Indianapolis’ Capital Improvement Board (CIB) has determined that the costs of operating the new Lucas Oil Stadium are about $20 million more annually than the revenue it earns, and projections indicate that in 2010, the CIB will fall anywhere from $43 million to $47 million in the hole. Indy’s CIB (a.k.a. the sports board) manages and operates Indy’s professional sports stadiums – Lucas Oil Stadium, Conseco Fieldhouse, and Victory Field, plus the Indiana Convention Center.
The question is, whose responsibility is it to ante up for the CIB’s losses? On April 2, a state senate committee voted 10-2 in favor of House Bill 1604, introduced by Sen. Luke Kenley, R-Noblesville, which, if approved, would affect the Colts and the Pacers and result in several tax increases. The bill would require
- The Colts to make a $5 million contribution: Since they currently aren’t required to contribute, this would mean a $5 million increase in expenses for them.
- The Pacers to make a $5 million contribution: Since they’re currently required to contribute $15 million, this would mean a $10 million decrease in expenses for them. The Pacers have lost money 9 of the past 10 seasons they’ve played in Conseco Fieldhouse.
- The state’s alcohol tax to be doubled statewide: This would raise an additional $8 million in revenue for the CIB, and increase revenues for cities and towns outside Marion County as well, since only taxes incurred in Marion County would be earmarked for the CIB.
- Marion County’s food and beverage tax to increase by .25% from 2% to 2.25%: This would result in $6 million in revenues.
- Marion County’s hotel room tax to increase from 8 to 9%: Combined with Indiana’s current 7% sales tax, this would make the resulting hotel tax of 17% the highest in the nation, but would increase revenue by $4 million.
- Tax on admissions to CIB-run venues to increase from 6 to 10%: This would bring in an additional $6 million.
- The CIB to reduce its own expenditures by $10 million: This represents $4 million more than the CIB’s initially proposed cuts of $6 million.
- Sales taxes from the new Marriott hotel next to the convention center to be dedicated to the CIB: This would generate about $6 million.
The bill now moves to the full senate for debate. In 2008, about 60% of the CIB’s revenue of $108 million, or $60 million, came from taxes, including portions of local hotel, car rental, cigarette, and food and beverage taxes.
What do you think? Is the plan sound, or are the wrong people being called upon to pay the piper? Visit the forum to take a poll and let your opinion be known.
