Workers in neon safety vests picking up trash could be a downtown staple for years to come.
That’s because a fund that will pull in money from downtown property owners appears to be close to getting final approval from the City-County Council.
The idea behind the fund — called an economic enhancement district — is to make sure downtown stays clean and safe, and that people who need housing are connected with resources.
But when those safety and cleanliness programs began in 2023, it was because of federal pandemic funding, and that money is about to run out.
Downtown Indy CEO Taylor Schaffer told the council’s Metropolitan and Economic Development Committee that the fund will help create a “365-day-a-year downtown.”
“It’s great and necessary for our crews to be working really hard ahead of big events,” Schaffer said during the Feb. 10 meeting. “But that also has to be true on a Monday or a Tuesday or a Wednesday when there isn’t a big event or convention in town.”
A nine-member board made of appointments by the governor, mayor, council and legislature decides how to spend the money. The City-County Council has to approve a budget for the fund, which will be administered by Downtown Indy.
Along with cleaning ambassadors, there are safety ambassadors who do everything from helping visitors find their way to a Colts game to alerting police if there’s a serious issue.
Pandemic relief funds have also supported homeless outreach efforts.
But with that money going away soon, the city will rely on this new fund to provide a dedicated source of funding.
What’s in the budget?
In total, the budget calls for $4.5 million in spending, with about half being reserved for the first six months of next year.
Efforts to clean downtown would get the largest chunk of funding — about $1.3 million in the first six months.
The budget includes funding for a manager, 28 cleaning ambassadors and four supervisors. There’s also funding to service the restroom on Monument Circle and to keep up with landscaping.
Here’s what else is in the budget, which covers June through the end of the year:
- About $235,000 for off-duty police officers
- About $158,000 to cover overtime for the Indianapolis Metropolitan Police Department’s Homeless Unit
- $124,000 for safety ambassadors
- About $44,000 for a homeless outreach coordinator
- About $134,000 for housing navigators to help people experiencing homelessness
The full City-County Council can approve the budget at its March 3 meeting.
Because funding is tied to property taxes, money won’t be available until June. That’s also when the pandemic relief money goes away, so there shouldn’t be a disruption in services.
How the fund works
The Indiana General Assembly created the fund in 2023.
Downtown property owners will pay 0.17% of their gross assessed value based on their property tax bills this spring.
Crucially, though, the General Assembly removed apartments and single-family homes from the eligible tax base during the 2024 legislative session — thanks in part to a strong lobbying effort.
The fund is allowed to collect up to $5.5 million annually.
But with residential properties out of the equation, Downtown Indy estimates bringing in about $1 million shy of the cap — at first, anyway.
As long as assessed property values increase downtown, the fund should move closer to the $5.5 million mark.
The fund has a 10-year lifespan, but the General Assembly and City-County Council can renew it.
Where’s the shelter?
You might have noticed the budget doesn’t include money for a planned 24/7 homeless shelter. But that’s only because the shelter won’t open until at least late 2026.
When it does open, though, the plan is to use some of the money for shelter operations. A budget estimate from 2023 showed $1.5 million going to the shelter.
The city also plans to pull together philanthropic support for operations.
Mirror Indy reporter Tyler Fenwick covers housing and labor. Contact him at 317-766-1406 or tyler.fenwick@mirrorindy.org. Follow him on X @ty_fenwick.
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