often without their knowledge, and it is not a betrayal of their friendship to oppose them when they switch sides. If we did not love and trust them, they would not have been chosen and lured to the other side in the first place. The deception by the drafted player is not made at a conscious level, it's just human nature and it's all about money and power which corrupts our ability to be objective and loyal to two masters. This is why our court system created the defense attorney, and why our military created counter intelligence. Its strategy and its propaganda, and it works, and that's why the "powers to be" manipulate the chess pieces by sometimes changing their colors. Some players know they are being manipulated when their color is changed, but it brings them more money and power so they do not care. The rest have good intentions but do not even realize they are being manipulated. This tactic is also known by another name, Divide and Conquer. In battle sending an imperfect message with an imperfect team is obviously not ideal, but it's still being sent by YOUR team, your union leader, a leader that has common goals and common rewards with you, they are the best, because we have elected them to do a job for us. If you are not backing Moffett but believing the spin by those that have recently switched sides, you are taking food out of your own mouth. Showing unity and backing an imperfect situation still results in taking just as much ground, it's about unity and bargaining power. It's not necessary to wait around for that perfect attack because it will never come, the company will spin and attempt to destroy anyone that gets in their way. Ultimately it's not about any specific attack anyway, ASAP or whatever it makes no difference, it is and always has been only about power. If this company cared about safety it would not build pairings with 8 hour overnights, come on, are you that naive? Besides, do you really think Hoffa cares, no, he got a call from corporate America and was squeezed into denouncing Moffett. If he didn't they would spin the safety card against him and the Teamsters National with implication for truckers, future contracts, insurance rates etc...saying something like the Teamsters use safety as a bargaining chip, blah blah blah... Do you really think any pilot is going to do something unsafe for the contract, absolutely not, the only ones threatening safety here is the company with reduced rest, fatigue, and poverty. Do you not find it odd that Hoffa and the Teamsters are opposing a Teamster president publicly? Would the Teamsters National not normally support and work with one of their own? Why did they not sit down and help him strategize, correct any mistakes, and charge ahead? Would the Teamsters National not normally support and leverage a contract for all those pilots that have been paying Teamster dues, isn't that why we have all been paying Teamster dues in the first place? I sure haven't been paying dues so that the Teamsters National could come along and write this kind of an article undercutting our union leader and our unity. Whose side is the Teamsters National really on, it's obviously not the Republic pilots side.

    4. No matter what Moffatt does the company is going to spin it like he is the terrorist and brainwash people like you into believing it, wake up, back your players that are trying to change things for you and your livelihood. Where has Hoffa been for the last 6 years, except collecting our dues. Seriously, do you really think an FO going for upgrade, signed off by a checkairman ready for the upgrade, who then fails, is not even capable of returning as a First Officer.

    5. whoa!

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