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Natston
04-04-2005, 06:32 PM
Senate panel OKs stadium financing plan
Bill that would fund Colts stadium and convention center expansion relies heavily on tax hikes.


By Matthew Tully
matthew.tully@indystar.com
April 4, 2005


With a host of tax increases on things such as hotel rooms and restaurant tabs, a Senate Committee unanimously approved a financing plan this morning for a new Colts stadium and expansion of the Indiana Convention Center.

The plan, amended into House Bill 1120, calls for new 1 percent restaurant taxes in Marion County and the seven surrounding counties that touch it. Hotel tax rates would jump from 6 percent to 9 percent and local car rental taxes would double, to 4 percent, in Marion County only.

Additionally, fans going to Colts games in the new stadium would pay a $3 ticket tax. A $1 tax would be charged for other stadium events. An existing admissions tax would go from 5 percent to 6 percent.

In all, the tax increases, as well as other money generated at Indianapolis sports and convention facilities, would raise about $53.5 million annually -- enough, city and state officials said, to fund the roughly $900 million project.

The Senate Tax and Fiscal Policy Committee adopted the amendment 11-0, setting up a possible debate in front of the full Senate as early as this week. The funding plan was crafted by Gov. Mitch Daniels and Tax Committee Chairman Luke Kenley, R-Noblesville, but included elements first proposed by Mayor Bart Peterson.

"I think we've made enormous progress, I really do," Peterson said.

While saying the funding portion of the issue appears to be nearing agreement, the mayor raised objections about a move by Daniels and Kenley, both Republicans, to assign oversight of the project to a new state financing authority.

The mayor, a Democrat, says oversight should continue to be the charge of the city's Capital Improvement Board. That body oversees city convention and sports facilities and has guided the construction of Conseco Fieldhouse, Victory Field, and expansions of the RCA Dome and the convention center.

"Let the people do it that have been doing it for 30 years," the mayor said.

Daniels' budget director, Charles Schalliol, however, said a new state financing authority would guard the state's interest in the project.

Under the mayor's plan, the Capital Improvement Board would oversee the project, but its membership would grow from nine members to 11. The two new members would come from the governor's administration.

Under Daniels' proposal, a seven-member building authority would guide the financing and construction of the project. The governor and the mayor would each appoint two members. Three others -- the Speaker of the House, the Senate President Pro Tem and the suburban counties -- would have one representative.

In essence, the governor's proposal would put Republicans in control of naming five of the board's seven members.

A major part of today's debate centered on the financing of the project. Schalliol argued the state could finance the project at lower rates than the city. Peterson strongly denied that, saying the city's stellar credit rating ensures low finance rates.

But the mayor seemed to frustrate some members of the committee by agreeing the project could be financed at $53.5 million a year -- about $15 million less than he initially asked for.

Peterson said his initial numbers were conservative and pointed out that he promised any money raised but not needed for the project would revert to the state.

Still, Kenley, the chairman, said he could have used the lower figure as he tried to craft a financing plan.

"You could have saved me a public beating," Kenley said, referring to an earlier plan he unveiled to raise more money that the mayor now says is needed

http://www.indystar.com/articles/3/234367-1373-092.html

Stryder
04-04-2005, 10:22 PM
I'm against any and all tax increases for funding a stadium/convention center.

Lord Helmet
04-05-2005, 01:45 AM
Wouldn't it have been better if we would have went with Plan:A and did the slot machines?

travmil
04-05-2005, 11:22 AM
Wouldn't it have been better if we would have went with Plan:A and did the slot machines?

Wouldn't it be better if Irsay laid out at least a little of his own cash? I mean, if the Patriots owner can build the whole stadium by himself why can't our owner dip into his own pockets to foot at least part of the bill?

Natston
04-05-2005, 11:43 AM
The money that you get from hosting a Super Bowl alone will raise quite a bit...

obnoxiousmodesty
04-05-2005, 11:56 AM
I love government. It is never-ending entertainment.

_PD_
04-05-2005, 03:16 PM
My favorite part was when they imposed the 1% tax on food before building the Hoosier Dome, promising us that it would drop off when the dome was paid for. :laugh: :laugh: :laugh: :laugh: :laugh: I don't really like Irsay getting 40 every time I go out to eat.

travmil
04-05-2005, 04:01 PM
He's paying 100 million of it. I think that should qualify as at least a little bit


enough, city and state officials said, to fund the roughly $900 million project

100 million does indeed qualify as "at least a little bit". Until you throw that other number up next to it. He only has to lay out 11% of the cash to fund the whole thing. What do you want to bet that his share of the profits is WAY more than 11%. It's a great business decision.....for him!

Roaming Gnome
04-05-2005, 11:16 PM
Actually, $900M is the stadium and convention center. Stadium alone, $100M would be 1/5th of the cost of the stadium. 1/5th is a little more then chump change, IMHO.

McThugg
04-07-2005, 10:09 PM
People also forget that this stadium will be used by the city for Final Fours which supposedly will be alternated between 3 or 4 cities. It will also be used for convention center overflow, but you won't see the Indiana Sports Corp. or Capital Improvement board putting any of their own money for the stadium to be built. Not to mention the fact that the stadium is basically a nessecity because in order to keep hundreds of millions of dollars in convention business coming to the city the convention center has to be expanded. Please remember that this is not the Colts new stadium this is the city's new stadium.

Stryder
04-07-2005, 10:46 PM
I still don't think taxes should be raised to gather the funds.

Shade
04-09-2005, 12:44 AM
Yay.