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Editor’s note: Vop Osili, president of the City-County Council, released the following statement after this story was originally published:
“As members of the Council, we recognize the profound impact that the culture of sports, particularly soccer, has on our city. The vision for the Indy Eleven Park development not only included plans for a potential soccer stadium but also represented a substantial initiative promising enhanced connectivity between the southwest quadrant and the heart of downtown Indianapolis.
“Given the emergence of the new proposal for a Professional Sports Development Area that was submitted to the Metropolitan Development Commission, my colleagues and I are committed to carefully reviewing the details of the proposed PSDA to determine the best course of action moving forward. Our goal is to ensure that any decisions made align with the interests and needs of our constituents.”
Original story:
Mayor Joe Hogsett’s ambitious plan to court a Major League Soccer franchise could be contingent on City-County Council action to help fund a stadium on downtown’s east side, but it’s not clear yet whether there’s enough support or time to get the work done by a key June deadline.
The council’s Republican leader has already expressed concern about the mayor’s plan, as has one Democratic councilor. But Council President Vop Osili, a Democrat, had not yet weighed in publicly by 1 p.m. Friday. A spokesperson for Osili said he planned to send IBJ a statement later Friday.
The mayor announced Thursday the city is working with unnamed investors to secure an MLS team and is taking steps to create a professional sports development area—a zone authorized by state law to capture tax revenue that would otherwise would go to the city and state—at a site near the downtown heliport at 355 E. Pearl St. The money could be used to pay off bonds for a soccer stadium.
Already, the City-County Council has approved a PSDA to build a soccer stadium at the former Diamond Chain manufacturing site—a zone that was meant to fund a stadium for the Indy Eleven soccer team, which plays in a second-tier soccer league. But Hogsett said Thursday that the city is no longer supporting that effort.
He added, however, that the Diamond Chain site and the associated PSDA remains an option for an MLS franchise, although he didn’t explain how. The Diamond Chain site is owned by Keystone Group, which is owned owned by Ersal Ozdemir, the majority owner of the Indy Eleven soccer team and the individual with which the city is no longer negotiating.
Following Hogsett’s announcement, at least a few Indianapolis councilors expressed apprehension about abandoning a soccer stadium already in the works to pursue the mayor’s proposal to try to land an MLS franchise.
“I want to be sure that Indianapolis is seen as a city that always operates and negotiates transparently and in good faith,” said the council’s Republican leader, Brian Mowery. “We hope to learn more from the administration and stakeholders as my caucus and I work with council Democrats to do what is in the best interest for Marion County as a whole.”
Democrats control the council.
As part of the PSDA process, the Department of Metropolitan Development on Wednesday submitted a new map to the Metropolitan Development Commission that will be considered by the commission next Wednesday at 1 p.m. in the City-County Building Public Assembly Room.
That map, which was made public Friday, will capture several nearby areas prime for redevelopment and city projects—a feature that city officials said make it a viable option. Under state law, the PSDA can incorporate properties up to one mile around the stadium site.
If the proposal is approved by the eight-member board, it will move on to the Indianapolis City-County Council. There, it would be eligible for a first reading as early as May 13, the first full City-County Council meeting of the month due to the primary election.
The proposal would likely be referred to the Metropolitan and Economic Development Committee, which meets May 20. Council committees are usually where developers—or in this case, likely Hogsett administration officials—give in-depth presentations on proposals. The committee may also take public comment.
That committee is chaired by Council Majority Leader Maggie Lewis. Lewis did not respond to an IBJ request for comment on the proposal.
Mowery and other councilors, though, have expressed concerns about the perceived abandonment of Ozdemir’s proposal to develop Eleven Park. Ozdemir announced last year that Keystone would invest up to $1.5 billion to develop district anchored by the soccer stadium, which the city would own, that included apartments, retail, a hotel and office space.
The mayor’s move would effectively quash the 11-year-old Indy Eleven’s hopes of going after an MLS designation of its own, something Ozdemir has long said he wanted. It also raises questions about whether any part of his planned Eleven Park—which was expected to inject energy into the southwest side of downtown—would be developed at all. Keystone held a ceremonial ground breaking at the site last year that Hogsett attended and has been clearing and preparing the former manufacturing site for construction since.
The City-County Council approved the first PSDA for Eleven Park in December, with downtown councilors Osili and Kristin Jones, a Democrat, also attending the groundbreaking ceremony last May.
In a statement Thursday, Jones called the day of the groundbreaking ceremony a “dream come true” after a decade of “investment, advocacy and public input” and expressed disappointment that it might not come to fruition.
“Today, while on the one hand, I am pleased that Indianapolis remains a strong market for professional sports, I am disappointed that the decision was made to disregard the hard work, investment, and legislation that my council colleagues and state legislators, had already passed in a bi-partisan manner for the former Diamond Chain site on the river,” Jones wrote. “I am hopeful that the original approved site will continue to be utilized for any soccer-specific stadium.”
City officials said Thursday that negotiations with Keystone faltered after they determined there was a “substantial gap”—they declined to share a specific figure—in tax revenue that would be generated by the proposed district to support the stadium.
Mowery criticized the city’s decision to stop negotiating with Keystone Group, saying the Hogsett administration never informed the caucus that the future of Eleven Park was in jeopardy.
Indianapolis’ 25-member legislative body has a Democratic supermajority, meaning that the 19 Democrats could do business without the six Republicans present.
A spokesperson from the Mayor’s Office told IBJ in a statement that Hogsett administration representatives had discussions with council leadership and individual councilors leading up to the announcement that the city would pursue a Major League Soccer expansion club “and the importance of creating an alternative PSDA site option.”
“We look forward to continuing our conversations with councilors on this exciting opportunity to bring the major league of the world’s game to Indianapolis,” the statement said.
If it’s approved by the City-County Council, the new PSDA proposal would return to the MDC for a final certification. That and a feasibility study of the district must then be turned over to the State Budget Committee. Under the 2019 legislation that created the PSDA’s framework, the city must have its legislative approvals done by June 30.
Hogsett administration officials will work over that period with the ownership group—which Hogsett wouldn’t name—to determine which site to submit to the State Budget Committee. The state law only allows for one PSDA for the future soccer stadium.
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I hope fairness prevails
Fair would be ideal but if there is a substantial funding or financing gap for the Eleven Park project, then fair has to step aside for the financial feasibility of a prudent city investment. And if it’s looking shaky already financially, I would much rather they city bow out, and pursue something that is more financially advantageous for taxpayers then erring on the path that isn’t.
One side not really mentioned here is the MLS angle. I think Indy has been on the list for them, but primarily as a 2nd tier location that will eventually get a team in a scenario where multiple divisions exist. However, if given the opportunity to take down a significant USL team and take a market off the playing field with significant financial incentive, they are interested. Indy 11 attendance is very good for a USL product that plays in a substandard location with very little player recognition. Getting 20K soccer fans in attendance for a team with established personalities and a match day experience to match is not that big of a stretch at all. I personally know many that will flock to season tickets if/when that day comes.
The unknown funding is yet to be announced, however a few well placed guesses would probably be correct. Also rumors of previous investors in PL Chelsea being involved as well. There isn’t a quick flight to NYC and subsequent announcement if there is not juice behind the scenes that gives a reasonable impression this can happen. There is political risk to the admin and little incentive to push out an announcement otherwise. I would not take everything announced at this point at face value on any side.
Keystone Group is in a tough spot. Their vision for the investment they would like to make is great, they also had a long time to secure an MLS franchise and could not get it done. Are they any closer today? Do they really have the funds available to start a franchise? Maybe Indy 11 can be part of the negotiation as a part of the process, though that is hard to say. I like the idea of good faith negotiations and transparency, however in the development world if you aren’t first, you’re usually last. This isn’t a Disney movie.
MLS is becoming more, not less relevant relative to the US sports landscape. The Premier League is more popular than ever. Right now, they are not considered the equal of European clubs. Is that still the case in 10, 20, 30 years? Is betting it will not be a good idea?
I agree with everything you said 100%. Just going off the very limited info that we have, I honestly believe Hogsett went to NYC and was giving the nod if he can check off every box on the commissioners list. HUGE pockets got in the mayors ears and now its all about drawing up the plans to submit and seeing if Keystone wants to sell the property the bought or take a lost. I would love to see IndyEleven worked into the plans or Keystone group have a percentage in the ownership but either way Keystone group is going to get left behind if it doesnt make some sort of compromise. At the end of the day, I only want what’s best for Indy. I want to see the city grow and attract more talent here. I want to see what a modern Indy looks like for the future. Our peers are constantly competing and trying to out perform Indy. Its never ending and Indy must always try to either keep up or lead
All said in comments above is understood. Yet, I believe Hogsett and group blind-sided Keystone, based on the IBJ reporting. I also surmise the apparent gap in tax revenue should have been developed mutually and understood between the City and Keystone long before now. What was originally presented to the General Assembly for it to be able to approve the Keystone proposal? More fictional numbers? The City apparently didn’t understand the proposal that was presented to the State. Here’s Keystone Group that’s been interested in improving the City, with money ($1.5 billion ……………was that seen as chump change by the know-it-all’s at City Hall) and the City magically spit out some numbers now, way late in the game, and simply say to Keystone, “Eh, too bad guys”, without trying to continue tweaking the Project proforma? The ultimate lesson here is forget doing business with the City.
One doesn’t start spending big dollars in turning dirt without funding locked down between the 2 parties here.
You might want to keep in mind that it appears that Ozdemir appears to be much more liked by the current ownership of the IBJ … than the previous ownership, under which the IBJ ran a rather scathing piece a decade ago on his operating methods that I’ve linked to several times. Now he’s one of the “state’s most influential and impactful leaders across business, philanthropy, the arts, government and not-for-profits.”
Witness how we got quarterly stories about the way Sardar Biglari is running local institution Steak and Shake into the ground and … that just up and stopped around the time that the IBJ leadership changed. You think that’s because Steak and Shake changed anything?
Yes, it could all be a coincidence. And, no the IBJ wouldn’t be the only media outlet with favorites or people they don’t like. EVERY OUTLET IS LIKE THAT. But just a perception noted by one reader.
I would urge the IBJ and its excellent reporting staff, who so far have led the way on this story, to continue to dig deep into what exactly is going on here. Something is fishy. The heliport site does not appear big enough for a stadium project. It backs up to railroad tracks which are not going anywhere. The sort of stadium development underway at the Diamond Chain site would never fit at the heliport site. And all of this is contingent on the city actually getting a major league soccer team, which may or may not happen, despite Hogsett’s optimistic statements.
I would like to see a soccer stadium built in a part of Indy that needs some revitalization, like the area around Lafayette Square. There appears to be empty space in that area so a
soccer stadium might have a lower cost for land and could perhaps have ample parking.
This area is fairly easily accessed via interstate and the streets are wide . Airport is also on that side so teams could fly in and out easily.
Bus service is available too.
Why must all the sports be jammed into the downtown area with its high prices which limit who is able to attend?