The City-County Building in Indianapolis. Photo provided
The City-County Council on Monday evening approved a major piece of the Hogsett administration’s plan to lure a Major League Soccer team to Indianapolis, advancing a proposal for a new taxing district intended to fund a soccer-first stadium.
The taxing district, known as a professional sports development area, was approved by a 16-8 vote by the council, with one councilor abstaining. The approval was a necessary step in Mayor Joe Hogsett’s effort to bring a top-tier professional soccer team to the city.
While the council approved a different PSDA in December, only one can be considered by the State Budget Committee. The newer map is centered on the Downtown Heliport area and would draw certain state and local taxes from downtown landmarks such as Circle Centre Mall, the former Anthem headquarters on Monument Circle, the City Market campus and Jail I.
The first PSDA plan, which the council approved in December, supported Indianapolis-based developer Keystone Group’s proposed $1.5 billion mixed-use project, called Eleven Park, anchored by a 20,000-seat soccer stadium for the Indy Eleven. Both Keystone Group and Indy Eleven are owned by Ersal Ozdemir.
However, only one of the taxing districts can be considered by the State Budget Committee for approval. Hogsett administration officials have already stated that Eleven Park stadium site and district, which is on a historical burial ground, will not be submitted for state consideration.
Monday’s decision marked the first time in recent years in which council Democrats were divided on a proposal backed by the Democrat-led mayoral administration.
Councilor Kristin Jones, a Democrat representing a large portion of downtown—including both PSDA sites—bucked the tradition of councilors sponsoring measures within their district. Ahead of the vote Monday, she asked fellow councilors to vote against the measure, arguing that constituents want the development and stadium for Indy Eleven from Keystone Group.
Fellow Democrat Jesse Brown also voted ‘no.’ He said the currently undisclosed ownership group and closed-door meetings combined with constituent feedback led him to that decision. Republican Michael-Paul Hart joined Brown in voting ‘no’ for similar reasons, listing beforehand the “knowns and unknowns” of the MLS push.
Republicans Derek Cahill, Michael Dilk, Brian Mowery and Democrat Maggie Lewis joined in voting against the measure.
Republican Josh Bain was the lone Republican council member to vote in favor of the proposal.
Democratic Councilor Dan Boots, who represents portions of the north side, said “professional soccer dies here in Indianapolis” if the measure did not move forward. Boots also noted his previous support for Indy Eleven.
“There’s no guarantee the MLS will come to Indianapolis if we pass Proposal 175 this evening,” Boots said. “But there is a guarantee that if we don’t pass [the proposal] tonight, MLS will not be coming to Indianapolis for years to come, if ever.”
Democrats John Barth, Ali Brown, Crista Carlino, Brienne Delaney, Jared Evans, Ron Gibson, Keith Graves, Frank Mascari, Jessica McCormick, Andy Nielsen, Vop Osili, Carlos Perkins and Nick Roberts voted in favor of the district. Leroy Robinson abstained.
Hogsett administration officials have said a final vote from the city’s Metropolitan Development Commission will take place June 26, just days ahead of a July 1 deadline to utilize the state legislative framework that permits the taxing structure.
Even though just one Republican voted for the measure, Hogsett called support for the measure “bipartisan.”
“Tonight, a bipartisan vote of the City-County Council sent a resounding message: Indianapolis is ready to write the next chapter in our sports story,” the mayor said in a written statement. “Over the coming months, our community will unite in pursuit of this once-in-a-generation opportunity to secure a Major League Soccer expansion club for our city. I’m grateful to the City-County Council for supporting the vision to solidify Indianapolis as America’s greatest sports city, and extend my thanks to the residents who continue to passionately participate in this process.”
At last Tuesday’s three-hour committee meeting of the council’s Rules and Public Policy Committee, members narrowly—and largely unenthusiastically—advanced the proposal by a 6-4 vote with one abstention before a packed room of Indy Eleven supporters.
It will be up to the investor group, which is undisclosed so far, to submit an application for an expansion club to Major League Soccer. That investor group is being created by Charlotte-based soccer executive Tom Glick.
Glick has previously flown in to meet with councilors on the topic, while also meeting with others including Ozdemir, state lawmakers and the leader of the Brickyard Battalion, the independent support group for Indy Eleven.
“Tonight’s vote is the unfortunate result of a false choice presented by city leaders, with a majority seemingly motivated more by fear than hope,” Ozdemir said in a written response. “That isn’t the way Indianapolis has succeeded in the past, and I fear that the tactics used in pursuit of a legislative win at City-County Council may result in huge losses for the future of downtown development and professional soccer in Indiana.
“I love Indianapolis, and tonight’s decision does not diminish that feeling or my passion for Eleven Park. That is why I believe there is still an opportunity for the kind of collaboration that has always characterized our city at its best. As I have repeatedly said in recent months, Indy Eleven’s investors and I remain ready and willing to meet with Mayor Hogsett to discuss a productive way forward as one city. It would be our hope that like so many mayors before, he will see the benefit in bringing all parties together rather than continuing to forge this path alone.”
Like Lucas Oil Stadium, Victory Field and Gainbridge Fieldhouse, a Major League Soccer stadium would be constructed with public funds and owned by the CIB’s building authority. However, the administration has emphasized that it would not be built until Major League Soccer officially awards the ownership group an expansion club. The council will also have extensive oversight on the stadium development process, including the issuance of debt to pay for the facility and its design.
The council will also have oversight for any purchase of land by the city that might be used for the project. The Department of Metropolitan Development has a memorandum of understanding with the Indianapolis Airport Authority that creates a path for the city to acquire the heliport property, at fair market value.
Multiple property owners within the site proposed for a Major League Soccer stadium said they have started receiving inquiries about purchasing their land.
Aliya Wishner, spokeswoman for the Mayor’s Office, has confirmed those inquiries are at least partially coming from “city entities.” She declined to name the parties involved, citing a need to protect future negotiations by keeping the inquiries confidential.
The Capital Improvement Board of Marion County would have oversight for any land that the agency might seek to acquire for the project.
By Taylor Wooten and Mickey Shuey, Indianapolis Business Journal
