INDIANAPOLIS (WISH) - The Capital Improvement Board has reached a new deal with the Pacers.
The CIB voted this afternoon to extend their contract with the Pacers for another year. The original three-year contract for 33.5 million dollars ends in June of 2013. The latest agreement gives the Pacers a 10 million dollar loan to cover the operating expenses of the Fieldhouse. Those on the board say this allows more time to come up with a long-term deal.
CIB president Ann Lathrop says the group looked at long term and short term issues and decided it was important to get the Pacers in the building for another season.
The CIB originally thought it had to pay the city the $15 million as a PILOT, or payment in lieu of taxes. Board members said the State Board of Accounts told the CIB not to pay the 15 million dollar PILOT that is due in January. They said it was not appropriate to take on that added expense. The money was allocated in the 2013 budget by the city council to pay for extra public safety measures. The CIB is currently appealing that decision.
The president of the CIB says they have 10 million dollars appropriated for the Pacers that will be paid in two 5 million dollar increments.
A representative for the Pacers says they are happy with the agreement and now they will start working on a long-term deal.