Just leafed through the current issue of the IBJ carrying loads of information about the up-coming downtown extravaganza. It occurred to us to issue a reminder of a suggestion we made many months ago.
A quick reprise, for the benefit of those who may have a memory as short as our own. Most local folks have some idea of the operation of, or at least have heard of, Tax Increment Financing (TIF) districts having to do with property taxes. Our proposal was for the imposition of a Revenue Increment Financing (RIF) district in order to take advantage of the fantastic revenues to be generated by all major sporting events, but specifically The Football Game coming up.
In order to make it current and simple, we would have thought that such a district would fit in the same geographic limits of proposed traffic changes and street closings, and that it would apply to the same parameters time wise - January 19 through February 5.
Technology being what it is, the average revenue within that time period for every retail, service and hospitality business within said boundaries would be fairly easily obtained. The RIF tax would have been applied to the increase - the increment - in revenues of said businesses for the stated time period, and dedicated to covering any and all municipal expenditures related to The Football Game. (We would have suggested that any excess amount be spent on IndyGo, but since that operation is so well funded it is going to allow free rides all over the city for 3 days, we'll give it to the parks and libraries.)
We would have proposed an RIF tax rate of about 25 percent. If this seems extravagant, remember all the projections that this event is going to have downtown Indianapolis rolling in dough. And we might fall back on arguments used some time ago that increases in hospitality and car rental taxes really have minimal impact on local citizens.
Several events are set for the $12 million renovation area on Georgia Street. The peasants will be allowed to walk into that area free! Virtually all other events, most of which are in publicly owned properties, carry a price tag - with no indication of the ultimate recipient of those monies. Care to guess how much will go to the NFL?
We’re going to have high rollers here. Meals, drinks and hotel rooms will not be going for the day-to-day rates that our downtown revelers usually pay. Why didn’t we - just this once - make sure the taxpaying public isn’t footing a large part of the bill for the presentation of The Football Game? Shouldn't we at least have done something to make up for the tax revenues us mere mortals pay every day but that the National Football League multi-millionaires have been forgiven in advance!
The location was set for The Football Game about 4 years ago. Legislation permitting the RIF approach, or some variation thereof, surely could have been approved in that time. Is there not one single voice among business and political leadership of this city to speak for fiscal responsibility? Is throwing money at it the only answer to our municipal inferiority complex?
In a word, yes. A very sad word, when so many things could be done so much better if we didn't worship at the twin golden calves of pro sports in this town and getting the rich suburbanites to their downtown Indy jobs.
Posted by: Leslie Baker | January 03, 2012 at 05:20 PM