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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe board that manages the Indiana Convention Center, Lucas Oil Stadium and other downtown venues expects to see a drastic increase in revenue next year as part of a budget that includes considerations for work on a proposed soccer stadium in downtown Indianapolis.
The Capital Improvement Board of Marion County, which approved its 2025 budget during a monthly board meeting Friday, anticipates a combined $235.8 million in tax and operating revenue next year, a 31% increase from its 2024 budget projection.
The board expects a modest 8% increase in tax revenue from various streams, including innkeepers and admissions taxes, as well as a more substantial increase—more than double—in operating revenue from food and concessions, labor reimbursements and investment income.
Even so, the CIB is projecting a net deficit of $36.5 million for the year, its biggest loss since 2020, when the agency tapped handsomely into its operating reserves to stay afloat during the pandemic. Overall, the CIB anticipates its operating expenses for the year to be about $272.3 million.
A large portion of the board’s new expenses are tied to major ongoing projects, including the $750 million Signia by Hilton and convention center expansion project at Pan Am Plaza, as well as efforts to secure a Major League Soccer expansion club by Mayor Joe Hogsett’s administration.
Andy Mallon, executive director of the CIB, said at least $66 million has been set aside in the 2025 capital outlay portion of the budget to cover expenses related to those projects, such as real estate acquisition costs for the soccer stadium. However, the CIB anticipates a little more than half—about $34.5 million—could be recovered through reimbursement by the city or payments from the team’s eventual investor-operator group.
“We’ve built in some flexibility around the various projects that we have going on,” Mallon said. “Not that we have deals cut or that we’re working through stuff, but [because we] know just based on history and the way these things usually work, and should work, that the CIB will be asked to participate—largely because we have a more dynamic and faster way of dealing, especially with real estate.”
The CIB has also budgeted an increase of $1 million for its legal fees, specifically tied to the soccer stadium efforts.
Hogsett and other administration officials have repeatedly said the city would only move forward with plans for a soccer stadium if given the nod by Major League Soccer. While the mayor has said he is optimistic, the league has been reticent about its plans for the next wave of expansion.
“If I don’t have the budget space and I don’t have the appropriations, we can’t do those deals without going back” to the City-County Council, Mallon said. “We don’t have any deals cut with anybody, we don’t have any final estimates … or land purchase agreements underway, but I can see where we might participate in that, and when we do I want to have that available in appropriations without hamstringing our normal business operations.”
The board anticipates spending $6.5 million on a renovation of the Indy 500 ballroom, another $2.1 million on video broadcast room and HVAC upgrades at Lucas Oil Stadium, $1.3 million on concrete repair and waterproofing at Victory Field, and $1.2 million on lighting replacement and concrete repair at the Virginia Avenue Garage next to Gainbridge Fieldhouse.
The CIB also plans to increase its allocation to Pacers Sports & Entertainment in 2025, as dictated by the 2019 agreement that orchestrated a 25-year extension of the team’s lease at Gainbridge Fieldhouse in exchange for the ultimately $400 million upgrade to the facility.
The team is set to receive a bump in its operating subsidy, from $12.3 million to $13.1 million, according to the agreement. It will also receive at least $11.3 million through a separate 10-year technology supplement that kicks in next year.
The CIB will begin paying the entire annualized portion of its debt service on the renovations to the fieldhouse starting in 2025, which is expected to increase its total debt service costs to just more than $37 million.
Visit Indy will receive a modest increase to its overall budget allocation from the CIB year-over-year, rising from $14.9 million to $15.3 million. While most of Visit Indy’s funding comes from the board, its operations are supplemented by money from annual fees paid by hotels, restaurants, attractions and museums to be considered official partners of the organization.
“The CIB’s continued confidence and investment in our industry, mission, team, and work is the driving force behind the city’s record-setting tourism numbers for 2024,” said Chris Gahl, executive vice president & chief marketing officer with Visit Indy. “With 85% of our annual operating budget coming from the CIB, we appreciate their partnership and increasing our funds year-over-year to sell and market Indy into the future.”
The tourism agency will also receive a separate $1 million contribution from the CIB tied to fundraising efforts for the American Society of Association Executives, which will hold its annual event in Indianapolis in 2026.
The event is the largest gathering of convention and meeting decision makers in the United States. It requires $5 million in fundraising, with the CIB expected to give another $1 million in 2026 and Visit Indy contributing $2 million of its own funds over the same period. The rest is expected to be fundraised through Visit Indy’s outreach efforts.
At the end of 2025, the CIB expects to have $165.5 million in unrestricted reserves, down from $209 million at the end of 2023.
The budget must still be approved by the City-County Council.
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Can the CIB give an update on if they’re going to address the massive debt load from Lucas Oil Stadium?? Last I heard, we’ve just been paying off the interest? I’m sure Jimmy from the colts is going to want renovation on Lucas soon than later.
The bond payment schedule was such that only interest was paid until about 2019, then actual debt started being paid off aggressively.
IFA documents show that LOS is on pace to be paid off by 2037, which is the last year of the Colts’ current lease assuming they don’t opt out in 2030. But we should fully expect Irsay to get another $1B or two by 2030.
I wish there was a full accounting made public. the restaurant taxes paying off those bonds have probably tripled since 2005. the point about renovation of LOS is a good one. Why not refi the deal??? Interest rates were higher when those original bonds were issued than they are today.