City officials trying to pin down cost of proposed MLS stadium
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It's been more than a year since the city of Indianapolis approved a professional sports development area (PSDA) for a proposed Major League Soccer stadium on the southeast side of downtown, but a state committee still hasn't signed off on it.
Why it matters: State budget committee approval was supposed to be the next major milestone on Indianapolis' path toward securing a stadium and, thus, an MLS team — but progress that felt fevered last year seems to all but have stalled.
- While the still mostly unknown ownership group — with the exception of the Simon family, who has said they're part of the conversations — is expected to cover 20% of the cost of the stadium. The city is expected to finance the rest of the project from taxes generated in the development area.
Reality check: The PSDA might not be enough to cover the cost.
- The Capital Improvement Board is trying to get a better estimate and recently put out a request for proposals for construction managers for the stadium, which would seat between 20,000 and 25,000 fans and serve as a multiuse venue for concerts and other events.
- Once a price tag is pinned down, officials will have a better idea whether the current development area will generate enough revenue to finance the project.
The fine print: The city can capture a maximum of $9.5 million in state revenue from the PSDA, according to legislation.
- According to a study commissioned by the CIB last year, local income taxes generated by the area are expected to average about $10 million per year and CIB revenues another $6 million annually.
What they're saying: "The CIB's role at this time is to determine what we will build and how much it will cost," Andy Mallon, executive director of the CIB, told Axios in an email.
Zoom in: City officials have pointed to recent stadiums built in Cincinnati and Nashville as examples, which cost between $250 million and $350 million.
Yes, but: Those were completed in 2021 and 2022. Construction costs have increased since then.