How a proposed deal to keep the Pacers in Indianapolis would affect you and your taxes
The Indiana Pacers' deal keeping them in Indianapolis doesn't expire until 2024, but lawmakers are already negotiating a new agreement that would keep the NBA team in the Circle City for the long haul.
In detail:The pricey deal that would keep the Pacers in Indy
The Pacers, lawmakers and city officials are negotiating to keep the team in town for roughly 25 more years. That’s the minimum duration called for in a bill before the Indiana General Assembly, Senate Bill 7, which would provide a way to pay for that deal.
Here's what you need to know:
What do we know about the deal so far?
Other than the potential length of the deal -- roughly 25 years -- not much. That's much longer than recent agreements with the team.
It is unclear how much money would be involved in the deal. The Pacers' current deal is $160 million in public money for a 5-year lease extension, and expires in 2024.
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Would the deal create any new taxes?
No. Senate Bill 7 would create a funding mechanism using existing taxes for the deal, and would not create any new taxes or fees.
No current taxes would rise, but without the Pacers plan or similar infrastructure projects, that tax revenue would otherwise flow to the state, city, townships, schools and the library system instead of to the Pacers.
The bill, by Sen. Ryan Mishler, chairman of the powerful, budget-writing Senate Appropriations Committee, would raise $8 million to $8.5 million annually in taxes for the Marion County Capital Improvement Board from 2022 through 2041 for Bankers Life Fieldhouse and the board's other venues.
Does the bill have support?
The Pacers bill appears to have broad support. Pacers and Indianapolis officials spoke Thursday at the Senate Appropriations Committee in favor of the Pacers bill. Mishler is expected to hold a committee vote Feb. 21 on the bill, and if approved, it would go to the full Senate.
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What else would the deal include?
The deal would also include a significant expansion of the Indiana Convention Center, which tourism and city officials say would launch Indianapolis into the upper echelon of convention cities.
Under the terms being discussed, the city would direct $138 million from similar special taxing districts for a 300,000-square-foot expansion of the center on Pan Am Plaza, including a 50,000-square foot ballroom. A covered walkway over Capitol Avenue would connect that space to the main convention center.
Kite Realty Group proposed last fall to build two Hilton-brand hotels, connected to the convention space with a total of 1,400 rooms, including a 38-story tower that would be a rare addition to the skyline. Those projects would be in the taxing districts.
The Marion County Capital Improvement Board manages the convention center, Bankers Life Fieldhouse, Lucas Oil Stadium and Victory Field. The bill would lock up tens of millions in revenue for the board, which would then put that money toward its venues.
In detail:What $138 million in renovations would mean for Indiana Convention Center
How are the Indy Eleven involved?
Indy Eleven owner Ersal Ozdemir wants the Senate Appropriations Committee to fold legislation that would fund a $150 million, 22,000-seat soccer stadium into Senate Bill 7. The goal of Ozdemir's proposal, which is considered more of a long shot, would be to attract a Major League Soccer team.
A proposed bill would raise up to $11 million a year for 32 years in taxes for the stadium in a special taxing district, similar to the ones used by the Capital Improvement Board.
Mishler won't give that bill a hearing but allowed Ozdemir to pitch his proposal Thursday as a possible addition to his own bill.
Indy Eleven:What you need to know
Ozdemir proposes a $400 million development called Eleven Park, which would include restaurants, shops, offices, apartments and a parking structure at a to-be-decided location. The legislation would allow the Capital Improvement Board to collect taxes from that development to fund the soccer stadium.
Under the bill, the Capital Improvement Board would manage the tax money, as it does for the Pacers and Colts. Ozdemir has pledged that his six-year-old franchise would pay for any shortfalls if the development does not generate enough taxes to cover the cost of the stadium.
The reality, though, is the stadium would be publicly owned. If Ozdemir is for some reason unable to cover debt service as he pledges, the city or state might feel obliged to bail him out.
Andrew Clark is Facebook editor for IndyStar. Call him at 317-444-6484 or email him at andrew.clark@indystar.com. Follow him on Twitter @Clarky_Tweets.
Call IndyStar reporter Chris Sikich at 317-444-6036. Follow him on Twitter @ChrisSikich.