FOR IMMEDIATE RELEASE
03.21.05
(STATEHOUSE) -- Senator Luke Kenley (R-Noblesville) announced today a proposal to fund a new convention center and stadium complex in downtown Indianapolis.
“Mayor Bart Peterson has taken the lead to resolve this looming issue before it becomes a crisis,” said Kenley, chairman of the Senate Tax and Fiscal Policy Committee. “Indianapolis is one of the premier locations for national conventions in America. It is regarded as one of the most successful, if not the most successful providers of conventions in the nation. We must maintain and build on that reputation.
“Expansion of the convention center is needed now,” Kenley continued. “We are beginning to lose some of our larger conventions due to inadequate facility size. We need to sustain and better serve the conventions we have today in an improved, single site integrated facility and build on our proven reputation of success. Now is the time to start this process, as many conventions select a site five or six years before the event.
“This is a good problem for Indiana to have, with all the jobs that are created in the convention center itself; jobs and business opportunities for the suppliers and service providers to the center; and lastly the millions of dollars spent each year by visitors in our hotels, restaurants, and retail stores.”
With respect to the stadium, Kenley noted that “Jim Irsay has made the Indianapolis Colts one of the most prominent and followed sports teams in America. He has built the team into an NFL powerhouse and spent the money necessary to accomplish that goal. He has hired players and coaches that are not only stars on the field, but are role models for our children in their personal behavior and involvement in our community. His goal is to win a Super Bowl, and to bring a Super Bowl game to Indianapolis. His pursuit of excellence and success has made him a great partner for Indianapolis and Indiana as a whole.”
Kenley continued, “Not only is a new stadium good for our Colts, but as a venue for many other activities. Last year, more than 1.3 million people visited the stadium for entertainment activities of all kinds. We expect the new stadium to attract even more events and activities.
“We need to step up now and support both projects. The best location for convention expansion is on the current RCA Dome site. The best location for the stadium is in downtown Indianapolis to take advantage of the existing amenities. Implementing these improvements now is a natural continuation of all our efforts for Indianapolis over the last 35 years,” said Kenley.
Kenley’s plan involves private funding, state funding, and local funding. It places financial responsibility on those who use the facilities, those businesses in the nearby area who benefit from the facility, those who live in the community and benefit from its vibrancy, and the state as a whole, which benefits economically from the activities created by the facilities.
Kenley pointed out that “although Mayor Peterson, the Capital Improvement Board and the Colts have worked hard to develop a consensus, their initial proposal did not involve the Legislature or the governor. Since most of the funds raised came from state resources, and require state approval, in essence, there is no plan until the Legislature and governor approve the use of those resources, and have an opportunity to evaluate the efficacy of the plan and project. Should the Mayor choose, resources currently available could be used without state approval. If the state is to participate in funding, it has an obligation to evaluate the use of state dollars on behalf of all Hoosiers, which is the responsibility of the General Assembly.
The primary source of funding for the proposal is a 1% local option sales tax on services in Marion County, excluding medical and construction services, which could be enacted by the Indianapolis City County Council. Marion County, as home of the capital city and many large service providers such as law firms, financial services, engineering, architects, and consulting firms provides about 1/3 of all such services across the state, twice its population share. In addition, such service providers, along with service providers to dome and convention center activities, use these facilities in their businesses. Since many such services are purchased by Central Indiana and out-state residents, the tax burden will be shared by a large base, one which benefits from a successful metropolitan area. The cost to an individual buying a $10 haircut is 10 cents. The cost on $1,000 of legal services is $10. This makes the tax a broad based low rate tax.
Additional sources of funds are those recommended by the mayor, but add a $1 stadium tax for all stadium events, and a 1% increased tax rate on professional athletes playing at the stadium or Conseco Fieldhouse.
The Colts are asked to pay a greater share, more in line with traditional team investments throughout the NFL. They are asked to pay, in addition to the $52 million already committed, $5 million per year during the 20-year term of the bond. This $5 million may be paid in cash, or through renegotiating some of the present terms of the agreement regarding rent, naming rights, concession rights, etc.
The bonds shall be paid over 20 years, rather than the mayor’s suggestion of 30. This will save money, and be more in line with the life of the convention center and stadium. The convention center has been subject to regular renovations, and the current stadium was built 20 years ago.
Other changes would give the state a seat on the CIB with respect to this project, require that no personal seat licensing be used, and require that 5,000 non-scalpable low price tickets be available on a single game basis to the general public.
All tax increases would be a local option tax, and must be enacted by the Indianapolis City County Council.
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Contact:
Jamie Jorczak
Communications Director
Indiana Senate Majority Caucus
ph: (317)232-9524 or 1-800-382-9467
fax: (317)232-9664
www.in.gov/senate_republicans