An effort by House Republicans to undo a special funding district in downtown Indianapolis moved forward on Wednesday.
That’s when House Bill 1199, which aims to repeal the language in state law that authorizes the district in the Mile Square, passed out of the House Ways and Means Committee with a 15-9 vote largely along party lines.
The district is expected to raise $5.5 million each year to pay for additional cleaning crews, public safety efforts including patrols and security cameras, and outreach to homeless residents. The funds also would support operations at a low-barrier homeless shelter planned for Fountain Square.
Homeowners in Mile Square would pay a $250 flat fee, while all other property owners would pay 0.168% of the property’s gross assessed value, with a cap on the overall assessment growth tied to inflation.
In anticipation of the bill’s passage, Committee Chair Rep. Jeff Thompson, R-Lizton, brought forward two amendments aimed at replacing the revenue that would disappear with the loss of the district.
One amendment, added to a separate bill, would allow Marion County to raise income tax rates by 0.02% to pay for services within the Mile Square. In other words: The cost of providing those services would be spread across all residents of the county.
“There’s nothing requiring anybody to do anything. But it does open up some better options for Marion County,” Thompson said.
Lawmakers accepted the amendment and also moved that bill, House Bill 1121, out of committee. Thompson withdrew his second amendment, which would have allowed Marion County to use tax increment financing funds for the Mile Square services.
Some lawmakers acknowledged that Indianapolis City-County Council is unlikely to raise income taxes.
“I think it would be difficult for members of the City-County Council who represent other parts of Marion County to support a countywide income tax that will be dedicated to the Mile Square,” said Rep. Ed Clere, R-New Albany.
Democratic lawmakers also expressed frustration with the rejection of a funding tool that the same legislative body had approved less than one year prior. The language authorizing the district was written into last year’s budget largely with the help of Sen. Kyle Walker, R-Lawrence. The City-County Council approved the district in December.
“I’m concerned that we are in almost a bait and switch,” said Rep. Cherrish Pryor, D-Indianapolis. “We give you this tool but now we don’t like that you’ve acted upon that tool, so we’re gonna take it away and try to give you another option.”
In recent years, many downtown services have been paid for by federal dollars from the American Rescue Plan Act. Those funds will dry up this year, said Taylor Schaffer, president and CEO of Downtown Indy Inc.
Schaffer, whose organization has been at the forefront of creating the district, said a potential repeal would upend more than eight months of work she and others have put into working out the details of the district.
“To go back to the drawing board for a new scenario for investment in downtown is incredibly disappointing,” she said. “I can’t help but feel like we as a community, we as a downtown, can’t afford to allow the incredible momentum around downtown recovery to dissipate.”
District received overwhelming support
Last week, lawmakers spent four hours hearing testimony from more than 30 speakers, the vast majority of them in support of the district and opposed to the bill that would repeal it.
Supporters of the economic enhancement district who testified last week included representatives of several prominent business, civic organizations and government institutions, including Salesforce, AES Indiana, Indiana Sports Corp, the Central Indiana Community Foundation, the Indianapolis Metropolitan Police Department and Mayor Joe Hogsett’s office. Several residents also testified in support of the district.
Opponents included two downtown property owners, the Indiana Apartment Association and the national conservative group Americans for Prosperity.
Kory Wood, partner at the firm Ascent Strategic, also testified in opposition to the district. He told lawmakers that he represented DefendDowntown.com, which he characterized as a coalition of downtown residents and business owners.
Mirror Indy has since reported that Wood is a lobbyist paid by the Virginia-based American Jobs and Growth Fund. That group’s director, Joel Riter, is linked to several political spending groups that support conservative causes in several states. The fund, in addition to what it paid Wood, spent more than $11,000 on Facebook ads targeted at Indianapolis residents late last year.
Donations to the group are private, and neither Wood nor Riter have responded to requests for additional information about the group.
As for HB 1199 and HB 1121, both will next head to the full House for consideration.
Mirror Indy reporter Emily Hopkins uses data to write stories about people. Contact them at 317-790-5268 or emily.hopkins@mirrorindy.org. Follow them on most social media @indyemapolis.
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