TIFs - 2013 Legislative Changes Protect the Base & the Curious Case of the North Midtown TIF [corrected]

It has taken me a while, but I finally sat down with the forms filled out last August by the Marion County Auditor's Office, that evaluate the amount of base and increment in each TIF district we have.  These are the annual TIF neutralization forms that I've brought up before in this blog.

The forms for 2013 (pay 2014) are different than those used in previous years.  That is because of changes made just last year by the Legislature to reign in unsound practices that led to the base being eroded each year.  Now it is the actual aim of the form to let the base rise and fall due to changing market values, not due to the amount of tax money the increment took in the previous year.

As a reminder, each TIF district has its Assessed Value split between the base and the increment.  The base is supposed to be the value of the property before the TIF was created, and the increment is the new value supposedly created by the establishment of the TIF.  The taxes that flow from the base are always promised to continue flowing to the schools, city, etc., but we know full well that that promise was not an honest promise - until the 2013 changes were forced by the Statehouse.

Instead of getting to far into the weeds, let me just summarize by saying that the new forms ask how much new construction happened and allots that value to the increment, how much was demolished and allots that value proportionately to both the increment and the base, and, interestingly enough, how much value rolled off from abatements that year and allots it to the increment.  It takes any other increase or decrease in the AV, presumably due to actual rising or falling market values, and allots that proportionately to the base and increment.

In the big view, this change appears to be successful.  I had to make an adjustment for the new North Midtown TIF's inclusion for the first time this year - which was easy enough.  I would have done so for the new Bush Stadium Area and Mass Ave TIFs from 2012-13, but the component TIFs of the Consolidated Downtown TIF are no longer itemized.  Rather, the Downtown TIF and its 10 components are now reported as one set of numbers, as is the Consolidated Airport TIF and its 7 components. 

In the 2011 (pay 2012) TIF summary provided to the TIF Study Commission, the value of the base for all TIF Districts in Marion County was reported as $2.02 Billion.  By the next year, the base had been eroded substantially; in 2012 (pay 2013) the total base AV fell to $1.47 Billion - losing a quarter of its value as half a billion dollars was pushed into the TIF increment.  The latest figures for 2013 (pay 2014), show a stabilized base AV, coming in at $1.47 B, once again (after subtracting the new North Midtown TIF).

Half the TIFs lost value and half gained between 2012 and 2013, with a net growth of $170 M for a total TIF District (base plus increment) value of $5.83 B.  The Downtown TIF accounts for just over half the value of all TIFs in the County, but its growth accounted for the lion's share of the Countywide TIF increment value, adding $149 M.

The State Legislative Services Agency puts together annual reports on the impact of the tax caps.  In 2012, the LSA reported that Marion County TIFs collected $99 M in property taxes.  By 2013, that figure rose to $108 M.  The projected TIF revenue to be collected this year is $118 M.  The Downtown TIF is the big winner, with a projected revenue of $68 M.

The North Midtown TIF was established early last year, so this was the first time the base and increment were evaluated through the annual TIF neutralization process.  The form (p. 7 of the pdf) reports that there was no new construction, $286,300 worth of demolition, and $755,960 in previously abated property coming off the tax rolls.  You'd think that since there was no new construction, the base would continue to be 100% of the entire TIF AV. 

Nope. 

The abatements granted before the TIF was established are now generous donors to the increment.  The increment went from 0 to $469,707, in a year that saw no growth truly attributable to the creation of the TIF.  Since abatements tend to run 10 years and fall off the same fraction each year, one can guesstimate that the old abatements could award the North Midtown TIF about $4 Million over the next decade.  Not bad for just starting a TIF and having no new dollar investments to claim as having been caused by the TIF.  [These are the corrected numbers.  As Anon 10:50 pointed out, I had the incorrect order of magnitude previously.  I apologize for the added drama.]

I await brand new legislation regarding TIFs to get signed by Governor Pence.  I'll report within a couple of days some exciting new Legislative endevors to reign in rampant abuse of TIFs, especially here in Marion County.  They did a good thing last year, by solidifying the TIF base, so that at least one of the promises made when TIFs get created is a promise that stands a chance to be fulfilled.  The North Midtown TIF shows that the revamped system is not perfect, but much improved over the old way.  One step at a time.  One step at a time.

City Pays Generously, If Surreptitiously, For Parcel

Just days ago, I blogged about the curious relationship between the City of Indianapolis and the Circle Area CDC (see "What Is True Role of Circle Area CDC?").  I mentioned the creation by the CA CDC of a company known as CAC 1440, LLC, where the CA CDC was the sole member of the LLC.  From CDC minutes of a meeting on 9/20/13, the only purpose for setting up the LLC was to buy a property at 1440 N. Meridian Street.  The City would provide the money.  This parcel is the preferred re-location site for the Indianapolis Red Cross; moving this organization is the final domino in the complex Mass Ave TIF and Fire Headquarters relocation deal.

I was unable to locate any Sales Disclosure Form for this property at that time.  Many thanks to Marion County Assessor, Joe O'Connor, and especially Director of Data Analysis, Brenda Erbse, for answering my many questions quickly and pleasantly.

It seems that the last two weeks of September 2013, were busy ones.  The CDC voted to establish the LLC on the 20th.  The LLC was established that same day.  And, it seems from an the Sales Disclosure Form available on the DLGF website, the property was purchased on the 30th, just in the nick of time, by the LLC.

The addresses 1440 and 1500 N. Meridian have been bundled into 1510 N. Meridian Street.  The former owner is William G. Mays.  The gross Assessed Value of the property is noted on the DLGF website as $735,600.

The purchase price from our generous folks at City Hall?  $1,600,000.

It seems the complexity karma that afflicts the Circle Area CDC, also afflicts this property.

Another Sales Disclosure Form from the DLGF, shows that Mays bought a bundle of 8 parcels from a 2010 Sheriff's Tax Sale.  The price tag for that bundle was $2,192,000.  Four of the 8 parcels are included in the purchase by CAC 1440, LLC.  The remaining 4 tax sale parcels are not part of the CAC 1440, LLC, purchase.  Property at 1516 and 1518 N. Illinois Street, and 1423 and 1450 N. Pennsylvania Street are still shown on the Marion County Assessor's website as being owned by Mays.  Those 4 properties have a combined AV of $1,086,300.

Again, I raise the questions.  What utility does the City find in using the Circle Area CDC as a middleman time and time again?  What could possibly justify moving money from the City through the CDC and to a nested LLC for the purchase of a property the City was going to buy for the Red Cross anyway?

What is the True Role of the Circle Area CDC?

Regular readers of this blog know full well I am not a journalist.  Just this once, though, I will try my best not to bury the lede.

Why is the City of Indianapolis funneling millions of dollars through an obscure group housed in the Indianapolis Bond Bank on the 23rd floor of the City-County Building?   Of what benefit is keeping this middleman's actions just out of sight?

I speak of the Circle Area Community Development Corporation.  I will tell you about grants from the Metropolitan Development Commission to spend millions of dollars that the MDC can easily spend on its own.  I will tell you about land purchases on behalf of the City.  I will tell you about transfer of operations for City assets to the group.  I will tell you about one documented instance of the creation of 'nesting doll' corporations, further removing the expenditure of public funds from accountability and transparency.  All that I will tell you has documentation that I will provide, should you want to review it for yourself.

This story is still developing.  At this point I am being actively pushed back from my requests for further documentation from the Circle Area CDC and the City that harbors, supports, and guides its actions.  My hope is some investigative journalist with better talent at navigating these warrens than I, will step forward and beat me to the rest of the story.  I will keep digging in any case.

1997 - Establishment of CA CDC and Purchase of Circle Block Parking Garage

The Circle Area CDC was set up by then Mayor Stephen Goldsmith in 1997, in order to purchase a parking garage near the Circle, primarily for the use of Emmis Communications.  This property is referred to as the 'Circle Block Parking Garage'.  I believe the reason for creating the CDC was because the City is barred from taking out an ordinary bank loan, but a CDC is not so barred.  Receipts from the garage were used to pay off the loan over the years.

The CA CDC has 5 board members, all appointed by the Mayor.  It is listed among the Boards and Commissions on the City's website.  Current board members include Nick Weber, former Deputy Mayor, who serves as the Board's President.  The By-Laws for the CDC are also posted on the City's website.

A series of filings about the CA CDC with the Indiana Secretary of State, show an initial Board composition including John Klipsch of the Department of Metropolitan Development and James Snyder of the Mayor's Office.  Beginning in 2000 a lineage of all the Executive Directors for the Bond Bank through today became integral to the organization -  Robert Clifford, Barbara Lawrence, Kevin Taylor and Deron Kintner. 

The principle office address is the same as the Indianapolis Bond Bank in the Secretary of State filings, on the City's Board's and Commission webpage for the CA CDC, and in the SOS filing last year that notes Nick Weber as President of the CDC.  The City's website reports that the Bond Bank is, in fact, the 'Administering Agency', just as DMD is the Administering Agency for the Metropolitan Development Commission.

The same address is also listed on GuideStar.org, which gets its documents from the IRS.  According to GuideStar, the CA CDC is registered with the IRS and that "the organization is not required to file an annual return with the IRS because it is an arm of a state or local government".

Even though it apparently claims to be an arm of government, it is not currently being audited by the State Board of Accounts.

2004 - Participation in Financing Conrad Hotel

According to an email from Deron Kintner, the CA CDC parking receipts from the Circle Block Parking Garage were pledged for the repayment of the 2004 bonds used to finance the construction of the Conrad Hotel.  That would have been during the Peterson Administration.

2009-2010 - Takes Over Operations of Market District Garage

In 2009, after a lengthy public debate on its wisdom, the MDC signed a lopsided agreement designed by the Ballard Administration, with Tadd Miller Enterprises to purchase an existing parking garage at 101 N. New Jersey for $18.5 M, which was the actual cost to Miller's organization for the parking garage plus the old Bank One Ops Center building plus the block that building sits on.  The parking garage, now know as the 'Market District' garage, was purchased by the MDC/DMD on July 19, 2010.  From one of only 4 sets of minutes of the CA CDC Board meetings that I have been able to obtain, the CDC voted on November 17, 2010, to enter into an agreement with the City to operate the Market District garage on behalf of the City.  According to the MDC/Tadd Miller Enterprises agreement, receipts from the garage were to provide part of the payment for the $1.85 M loan Miller arranged with a bank.  It is not clear at this point how the money collected by the CDC makes its way to the bank, or even if that method of payment was altered in a later agreement.

From the minutes, "Mr. Kintner also explained that the CAC [what I am calling the CA CDC] will not own this garage and will only be an intermediary".  And, "Mr. Kintner recused himself from voting on this resolution, citing that the Bond Bank has been working with the City on this deal and will be accepting a fee for consultation on this deal".

2011 - Purchase of 302 E. Washington St. Parking Lot, $600K Grant From MDC

At its July 26, 2011, meeting the CA CDC, approved the purchase of a privately owned parking lot across the street from City Hall, and directly south of the two MSA parking lots, at 302 E. Washington Street.  The purchase price was $4.34 M.  The Assessed Value of the property was half that; $2.2 M. 

The minutes report, "Mr. Bice asked how the purchase price was determined? Mr. Kintner stated that the price was based off of negotiations and the amount that the CAC organization could afford to repay."  And, "Mr. Pratt gave a brief overview of the financials for the parking lot and was confident that the parking lot would generate sufficient revenues to repay the loan for the purchase of the real estate." 

On April 5, 2011, the CA CDC approved a Resolution to

"allow the Circle Area Corporation ("CAC") to oversee the distribution of proceeds from the Metropolitan Development Commission in the amount of six-hundred thousand dollars for the PNC Bank and Indianapolis Arts Garden connector. 

"Bruce Donaldson explained that there will be a process put in place that would document the tracking of disbursements for the project.  The Bond Bank will oversee the tracking.

"Board Member Jennifer Pyrz, asked if the project would need to abide by City guidelines in terms of selecting contractors?  Mr. Kintner answered in the negative stating that since the CAC is administering this loan, the project is not required  to follow those procedures."

The MDC dispersed the $600,000 in the form of a grant to the CA CDC.  The MDC used TIF funds and passed it through to the CDC, presumably for the reason queried at the Board meeting - the CDC did not have to following rules governing competitive bidding and transparent selection of contractors; procedures that were required of the MDC.  The grant document does not require that the CDC report back, provide invoices, nothing except return any money not spent.  Here is the most 'demanding' paragraph of the grant:

"CAC hereby agrees to accept the grant of the Project Funds in the amount of $600,000 and to use such funds solely to pay or reimburse costs of the Project.  CAC agrees to enter into a project agreement with the owner or manager of the PNC Center pursuant to which CAC will disburse or provide for the disbursement of Project Funds only upon submission of proper evidence of work completed on the Project and the value of such work.  Any interest earned on the Project Funds shall be returned to the Commission.  If CAC has not spent all of the Project Funds on the Project by December 31, 2012, any remaining balance shall be returned to the Commission."

 

2012 - $9 M Grant From MDC

On April 2, 2012,  the MDC 'granted' the CDC money for the construction of two parking garages in City Way (aka North of South).  This grant was for $9 M.  This time, some review by DMD was required prior to spending the money. 

"CAC hereby agrees to accept the grant of the Project Funds in the amount of $9,000,000 and to use such funds solely to pay or reimburse costs of the Project upon receipt of DMD's approval of such payments or reimbursements.  Any interest earned on the Project Funds shall be returned to the Commission.  If CAC has not spent all of the Project Funds on the Project by December 31, 2013, any remaining balance shall be returned to the Commission."

2013 - Purchase of 131 N. Alabama Parking Lot and Creation of Nested LLC

On May 6, 2013, the CA CDC purchased two parcels with the common address of 131 N. Alabama Street.  This parking lot abuts the north side of the two MSA parking lots.  The financing for the development of the northern MSA parking lot goes to the City-County Council tomorrow night for a vote.  The purchase price for 131 N. Alabama Street was $1.08 M.  Assessor records show a combined Assessed Value of the parcels to be $1.103 M. Nick Weber signed for the CDC.

On September 20, 2013, at a Special Meeting of the CA CDC, they voted to authorize the creation of CAC 1440, LLC, for the sole purpose of purchasing property at 1440 N. Meridian, and potentially another parcel only referred to as 'the 1520 site'.  The minutes indicated that the City was providing the funds.  The City's complicated deal to create the Mass Ave TIF and relocate the IFD station and headquarters located there, hinges on relocating the Red Cross as the last domino to fall in place to make the entire deal actually work.  The desired new location was 1440 N. Meridian, but due to delays by the national organization, it was feared that the closing could not occur by the target date of September 30.  The site was referred to as the 'Norle site'. 

From the minutes:

"Mr. Fullbeck agreed that the situation was accurately explained.  He added that he has spoken to the Director of the Indianapolis Red Cross, who apologized for the delay and the need to take this step.  The Director has indicated to him that the holdup is simply bureaucracy and has nothing to do with the actual site.  The City of Indianapolis did originally ask for an extension from Norle when they learned of the need to do additional environmental work.  Norle said they would be willing, but asked for a significant sum of money in order to do so.  City feels that involving the CAC in the purchase in this manner is the more prudent option."

So, the CDC set up a nested organization, CAC 1440, LLC, that very day.  The CDC is the lone member of the LLC, but is not mentioned at all in the filings with the Secretary of State.  Why was it so important to remove the City from the purchase to an organization nested within the CDC? 

I have not found any evidence that the parcel was actually purchased by the City, the CDC, or the LLC.

--

From simply glancing at the timeline of the history of the Circle Area CDC, one can see that its utilization by the Ballard Administration is novel and picking up speed.  Understanding why it is being used so heavily is another matter.  The CDC does nothing in concept that the City cannot do on its own and out in the open.

Perhaps the utility of the CDC lies not in what it can do, but rather in the polices and practices it can circumvent, and its ability to hide its actions from public view, that makes it so attractive to Ballard and his crew.  So, what policies does diverting City functions to the CDC avoid?  What public records laws don't apply to the CDC, but apply to the City?  What bidding processes can be avoided?  What hiring quotas required of the City, can be circumvented by the CDC?  Why go to the trouble of creating nested organizations?  (It sure looks like they were trying to cloud the trail to the real purchaser's identity.)  What accountability and transparency is sacrificed by the granting of public funds that the MDC could easily spend without employing a middleman?  Does it relieve the City of its obligations for due diligence and proper oversight of the expenditures of public funds?

I don't know.  But, something is going on that needs a whole lot of explaining. 

I'll keep trying to get documents.  All I have obtained to date are minutes from a mere 4 meetings of the Circle Area CDC Board.  Just look at the curious activity they revealed.  Imagine what might be in the rest of them.

Neither Mayor Cares What You Think

Neither Mayor Ballard nor Mayor Vaughn care what you think.  Not about anything.

The latest example is the acceptance of the Mass Ave project announce yesterday.  The process could have included a public showing of all competing designs so the affected neighborhoods could comment.  It did not.  There wasn't any public process.

There should be clawbacks in the project agreement regarding any final design passing muster with our laws.  I have requested the RFP and all submitted proposals - I'll let you know if there is any such stipulation.  It would be a welcome precedent, if such a stipulation was in place, but I'm not holding my breath.

Now, like the Broad Ripple parking garage, variances are required to actually make the winning design compliant with our laws.  And, not just any aspect of the design - the centerpiece Times Square LED HD screen is a violation of our sign ordinance and is nowhere near a fit with the historic neighborhood in which it would lie.  Its not an accent piece, like some brightly colored throw pillow on an earth tone sofa.  Its a glaring, possibly blaring, monster truck wheel on an Amish buggy.  So, what if it is denied by the BZA and the Historic Preservation Commission? 

 One of Mayor Vaughn's goals for his first term, is to make sure the Boards and Commissions give up any independent thought when it comes to issues Vaughn holds dear - like throwing public dollars needlessly at developers. Expect an extreme amount of pressure to be put on those members of the BZA and the IHPC.

They say that the relocation of the fire station that now occupies the parcel is still under consideration.  So, you'll believe that I'm a true psychic if I tell you it will be located on the north end of 510 N. College.

If I'm wrong, then the fire station location could be opened for public comment - just like it should be.  I'd prefer to be wrong, but I'm not - I'm psychic.

Meanwhile, you might like the new design and all that it implies for the future 'scene' on Mass Ave, or you may not.  It really doesn't matter.

Councillors Mahern and Adamson Stand Up for What is Right

Yesterday was a bad day for sense and sensibility in Indy government.  The Council voted 25 to 2 to pass Prop 15, which expands the consolidated downtown TIF by more than a square mile.

The only two who had the strength of their convictions were Councillors Brian Mahern and Zach Adamson.  Angela Mansfield appeared to be absent and Vernon Brown was excused from voting due to a conflict of interest. 

By my count, at least 7 Councillors, bent their principles and voted in favor. (Others were always going to vote the party line, the public interest be damned.)  Sure, their vote would not defeat the measure, but it would have sent a message that the ongoing community discussion on TIFs is necessary.  That conversation will continue.

Councillor Vop Osili made promises to folks living in the Riverside and UNWA neighborhoods.  The language he negotiated and inserted into Prop 15 fails to target those promises to those neighborhoods. 

Councillor Joe Simpson refused to amend the Mass Ave portion of the TIF to exclude 2 of the several parcels that are already slated for private investment.  This extension of the consolidated downtown TIF is merely being created as a slush fund for the Ballard administration, and Simpson is fine with that.  He and they are stealing revenue that would have gone to help teach the children of IPS, stealing revenue that would have gone to deliver poor relief in Center Township, stealing revenue that would have gone to IMPD, IFD, IndyGo, Health & Hospitals, Parks, and the libraries - and spending it on development that could and would have happened without the TIF.

I sincerely hope that a dye was not cast last night.  I hope we merely walked down the wrong path on a course that we can change before it is too late.  TIFs have consequences.  They are not free money.  At some point, we will cross a line that harms Indy's economy and the services we pay taxes for.

Councillors will feel the urge to get in line to get a TIF for their area, too.  By my count, the two that passed last night are just the first of 8.  I don't know where the line of economic harm is.  Perhaps it isn't even a bright line, but rather a gradual loss of services and quality of life for most of Indy's residents until drastic cuts in public safety and education become routine, and we do the best we can to wait out the 25 year lifespan of the TIFs.

The issue of TIFs is a hard one.  I have been happy to see the community trying to get on top of it, digest it, and decide upon it.  The conversation began in earnest about a year ago as key people in key groups began to understand there is no free ride with TIFs.  And the conversation will continue. 

Today I want to thank Councillors Mahern and Adamson for standing up for Indy, even when the powers that be tried to make them bow.  We need elected officials with spines and principles and who will fight for what is right and best for Indianapolis and its people.

The public good suffered a blow last night, but the fight continues.

The Case Against Prop 15

Tonight the Indianapolis-Marion County City-County Council is poised to vote on Prop 15 - which would expand the consolidated downtown TIF district in two directions for a total addition of 1.1 square miles.

There are three components :

A) 112 acre easterly expansion, less than half of which runs along Mass Ave (see "What's Wrong With This Picture - The Proposed Mass Ave TIF" for maps of the proposed TIF) all supposedly needed for the development of 0.8 acres.

B) 604 acre westerly expansion (see "Proposed Bush Stadium TIF - Google Aerial View" for maps of the proposed TIF) all supposedly needed for the development of a couple of block area.

C) Also pasted on top of the expansion TIFs are three programs - a $2 million microloan, a $10 million microloan, and a $1.5 million job training program - to be funded by the TIFs.  It must be noted here that TIF funds may only legally be spent on projects within the TIF boundaries and these programs run significantly beyond boundaries.

These are the reason that come readily to mind as to why Prop 15 should be defeated.

1) Prop 15 is dead --- Council rules require that any proposal that is tabled for more than 6 months be removed from the list of pending proposals.  This is exactly what happened to Prop 16, another TIF proposal, which had been introduced and tabled on exactly the same dates as Prop 15.

2) There is a lawsuit pending against the Council for taking any action on Prop 15 because it is dead.  It should give any member of the public pause as to why the Council did not simply follow its own rules and reintroduce the proposal under a new number.  It would only be two weeks from now, before it would be back to the full Council.  Likely, they did not want the TIF Study Commission recommendations (Prop 316) to beat it into law.  This brings me to 3)....

3) The TIF Study Commission recommendations (Prop 316) (see "Finally, TIF Study Commission Recommendations At Committee"), which would require full disclosure of the underlying finances of the proposed projects and the abilty of the TIF to generate adequate revenue to make payments on any debt incurred.  The way I have been framing the need for information is so that the Council and the public could see for themselves - Why a TIF?  Why this location?  Why this project? Why this footprint?  Clearly, the rush on Prop 15 is because there is a concerted effort to avoid full disclosure.

4) The Mass Ave area is thriving, if not downright booming, and has at least 3 large projects already slated for 2013 and 2014 - needing no public dollars.  (Well, suddenly the developers are supposedly telling Deron Kintner, deputy mayor for economic development and director of the bond bank, they think they might need public dollars after all.  Believe him if it makes you feel better.  Many Councillors, who know for a fact that Kintner has previously lied to the Council and to the press, will be citing his words when these TIFs don't work out well.  But, I digress.)  Creating a TIF here is ass backwards from how TIFs are supposed to be created.  The intent is to create a TIF to fund a project to spark development with private dollars.  Instead, the Mass Ave TIF is being created to cannibalize tax revenues from development made with private dollars.  By all rights those tax revenues should be flowing to the schools, library, IndyGo, etc, instead of to a TIF fund.  This is how you set up a thriving slush fund - not a beneficial TIF.

5) The Mass Ave TIF contains three 'nodes' - two along Mass Ave and one abutting the current consolidated downtown TIF.  At least half of the 112 acres is contained in this mystery node.  I have only heard one question asked in a public venue about this huge footprint.  Councillor Zach Adamson (who ultimately was the lone, brave, vote against Prop 15 in committee) asked why that node was needed.  Kintner's answer was that he could not divulge that information at this time.

6) One of the bids responding to the RFP put out by the City to solicite plans to relocate the Mass Ave fire station, actually offered $2 million to the City to buy the property and did not request any public dollars. This proposal was rejected.  The three proposals still in the running curiously all ask for a TIF to be established and for public dollars to be invested in the project.  Now, why would a developer care where public dollars came from?  Really !  This is an example of exactly how stupid and gullible Kintner and the Vaughn/Grand/Ballard administration think the public and the Councillors are.

7) I have not heard one question asked as to why there must be 604 acres of TIF to support a couple of blocks of infrastructure improvements in the Bush Stadium area.  This is the only project publicly acknowledged by the administration.  Obviously, the Councillors have no answer to why this footprint is necessary and wise.  Instead, they focused their attention on getting residents of the area to speak in favor of the TIF because their neighborhoods need help.  Mark Fisher of Develop Indy worked to turn out the residents.  While any caring human being wants to help, we have no gauge for whether or not this TIF is the answer, whether or not other public funds can address the issues, and where this area lands on a prioritized list of neighborhoods in need.

8) The language added to Prop 15 to satisfy some of the neighborhood leaders' interest in tearing down the old Bryant Heating & Cooling facility, is slipshod and may not be enforceable. Lets see if anyone introduces an amendment tonight to clear up the language, or if the Councillors are content to leave it in doubt.

9) There has been no financial data or analyses introduced that would justify why a TIF, why this location (although some need was demonstrated), what project much less why that project, and why this footprint for the proposed Bush Stadium area TIF.

10) The $2 million microloan and the $1.5 million job training programs would be made available to anyone within a 2 mile perimeter of the outline of the two-way expanded consolidated downtown TIF. The language is so poorly written that the recipients may not have to be low income, and/or may not have to have a business located in a low income neighborhood.  Promises have been made to nearby neighborhoods and the Indianapolis religious community at large, that these programs are to help the residents within or abutting the TIF area.  These promises are false promises - if you go by the agreement that has actually been reduced to writing.

11) Expending TIF funds, or swapping TIF dollars for other City dollars, to pay for the $2 million microloan and $1.5 million job training programs outside of the footprint of the TIF would be illegal.

12) The $10 million microloan program has no details except it would be funded by the TIF and spent throughout Indianapolis.  Expending TIF funds, or swapping TIF dollars for other City dollars, to pay for the $10 million microloan program outside of the footprint of the TIF would be illegal.  The City could use $10 million to fund raises for IMPD and IFD, and/or a recruit class for IMPD and IFD.  Money the administration insists is not available.  What will be sacrificed for this microloan program, if the law is actually followed and TIF funds are not used for the program?

13) There has been no consideration given to the question, how many TIFs are too many TIFs for Indianapolis and Marion County.  Already 11% of all taxable property is contained in a Marion County TIF, 33% of all taxable property is contained in a Center Township TIF, and 22% of all taxable property is contained in an IPS district TIF.  Prop 15 seeks to add another square mile of TIF to each of those jurisdictions.  Prop 15 will cannibalize taxes that would have flown to the schools, library, IndyGo, Health & Hospitals, Townships, Fire, IMPD, Parks, as well as the City and County government.  Prop 15 will decrease the tax revenues that flow to these units, as well.

For completeness sake, I recommend the following blog entries as well -- "TIF Fact #1 -- We've Been Bailing Out TIFs for Years", "TIF Fact #2 -- $490 million of property value was transferred from the base to the increment this year", "TIF Fact #3 -- TIFs Cause Higher Property Taxes For Everyone and  Cause 41% of Circuit Breaker Penalties To The Taxing Units", "TIF Fact #4 -- TIFs Comprise 11% of All Taxable Property In Marion County - How Much More is Prudent?",   "TIF Fact #5 -- 16 of 40 Marion County TIFs Have Seen Their Base Driven to Zero Value",  "TIF Fact #6 -- 5 of 6 TIFs Comprising the Consolidated Downtown TIF Have Seen Their Base Driven to Zero Value", "TIF Fact #7 -- 33.3% of All Taxable Property in Center Township is Contained Within a TIF -- How Much is Prudent?", "TIF Fact #8 -- 20% of IPS Taxing District Contained Within a TIF -- How Much is Prudent?", "TIF Fact #9 -- Most TIF Districts Underperform County as a Whole" )

There are many excellent reasons for Prop 15 to be voted down tonight.  But, instead, what we will witness is greed, ambition, threats of retaliation, blackmail, and willful ignorance drive the Council to pass this retched dreck.