Saturday, September 29, 2012

Prop 15 - A Nightmarish Mess

The tortuous life of Prop 15 through the Indianapolis-Marion County City-County Council is not the Council's finest hour by any stretch of the imagination.

The ridiculoucity continued this past week with two evenings of meetings of the Metropolitan & Economic Development committee.

Even before Monday night's meeting began, the committee knew it would be recessing that night without passing Prop 15 due to a disagreement with the Ballard administration over a proposed amendment that sought to add language guaranteeing two microloan programs and one job training program.  Councillor Vop Osili had a memo from Deron Kintner to the effect that the City agreed to those programs, but wanted it written into the proposal.  I uploaded to Google Docs the disputed, and never introduced, amendment.  What you'll notice is it's clarity of language.  The header suggests this amendment was intended to be voted on at the full Council meeting where, instead, the Council decided to send Prop 15 back to committee.

What was introduced Friday night, after they had four full days and nights to come to an agreement, was a mess - tortuous language construction, dubious protections for the intended beneficiaries of the programs, and massive loopholes.  Not to mention the misspelling of the word "Councillor" - which is defined in Council rules, by the way.  Plus you'd think commas were an endangered species that had to be included sparingly.  This amendment passed by a vote of 6 to 1, with Councillor Zach Adamson providing the sole no vote.  I have uploaded my copy of this amendment, as the Council website has not yet updated their version of Prop 15.  Sorry for the scribbling, I wasn't thinking I'd be sharing it with everyone.

From the header one might think this amendment would be introduced at the full Council.  The meeting Friday night did start 5 minutes late and the amendment was not available until seconds beforehand.  So, it may be the negotiations were deemed done enough and this messy amendment was introduced at the committee instead.

Here are some attributes of the amendment that catch my eye:

The $10 million microloan program will require "the leveraging of current resources" which usually means floating bonds to be repaid with some revenue stream.  There aren't many details provided on this proposed program.  One thing that is stated is that it would be a county wide program.  It would be a violation of state law for the funds to come from the downtown TIF.

I looked through google street maps and the Marion County Assessor's interactive map to try to locate the "Bryant Heating & Cooling Facility located at 21st and Montcalm".  All parcels at that intersection are owned by private entities, none of which are Bryant.  To the west, however, at 1100 W. 21st Street, there is a large parcel with large buildings that appear abandoned, which is owned by DMD.  Why the lack of specificity when an address or parcel number is three mouse clicks away?  This is important because there is an attempt to require the demolition of this facility.

In multiple places the phrase "the area" is used.  From context it seems like it refers to possibly different boundaries at times - but the phrase is never clearly defined, which results in little to no protection of the residents of the Bush Stadium area that any of the promises made to them will actually be fulfilled - or even be required to be fulfilled.

The $2 million microloan program can be awarded to any business within a two mile radius of the enlarged downtown consolidated TIF.  The language is poor, again a comma or two might clarify, but it is either attempting to say the business must be located in a lower income area (median household income 75% or less of the median income in the County) or that the 2 mile perimeter must be centered on a low income area.  Just by the way, the median household income in the County is $40,421.  But a two mile radius?  How does that adequately target the Riverside or UNWA residents who came out to say they needed help?  Looking at maps, this perimeter could reach the Speedway to the west, Garfield Park to the south, Butler University to the north, and nearly Emerson Avenue to the east.  The intent is to take the funds from the TIF.  But TIF revenues must be spent within the TIF.  These requirements are a clear attempt to circumvent the state laws regarding the expenditure of TIF revenues, and it does not target the folks who live in the Bush Stadium area.

The exact same thing can be said of the $1.5 million job training program as was just stated for the $2 million microloan program.

And the last I'll mention is the really botched attempt to get work for the TIF district residents.  The language seems to say that any business receiving TIF money, should they require new hiring, would have to ensure that 40% of those hired lived in the TIF district.  The business could get out of this by filling out a form that indicated why it tried but failed to get to the 40% figure.  Or, they could bring in all their additional help from out of state, since those folks will not be counted.

Osili has been all over town touting the targeted benefits he personally negotiated for the residents and businesses of the Bush Stadium expansion area.  But, he is not delivering on that promise with this language.  Someone is being scammed - its either Osili or the residents.

Prop 15, that twice beaten dead horse now burdened with the worst amendment in the history of amendments, was voted on twice by the committee Friday night.  The first time the phrasing of the motion left off the key part where it would be sent back to the full Council with a do-pass recommendation.  On the advice of Council counsel, they did a do-over with the correct motion.

Both times the vote was 6 yeas and 1 nay.  Councillor Zach Adamson was the lone no vote both times.  The yeas were Councillors Robinson, Talley, Adams, Osili, Miller and Cardwell.  The last two are Republicans and the rest are Democrats. 

Prop 15, that raggedy, tattered zombie that it is, returns to the full Council Monday night.

Friday, September 28, 2012

Matt Tully - Wrong on TIFs - Not Just Merely Wrong; Most Sincerely Wrong

There is no doubt the IndyStar columnist, Matt Tully, is a talented writer.  As a person, Tully's opinion is of no more importance than the next guy's.  As a paid opiner for the Star, with its wide reach, his opinions are amplified in the community.  With that reach, and with being a journalist, one would hope Tully would be fastidious in checking what he promotes as facts.  Unfortunately, in his column on the proposed Mid-North TIF, Tully fails the accuracy test.

Tully repeats that tired old fairy tale that TIFs only capture new development.
First, the TIF captures only new property tax revenue -- meaning money from new investment over and above what is already collected.
We see this year, where $490 million of base - which is the 'old stuff' - in Marion County's TIF districts, was converted into increment - which is, according to the fairy tale, supposed to be only the 'new stuff'.  That's a full third of the existing base.  How much time would it take to accumulate an additional $490 million of property value for our tax roles through development?  And yet, in one year that huge amount of property value is yanked from producing tax revenues for the schools, libraries, IndyGo, Health & Hospitals, fire departments, IMPD, parks, as well as the city-county government.

Where Tully gets alarming is where he promotes brand new fairy tales about TIFs.  He actually most succinctly framed the idea in a short twitter debate he had with Amos Brown a week ago.  Below is a screen shot of the back and forth so you can get the context in which Tully said

"If Midtown continues losing high income families that's a disaster for the city--particularly the most struggling parts of it."  Huh?  And, from the context, TIFs are apparently the answer.

Let's face it, a Mid-North TIF is a solution searching for a problem. 

Tully is promoting the idea that TIFs are designed to bring tax dollars into well to do neighborhoods to make them even better places to live so that rich people stay in Marion County.  His logic is other worldly when he can reach the conclusion that improving the lot of the well to do has a positive impact on those who struggle daily.

If it were just Matt Tully, a person, with this attitude, it would be part of the community conversation.  But, it is Matt Tully, the print media columnist, who is spreading this insidious meme that TIFs are for the better off areas.

You likely remember that extraordinary series of columns Tully wrote about the Meadows years ago now.  Where is that Matt Tully?  TIFs were designed to help just this type of neighborhood, where no dollars are going and a few dollars has a shot at making a real difference; first in the real estate, then in the lives of those who can't afford the rent in Tully's neighborhood.

If there were a prioritization of neighborhoods in need in this city/county, Meridian Kessler, Broad Ripple, and Butler-Tarkington wouldn't be anywhere near the top of the list.  Yet, they want to get theirs first, before the reality sinks in that TIFs have consequences, not all of which are good for Indianapolis and its future.

The last couple of years, Tully has taken immense amounts of time to experience IPS, and he penned riveting and pivotal pieces that helped to elevate the discussion of education in Indy.  Where is that Matt Tully?  Doesn't he know that existing TIFs already harm IPS' bottom line?  And yet he is promoting the creation of another square mile TIF in the IPS district. They call the downtown TIF the "dead zone", because of all the property value that does not send revenue their way.  IPS already has 22% of all taxable property within its district caught up in a TIF increment.  One-fifth.  That's twice the average for the County as a whole.  40% of the circuit breaker penalty (the property tax revenues that government qualifies for, but cannot collect due to the property tax caps) in the County can be attributed directly to TIF districts and their sequestration of property value.  With its higher percentage of property valued contained within TIFs than the County as a whole, one would estimate that TIFs cause an even greater percentage of the $15 million circuit breaker penalty that IPS will see in 2013.  What could IPS do with an extra $6 to $12 million a year more?

But this Tully, the one for whom there is no valid and valuable community conversation about TIFs going on, this Tully would add another square mile of untouchable tax revenue in IPS's district.  He seems to think that excluding residential property from the proposed Mid-North TIF is a positive.  But, lets face it, residential property has a 1% tax cap, and the TIF would capture the commercial values - which are higher in assessed value and which have 2 % and 3 % tax caps, so pay a greater proportion of property taxes from the same size lot.

Tully does columns on crime in a variety of areas in our city-county.  Yet, he doesn't mention that TIFs take revenue away from IMPD - not just shelter revenue from IMPD's grasp, but take it away in the form of the circuit breaker penalty.   According to Jeff Spalding, City Controller, the 2013 circuit breaker penalty will be over $5 million for IMPD and over $7 million for IFD.  As currently configured, the 2013 budget calls for no IMPD recruit class and one for IFD only if they can get their hands on a federal grant.  Again, at least 40 % of those circuit breaker amounts are directly attributable to existing TIFs.

Well, with or without Matt Tully, the community conversation about the reality of TIFs will continue.  Personally, I had hoped by this time our conversation would be about how much of our property value should be tied up in TIFs for the next 25 to infinity years.  Other jurisdictions that use TIFs and place a limit, set that limit at 5% of property value.  We are at 11%.  With the ramrodding of TIFs through the Council prior to the implementation of the recommendations of the TIF Study Commission, based on incomplete information, one has to wonder what generational damage these folks are doing.

Tully has a soapbox courtesy of the Star's circulation.  He also has a responsibility to be accurate with the facts he sprinkles throughout his columns to support his opinions.  On the TIF issue, he completely and utterly fails on the accuracy test.

Wednesday, September 26, 2012

Dust Up - For Reasons Unknown, But I Speculate Anyway

I have the greatest admiration for Councillor Brian Mahern, but last night he flubbed.

The Rules committee began their consideration of Prop 316, which would implement the recommendations of the TIF Study Commission.  After a thorough and really well done overview of the findings of the Commission, Councillor Bob Lutz introduced an amendment that would strike the very last part of Prop 316:
(d) Any proposal creating or expanding a TIF allocation area must be approved by a standing committee of the council before it can be considered for adoption by the full council.
The discussion, which actually preceded the motion to amend, revolved around current Council rules and how the proposed change would impact the ease with which the full Council could call a TIF proposal out of committee.  Currently, if a committee kills or votes down a proposal, the full Council can call it out of committee by the vote of a simple majority; or 15 votes.  This change would require the suspension of the rules in order to call a TIF proposal out of committee, which requires a 2/3 vote; or 20 votes.

After the motion and a second, Mahern refused to take a vote and asked to postpone the proposal until the next meeting of the committee.  He said postponing would allow time to discuss this amendment as well as one Councillor John Barth would be introducing.  He noted that Barth's amendment was only received that afternoon.  There was no second to his motion.  Mahern then tried to move off Prop 316 and on to the next agenda item.  After some brief, heated discussion, a recess was properly motioned and voted on.

After the recess a vote was taken on Lutz' amendment and approved by a vote of 5-1, with Mahern being the lone dissenting vote.  Then there was a motion and second to postpone further consideration of Prop 316 until the next meeting.  That vote was 4-2, along party lines.

I got no indication from the cheap seats why Mahern was so intent on getting the proposal to the next meeting.  While I would welcome a requirement for a super majority vote on any TIF proposal, it didn't seem to rise to the occasion of clearly violating parliamentary procedure in order to avoid a vote.

Barth's amendment was available at the Secretary's table.  This amendment would gut the entire proposal.  Barth is promoting his own TIF for his own neighborhood - Prop 291; the Mid-North TIF (see "The Mid-North TIF -- Developer Driven and Sans Critical Financial Details").  He introduced his proposal at the last full Council meeting.  Prop 316 was introduced at the same time.  One might expect, therefore, that any implementation of the recommendations of the TIF Study Commission would not apply to the Mid-North proposal.  But, Prop 291 was not placed on the Metropolitan & Economic Development committee agenda for Monday night, and it will not be until after the next full Council meeting that the committee would take it up.  So, as of yesterday morning it looked as if the TIF recommendations would indeed apply to the Mid-North TIF.  I can't read minds, but it is very suspicious that Barth introduced his amendment just hours before the meeting and that amendment would gut the entire list of recommendations contained within Prop 316.

Besides a technical correction, Barth's amendment would add one line to section (b) of Prop 316.  Here is (b) with the added sentence underlined:
(b) The factors set forth in subsection (a) [which enumerated the recommendations] are not exclusive, and the council may consider any other factors it deems appropriate in exercising its discretion to approve or disapprove proposals under I.C. 26-7-15.1(9)(a).  Likewise, the absence of any factor or part thereof does not limit the council's discretion to approve or disapprove a proposal.
With that last sentence included, none of the recommendations would be securely implemented.  The administration, or any that follows, could continue its pattern of withholding key financial information from the Council.  That information is necessary to a realistic look at the TIF being proposed.  Without that information the Council cannot make an informed decision and it cannot carry out its duty to review and vote to approve or disapprove as required by law.

TIFs do not generate free money, as many continue to believe.  TIFs have consequences, as many continue to avoid believing.  TIFs always caused increases in property tax rates.  Now they increase substantially the circuit breaker penalty caused by the property tax caps.  Property tax caps that were voted on by the people.

In this age of property tax caps, it is time for the Councillors to learn about the reality of TIFs. It is time to act as the fiscal body of our City that is different from the Mayor's office and that has a distinct role and responsibility.  It is time to demand full disclosure on proposed TIFs so that a reasoned decision about TIFs can be derived.  It is time to implement, not blow off, the Council's portion of the TIF Study Commission recommendations. 

Tuesday, September 25, 2012

Finally - TIF Study Commission Recommendations At Committee

The TIF Study Commission did extraordinary work - and its knowledge base should be used by each and every Councillor in order to do what is best for Indianapolis.

The recommendations that pertain to the Council are being considered in Prop 316, which is being heard by the Rules committee tonight, beginning at 5:30 pm.  The agenda notes room 260, but it would be really nice to see such a crowd of supporters that it had to be moved to the public assembly room.

The meat of prop 316 is cut and pasted below.  The bottom line is that it will require full disclosure from any administration wanting to create or expand a TIF district.  Its a first.  Its important.

Here are the recommendations in the proposal:
SECTION 1. Chapter 151, Article VI of the Revised Code of the Consolidated City and County is hereby amended by adding a new Section 151-88 to read as follows:
Sec. 151-88. Special requirements for consideration of proposals concerning creation and expansion of allocation areas under I.C. 36-7-15.1.
(a) In exercising the council’s discretion under I.C. 36-7-15.1-9(a) to “approve or disapprove” proposals creating or expanding tax increment financing (TIF) allocation areas under I.C. 36-7-15.1, the council and its committees shall consider the following factors:
(1) Whether the city has provided a cost/benefit analysis that includes a description of how the project plan aligns with the county-wide comprehensive economic development planning document; a description of how the project plan aligns with the local/neighborhood planning document; a market analysis of the existing, possible or likely future free market unsubsidized private development in the proposed geographic area; an analysis of recent changes in the assessed value in the individual parcels located within the geographic area of the proposed project; and an analysis of use of a project TIF as compared to a TIF district.
(2) Whether the proposed geographic area of the proposed TIF district would include parcels that are in the process of being improved, even if not substantially complete enough to be assessed and added to the county’s inventory of taxable property.
(3) Whether the city has created and implemented a uniform TIF application, employing best practices and including all information needed to evaluate the proposed project and all data elements required for a TIF database, including a financial pro forma.
(4) The extent to which the city has employed the use of alternative or complementary economic development tools and infrastructure funding prior to the use of TIF.
(5) Whether the proposal minimizes the duration of the TIF district to the amount of time reasonably required to accomplish both the economic development goals of the TIF district and to provide for the permanent return of incremental assessed value to the base taxing units as soon as possible by decommissioning the TIF district.
(6) Whether the proposed TIF district targets the use of tax increment financing in a targeted, limited and compact geographic area.
(7) Whether the existing TIF districts in the jurisdiction of the redevelopment commission have sunset dates established.
(8) Whether the existing dormant or partially dormant TIF districts in the jurisdiction of the redevelopment commission have been terminated.
(9) Whether the proposal would expand an existing TIF district that does not have an established sunset date.
(10) Whether the proposal is for redevelopment projects or economic development projects.
(11) Whether the proposal includes local hiring goals and MBE/WBE participation goals.
(12)Whether the proposal includes provisions for educational, work training, and worker retraining programs.
(13)The extent to which the base taxing units and community organizations that may be impacted by the creation or expansion of a TIF district were included from the beginning of the process and provided with meaningful economic impact analysis including projections of foregone revenue, not limited to current financial reporting requirements in state law.
(14) Whether the city has adopted semi-annual local reporting requirements, including a three-year capital spending plan for pay-as-you-go projects and other estimated spending for eligible uses of TIF funds.
(15) Whether the proposal includes accountability and remediation requirements for the performance of the TIF district, including progress reports measuring performance against stated goals at the time the district was established.
(16) Whether the proposal captures more incremental revenue than is necessary to cover debt service and reasonable reserves for the associated projects.
(17) Whether the city has established a uniform documentation, reporting, tracking and monitoring system for TIF districts and projects, including a TIF database and a TIF website which would be a repository of the TIF data and information made available to the public.
(18) The extent to which the proposal would remove from the base the incremental assessed value of projects that were completed or substantially completed before the adoption of the declaratory resolution.
(b) The factors set forth in subsection (a) are not exclusive, and the council may consider any other factors it deems appropriate in exercising its discretion to approve or disapprove proposals under I.C. 36-7-15.1(9)(a).
(c) Prior to voting to approve or disapprove a proposal creating or expanding a TIF allocation area, a council committee must publish notice and an agenda of the meeting at least ten (10) days in advance, and the proposal must be specifically included on the noticed agenda.
(d) Any proposal creating or expanding a TIF allocation area must be approved by a standing committee of the council before it can be considered for adoption by the full council.

Monday, September 24, 2012

Prop 15 Gets Public Hearing Tonight - With Notice

Unlike the August 27 meeting of the Metropolitan & Economic Development committee of the City-County Council, the agenda for tonight's meeting does list Prop 15, which seeks to expand the downtown TIF to include the Mass Ave TIF and the Bush Stadium TIF for a total additional footprint of 1.1 square miles.

Proposal 15 remains dead, according to Council Rules, but I expect it to get vigorous debate and a vote regardless.

Not on the agenda is Prop 291, which would approve the proposed Mid-Town TIF.

There is also a budget hearing for the Department of Code Enforcement to be held at the committee meeting tonight.

So, look for a long night.

Friday, September 21, 2012

Proposed Bush Stadium TIF - Google Aerial View

The proposed expansion of the consolidated downtown TIF district (Prop 15, dead, but still being considered by the Council) has two components - a 112 acre eastward expansion to Mass Ave and a 604 westward expansion to capture the Bush Stadium area.  I previously posted a set of Google maps for the proposed Mass Ave TIF for folks to see the fine detail of the TIF footprint (see "What's Wrong With This Picture - The Proposed Mass Ave TIF").  Now I am posting Google maps for the Bush Stadium TIF area. 

I uploaded all the maps to Google docs - google streets, google aerial overview, map 1, map 2, map 3, map 4, map 5, map 6, map 7, map 8, map 9 - so you can zoom in as much as you like.

The Bush Stadium TIF consumes 604 acres and 419 parcels supposedly to support development over a couple of blocks.

Below are a number of maps.  The first two are the street and aerial maps of the proposed TIF footprint.  The aerial map has been enlarged and split into 9 component maps that show street names and building structures in more detail.  Numbers on the aerial map denote the location of the 9 component maps.
















Thursday, September 20, 2012

Mid-North TIF - Developer Driven and Sans Critical Financial Details

A letter to the editor in yesterday's Star, signed by Councillor John Barth and leaders of a number of Mid-North Neighborhood Associations, claims that the proposed Mid-North TIF is not developer driven.

Hogwash.

Developer Leif Hinterberger testified a number of times at the TIF Study Commission.  During his testimony he noted the several years he has been working with Ryan Vaughn, and also listed a number of people in the City administration who he claims promised him that a TIF would be created to fund his project.

The project is 'The Uptown', on the northwest corner of 49th & N. College; a mixed use project of retail and residential.  The southern half of the block is owned by 49-50, LLC, whose agent is Leif Hinterberger.  The northern half of the block was owned by Leif Hinterberger, but recently sold to a Tom Melangton.

Many of these neighborhood groups signed letters asking for quite a bit of public money resources to be aimed at this project.
HOME funds and CDGB grants
Indiana Housing and Community Development Authority tax credits and grants
tax abatements
infrastructure curtesy of DPW
 
The entire block has been subject to a very large number of high weeds and grass complaints, forced mowing and legal action in environmental court, as well as a Health & Hospital demolition order on a building at 4902 N. College.

The Mid-North TIF as proposed (Prop 291 now before the Council) encompasses over a square mile of real estate.  The footprint is known, but nothing else has been disclosed to the public.  This is another pig-in-a-poke being pushed through before full disclosure is required through the passage of Prop 316.

If you take a peek at Prop 291 you'll see next to nothing as far as information, valuable or not, contained in it.  The MDC resolution, which I uploaded to Google Docs, does have the list of 1971 parcels contained in the footprint along with a map. 

Almost 1/3 is in Center Township and the remainder is in Washington Township.  All appears to be within IPS' district.  Center Township already has 30% of all taxable property contained within the increment of a TIF district.  IPS has 22% of all taxable property contained within the increment of a TIF district - what's another 700 some acres and over 1 square mile more.

And, lets not continue with the fairy tale that only new property value will have its property taxes diverted from IPS and placed within the TIF fund.  16 of 40 TIF districts have seen their base converted entirely to increment over the years.  So there is a track record that strongly suggests a high probability that the current value of property within the footprint will partially or entirely become another dead zone for contributing to the services of IPS, and the city-county.

Yes, the proposed Mid-North TIF is entirely project and developer driven.  And it puts an unknown amount of property value at risk, and stands to drive even higher the $15.2 million that IPS qualifies for but cannot collect because of the property tax caps.

If there is financial evidence that any of this is leaping to erroneous conclusions - the City has not provided it to the public.  With a lack of evidence to the contrary, we must conclude that past performance is the only indicator of future performance that we have.

Tuesday, September 18, 2012

Council Debates Sending Prop 15 Back To Committee

By a vote of 20 to 8, the City-County Council voted to send Prop 15 back to committee.  But, there was a brief discussion.  Here is that segment of last night's meeting from the WCTY archives.

Monday, September 17, 2012

Council Sends Prop 15 Back to Committee

Before the meeting officially began this evening, City-County Council President Maggie Lewis approached the microphone and announced that the Council would be sending Prop 15 back to committee.  She framed it as in the best interest of fairness.

Whew !  Given the politics of the situation, this was the best we could hope for tonight.

The new Chair of the Metropolitan & Economic Development committee, Leroy Robinson, will gavel his first committee meeting to order next Monday, September 24, at 5:30 pm.

Community Activist Files Lawsuit to Stop Prop 15

From a press release just issued by attorney, Paul Ogden:
Contact Person:   Paul K. Ogden, Attorney at Law
317-297-9720 (office); 317-728-6084 (cell)  pogden297@comcast
Date:          September 17, 2012
Private citizen Clark Kahlo today filed a lawsuit asking that a Court put the brakes on the expansion of the Downtown tax increment financing district.
Kahlo's lawsuit claims that a city ordinance requires that tabled motions be removed from the table within six months or they are considered dead and have to be removed from the list of pending proposals.  Proposal 15, the downtown TIF expansion proposal which includes Massachusetts Avenue, was tabled by Councilor Vop Osili at the February 6, 2012 meeting of the Metropolitan and Economic Development Committee ("MEDC") and not taken off the table until the August 27, 2012 meeting of the MEDC. The lawsuit alleges that the Proposal is dead and that it is a violation of the ordinance for the full Council to consider the Proposal at tonight's meeting.
The lawsuit also notes the MEDC failed to hold a vote on an amendment to the Proposal 15, which amendment reflected a backroom deal to gain the support of additional counselors for the expansion.
Attorney Paul Ogden, who filed the lawsuit on behalf of Mr. Kahlo, noted the short period of time before the Council's meeting tonight saying:  "I hope that Council President Lewis will do the right thing and pull the proposal from consideration.  In light of the City's ordinance limiting tabled motions to a life of six months, if the Council passes Proposal 15 the measure will be in legal limbo.  The right thing to do is to remove the measure from consideration and have the councilors supporting it to reintroduce it if they so choose."
Proposal 15 seeks to expand the consolidated downtown TIF in two directions - to the east by 112 acres for the purported purpose of financing development on 0.8 acres on Massachusetts Avenue and to the west by 604 acres to finance the development of a couple acres near the old Bush Stadium.

The lawsuit notes that many of the 45 TIF districts in Indianapolis are underperforming and take property taxes away from schools, libraries, parks and public safety.  The lawsuit also discusses that the Indianapolis-Marion County Tax Increment Financing Commission found that there is little transparency and oversight when it comes to the Indianapolis TIF districts. The Commission's several recommendations regarding the creation of TIF districts are on the agenda to be introduced at tonight's meeting.
It should be noted that Prop 16, introduced on exactly the same day and tabled on exactly the same day, has been pulled from the list of pending proposals, as required by Council rules.
 
You can read the court filing by clicking here.

TIF Fact #9 --- Most TIF Districts Underperform County As a Whole

I sent the following email message to all City-County Councillors, select media representatives, and Senator Luke Kenley.
Of the 40 TIF districts with a track record in Marion County, 25 underperformed the County as a whole in 2012 when growth in property values are considered.  Two years ago, 23 underperformed when compared with the County as a whole.
For the pay-2013 tax year, assessed values in Marion County grew a tiny, but positive, 0.8%.
25 of Marion County's TIF districts lost value and underperformed the County as a whole.  15 gained value and outperformed the County as a whole.  Taken all together, the County's TIFs did about as well as the County as a whole.
The consolidated downtown TIF was the 'winner', with a 10.5% increase in assessed value.  The consolidated airport TIF lost 17.8% in assessed value.  All TIFs combined except the downtown TIF showed a loss of 3.8% in value.
Have you requested financial predictions on the growth of the expansion areas being proposed for the downtown TIF?
The Council should demand full disclosure before Prop 15 or any other TIFs are considered.  Otherwise you won't know what you are voting on.

TIF Fact #8 --- 20% of IPS Taxing District Contained Within a TIF - How Much is Prudent?

I sent the following email message to all City-County Councillors, select media representatives, and Senator Luke Kenley.

At some point too much taxable property contained within TIF districts is too much and will cause irreparable harm to the taxing units and the services they can provide due to a crippling increase in circuit breaker penalties. 
22.0% of all taxable property in the IPS taxing district is contained within a TIF.
How much is prudent?
For pay-2013, IPS faces a circuit breaker penalty of $15.2 million.  That's a lot of money left on the table - money IPS qualifies for, but cannot collect due to the property tax caps.  How much of that is due to such a huge percentage of property value locked down in TIFs?
In a city that claims to value a better education for its children, do you know how much TIFs impact the circuit breaker penalty faced by IPS and therefore cause a cutback in services that IPS is able to provide to the children? Do you know the impact of expanding the consolidated downtown TIF by 716 acres (1.1 square mile)?
The Council should demand full disclosure before Prop 15 or any other TIFs are considered.  Otherwise you won't know what you are voting on.

TIF Fact #7 --- 33.3% of Taxable Property in Center Township is Contained Within a TIF - How Much Is Prudent?

I sent the following email message to all City-County Councillors, select media representatives, and Senator Luke Kenley.
At some point too much taxable property contained within TIF districts is too much and will cause irreparable harm to the taxing units and the services they can provide due to a crippling increase in circuit breaker penalties. 
33.3% of all taxable property in Center Township is contained within a TIF.
How much is prudent?
Have you asked for the impact of expanding the consolidated downtown TIF by another 716 acres (1.1 square miles) on the percentage of taxable property in Center Township contained in TIFs - as well as a projection over the next few years of that impact?  Do you know how much is prudent?
The Council should demand full disclosure before Prop 15 or any other TIFs are considered.  Otherwise you won't know what you are voting on.

TIF Fact #6 -- 5 of 6 TIFs Comprising the Consolidated Downtown TIF Have Seen Their Base Driven to Zero Value

I sent the following email message to all City-County Councillors, select media representatives, and Senator Luke Kenley.
Even the much touted consolidated downtown TIF has seen the base of 5 of the 6 component districts driven to zero value (there is also one new TIF district that does not have a track record and therefore is not included here).
Take home lesson - even when a district pulls a $10 or $20 million 'profit' every year, the base is not restored.
Have you asked for any protection of the base of the proposed expansion of the downtown TIF?
The Council should demand full disclosure before Prop 15 or any other TIFs are considered.  Otherwise you won't know what you are voting on.

TIF Fact #5 --- 16 of 40 Marion County TIFs Have Seen Their Base Driven To Zero Value

I sent the following email message to all City-County Councillors, select media representatives, and Senator Luke Kenley.

The fairy tale that property taxes from the base before a TIF district is established will continue to flow to the schools, libraries, and other taxing units after the TIF is created is a potent tale.  As noted previously, it is simply not true.
For the pay-2013 year we now have 16 of 40 TIF districts (the older districts with a track record) whose base has been driven to zero.  Two more bit the dust this year.   They send no property tax revenue to support schools, libraries, fire departments, IndyGo, Health & Hospitals, or even City and County government.
Have you asked for the initial size of the base for the proposed expansion of the downtown TIF?  Have you asked why development already slated to occur over the next two years is being excluded from the base?  This surely is not development that will be spurred by the creation of a TIF.
The Council should demand full disclosure before Prop 15 or any other TIFs are considered.  Otherwise you won't know what you are voting on.

TIF Fact #4 --- TIFs Comprise 11% of All Taxable Property in Marion County - How Much More Is Prudent?

I sent the following email message to all City-County Councillors, select media representatives, and Senator Luke Kenley.
Marion County has 45 TIF districts.
4 new ones with no track record
1 on non-taxable airport land (so an automatic zero base)
40 older ones with taxable property and a track record
Taken together these TIF districts comprise 11% of the total assessed value of Marion County and pull in about $100 million a year in property tax revenues that go to the TIF funds, and not to the schools, libraries, and other taxing units.
Have you been involved in a discussion of how much of Marion County's property value can be consumed by TIF districts without putting our tax base at risk and without forcing uncontrollable circuit breaker penalties on our schools, libraries, and other taxing units?
The Council should demand full disclosure before Prop 15 or any other TIFs are considered.  Otherwise you won't know what you are voting on.

 

TIF Fact #3 --- TIFs Cause Higher Property Taxes For Everyone And Cause 41% of Circuit Breaker Penalties To the Taxing Units

I sent the following email message to all City-County Councillors, select media representatives, and Senator Luke Kenley.
For the pay-2012 property tax year, Marion County TIFs combined to cause increased property taxes throughout the County and caused 1/3 of the circuit breaker penalty imposed on schools, libraries, and other taxing units.
From the TIF Study Commission:
For pay-2012 , all of Marion County's TIFs combined caused
$56 million in increased property taxes to taxpayers
$43 million in increased circuit breaker penalty to taxing units
The total circuit breaker penalty to all taxing units in pay-2012 was $105 million.
Have you asked what impact the proposed expansions of the consolidated downtown TIF are projected to have on higher property tax rates and circuit breaker penalties?
The Council should demand full disclosure before Prop 15 or any other TIFs are considered.  Otherwise you won't know what you are voting on.
Citations : TIF Study Commission Report, Appendix 2, part 1 - pages 6 and 25-26

TIF Fact #2 --- $490 million of property value was transferred from the base to the increment this year

I sent the following email message to all City-County Councillors, select media representatives, and Senator Luke Kenley.
One of the fairy tales told to the public before a TIF is approve is that the property taxes that flow to the schools, libraries, and other taxing units before the TIF was created, will continue to flow to those units after the TIF is established.  Nice story; just not a true story.
This year, in preparation for the pay-2013 property tax year, Marion County TIFs saw $490 million assessed value transferred from the base to the increment.  That is 1/3 of the entire value of the base.
Base = the property value within a TIF district where the property tax revenues flow to the various governmental units
Increment = the property value within a TIF district where the property tax revenues flow to the TIF fund to make payments on bond debt and other expenses or projects
Did you ask how secure the base is for the proposed expansion of the downtown TIF?
The Council should demand full disclosure before Prop 15 or any other TIFs are considered.  Otherwise you won't know what you are voting on.
Citation : TIF neutralization forms filed by the Marion County Auditor with the Indiana Department of Local Government Finance for pay-2013

TIF Fact #1 --- We've Been Bailing TIFs Out For Years

I sent the following email message to all City-County Councillors, select media representatives, and Senator Luke Kenley.
Marion County TIFs have been getting bailed out for years.  Over the last 4 years the City-County has pumped $40.5 million dollars into TIFs beyond what they took in from property taxes on their own.
  • $1.2 million from Local Option Income Tax
  • $6.1 million from garage operations receipts of city-owned garages
  • $16.6 million transfers from consolidated downtown TIF and airport TIF to other TIFs
  • $16.6 million in additional property tax levy to the County as a whole
  • __________
  • $40.5 million 
Did you ask for the financial analysis that shows how the expansion of the downtown TIF will not require future bailouts?
The Council should demand full disclosure before Prop 15 or any other TIFs are considered.  Otherwise you won't know what you are voting on.
Citations: City-County budget ordinances Prop 09-321, Prop 10-234, Prop 11-241, Prop 12-285

Sunday, September 16, 2012

First Do No Harm - Impact of TIFs - Wayne Township

In my last two posts I mentioned the fairy tales that are promulgated in order to sell TIF districts. In case you are reading this entry because of its Wayne Township focus, let me repeat some significant fairy tales and facts.

Fairy Tales Used To Sell TIFs:

First, the taxes that flow from the district before the TIF is set up will continue to flow to the schools and libraries and other taxing units, just like before. Second, the project being funded is just the thing to spark other, privately funded, economic development. This boost in economic development will spur an increase in property values that will pay for everything and we'll all be better off.

Little Know Facts About Marion County TIFs:
On Monday night the Council is set to consider Prop 15, which seeks to expand the consolidated downtown TIF in two directions - to the east by 112 acres to finance development on 0.8 acres and to the west by 604 acres to finance development on a couple of blocks.

Shouldn't the impact of current TIFs be considered before more TIFs are piled on?  Unfortunately for all residents of Marion County, but particularly for those in Center and Wayne Township, Councillors did not ask a single question about Prop 15 at the August 27 meeting of the Metropolitan & Economic Development committee meeting.  It was an appalling affair for many reasons.  And the lack of prudent public representation was part of the reason it was appalling.

There is a huge impact on Wayne Township due to the existing TIFs.  Of all taxable property in Wayne Township, 10.9 % is in a TIF district increment and all property taxes flow to the TIF fund and not the schools, libraries, etc.
  • for Speedway government and Speedway schools, 19.1 % of total property value is in a TIF
  • for Wayne Township government and Wayne Township schools, 9.5 % of total property value is in a TIF
All of the Marion County TIF districts cause a combined
  • $175 thousand increase in circuit breaker penalty to the Town of Speedway
  • $20 thousand increase in circuit breaker penalty to Speedway City School Corporation
  • $1.7 million increase in circuit breaker penalty to the Wayne Township government
  • $3.4 million increase in circuit breaker penalty to the MSD Wayne Township School Corporation
There are 6 older and 1 new TIF district in Wayne Township.  None of them have a zero value for the base.

Of the 6 older TIF districts, there was a combined transfer of $118 million from the base to the increment.   Meaning that property taxes from $118 million of property value that was promised to always go to the schools, fire department, etc, is now transferred to the TIF so that it will now and forever be deposited in the TIF fund instead.
  • $5.5 million of the amount transferred out of the base was in a Speedway TIF
  • $112.9 million of the amount transferred out of the base was from TIFs within Wayne Township, but outside of Speedway.
This is a significant draw down.  The transfer of property value out of the base amounts to 4.4% of the property Wayne Township schools rely upon for funding and 2.0% of the property Speedway schools rely upon for funding.  The impact will be felt in increased taxes and increased circuit breaker penalties.

While very little of the proposed expansion of the downtown TIF appears to be in Wayne Township (the available map is grainy and very difficult to read), its impact needs to be viewed in light of existing conditions within Wayne Township and the impact of existing TIF districts on taxpayers and governmental units.

First Do No Harm - Impact of TIFs - Center Township & IPS

In my last post I mentioned the fairy tales that are promulgated in order to sell TIF districts.  First, the taxes that flow from the district before the TIF is set up will continue to flow to the schools and libraries and other taxing units, just like before.  Second, the project being funded is just the thing to spark other, privately funded, economic development.  This boost in economic development will spur an increase in property values that will pay for everything and we'll all be better off.

Hopefully I've put forward enough data from governmental sources to show that:
The two expansions of the consolidated downtown TIF contained in Prop 15, will have a particularly pointed impact on Center and Wayne Townships, simply because that is where they are located.

Now, there will be much handwaving about economic development - but no specifics released to the public to substantiate the claims.  I am willing to listen to substantiated claims, but find it patronizing and worse to have government officials simply wave their hands, when they are sitting on the financial analyses that will either prove or dispatch their handwaving claims.

I cannot understand why, if the handwaving is true, full disclosure of the financial underpinnings of the two expansions of the downtown TIF isn't being demanded by Council members.  If the handwaving is prop and show, then I can understand not divulging the information; facts might interfere with selling the TIF fairy tale.

The current impact of existing TIFs on Center Township and IPS are pretty staggering.  The following data are taken from the TIF Study Commission Report, Appendix 2, part two (pages 4 and 6).

for the year 2012 TIF districts
  • within Center Township accounted for 33.3 % of all taxable property,
  • within IPS boundaries accounted for 22.0 % of all taxable property
for the year 2012 all Marion County TIF districts caused
  • an increased circuit breaker penalty to Center Township government of $214,770
  • an increased circuit breaker penalty to IPS of $7,767,505

There are 21 TIF districts already in Center Townships - out of a total of 40 established TIF districts throughout Marion County and an 4 additional TIF districts created over the last year or two. Two of the 21 in Center Township are new.

Of the 19 older TIF districts in Center Township, 10 have seen their base erode to zero value. Combined, the 19 older TIFs saw their base erode this year by an additional $5.9 million - about 0.1% of the total assessed value of the base.

I do not have the computer models to discern the increased taxes paid by Center Township and IPS district taxpayers due to existing Marion County TIF districts.  But, the City does and could have provided that information to Councillors, had any been interested.

The City could also provide information to answer these questions:
  • How much property value is in the base for the two expansions?
  • What steps, if any, will be taken to ensure that the base is NOT reduced in future years?
  • What is the cost to the public of the project at the core of the TIF district expansion?
  • Why are you including parcels where private development is already slated over the next few years?  The TIF district will not be spurring those developments, they were happening already.
  • Why do you need a 112 acre footprint to develop 0.8 acres in the Mass Ave expansion area and a 604 acre footprint to develop a couple of blocks in the Bush Stadium expansion area?  Are extra revenues anticipated over and above the debt service for the projects?  Does this amount to a slush fund for unnamed future projects that have not yet been disclosed?
And, that's just some of the questions that should have been asked.  But, they were not asked.

With the huge impact of non-taxable TIF district property already in Center Township and IPS, how on earth can two significant expansions of the consolidated downtown TIF district be contemplated with NO disclosure, beyond the footprints, being demanded by our Councillors?

First Do No Harm - Impact of TIFs - Marion County As a Whole

Many people in positions of power in the County prefer to sell the vision that TIFs create 'found money' that would not have existed but for the TIF, and that the property tax revenues that went to the schools and libraries and IndyGo before the TIF was set up will continue to flow to those units of government after the TIF is set up.

Either they don't know the difference between those fairy tales and reality, or they don't care.

TIF districts in Marion County
From the TIF Study Commission Report, Appendix 2, part one (page 6) you can find the impact of the TIF districts on taxpayers and governmental units alike. In total, this table tells us that for 2012, the TIF districts in Marion County
  • cost property tax payers an additional $56 million in increased taxes, and,
  • cost schools, libraries, etc, $43 million in additional circuit breaker penalties to the governmental units.
Property taxes are passed through to renters, so even those who do not own property are on the hook for a higher cost of living because of TIFs. The loss of revenue to the schools, the library, IndyGo and more, results in loss of services - and $43 million can pay for a lot of services.

The percentage of taxable property tied up in TIF districts and which, therefore, do not contribute tax revenues to the schools, libraries, etc, varies from Township to Township.  From the TIF Study Commission Report, Appendix 2, part two (page 4) you can find the following percentages of taxable property tied up in TIF districts in 2012:

Marion County as a whole --- 8.9 %
Center Township --- 33.3 %
Decatur Township --- 14.0 %
Wayne Township --- 9.5 %
Lawrence Township --- 3.6 %
Warren Township --- 1.1 %
Perry Township --- 0.6 %
Pike Township --- 0.6 %
Washington Township --- 0.3 %
Franklin Township --- 0.1 %

The percentage of taxable property tied up in TIF districts in 2013 has grown to 11.1%, in large measure to $490 million of assessed value being removed from the base and given to the increment.  [The "base" is the part of the TIF district that existed before the TIF district was created.  The "increment" is the part of the TIF district that grew after the district was created plus any value taken from the base and turned into increment over the years.]

For next year, two more TIF districts will see their base drop to zero.  Out of 40 TIF districts, we will have 16 where ZERO tax revenues flow to the schools, libraries, IndyGo, etc.  For 2013 we see 3 TIF districts with an increased base, while 23 have a decreased base.

In the past 4 years we have seen $40.5 million bailouts of the Marion County TIFs districts.  These bailouts came from income taxes, garage receipts from city owned garages, transfers between TIFs, and, startling enough, from increased property taxes outside the TIFs to secure the TIFs.

One can only look at all of this information and conclude - Marion County TIFs are in trouble.  They continue to need more property value extracted from the base and continue to need other tax money to keep them propped up.  The more we keep property off the tax rolls or the more property value we add to the TIF increment, the more it costs taxpayer, residents and businesses to make up the difference.  And, the more property we keep off the tax rolls or the more property value we add to the TIF increment, the more it costs the schools, libraries, and IndyGo in noncollectable revenue due to property tax caps.

The TIF districts that we already have in Marion County are costing us a pretty penny each and every year.  They have not spurred development that would not have otherwise occur.   We should at least ask what impact any new TIF districts will have.  Yet, appallingly enough, not one question was asked about the proposed TIFs at the August 27 meeting of the Metropolitan & Economic Development committee meeting.  Such is the fairy tale and those who do not want to know about the reality of Marion County's TIFs.


Saturday, September 15, 2012

Council Kills Prop 16 - As Required By Its Rules - When Will Prop 15 Be Killed?

Council Rules clearly state that any proposal that has been tabled for 6 months SHALL be removed from the pending list and by that means, declared dead.

from section 151-30 of the Revised Municipal Code:
If a proposal is tabled by a committee and no action is taken to remove it from the table or to reassign it during a period of six (6) months, the proposal shall be deemed postponed indefinitely and shall be removed from the calendar of pending proposals.
As noted previously on this blog, on February 6, 2012, the Metropolitan & Economic Development committee of the Council tabled both Prop 15 and Prop 16.  Prop 15 deals with two expansions of the consolidated downtown TIF.  Prop 16 deals with an expansion of the Fall Creek TIF.

The 6 months clock stopped ticking on August 6.

Now, a review of the proposals pending before the Council show that Prop 16 has been removed and is dead.

Prop 15 qualifies for the same treatment, yet there is a public hearing scheduled before the full Council on it Monday night.

The wording of the Council rule leaves no wiggle room.  It leaves no nuanced decision making.  It clearly says "the proposal SHALL be deemed postponed indefinitely and SHALL be removed from the calendar of pending proposals".

Prop 15 MUST be removed from consideration of the Council.  If desired, it can be reintroduced under a different proposal number.  But the Council rules are clear - and they know it.

Friday, September 14, 2012

Prop 15 Up For Public Hearing Monday Night

In a very unusual move for a non-fiscal ordinance, the Council agenda for Monday night includes a public hearing regarding Prop 15 - the expansion of the consolidated downtown TIF district.

This is the proposal for which we know little beyond the foot print for the 112 acre expansion to the east and the 614 acre expansion to the west and a deal worked out behind closed doors between Deron Kintner and Vop Osili.

This is the proposal that should, by Council rules, be dead on arrival because it was tabled for more than 6 months.

This is the proposal the was not legally amended at the committee level, yet passed out of committee 'as amended.

So, dear public, you have the weekend to prep your comments.  7:00 pm in the public assembly room of the City-County building.  Expect the usual suspects to be rounded up to speak on behalf of this very expensive pig in a poke.

By the way - yet another TIF is being introduced Monday night. 

Thursday, September 13, 2012

Council Rules Demand Props 15 and 16 Be Declared Dead

A review of City-County Council rules found a nugget that demands that Props 15 and 16 be declared dead.

from section 151-30 of the Revised Municipal Code:
 If a proposal is tabled by a committee and no action is taken to remove it from the table or to reassign it during a period of six (6) months, the proposal shall be deemed postponed indefinitely and shall be removed from the calendar of pending proposals.
 
Both Proposal 15 and 16 deal with expansions of existing TIF districts; the consolidated downtown TIF and the Fall Creek TIF, respectively.  Both were tabled at the February 6, 2012, meeting of the Metropolitan & Economic Development committee of the Council.  That started the clock ticking.  Six months from that date occurred on August 6, 2012.  These proposals are dead and must be reintroduced in order to be considered.  Reintroduction would send them to committee where proper (both legal and ethical) notice could be made to the public and real input from the public could be given.

Council Committee Followed Improper Procedure In Pushing TIF Expansion Out the Door

Recently fellow blogger Fred McCarthy, over at Indy Tax Dollars, made a startling discovery regarding the outrageous meeting conducted by members of the Council's Metropolitan & Economic Development committee back on August 27.  McCarthy noted that the committee failed to properly vote on amending Prop 15 before voting to move it to the full Council with a 'do-pass' recommendation (see "Haste Makes Waste").

I just watched the ad hoc extension of the committee meeting and followed closely what motions were made and voted on.  (See "WCTY Archive For Metro Devel Committee" to view this section of the meeting for yourself.)

McCarthy is right.

It is surprising, given Councillor Adams lengthy tenure on the Council, that she would goof this up, but she did.

Here are the series of motions and votes.

0:26 -- Chairman Talley adjourns the meeting.

1:56 -- Councillor Osili moves to take Prop 15 off the table.  Adams seconds.  Cain 'thirds'.

Talley does not recognize Osili's motion.

4:40 -- Adams takes control of the meeting by consent.

5:00 -- Osili again moves to take Prop 15 off the table.

5:48 --  Osili reads full text of Prop 15 with amended parts.

No motion to amend is made.  No second to amend is made.

11:59 -- Councillor Robinson moves for recess.  Adams does 'not entertain at this time'.

12:30 -- Adams say incorrectly that the proposal as amended has been moved and seconded.

13:00 -- vote is taken to move Proposal 15 off the table.

Adams follows vote to take off the table with erroneous statement that the matter is "before us as amended".

19:20 -- Adams says they "need to take a vote on the amendment"

no vote is taken

20:05 -- Adams says, erroneously, that they have amended version of Prop 15 before them.

20:20 -- Adams says she will take a vote on Proposal 15 "as amended" - voice vote, not sure if Robinson in the room.

20:38 -- Councillor Adamson explains his vote, Osili thanks him for his assistance.  It should be noted that if Adamson had not remained in the meeting, and left with Talley and Robinson (who came and went during the ad hoc portion), there would not have been a quorum of the members and no doubt that the meeting could not continue.

22:50 -- Cain makes a motion to move Prop 15 as amended to the full Council with a do pass recommendation.  Cannot hear a second on the video.  Vote proceeds again with a 5-1 outcome (Osili, Adamson, Adams, Cain and Miller yes -- Robinson no).

There is never a motion to amend Prop 15.  There is never a second to amend Prop 15.  There is never a vote to amend Prop 15.

The five yes voting members of this committee clearly do not value public notification that a hot topic will be considered by the committee and therefore real opportunity for public input.  There likely will be protests of this characterization, but when push and shove came together, they acted without public input and were fine with it.

Council rules do not require public input in this type of ordinance, unfortunately.  But, Council rules do require proper motions, seconds, and votes to amend.  If the full Council is not interested in sending Prop 15 back to committee because of lack of public notification and input, then they surely must send it back due to improper Council procedure. 

Kudos to Fred McCarthy for bringing this to light.

Confirmed - Plambeck Out at DMD

Today's IndyStar confirms in its general news sidebar, and now online in a story by Jon Murray, that Maury Plambeck is out as Director of DMD and being replaced by Adam Thies.  The item mentions that Thies' salary will be more than either Plambeck or the Mayor make, weighing in at $110,000.  No mention about the apparent conflict of interest in owning a company making money off contracts that you would now sign as head of DMD.

The piece also mentions that Plambeck will "direct the next round of RebuildIndy projects".  The LISC connection and the $100 million donation to that group from Rebuild Indy funds (aka profits from the sale of the water and sewer utilities) has not been confirmed as of yet by the Mayor's office.

From Murray's reporting:
Plambeck will direct the next round of RebuildIndy projects, the mayor said. Details of his new role -- including whether he will continue to work directly for the city -- are still being worked out, [Mayor's spokesman] Lotter said. 
An alert reader reminded me of the already sweet deal LISC got when $1.3 million of Rebuild Indy money went to refurbish the west wing of City Market so that LISC could set its office close by the City-County Building.  Not that they do any lobbying in that structure; for if they did they surely would have registered with the City as a lobbyist group.

I would also remind readers of the IBJ, that Bill Taft, Director of the  LISC chapter here in Indy, wrote a pro-TIF editorial for the paper back in August.  Looks like LISC is shaping up to be molded into an IDI-type lap dog, showing up on cue to speak in favor of anything the Mayor wants the group to speak in favor of in exchange for a little sugar.

Stay tuned.

Wednesday, September 12, 2012

? Plambeck Out At DMD ?

Rumors are circulating pretty hard in neighborhood circles that Maury Plambeck is out as Director of the Department of Metropolitan Development and that Adam Theis, a City contractor for planning, will be named to replace him.  Don't feel sad for Plambeck, though.  The rumor goes on that he will be named head of a new Local Initiatives Support Corporation (LISC) sub-group that will be funded with $100 million from the Rebuild Indy money (profit from the sale of the water and sewer utilities for those playing along at home).  LISC pays enormous salaries, so Plambeck should be fine.

Here's what I've been able to round up on the internet about the organizations involved.

Theis is currently President of Eden Collaborative, aka Eden Land and Design.  Their website lists a couple of local projects that they consulted on - two at Fort Benjamin Harrison, one for the superbowl legacy project at St. Clair Place, and one for 'transit oriented development' planning for the Metropolitan Planning Organization - part of DMD.  While the website seems to be saying they were a client of DMD for the St. Clair Place project, I could not locate the contract in the City's contract database.  I did, however, find two contracts between DMD and Eden Land and Design. 

Contract 7886 was for $29,040, signed in June, 2010, and expected to run between 6 months and one year.  Its purpose was to create a grant application for the Federal Sustainable Communities Planning Grant Program.

Contract 9009 was initially for $250,000, signed in May, 2011, and expected to run through December, 2012.  In May, 2012, this contract was extended to December, 2013, and had its contract limit increased to $450,000.  The purpose of this contract, in part, was to help determine a good location for an IndyGo transit hub and to aid in planning for transit station locations in various parts of Indy.

LISC is a national not for profit organization that, according to its IRS filings, has as its mission to "assist community residents throughout urban and rural areas of the United States to transform distressed neighborhoods into healthy and sustainable communities".  Their 2010 tax filing listed revenues of $101.7 million and expenses of $110.9 million.  They had an increase in assets of $52.1 million for a total of $443.5 million.  They provided grants to a number of Indianapolis organizations in 2010 - by my total $1.3 million.  While almost all recipients were CDCs, there were two exceptions.   The Children's Museum got $45,000 and, my favorite neighborhood organization (oh the irony) Indianapolis Downtown Inc got $43,875.

LISC lists several pages of key personnel who receive over $100,000 in compensation.  Those listed range from a stunning take home of $599,460 for Joseph Hagan, Senior Vice President, to only $443,442 for Michael Rubinger, President.  The lowest salary of the copious number of Vice Presidents was listed at $136,451 for Kenneth Patrick Maher.  I guess Maher needs to step it up.

Although they list Indiana as a State in which they lobby, there is no listing in the City's lobbyist database for LISC.

The City's budget figures show the Rebuild Indy fund with a June 30, 2012, cash balance of $188,732,284 and an expected December 31, 2012, fund balance of $88,006,647 - or $100 million spent in the last half of 2012.

Stay tuned.

Monday, September 10, 2012

Judge's Ruling Clears Way for Fast Park Facility in Ameriplex

On August 29, Superior Court Judge Michael Keele ruled against the Indianapolis Airport Authority's lawsuit that claimed the Metropolitan Development Commission lacked the authority to modify the land use plan for Ameriplex.  This ruling was unequivocal, ceding no iota of the IAA's arguments as holding legal water.

I uploaded the opinions to Google Docs (here and here)

By ruling against the Airport, Judge Keele has cleared the way for the construction (FINALLY) of the Fast Park facility that was the basis of the MDC's decision way back in February (see "Yesterday's Zoning Case - Its About Far More Than a Parking Facility").

The Fast Park has seen it's entry into the Indianapolis market greeted with legal maneuvers against it by Airport parking facilities who simple did not want Fast Park's competition.  First, Indy Park Ride & Fly over in Plainfield, hired attorney Brian Tuohy to try to shut down Ameriplex's land use petitions filed with the MDC.  The MDC's approval, by an overwhelming vote of 6-2, should have been the end of it.  But, by this time Tuohy had landed a client with even deeper pockets - the Indianapolis Airport.  They filed this lawsuit in March and we finally have a decision, reaffirming the February decision of the MDC and its authority to render that decision.

This is great news for Decatur Township.  I outlined in a five part series how the Fast Park facility will provide us with property taxes outside of the TIF district that consumes most of Ameriplex and will divert tax revenues until at least 2023.  (see "The 800 Pound Gorilla - Indianapolis Airport", "Decatur Township", "Ameriplex", and "Fast Park Project")

It is also great news for those who think the Airport should not use its unlimited resource of other people's money to squelch competition.  Its not even like it's hurting for money and needs the parking revenues from its own operations (see "Mike Wells, Indy Airport Board President, Misled Press and Public on Airport Finances").

Ultimately, it is great news for central Indiana residents who can use another option when deciding where to park their cars when on a flight out of town.  Yelp reviews of the Fast Park operation, in other cities where it is located, give it an average of 4.5 stars out of 5 for 652 reviews.

And last but not least, it must be noted that the Fast Park & Relax facility will be green - with canopies over every parking spot to protect the cars as well as reduce the heat island effect and for solar panels to be affixed to the top.  They capture and use rain water for irrigating their landscaping.  They will have electric charging stations for folks with those kinds of cars.  And, they will help show the way for local businesses to adopt a green approach while still building a business that works.  For, if a parking facility can do it, everyone can.

Its been a long road to reach this victory.  But, we have.  Now, time to celebrate !!!