Downtown Indianapolis' politically toxic gift
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The Indiana General Assembly gave Indianapolis leverage to impose a tax to pay for downtown improvements, but the city has to act. Photo: Raymond Boyd/Michael Ochs Archives/Getty Images
Indianapolis has a chance to improve its downtown by taxing property owners — and city leaders might let it slip for the second time in five years.
Why it matters: Downtown Indianapolis has struggled with cleanliness, homelessness and aggressive panhandling, especially since the pandemic started, and the Indiana General Assembly gifted the city with an unexpected solution.
Catch up fast: As Axios first reported, the state budget approved in April permits Indianapolis to create an economic enhancement district, an area overseen by an eight-person board, which would impose a new tax on downtown property owners and spend the revenue on cleaning, public safety and a homeless shelter, among other uses.
Flashback: In 2018, the city considered — and rejected — a downtown economic improvement district, which would have served the same function.
- The Indiana Apartment Association, a powerful trade group, lobbied against the EID, which muddied the waters ahead of a City-County Council vote.
💠My thought bubble: Economic improvement/enhancement districts sound nebulous, but they're common in cities across the U.S., including here in Woodruff Place and Fletcher Place.
- When I lived in Baltimore, I always saw people in yellow jackets sweeping sidewalks downtown — the work of an EID.
Between the lines: No one in power at the city level — from Mayor Joe Hogsett to City-County Council President Vop Osili — wants to touch it during a municipal election year, as the IBJ reported.
- It's common for politicians to punt during campaign season, but it's perilous in this case.
- The November election comes about two months before the next state legislative session begins, a narrow window for the city to act before lawmakers could revoke their gift, which was slipped into the budget thanks to an effort by Sen. Kyle Walker, R-Indianapolis.
Threat level: The Indy Chamber, which has advocated for a special taxing district along with Downtown Indy, sounded the alarm in the IBJ.
- Adam Burtner, vice president of government affairs for the Indy Chamber, urged the city to act as "soon as possible and avoid any potential efforts to remove this enabling language."
The other side: The Indiana Apartment Association says the economic enhancement district would give Indianapolis too much discretion to tax businesses without a plan for spending the money.
- Lynne Petersen, the group's president, signaled she hopes to kill it, telling the IBJ, "There is always a chance that it could be revisited."
The intrigue: The IAA tonight is hosting a fundraiser for Republican mayoral candidate Jefferson Shreve, who — like Hogsett — has yet to take a position.
- "It's the mayor's and City-County Council leadership's responsibility to lay out their plans related to the potential downtown economic enhancement district," Shreve told Axios.
Reality check: Shreve and Hogsett seem united in leadership avoidance.
The big picture: Hosgett, Shreve, council members and Downtown Indy, which manages downtown, all point to a need to engage with stakeholders — government parlance for holding meetings — while the clock ticks.
The bottom line: As the possibility of another missed downtown funding opportunity looms, the election calendar matters most.
Market Street is a regular column about local politics and power. Send me tips: [email protected].