Two efforts aimed at improving quality of life in Indianapolis faced scrutiny from state lawmakers during separate committee hearings at the Statehouse on Tuesday, Feb. 20.
After one effort, it appears Indianapolis will be able to keep a version of a new downtown funding district to address homelessness and cleanliness.
But the fate of the other — the planned Blue Line bus rapid transit route — remains murky after a House committee chair postponed a vote on a bill after three hours of testimony.
Here’s a recap of what went down:
Changes to downtown funding district bill
A plan to tax downtown property owners to pay for extra services appears to be back on track.
When House Bill 1199 advanced out of the House, it would have repealed legislation that allowed Indianapolis to tax property owners within the Mile Square in order to pay for additional services such as cleaning crews, police patrols and the operation of a planned low-barrier homeless shelter southeast of downtown. The bill had the backing of top House Republicans.
But at the Senate Tax and Fiscal Policy Committee meeting on Tuesday, lawmakers amended the bill to essentially preserve the district while exempting certain property owners from the fee.
Republican Sen. Scott Balwin, R-Noblesville, said the amended bill was an attempt to “move forward and provide a way for Indianapolis to care for itself” and for the operation of the low-barrier shelter.
Crucially, the new bill would exempt homeowners and apartment building owners from paying the tax. All other property owners would still be required to pay 0.168% of the property’s value each year.
The amended legislation also would tweak the makeup of a board overseeing the economic enhancement district. The governor would receive an additional appointee, bringing the total appointed by the governor to three. Two members of the board are selected by the City-County Council, two by the mayor and one by the heads of each chamber of the Statehouse.
The amended bill would still void the existing economic enhancement district and require the City-County Council to pass a new ordinance. The district would also expire in 10 years.
The exemption of apartment buildings appears to be a concession to the Indiana Apartment Association, a powerful lobby group representing owners of 32 properties within the Mile Square that has fiercely opposed the district and similar efforts in the past. Brian Spaulding, vice president of government affairs, spoke in favor of the amendment.
Sen. Andrea Hunley, D-Indianapolis, asked Spaulding if this was a win for his organization.
“This will help our residents downtown,” he responded.
More than two dozen people, including residents, business owners and Indianapolis officials, testified Tuesday. Most spoke in favor of the economic enhancement district, although many did not address the changes in the amendment. A few who supported the district said they would like to see the bill repealed or die altogether, but the amended version was better than the alternative.
Sen. Fady Qaddoura, D-Indianapolis, supported the amendment but indicated he would pursue additional changes when the bill reaches the full Senate.
“I think this is an improved bill. It allows Indianapolis to operate with the economic enhancement district,” Qaddoura said. “It’s not ideal for me, and I hope to work on additional ideas.”
Many residents who spoke in favor of the district also highlighted their support for additional resources for the unhoused population downtown. As proposed, $1.5 million of the funding district’s annual revenue would pay for operations for a low-barrier shelter in Fountain Square.
“I want to underscore the human dimension of this,” said Perry Mihakalos, who lives on Mass Ave. with his wife and daughter. “It is absolutely demoralizing to walk through our city and see human beings that are living on the street with no one and no services to care for them. It’s something that has to change.”
Two groups still want to repeal the district altogether: DefendDowntown.com and the Indiana chapter of Americans for Prosperity, which advocates for conservative fiscal policies.
Kory Wood, a lobbyist hired to represent an anonymous group of residents and property owners under the name DefendDowntown.com, said his clients were against the district because they did not trust the money would be spent appropriately.
Mirror Indy has previously reported that DefendDowntown.com’s efforts are being funded by a Virginia group with ties to a network of dark money organizations. Wood has not responded to repeated requests for more information about his group and its members. At the hearing, he said the members of the group wished to remain anonymous out of fear of retaliation.
HB 1199, the downtown district bill, now advances to the full Senate, where it could receive additional amendments. If approved, it would head back to the House.
Blue Line fever
The chair of the House Roads and Transportation Committee postponed a vote on Senate Bill 52, which would put a one-year pause on the use of dedicated lanes for the Blue Line. IndyGo says the bill would effectively kill the project.
Nearly 60% of Marion County voters approved a tax increase in 2016 to expand mass transit with three rapid transit lines. The Blue Line is the third planned line and would run about 24 miles from Cumberland to the Indianapolis International Airport, using dedicated lanes for more than half of the route.
Sen. Aaron Freeman, R-Indianapolis, said he authored SB 52 because he is opposed to the use of dedicated lanes. And he has erroneously claimed that dedicated lanes were not part of the public discussion ahead of the 2016 referendum.
When asked by Rep. Blake Johnson, D-Indianapolis, if Freeman was aware of recent Mirror Indy reporting that called Freeman’s claim into question, the state senator said he was “aware of revisionist history” and that “there is nothing in referendum language talking about dedicated lanes.”
Freeman also has been adamant that he is not against public transit broadly — but his comments to House lawmakers seem to suggest that he believes buses are an outdated mode of transportation.
“I in 2024 see fixed modes of transportation as a 19th, 20th century way of looking at the world,” Freeman said. “I can on my phone now summon a car and take me anywhere I want to go in minutes. I think fixed modes of transportation, especially in a dedicated lane situation, is not the way of the future.”
IndyGo officials have said the Blue Line would complement the existing Red Line, which runs north and south, and the Purple Line, a route under construction. Both rely on dedicated bus lanes.
Majority of speakers oppose Freeman’s Blue Line bill
Forty-nine people testified about SB 52.
The majority — 39 people — opposed the bill. They were business owners, city officials, a developer and residents who live along or near Washington Street, among others.
Adam Burtner, vice president of government affairs at the Indy Chamber, said Freeman’s efforts could threaten future developments along the corridor. To date, developers have committed $833 million to current and future projects along the planned Blue Line, according to the business advocacy group.
“Put simply, the businesses that have chosen to develop along the Blue Line because of the dedicated lane worry that their investments have been jeopardized,” Burtner told lawmakers.
One developer provided an example: Jeremy Stephenson, an Indianapolis real estate developer with 1820 Ventures, referenced his company’s planned $350 million in new development on the near east side.
Rep. Jim Pressel, Republican chair of the committee, asked if that meant his company would not develop in that area should Freeman’s bill become law. Stephenson said the loss of the Blue Line would affect the density of those projects.
“It increases the parking need for those areas, which, just from a practical standpoint, decreases the amount of multi-family or office we can build, because there’s not a dedicated (bus lane) there for those tenants and residents,” Stephenson said.
Representatives from bus systems in Bloomington and Lafayette also testified against the bill because they feared it would hurt Indiana’s ability to receive grants from the Federal Transit Administration.
“I worry from the FTA’s perspective that this would put Indiana as a whole in the risky column,” said Bryan Smith, CEO of CityBus in Lafayette.
IndyGo is seeking up to $150 million in funding from the federal agency for the Blue Line and infrastructure improvements along Washington Street. IndyGo says the agency risks losing out on that funding if Freeman’s bill becomes law.
The majority of the 10 people who testified in support of the bill were business owners along Washington Street, who feared dedicated lanes would reduce foot traffic or make it difficult for drivers to access their business and for trucks to make deliveries. Three of the people who testified were from the same business, Gilpin Glass Service Inc., located on East Washington Street.
“The dedicated line will definitely cause a lot of businesses in our area to go under,” business owner Sherry Gilpin said. “We have a lot of walk-in business, and this is going to make this where we cannot sell our product.”
The House Roads and Transportation Committee will hear amendments and vote on Tuesday, Feb. 27, Pressel said.
If the bill fails to advance out of the committee, the language from it could still be resurrected and tacked onto another bill. This usually happens during the conference committee process, which is triggered when the House and Senate fail to come to an agreement on a piece of legislation.
Correction: This article has been updated to reflect how language from a bill can be revived during the legislative session.
Mirror Indy reporter Peter Blanchard covers local government. Reach him at 317-605-4836 or peter.blanchard@mirrorindy.org. Follow him on X @peterlblanchard.
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.