Pacers, city negotiate $33M deal
The Indiana Pacers will stay put in Conseco Fieldhouse at least through 2012, thanks to a three-year deal approved July 16 by the city’s Capital Improvement Board.
The Indiana Pacers will stay put in Conseco Fieldhouse at least through 2012, thanks to a three-year deal approved July 16 by the city’s Capital Improvement Board.
Capital Improvement Board plans to spend about $2.6 million to replace 370,000 square feet of carpeting in the older portion of the Indiana Convention Center to match the carpet in the new addition.
The Capital Improvement Board, through the first nine months of the year, was running $12.3 million ahead of budget, by posting $6.5 million more revenue than planned while cutting $5.8 million in expenses.
The CIB’s $73.1 million budget, which included a $10 million payment to the Pacers for the operation of Conseco Fieldhouse, passed by a 15-14 vote.
The Capital Improvement Board’s controversial spending plan will face its final trial Monday night as the City-County Council takes up the city’s $1.1 billion budget for next year.
Some City-County Council members are skeptical of the Capital Improvement Board’s spending plan for 2011 that includes $10 million for the privately operated Indiana Pacers.
The new “video ribbon,” which could cost up to $1.6 million, will be paid for with funds from the Capital Improvement Board. It will be installed around the entire upper fascia of the arena between the second and third levels.
Including debt obligations, the CIB’s total budget for 2011 is expected to be $104.4 million. The City-County Council is set
to receive the budget at its Sept. 20 meeting and could approve it Oct. 25.
Capital Improvement Board president says initial $10 million payment to the Indiana Pacers is not only reason for the larger
budget. Rather, she insisted it’s largely due to $5 million in renovations slated for Conseco Fieldhouse and other CIB-operated
facilities.
The three-year agreement is designed to help the franchise shoulder the costs of operating Conseco Fieldhouse. One dissenting
voice called the team and city back to the negotiating table for a longer-term deal.
State officials decided to reduce the interest rate on a $9 million loan to the city's Capital Improvement Board by 1
percentage point. The news couldn't come at a better time for the agency, which is trying to find money to assist the
Indiana Pacers.
A combination of taxes targeting downtown visitors and users of the city’s professional sports complexes are expected to generate
the bulk of the subsidy.
The Capital Improvement Board earned $10 million last year after reporting a $16.8 million loss in 2008. Its financial future
is clouded, however, by talks with the Indiana Pacers over Conseco Fieldhouse operating costs.
A June 30 deadline imposed by the basketball team passed with no agreement on who will pay Conseco Fieldhouse operating expenses,
but both sides remain optimistic a deal will get
done soon.
The Indiana Pacers still are renegotiating the team's lease of Conseco Fieldhouse with a Wednesday deadline approaching.
City officials want to wait until economy, National Basketball Association labor situation stabilize before entering longer-term
deal. Optimism remains deal can get done by June 30.
Mayor Greg Ballard has put privatization of Indianapolis’ stadium and convention center management on indefinite hold.
Capital Improvement Board votes not to restore IBE’s annual $150,000 grant, but agrees to provide the organization
with in-kind services equaling the amount.
The Indiana Pacers and Indiana Fever contribute an estimated $55 million a year to the Indianapolis economy, according to
a study conducted by Chicago-based hospitality consulting firm Hunden Strategic Partners.
The report from a Chicago consulting firm will detail how much the Indiana Pacers contribute to the local economy, as the
Capital Improvement Board negotiates with team officials over paying $15 million in annual Conseco Fieldhouse operating costs.