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.

? 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.

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 !!!

Budget Hearings This Week

There will be budget hearings on Tuesday and Wednesday this week.  The previously scheduled hearing for tonight's Metropolitan & Economic Development committee has been postponed until September 24.

Tuesday, September 11 -- 5:30 pm in room 260 of the city-county building
Admin & Finance committee

County Treasurer/Commissioners

County Auditor/Administrator

Noble of Indiana

Marion County Fair Board

Wednesday, September 12 -- 5:30 pm in room 260 of the city-county building
Public Safety & Criminal Justice committee

Department of Public Safety (Excluding IMPD & IFD)

Office of the Director

Homeland Security

Animal Care and Control Division

Communications

Most Marion County TIF Districts Underperform the County As a Whole

To hear some folks tell it, TIF districts are shear magic - outperforming non-TIF areas handily.  Aaahh - how nice to bask in the sweet light of successful economic development.

Um.  Only one problem.  It turns out not to be true.

Using growth in 2011 of the assessed value of all taxable property in a TIF district as a measuring stick, only 15 TIFs grew faster than the County as a whole, which grew a modest 0.82%.  25 TIFs not only grew slower than the County as a whole, they lost value.

This is apparently not an isolated year.  In 2009, when the County lost 1.2% in total assessed value, 17 TIF districts outperformed the County while 23 TIFs underperformed.

These numbers are pulled from the forms the Auditor submits annually to the State's Department of Local Government Finance.  I previously reported the loss of about one third of the value of the base for 2013, substantiated by these forms (see "Marion County's TIF Districts See Base Erode By Nearly Half a Billion Dollars In One Year").  The forms, obtained from the DLGF, are available on Google Docs.

Some more analysis from 2011 --

All TIF districts combined grew only 0.76%, practically a dead heat, but outperformed by a micron by the County as a whole, in fact.

The assessed value of the consolidated downtown TIF district grew by 10.5%.

The assessed value of the consolidated airport TIF district lost 17.8% in value.

The combined assessed value of all TIFs except the consolidated downtown TIF lost 3.6% in value.

So, when they tell you that TIFs are an economic panacea, don't believe them.  In our experience in this County, TIF districts do not outperform as a rule - instead, TIFs raise property taxes and cost the taxing units tens of millions of dollars in lost revenue each and every year.

Elimination of Homestead Credit - City Gains, Schools Lose

Mayor Ballard has suggested that the Homestead Credit given to Marion County homeowners be eliminated in order to help balance the City's 2013 budget.

While the City-County government stands to gain $8.6 million if the local Homestead Credit is eliminated from property tax bills, other units of government are not universally so lucky.  In fact, the public school districts in Marion County stand to lose a combined $3.5 million should the Credit be eliminated.

I have uploaded the analysis of the impact of eliminating the Homestead Credit to Google Docs.  This analysis was conducted by the City's Office of Finance and Management and sent to me by City Controller Jeff Spalding.

The local Homestead Credit (listed as "local property tax credits" on your property tax bill) is funded with $13 million of County Option Income Tax revenue.  Because of the distribution formula for COIT money, the lion's share of the Homestead Credit is funded by the City-County government.

If eliminated, those homeowners who have not reached the property tax caps will see an increase in their property tax bill equal to the amount of Homestead Credit they now get - which apparently ranges from zero to over $100, but typically less than $40.  The vast majority of homeowners who have hit the property tax caps, will see no change, as the tax caps will increase to cover the loss of the Credit.

Its the last part that causes the complications.  Property tax caps (also known as circuit breaker credits) are the property tax revenues that do not flow to the units of government, and that serve to reduce the amount of property tax money the unit does receive.  Each unit sets a budget and calculates the amount of property tax revenue it will need for the next year.  That amount of revenue is split among all property owners by the calculated tax rate.  When you hit the tax caps, the amount of your tax cap credit is deducted from the amount of money requested by the unit of government.  So, if they requested $10 million and their share of the property tax cap credits issued is $1 million, the unit only gets $9 million.

The analysis of the impact of eliminating the Homestead Credit looks at the gain in COIT money each unit will get because it no longer would be diverted to fund the Credit, and the loss of property tax revenues due to the increase in property tax cap credits ("CB" in the analysis) that would replace the Homestead Credit for many homeowners.

The net increase or decrease in revenues falls out like this:

City-County government -- increase revenue $8.6 million

School Corporations -- lost revenue $3.5 million

MSD Decatur  -- lost revenue $191,490
Franklin Township -- lost revenue $454,301
MSD Lawrence -- lost revenue $660,177
MSD Perry -- lost revenue $303,524
MSD Pike -- lost revenue $134,271
MSD Warren -- lost revenue $240,560
MSD Wayne -- lost revenue $332,732
Beech Grove -- lost revenue $ 70,713
IPS -- lost revenue $818,569
Speedway -- lost revenue $3,049
 

Township governments are mixed.  The three westside Townships, who still have their fire departments, would see increased revenue, while the rest would lose money.

Center -- lost revenue $11,061
Decatur -- increased revenue $40,623
Franklin -- lost revenue $19,085
Lawrence Tnsp -- lost revenue $7,273
Perry -- lost revenue 3,108
Pike -- increased revenue $221,706
Warren -- lost revenue $1,137
Washington -- lost revenue $8,467
Wayne -- increased revenue $282,500
 

The excluded Cities would see increased revenue, while the Towns would see lost revenue -- I'll leave you to click on the link for the exact numbers.

IndyGo would lose $254,781, the Indianapolis-Marion County Public Library would lose $428,227, and Health and Hospitals would lose $648,399.

I am hearing that the elimination of the Homestead Credit is receiving a tepid response in the Council.  The hit that the schools would take will not help improve the mood.

Budget Hearings This Week

The budget hearings continue with three hearings this week.

Tuesday :  Admin & Finance committee

Building Authority

Bond Bank and Debt Obligations

City-County Council and Clerk

County Assessor

 

 Wednesday : Public Safety & Criminal Justice committee

Marion County Sheriff – Civil, Jail, Executive, Support Services

County Coroner

Forensic Services Agency

 

 Thursday : Public Works committee

Department of Public Works

 

All meetings begin at 5:30 pm in room 260 of the City-County building.