Hogsett gets OK from city commission on plan to fund soccer stadium

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City officials are considering the Indianapolis Downtown Heliport and adjacent property as a site for a soccer stadium—if Major League Soccer agrees to put a club in the city. (IBJ photo/Mickey Shuey)

A city commission on Wednesday gave the go-ahead for a new taxing district in Indianapolis driven by Mayor Joe Hogsett’s administration intended to help fund a proposed soccer stadium a couple of blocks east of Gainbridge Fieldhouse.

Members of the Indianapolis Metropolitan Development Commission voted 6-1 to create a new professional sports development area, or PSDA, which is a key financing component of Hogsett’s effort to lure Major League Soccer to the city.

The commission didn’t immediately reveal how individual members voted.

The approval follows months of discussion about the plan that calls for the closure and demolition of the Indianapolis Downtown Heliport and adjacent parking lots for the development of a soccer-specific stadium at 355 E. Pearl St.

Hogsett’s PSDA proposal specifies more than 110 non-contiguous addresses throughout the downtown area. Taxes from the properties would provide a majority of the funding for the stadium, to be developed on land east of Gainbridge Fieldhouse that includes the Downtown Heliport.

The PSDA would collect state retail taxes, local and state income taxes, and food and beverage taxes to pay for the public portion of the stadium. Innkeepers taxes and admission taxes could also be collected within those boundaries. The owners of the MLS franchise would be required to cover at least 20% of the stadium development cost.

The MDC’s vote was the final step in the local legislative approval process ahead of a July 1 state deadline. The commission had previously given preliminary approval, followed by a 16-8 vote in favor of the district by the City-County Council.

The confirmation of the taxing district now allows the Hogsett administration to request authorization from the State Budget Committee—a step required because the funding plan relies on up to $9.5 million per year in state taxes.

Hogsett said Wednesday he expects the committee and the State Budget Agency to consider the matter as soon as August, after the city formally submits the plan alongside a feasibility study for the site—and, potentially, identities of the investors involved in trying to win a top-tier soccer club for the city.

“When I flew to New York City to meet with Major League Soccer Commissioner Don Garber in April, he made clear the City’s role in securing an expansion club was creating the financing framework for a soccer-specific stadium on an appropriate site,” Hogsett said in a media release after the commission’s vote.

“Today, I was proud to see the Metropolitan Development Commission vote overwhelmingly to confirm a stadium development district at the Downtown Heliport, marking the final step in the local legislative process ahead of the July 1 deadline outlined by state law,” he said.

Dan Parker, chief deputy mayor, said the administration anticipates the feasibility study from Chicago-based Hunden Partners will indicate whether the city has sufficient revenue within the taxing district to cover debt on a stadium, although it is still unclear what the city has generally budgeted to construct the venue.

Approval of the PSDA comes six months after both the City-County Council and the commission approved a separate PSDA put forth by the city and Indianapolis-based developer Keystone Group.

That plan called for a $1.5 billion mixed-use project anchored by a soccer stadium to be called Eleven Park at the former Diamond Chain Manufacturing site on downtown’s southwest side. But the administration walked away from negotiations on that project earlier this year, alleging the project didn’t make financial sense.

The city pivoted to the heliport site amid continued concerns about the viability of developing Diamond Chain, which sits on a tract that was home to multiple burial grounds in the early days of Indianapolis.

The city said earlier this month that had the City-County Council or MDC voted down its new PSDA, it would not submit the formerly approved Eleven Park PSDA to the state for approval.

So far, little is known about the group that would be investing in an Indianapolis bid for an MLS club, as participants have refused to reveal themselves. But ahead of the vote, Hogsett said he expects those individuals will make themselves known before the city provides its request to the state.

He also said he is confident there will be a strong local component to the group—an element he said Major League Soccer executives have said is key to a successful bid. And while he did not answer directly whether Indiana Pacers owner Herb Simon is involved, Hogsett indicated he would support Simon as an investor.

IBJ reported in May that a company affiliated with the Simon family, owners of Pacers Sports & Entertainment, had paid $10.5 million to acquire a 5.2-acre surface lot at 101 S. Alabama St.—which sits west of the Indianapolis Downtown  Heliport and east of the Virginia Avenue parking garage.

A representative for the Simon family told IBJ at the time that the family’s interest in the lot “predated soccer” and that the acquisition was entirely separate from the city’s plans.

The investor group is being organized by Charlotte-based soccer executive Tom Glick, who has experience working for numerous domestic and international teams, including New York City FC and Charlotte FC.

Dan Parker told reporters Wednesday that while the city doesn’t know specific identities, Glick has shared that minority investors in other MLS clubs and at least two European soccer teams have expressed interest in joining the Indianapolis group.

It will be up to the investor group to submit an application for an expansion club to Major League Soccer, a move that is expected to come later this year.

Hogsett and his lieutenants have emphasized that the city would not build a stadium until Major League Soccer officially awards the ownership group an expansion club.

The council, and to a lesser extent the Metropolitan Development Commission, will also have extensive oversight on the stadium development process, including the issuance of debt to pay for the facility and its design. The bodies would also have oversight for any purchase of land by the city that might be used for the project.

The Department of Metropolitan Development has a memorandum of understanding with the Indianapolis Airport Authority that creates a path for the city to acquire the heliport property, at fair market value.

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25 thoughts on “Hogsett gets OK from city commission on plan to fund soccer stadium

  1. There are more streets than I have ever seen in Indianapolis that are filled with pot holes, medians that are knee high with grass that hasn’t been mowed and trash that hasn’t been picked up. Highway 37 South, leading to downtown, is a perfect example. It looks so bad and so unkempt.

    I’m not opposed to any professional sports team coming to town, but why would we focus on this, when we seemingly can’t afford to take care of the basics maintenance and repair our cities infrastructure? Or, maybe we can afford it but just don’t want to focus on these things? Certainly not a good look for anyone driving downtown to a shiny new stadium.

    Just feels like our priorities are not quite right.

    1. 100% agree. I too am a big supporter of new and broader infrastructure such as sports stadiums, but why can’t we also fix the basic infrastructure like the banged up roads that Joe seems to not see or feel in his car when he drives to work?

    2. You’re blaming Joe Hogsett if you don’t have a basic understanding of how things work in Indiana.

      The city of Indianapolis already kicks in extra discretionary money on top of the meager amount that the state of Indiana gives Marion County out of the state gas tax, an amount far on top of the capped-at-$25 million dollars the unimplemented gas tax would allow the county.

      Ask your Marion County Republican at the Statehouse why they support a road funding formula that gives INDOT the majority of the gas tax money, and then on top of that refuses to incorporate the number of lanes into the formula which means a two lane country road gets the same funding as Keystone or Emerson. Or, as, that legislator why they don’t allow Indianapolis the flexibility to raise taxes if they choose.

      So the next time you hear someone like Aaron Freeman whine about bad roads, ask him why he’s being part of the problem instead of part of the solution. Maybe Marion County Republicans like having bad roads because it would be bad for them politically if they let Joe Hogsett solve his own problems.

    3. Unfortunately, this city has never been good at maintaining any property, infrastructure, or facilities. Just never has it been a committed part of city management or city budget. The evidence is everywhere, and has been for decades. Dedicated funding for the maintenance of the cultural trail is the only exception, otherwise the private sector generally handles what they commit to.

    4. It is insane. I have lived in Indy most of my life and we are in for a rude awakening in the next decade. The sidewalks are crumbling and have plants growing out of them. There is trash everywhere. It is crazy how dirty this city has gotten over the last couple years.

    5. The stadium and soccer team will be privately owned. The city won’t own the team. So your complaint about why sidewalks and roads don’t get more funding has nothing to do with private investors and how they want to spend their money.

    6. Best example is to go on 38th Street from college headed west and look how the city has failed to maintain those planters and all of that area after millions was spent upgrading it into more of a boulevard status. They have been hit with cars and are completely destroyed, trees are dead or have been hit by cars and have not been replaced, there are no flowers in the planters anymore. City can’t take care of what it’s got but yet they want to keep spending on even more things to take care of

    7. The state of Indiana gives Marion County $50 million a year for roads.
      The city of Indianapolis has $325 million in the most recent budget for infrastructure.

      And, reminder, the state of Indiana controls the amount of taxation that local government can do. So even if Marion County taxpayers wanted to raise their own taxes for better roads, they’re prohibited from doing so.

    8. The easy solution to bad faith whining about “potholes” any time the city decides to invest in anything besides roads is converting as many lane miles in the city core as possible to pedestrian infrastructure. This will reduce the wear and tear on asphalt by the ever-heavier SUV’s and lifted pickups that people think are appropriate for an urban environment. It would also slow traffic and save lives. I think we can all agree its a win-win. Or are none of you actually interested in fixing the root cause, and just using your keyboards to to spew the same tired grievances that you always do?

    9. Michael, when Indianapolis’ retort to declining traffic and a lack of funding is to reduce lanes, the response from the Statehouse has been to investigate how to “take over” those roads and ensure they stay nice and wide so suburban dwellers like him can drive as fast as possible into and out of downtown.

      Remember Freeman’s grandstanding and untrue statements about Washington? That’s coming to all the main roads in Marion County this legislative session. Bank on it.

  2. I still don’t understand why we are starting over at the Helipad site instead of moving forward with the already-in-motion Diamond Chain location. That project was approved and already underway with the support of Indy Eleven who have been working towards building support for Soccer in our city for several years.

    1. Seriously? It’s because of the bodies in the former graveyards at that site and the significant expense associated with appropriate removal and reinternment. The site is simply no longer economically feasible (if it ever was). Also, Keystone owns the DC site while the new site is the preferred site of the potential new owners.

    2. Mike – the city knew the scope of what was under Diamond Chain when they attended the groundbreaking. Don’t be naive.

    3. C.D. Heather asked why not just move forward with the DC site? My answer is the truth – because the site is no longer economic (and may have never been economic). Ask yourself this: Why doesn’t Keystone move forward with the non-stadium portion of the development?

    4. Mike M. I am assuming that the that disturbed graves will still have to be addressed – regardless of which site is used for development. They will need to be removed and/or reinterned. The graves were already disturbed by the Diamond Chain building years ago. The city and/or developer will not be able to just cover these graves with dirt and move on. So I ask again – why do they want to start a new project with new demolition at the helipad site?

  3. Obviously a MLS franchise would be beneficial to the city; nevertheless, it is disturbing to see a sign on Brookville Road near 465 South that reads “End of State Maintenance.” The sign isn’t truly needed-the roads speak for themselves. Let’s address
    infrastructure with the same passion as sports facilities.

  4. The street conditions in Marion County are bad. Potholes, weeds and trash everywhere even downtown. The sidewalks downtown are in disrepair especially along Meridian Street in front of the mall and along Washington Street at Meridian Street. The worst street in the City is west 38th Street. The City spent millions several years ago to refurbish the street and median. The walls and planters have been destroyed and landscaping is mostly dead. Growing up here this has been typical over the years. Very depressing especially when you go to Carmel and see their roadways and roundabouts which are immaculate.

    1. Carmel also has a median household income that is 193% higher than the median income of the rest of the State and 210% higher than the median salary earner of Marion County. On top of that, about $50 million is transferred from Marion County to Hamilton County every year due to State formula distribution models that favor suburbs and rural areas. TL;DR – Carmel is super rich and have enacted land development policies to keep it that way. The State gives help to those who already have the means to help themselves.

    2. Carmel built a large amount of that infrastructure with bonding practices that the state of Indiana later banned, IIRC.

  5. Wow, reading these comments is like reading a script from “Grumpy Old Men”. I say: “Move forward Indy!” I’m not deaf to the continuous laments about more money for streets, sidewalk, teachers, social services, the list goes on and on, but you also have to plan, build, forge ahead — do big picture stuff. As some mentioned, state funding and revenue-sharing is weighted against urban areas. Yes, let’s start with state lawmakers and the inequitable road funding formula that penalizes urban and suburban areas. Why are so many so tone-deaf to that? That is something tangible and oh so obvious.

    1. Broadly because State lawmakers either don’t care or are incentivized to preserve the status quo. People are trying, but it falls on deaf ears in the legislature. We can’t even collect a local sales tax, which would capture lots of the convention spending from outside visitors

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