CIB closes business with state over facilities

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The punch list is nearly complete on Lucas Oil Stadium and the expansion of the Indiana Convention Center, six and four years after their respective openings.
 
The Capital Improvement Board, which manages both facilities, on Thursday afternoon approved a close-out agreement with the state entities that oversaw the design and construction, the Indiana Stadium and Convention Building Authority and the Indiana Office of Management and Budget.
 
While no event has been delayed or canceled since the state turned the buildings over to the CIB, there have been some lingering issues, CIB Chairwoman Ann Lathrop said. The close-out agreement means all parties will avoid legal action, and it partially reimburses the CIB for some work that’s still to be done.
 
The largest item will be the replacement of improperly installed insulation around chilled-water pipes at the convention center, which is estimated to cost $1.5 million to $2 million. The CIB will handle that work so it doesn’t interfere with convention center events, Lathrop said. The state entities agreed to reimburse the CIB for the first $1 million, plus half of any costs above that amount.
 
Because the state oversaw the insulation work on the water pipes, Lathrop didn’t know which contractor was responsible for the faulty installation or why the fix isn’t free.
 
The state will also reimburse the CIB $535,000 for work it performed at Lucas Oil Stadium. Reimbursements by the state will total no more than $3 million, according to the close-out agreement.
 
Lucas Oil Stadium was substantially completed on Aug. 15, 2008, and the convention center expansion was completed Jan. 9, 2011.
 
Lathrop said the insulation work will be done in 2015.
 
Also Thursday, the CIB received a quarterly operating report from  Fieldhouse Management LLC, an entity created by the Pacers for operating Bankers Life Fieldhouse.

Total revenue for non-Pacers and non-Fever events was $533,769. Total expenses were $1.5 million.

The largest expense was for personnel, not including executives and players, at about $900,000.

Pacers treasurer Kevin Bowen attended the CIB meeting, but the board members asked no questions, and he offered no explanation.
 

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