July 23, 2004
City officials are reviewing designs for a new
Indianapolis Colts stadium drafted by three architectural firms
hired earlier this year to help determine whether a new Downtown
arena is feasible.
Computer designs, 3-D models and cost estimates for
a 70,000-seat stadium have been in the works for months, but
officials in Mayor Bart Peterson's administration refused to make
the designs public.
The Capital Improvement Board, the city body
overseeing the RCA Dome, requested the designs in March and paid
three firms $35,000 each for their work -- even as city officials
insist they have not decided whether to replace the 20-year-old
dome.
"We were really looking to get ideas and feedback
as part of the feasibility assessment," said Fred Glass, president
of the quasi-governmental board and one of the city's top
negotiators in talks with the Colts.
"It truly is an assessment piece, not an
implementation piece."
Talk of a new stadium, kept under wraps for months
by city and Colts officials, is now directly linked to developing
plans to expand the Indiana Convention Center -- a necessary move,
the city has said, to stay competitive in the convention
industry.
In a March 25 letter, the board asked four firms to
submit design proposals by May. The letter asked those firms to
keep several assumptions in mind, such as:
• A new stadium would have a capacity of
63,000 -- adjustable to up to 70,000 -- with 120 suites and 7,500
club seats. That compares with the RCA Dome's 57,890 seats and 104
suites.
• The arena would have a fixed roof instead of
a retractable roof -- like the kind in use at Houston's Reliant
Stadium. The letter, however, suggests designers should provide a
retractable-roof alternative.
• The building would be located on 25 acres
south of the Indiana Convention Center, which could be expanded by
200,000 to 275,000 square feet into an area now occupied by the RCA
Dome.
Three firms responded to the letter: Ellerbe
Becket, of Kansas City, Mo., which designed the Arizona
Diamondbacks' Bank One Ballpark; HOK Sport, also of Kansas City,
which designed Reliant Stadium; and Dallas-based HKS
Architects.
A fourth company, Kansas City-based HNTB Corp.,
which designed the original RCA Dome, did not respond, Glass
said.
None of the design companies returned phone calls
seeking comment.
Glass refused to disclose cost estimates produced
by the firms but said the board has been working on an assumption
that a fixed-roof stadium would cost roughly $450 million.
The Colts and the city have been in negotiations
for a new long-term contract since late 2002. The team's lease runs
through the 2013 season. But the contract includes an escape clause
that could kick in after the 2006 season if the team's revenue
doesn't consistently match the National Football League's median
income.
Source: IndyStar.com
Last year, Mayor Bart Peterson said it was
reasonable to assume the two sides would sign a new lease this
year. Weeks later, Colts owner Jim Irsay said such a deal would
likely include "something that would lead to a new stadium."
Peterson refused to comment on the letter Thursday.
His chief deputy, Michael O'Connor, said the need to expand the
Convention Center is currently a bigger factor than the Colts
lease, in terms of stadium planning.
"We're going to have to plan for a new venue" if
the Convention Center is built into the current RCA Dome space,
O'Connor said. "We've been very clear that we're going to expand
the Convention Center."
City and Colts officials would not comment on what
impact the designs have had on contract talks with the team.
Reached Thursday, Colts Senior Executive Vice
President Pete Ward refused to comment on the designs.
The two sides met last week in a negotiating
session that both Irsay and Peterson attended, O'Connor said. He
said the designs were not directly discussed at the meeting.
The request for those designs was not approved by
the Capital Improvement Board. That would have made the issue
public. Instead, a "building task force" created by the board
authorized the request, Glass said. The letter is marked
confidential and asks firms not to share its contents.
On Thursday, The Star filed a formal request for the stadium designs under the state's open-records law.
Asked why the letter was kept secret and why designs would not be released to the public, O'Connor said there was nothing wrong with commissioning the work in private.
He added that the public would have a chance to weigh in on designs later.
"None of these are proposals," O'Connor said. "They are conceptual models."
At least one sports expert said it makes sense to work out conceptual designs before sealing a deal with a team. That way, officials know what they're getting into.
Cleveland State University sports economist Mark Rosentraub added that Indianapolis' positioning was not uncommon in other cities.
"If you're going to do a deal with a team, you have
to be sure of your goals and objectives," Rosentraub said. "It
sounds like Indianapolis is taking a step in the right
direction."
COLTS SHOW OFF NEW STADIUM
September 11, 2008
Copyright 2008 MediaVentures
Indianapolis, Ind. - Commissioner Roger Goodell attended the first regular-season game in the
Indianapolis Colts' new $720 million home, and was struck by everything the facility had to offer.
"It's spectacular," Goodell said prior to the Colts' season opener against the Chicago Bears. "I
had a chance to walk around a little before the game and it's got a lot of character."
The retractable roof was open as was the sliding window on the north side of the stadium.
"The biggest thing was the glass windows at the end," Goodell said. "It's just striking the way it just brings the whole community into the facility. It's got a lot of character.
"I think it represents this community very effectively."
Lucas Oil Stadium will be the epicenter of the NFL when Indy hosts Super Bowl XLVI in 2012.
On a non-Lucas Oil Stadium issue, Goodell said the league is looking into altering its current
schedule of 16 regular-season games and four or five preseason games. Ideally, the result will be
18 regular-season games and two preseason games.
"We're giving serious consideration to it,'' Goodell said. "There are still significant challenges ahead, but we think it's compelling from the standpoint of the quality of our preseason and reducing that by two, adding those two into regular-season games. (Indianapolis Star)
OPERATING COSTS JUMP IN INDIANAPOLIS
September 18, 2008
Copyright 2008 MediaVentures
Indianapolis, Ind. - The costs of operating Lucas Oil Stadium could leave the city with a budget
hole twice as large as earlier projected.
Officials at the Capital Improvement Board, which operates the city's stadiums and convention
center, plan to draw $25 million from reserves this year and in 2009, $20 million of which will go to higher stadium operating costs.
Previous estimates put the extra costs of running the new stadium at about $10 million.
Lucas Oil Stadium, at 1.8 million square feet, is nearly double the size of the
soon-to-be-imploded RCA Dome, so its higher operating costs aren't surprising. It needs more
people to work on its cleaning crews, with its food vendors and in parking. Its water and electricity costs are higher, too. CIB officials weren't able to provide numbers on how many more game-day workers are needed, but the full-time staff has increased by 52 employees.
With the higher costs, CIB budgets for this year and next show the agency's operating fund
balance dwindling to $5.6 million next year.
Officials anticipate that an expanded Indiana Convention Center - expected by late 2010 - and
the new business it attracts eventually will help cover the CIB's operating costs.
But if those new revenues fall short, the CIB's reserves could be wiped out.
CIB Chairman Bob Grand said he is concerned about the rapid depletion of reserves and how
the CIB will cover expenses in 2010. Two years ago, CIB officials said they were confident a
solution would be found, but the size of the projected gap has only widened.
"We're making guesses until we have actual numbers," Grand said. "We're bleeding cash right
now, absolutely."
Officials say they want to get through a full Colts season to get a better handle on the increased costs at Lucas Oil Stadium before making any long-term decisions.
They also said it's premature to discuss options such as more taxes, user fees, or asking the
state or the Colts for help.
"The (increased costs) number is definitely more than $10 million but probably less than $20
million," Lathrop said. "We want to be sure we have the flexibility in case we have to fix
something."
The CIB projected its operating budget would increase from $58 million in 2007 to $78 million
next year.
The budget also contains good news, projecting revenues from setup, rentals and food sales to
double in 2009, when Lucas Oil Stadium will be open to events other than football for the entire
year instead of just four months, as it is this year.
Barney Levengood, the CIB's executive director, said the stadium is already drawing higher
numbers of people - more than 400,000 in August, its first month of operation, compared with
about 600,000 in the last Colts season at the dome.
Team officials have said the bigger stadium means more tax revenues for the city. They also
estimated the team and its employees will pay about $1 billion in taxes over the 30 years they've
promised to stay in the city as a result of the stadium deal. (Indianapolis Star)
Copyright 2008 by iPhotoIndy, whom we thank very much.
THE ULTIMATE SPORTS ROAD TRIP
By: Andrew Kulyk & Peter Farrell
| RCA Dome Ranking by USRT |
| Architecture |  | 9 |
| Concessions | | 6 |
| Scoreboard | | 6 |
| Ushers | | 7 |
| Fan Support | | 7 |
| Location | | 8.5 |
| Banners/History | | 4 |
| Entertainment | | 8 |
| Concourses/Fan Comfort | | 8.5 |
| Bonus: Tailgate Scene | | 1 |
| Bonus: White Castle Nearby | | 1 |
| Bonus: Entertainment @ Each Gate | | 1 |
| Bonus: Kick Ass Town | | 1 |
| Bonus: Retractable Roof and Wall | | 1 |
| Bonus: Main Gate and Atrium | | 1 |
| Total Score |  | 70 |
October 12, 2008 - We used to roll out these things within days of our official visits, so apologies for taking so long to get this up on the USRT site.
Nonetheless, we are pleased to unveil the official venue profile for Lucas Oil Stadium, the home of the NFL Indianapolis Colts.
We met and deliberated just yesterday to come up with the scores for each of the criteria in how we evaluate a sports venue. Here are the scores (10 pts maximum per category).
So 70 points is good enough to earn the Colts a 6th place tie in our rankings of all 32 NFL teams that also means that our home team and stadium, Ralph Wilson Stadium, drops to 30th place in the USRT matrix. Yikes!
Over! Done! Once again, the Ultimate Sports Road Trip hit the finish line, as this afternoon we attended a game of the Indianapolis Colts at Lucas Oil Stadium. When we did our ceremonial signing of "The Good Book", we could once again claim that we have attended a home game of each of the 122 teams in the four major sports in their current and active venue.
This day started on a sundrenched, summery, bucolic day here in downtown Indianapolis, and we headed out early to soak it all in. After doing the WHite Castle run for some grub, we checked out the tailgate scene, and toured the neighborhood to grab pictures.
Tailgating here is pretty good, with most of the open lots south of Union Station and the rail trellace which separates the center part of downtown from the stadium area. The new construction around here consists of several hotels, interspersed with some warehouses and light industrial, and even a couple of charming neighborhoods with rowhouses and victorian style cottages. You can tell the old from the new, as most of the stadium itself and the new construction you can literally smell the new pavement, landscape beds, streetscapes and such - it all looks and feels new.
Lucas Oil Stadium is a magnificent edifice - tall, massive, stately and so dominant on the city's skyline. The facade is red brick, steel and glass; the stadium marquee gleams at the top of the building; watching the roof, and the north wall, retract and open to the elements is a sight to behold. Outside there is entertainment at each of the four major entrances, a family fun zone on the east side with children's games, live music and food as well as corporate booths selling all kinds of stuff. But the signature entrance is the north side facing downtown. That is the Lucas Oil Gate, and walking into the building from that vantage point gives you a real "wow factor". The massive lobby here looks like a 50s retro theme - race cars, Lucas Oil paraphernalia, diner stle concession stands, and a sweeping view of the seating bowl.
Each separate entrance has a corporate sponsor and its own "wow" lobby. The concourses here are full of color, banners, signage, ads, marquees and exhibits which mute what would other be austere grey concrete.
The seating bowl has a steep upward pitch which makes for great viewing, save for the 600 seats (where we sat) which are somewhat high up. Club seating here is on the 200/300 level sidelines, and the best sideline seats in the 100s, which also have their own private club lounges. The scoreboards here are a bit of a disappointment - video board hang off center in two corners of the stadium and are not that special, and the ribbon boards on the 200 deck are not really utilized all that well. The game clock, down and score graphics are small and hard to find (located in the end zones).
If we kvetched about the snoozer of a game we saw in Bloomington yesterday, this one was just as bad - the Colts absolutely decimated the visiting Baltimore Ravens, winning 31-3. You would think the hometown fans would be hooting and hollering as they left the building. After all this was their historic first wine ever at LOS. But the quiet shuffle of the crowd walking back towards downtown and to their cars and homes suggested that these were really tea and crumpet fans, and no frikkin way can they hang with the Bills crazies at RWS.
So here we are for one more great night in the Big City. We're bailing on the St. Elmo idea and heading to one of many awesome brewpubs or sports bars for some grub, gonna watch the NLCS (go Phillies!).
Indianapolis Colts Capitalize on Sponsor Relationships
December 29, 2008
Copyright 2008 MediaVentures
The Indianapolis Colts closed out their first regular season at Lucas Oil Stadium this afternoon. The stadium offers an example of how teams are working to generate more dollars from sponsors while giving companies more real estate and fans more things to do inside sports venues.
Sponsors don't just get signage anymore. That's been true for some time, but in Indianapolis, companies' names are connected to an actual section of Lucas Oil Stadium. The companies work with the Colts to decorate and program the areas to maximize their businesses and entertainment for fans.
There's the Lucas Oil Gate, naturally, the Huntington Bank Gate, the hhgregg Gate and so on. The Air Tran Food Court features a first class fuselage that people can sit in. The team's five- to eight-year sponsor contracts are worth $10 million to $12 million annually.
"We are considered a small market NFL team so a new stadium was critical for us. Based on the way the economics of the National Football League work today, we needed a stadium that was going to drive revenue," said Peter Ward, Colts senior executive vice president. "This helps us stay competitive on the fieldÉThis allows us the opportunity to maximize our revenue."
At the Lucas Oil Gate, there are dragsters; old-fashioned gas pumps that have LCD TVs installed in them; over-sized oil cans that also serve as stations for TVs; planes that hang from the ceiling; and a horseshoe-shaped stage for bands and TV and radio shows.
"Our goal was to create areas that could be sponsored and themed that also create points of interest for the fans. It had to work for the sponsors as well as our fans," Ward said.
Hhgregg, a TV and appliance retailer with stores in nine states including Florida, has a 26,000-square-foot interactive fan area at the stadium's south entrance with flat screen TVs, digital cameras and even washers and dryers on display. There's an interactive video game in which fans can throw or kick a football across a virtual screen designed to look like Lucas Oil Stadium.
There are also six 52-inch Samsung TVs, a seating area in the shape of a horseshoe, and poles that look like goalposts. There's a product pavilion with Electrolux appliances, including refrigerators. Everything is wrapped in hhgreg signage, but there's also signage for Electrolux, Sony and other appliance brands.
In addition, the Colts' official appliance retailer of flat panel TVs, has sales associates working the gate entrances, handing out coupons.
"We've had a long-standing partnership with the Colts," said Jeff Pearson, hhgregg vice president of marketing. "We sell a large number of flat panel TVs. All of that helps us sell TVs É Lucas Oil Stadium is going to be a place a lot of people go through in the next number of years."
Source: Sun Sentinel
INDIANAPOLIS VENUE BOARD SEEING RED INK
January 29, 2009
Copyright 2009 MediaVentures
Indianapolis, Ind. - The Indianapolis Capital Improvement Board, which manages Lucas Oil
Stadium and other sports venues, says its operating deficit could grow to $43 million by next year, far worse than projected and too large for it to solve alone.
Part of the problem: the expected renegotiation of the Indiana Pacers' lease of Conseco
Fieldhouse. The basketball team pays $15 million a year to cover game-day expenses, and the CIB,
calculating the worst-case scenario, is assuming it could have to take over that cost.
To get out of its financial mess, the CIB could try to renegotiate better deals with the
Indianapolis Colts and other sports teams that use the stadiums it runs.
It also could ask city taxpayers for help, though no new taxes could be raised without the OK of
the city or state.
Neither option was discussed; instead, board members said the goal was to review the problem
and kick off efforts to find solutions.
The situation is so dire that board Treasurer Ann Lathrop said auditors are reviewing the CIB's
finances as a "going concern," a term used to suggest that its near-term viability is in question.
The board already had projected an operating deficit of up to $20 million per year in running
Lucas Oil Stadium, and it added $5 million to that total for other facilities this year.
Just as pressing, the CIB now expects to have to pay $43 million this year for unanticipated
loan and insurance obligations brought on by the ongoing world financial crisis.
Debts that could have been handled in the past are being called in by banks short on cash,
Lathrop said. Another one-time debt payment of nearly $34 million more will come due in 2017.
Bob Cockrum, the City-County Council president and a CIB member, said nearly every option
for a solution is on the table.
Raising taxes during a recession, he said, likely would provoke a strong negative reaction.
"Some people would support it for one team or another, but others would say enough is
enough," Cockrum said. "I don't think a bailout is an option."
He said the first step for the board was to reduce expenses.
It ordered a cut of 8 percent, or about $6 million, from this year's budget of $78 million and
instituted immediate freezes on hiring, salaries and travel.
Just how effective any of the more obvious solutions might be will be a big question for the
board to tackle.
Colts owner Jim Irsay could not be reached for comment, but Pete Ward, the team's vice
president, last year said the idea of "reopening a (lease) agreement that took four years to negotiate is ludicrous."
Patrick Early, the board's vice president, said the struggling Pacers are expected to use their
option to renegotiate their lease this year.
He said he expected the CIB will have to take on more of the expenses of running Conseco if it
wants to keep the team in Indianapolis.
"All we've established is that the business model we're working with now can't work in the long
term," Early said. "We haven't figured out a solution, but I believe it's in the best interest of the city to have the Pacers stay in that building."
Early said the Pacers' owners, Mel and Herb Simon, can't continue to lose money on the team,
even as he acknowledged that the players' legal troubles in the recent past contributed to falling attendance and income. He said the team makes less than the NBA average because it's in a
smaller TV market.
"Ultimately, we own the building," Early said, "so we'll have to deal with those expenses."
While the Pacers pay $15 million a year to play at Conseco, the city agreed to bear game-day
expenses for the Colts in exchange for a lease that would keep the team in town for at least 30 years.
Rick Fuson, chief operating officer of Pacers Sports & Entertainment, said in a statement that he
was pleased that the CIB is already looking at the problem.
CIB President Bob Grand said the board will need to work with the teams, the city and financial
experts to get out of its trouble.
He said he was not ready to ask the Colts to renegotiate a deal that many have criticized as too
generous. But he said the board will review CIB grants for the arts and other groups and try to find a way to manage its facilities better.
Grand had asked Lathrop to study the costs of the new stadium once a full season was
complete. Lucas Oil Stadium, at 1.8 million square feet, is nearly double the size of the recently imploded RCA Dome, so its higher operating costs aren't surprising. Its water and electricity costs are higher, too.
With the higher costs, the CIB operating fund balance will dwindle to $5.6 million this year
from tens of millions in past years.
The problem can be traced to the plans developed to finance the stadium.
City officials had anticipated covering increased costs with taxes from a proposed Downtown
casino. But when the state wrested control of the building project in 2005, the new plan included
no casino or other way to cover the increased operating expenses.
State officials say they never agreed to pay those costs. Under the terms of the state's financing, excess revenue from higher taxes on food and beverage sales, hotel bookings and car rentals will be used to pay off construction bond debt early rather than to cover operating costs.
Officials think an expanded convention center - expected by late 2010 - and the new business
it attracts eventually will help cover the CIB's operating costs. But the board's problems are more immediate.
Grand said he did not expect the board's financial problems to affect the city's hosting of the
2012 Super Bowl. (Indianapolis Star)
INDIANAPOLIS LOOKS FOR WAYS TO MEET STADIUM COSTS
February 12, 2009
Copyright 2009 MediaVentures
Indianapolis, Ind. - The Capital Improvement Board will cut nearly $6 million from its budget
by putting off planned maintenance, cutting advertising, leaving positions unfilled and otherwise
paring costs on such things as legal fees and security contracts.
Facing an annual deficit expected to exceed $43 million next year and one-time payments of
the same amount by September, the board approved a plan to tighten its belt on costs while
promising not to hurt essential services.
"This sends a message that we're serious about making cuts," said Bob Grand, the board's
president. "It's important to start here in our negotiations with other stakeholders" such as the city, state and teams that play in the stadiums the CIB operates.
Grand ruled out lobbying for higher property taxes as a potential solution and said raising other
taxes and fees, such as food and beverage taxes the board has tapped in the past, would be a last resort.
But he also said he expects that CIB grants to nonprofit groups will suffer in a future round of
cost-cutting. He said it would be hard to avoid some reduction to cultural tourism, Indiana Black
Expo, the Indiana Sports Corp. and the Arts Council of Indianapolis.
With $37 million to go, the CIB will continue to seek help from the city, state and teams to dig
out of its hole.
Barney Levengood, the board's executive director, said his staff will have to find ways to do
more with less. He plans to save $1.1 million in salaries and benefits, $2.3 million in maintenance and repairs, $250,000 from supplies and $2.2 million from a combination of advertising cuts and utility, legal and insurance savings.
"Anything we don't have to do, we won't do," Levengood said. "I told my staff that you run your
car differently when you're running on empty than on full. You stop and speed up more carefully to conserve gas."
The CIB had seen years of steady growth before falling into its financial morass, a mess that
traces in large part to the decision to build Lucas Oil Stadium.
The stadium is nearly double the size of the former RCA Dome, so its higher operating costs
aren't surprising. It needs more people to work on its maintenance and cleaning crews and as
security and food vendors. Its utility, repair, supply and insurance costs are higher, too.
Early estimates projected the stadium would cost $10 million more to run than the dome. That
figure, however, proved far from accurate.
The CIB says it spent $27.2 million last year to operate the stadium and generated revenues of
$7.7 million, leaving it with a deficit of $19.5 million, twice as much as anticipated.
At the same time, changes in its contract with the Colts cut CIB revenues by more than $8
million. These changes include giving the team all suite and advertising revenue, as well as a
bigger slice of food concessions and novelty sales at the stadium. (Indianapolis Star)
INDIANA LOOKS FOR WAYS TO FUND VENUES
April 2, 2009
Copyright 2009 MediaVentures
Indianapolis, Ind. - Everything from a ticket to the game to a hot dog and a beer will cost more
under a plan to bail out the financially struggling Capital Improvement Board, the agency that
oversees Lucas Oil Stadium and Conseco Fieldhouse.
Fans won't be alone in being asked to help. Alcohol taxes would double statewide, and
out-of-town visitors to Marion County would be asked to pay the highest hotel taxes in the nation.
The plan also calls for the Indianapolis Colts and Indiana Pacers to dip into their pockets, with
each contributing $5 million annually to help close the projected $47 million deficit at the CIB,
which runs the city's professional sports arenas.
That $5 million is, in fact, a $10 million break for the Pacers, because the deal assumes the CIB
will take over the $15 million annual expense of operating Conseco Fieldhouse.
The Colts, on the other hand, now pay nothing to use Lucas Oil Stadium.
State Sen. Luke Kenley, who put together the plan and who will seek to have it inserted into
legislation at a hearing before the Senate Appropriations Committee, said neither team has agreed
to the proposal.
"We feel that somehow everybody should have skin in the game," Kenley said, "(but) we
haven't reached any final agreements with them."
Indianapolis Mayor Greg Ballard, who joined Kenley at a news conference at which the plan
was outlined, wouldn't say he endorsed the details but said he supported the need to preserve the
convention and entertainment business in Downtown Indianapolis.
"This is not about any individual teams or anything. This is about Downtown Indianapolis. This
is about the convention business. This is about $3.5 billion worth of convention business, 66,000
jobs in Central Indiana related to hospitality - that's what this is about," Ballard said. "We must maintain this economic engine."
However, southern Indiana lawmakers have panned a proposal to bail out the cash-strapped
group that oversees professional sports venues in Indianapolis as unfair to taxpayers around the
state. It would take $6 million out of state coffers and give it directly to Indianapolis - a provision many Southern Indiana legislators are rejecting.
Kenley said the plan, quietly negotiated in talks with the CIB, Pacers and Colts that began in
January, will boost economic development statewide, as all of the alcohol tax increase will be given to cities and towns with the exception of Marion County. He estimated it will mean more than $68,000 for Carmel, more than $14,000 for Lebanon and more than $47,000 for Greenwood.
Kenley's plan also would boost Evansville's efforts to build its sports arena Downtown because
he'll amend his proposal into legislation that frees the city to increase its food and beverage tax to help replace Roberts Stadium.
And Kenley argued that the doubling of the taxes - the first increase since 1981 - really just
means pennies out of a drinker's pocket.
"It would be about 2 cents for a shot. On wine, it would be about a penny for every three ounces of wine. On a beer, it would raise the beer tax by 1 penny on a 12-ounce container of beer," he said.
The plan includes:
* Doubling the state's alcohol tax, boosting the tax on beer to 23 cents per gallon from the
current 11.5 cents; to 94 cents per gallon from 47 cents on wine; and to $5.36 from $2.68
on liquor. An estimated $8 million raised in Marion County through the higher tax
would all go to the CIB.
* Authorizing the City-County Council to raise the food and beverage tax in Marion
County to 2.25 percent from the current 2 percent; the admission tax on tickets to 10
percent from the current 6 percent; and the innkeepers tax on hotel rooms to 9 percent
from the current 8 percent.
* Expanding the Professional Sports Development Area to include the new Marriott Hotel
in Downtown Indianapolis, with the estimated $6 million sales tax going to the CIB
instead of the state.
* $5 million payments annually from the Pacers and the Colts.
* $2.5 million in cost cuts by the CIB, on top of $7.5 million already made.
The CIB in January reported that the costs of operating Lucas Oil Stadium are about $20
million more per year than revenues it makes off the stadium, or twice what was projected earlier.
The board said it also would need another $3 million to market the expanded Indiana Convention
Center and anticipated assuming the costs of running Conseco Fieldhouse, which the Pacers peg
at $15 million per year.
Opposition will be coming from lobbyists in the industries affected.
Jim Purucker, a lobbyist and executive director for the Wine & Spirit Wholesalers of Indiana,
said the tax increase will make Indiana less competitive than surrounding states with lower taxes.
John Livengood, a lobbyist who is president of the Indiana Hotel & Lodging Association, the
Restaurant and Hospitality Association and the Indiana Association of Beverage Retailers, also said the tax increases that hit those areas could cost the state some of the very tourism business it is trying to preserve.
Indianapolis already is second only to Chicago in the taxes it levies on visitors, he said. The 1
percentage point increase in the innkeepers tax will make the city's tax on hotel rooms the highest in the nation. (Indianapolis Star, Evansville Courier)
COLTS' STADIUM COULD CLOSE IF FUNDING NOT FOUND
April 9, 2009
Copyright 2009 MediaVentures
Indianapolis, Ind. - Lucas Oil Stadium could be closed if funding isn't found to cover the costs
of the venue and Conseco Fieldhouse. Capital Improvement Board officials say $47 million is
needed. The Indiana Senate is considering a bill to raise several taxes, including those on alcohol, restaurant meals and hotel rooms.
Improvement board officials say they don't have many options if the legislature decides not to
provide additional funds. Legislators, however, are revenue declines and needs in other areas.
Because much of the deficit comes from higher than expected costs to operate the stadium, it is
the facility most likely to face closure if money cannot be found, officials say.
The CIB estimates a total of $26 million in operating costs - $10 million for salaries of stadium
workers, $5 million for utilities, $5 million to the Colts and $6 million for other services., such as game-day setup.
The bailout bill would double the wholesale tax on beer, wine and spirits, raise local hotel and
motel taxes from 9 to 10 percent, boost the food and beverage tax a quarter of a percent and
increase the tax on stadium and Conseco Fieldhouse tickets from 6 to 10 percent.
The bill also assumes $5 million a year each in contributions from the Colts and Indiana Pacers.
The Pacers hope the deal would allow them to drop their $15 million commitment to operate
Conseco Fieldhouse. The Colts have made no promises, but say they would discuss what they
might consider paying.
Some hoteliers in Indianapolis say a proposed one percent increase in the hotel room tax is not
likely to hurt their industry because they are already well below competitors' levels. The city's rate is currently nine percent.
Indianapolis' average daily hotel room rate of $82 is lower than that some other cities including
Columbus, Ohio at $84, Louisville, Ky. at $90, Nashville, Tenn. at $93, and Chicago with $102,
according to STR Global and HotelNewsNow.com. Only St. Louis is lower, with a rate of $80.
If the increase is approved, taxes for an Indianapolis room, including state sales tax, would
climb 82 cents based on an average rate of $82. The total tax rate would be 17 percent.
April 16, 2009
Copyright 2009 MediaVentures
The Indiana Senate has approved a plan to help the Capital Improvement
Board fund expenses for operating Lucas Oil Stadium and Conseco Arena. The bill, which gives
Marion County additional taxing options, also calls for the Colts and Pacers to contribute $5
million each, although that cannot be forced on the teams.
INDIANAPOLIS EXPECTS TEAMS TO ADD CASH
May 7, 2009
Copyright 2009 MediaVentures
Indianapolis, Ind. - County leaders are expecting the Colts and Pacers to ante up money to
help cover the costs of operating Lucas Oil Stadium and Conseco Fieldhouse, but the Colts say
that's an unreasonable expectation.
In a break during the NFL draft, Colts owners Jim Irsay said it doesn't make sense for a sports
team to spent years working out a deal with public officials only to have those officials later say
they want to change the terms and criticize the teams for not going along.
The 30-year contract that the Colts signed gave the Capital Improvement Board the operating
costs of the stadium. The Colts pay $250,000 per year to use the stadium.
The Pacers, who pay some operating costs for Conseco, are trying to renegotiate with the city
because they say they've lost money for most of the decade.
The CIB has projected its 2010 deficit at $47 million. That figure includes $15 million in
Conseco Fieldhouse operating costs now covered by the Pacers, and $20 million is the result of
higher expenses at Lucas Oil Stadium, the Colts' new home.
The current proposal to close the deficit includes $5 million each from the Colts and Pacers,
creating a local alcohol tax, raising the city's hotel and car rental taxes as well as the ticket tax. It
also would expand the sports development area to include a new downtown hotel.
Irsay called the ticket tax, which he said would jump from 6 to 10 percent, excessively high for
one of the NFL's smallest markets. He also said the NBA's Indiana Pacers and the city's Triple-A
minor-league baseball team, the Indianapolis Indians, aren't happy either.
In the meantime, the Capital Improvement Board says it will consider everything from gestures
as small as ditching the free sodas at its meetings to something as ambitious as selling the naming
rights for the Indiana Convention Center.
CIB President Bob Grand said the agency will intensify cost-cutting after the legislature
declined to pass a bailout plan. The CIB and mayor had asked state and city officials to raise taxes
on alcohol, hotel rooms, car rentals and stadium tickets to plug an expected operating deficit of $47
million next year.
The CIB might receive help from Gov. Mitch Daniels' administration with a payment of $27
million due in September. If the CIB had to make that payment on its own, it would wipe out
nearly all of its reserve funds.
STUDY FINDS HIGH EXPENSES IN INDIANAPOLIS
June 18, 2009
Copyright 2009 MediaVentures
Indianapolis, Ind. - A study that compared the operations of the facility complexes in
Indianapolis and Houston shows that Indianapolis is generating significantly more expenses. The
study was done by management firm SMG which also manages the Houston facilities.
The Indianapolis facilities included Lucas Oil Stadium and the Indiana Convention Center. In
Houston, the facilities included the Reliant Park complex.
The comparison showed Indianapolis generated $3.09 in expense for every dollar of revenue. In
Houston, the number was $1.59. SMG noted the figures were adjusted for a like for like
comparison.
SMG also compared just the convention center operations to other facilities it manages in
Denver, Pittsburgh, Atlantic City and Columbus. In Indianapolis, the center generated $3.42 in
expenses for every dollar of revenue while Denver generated $1.32, Pittsburgh reported $1.46,
Atlantic City showed $1.52 and Columbus was at $1.12.
In a detailed comparison of just the Indianapolis and Houston complexes, SMG reported
(amounts in thousands):
| Indianapolis 2009 Revised Budget | Houston 2008-09 Actual |
| Operating Revenue | | |
| Rental Income | $5,586 | $6,001 |
| Food & Beverage | $2,788 | $2,834 |
| Parking | $323 | $2,394 |
| Labor Reimbursements | $11,218 | $9,789 |
| Other Income | $1,213 | $3,329 |
| TOTAL REVENUE | $21,128 | $24,347 |
| | |
| Operating Expenses | | |
| Salaries, Wages & Contractual Labor | $24,517 | $19,323 |
| Employee Benefits & Other | $4,468 | $2,400 |
| $28,985 | $21,723 |
| Supplies | $2,503 | $2,270 |
| Professional Services | $9,723 | $111 |
| Printing and Advertising | $1,429 | $791 |
| Insurance | $1,816 | $635 |
| Utility Services | $7,503 | - |
| Repairs & Maintenance | $2,677 | $2,253 |
| Colts Revenue Share and Game Expenses | $5,000 | - |
| Other Operating Expenses | $2,670 | $1,354 |
| TOTAL OPERATING EXPENSES | $62,308 | $29,137 |
| Net Operations Before Capital Outlays | ($41,180) | ($4,790) |
| Capital Outlays | $3,055 | - |
| Net Operations Including Capital Outlays | ($44,275) | ($4,790) |
Officials in Indiana will be using the comparisons to decide future management issues
concerning their facilities and whether to merge various public agencies to gain greater
efficiencies.
October 15, 2009
Copyright 2009 MediaVentures
While many local governments are struggling with declining tax
revenues, the mix of Marion County and suburban tax collections that pay the debt on the nearly
$1 billion cost of constructing Lucas Oil Stadium and expanding the Indiana Convention Center
are beating state projections. Revenue for the Indianapolis projects has topped $157 million since
the inception of the taxes and fees in 2006 through June. That's $17.5 million, or about 12.5
percent, more than state finance officials estimated in 2005 when the legislature and City-County
Council increased a variety of local and regional taxes to pay for the projects. That additional
money is being used to pay down the debt early as required by state law.
PRIVATE MANAGEMENT CONSIDERED IN INDIANA
October 22, 2009
Copyright 2009 MediaVentures
Indianapolis, Ind. - City officials are considering asking a private management firm to take
over operations at the ColtŐs Lucas Oil Stadium, the Indiana Convention Center and possibly
Conseco Fieldhouse.
The city has issued a request for information and qualifications, shopping for a firm that thinks
it can run the facilities cheaper and better than the Capital Improvement Board.
City staffers said there is no decision to change management, but they wanted to learn whether
a private firm could operate the facilities for less money. The answers from the firms will determine
what action, if any, is taken.
The city's request asks interested firms to respond by 4 p.m. Nov. 24. Depending on what
officials receive in that initial round, a formal request for proposal - in which companies could bid
for management of the facilities - would be issued by the city Dec. 7, with responses due Jan. 8.
The proposal includes that the city is "interested in opportunities that will enable it to identify
operational efficiencies and cost savings for the facilities, build relationships with strategic
partners, maximize usage of the (convention center and stadium,) evaluate potential economies of
scale in facilities operations management, and enter into a multi-year agreement with one or more
respondents for the operation and management of the facilities."
While the proposal primarily focuses on the Indiana Convention Center and Lucas Oil Stadium,
which are managed by the CIB, it potentially could include Conseco Fieldhouse, which is operated
by the Indiana Pacers.
The Pacers have told the city the team can't continue to cover the fieldhouse's $15 million
annual expense.
The CIB went to the General Assembly for help earlier this year when it projected a $47 million
deficit for 2010.
The mayor offered $12 million in cuts to the CIB's budget while seeking an additional $32
million in revenue - $12 million from increases to the city's hotel, auto rental and admissions taxes;
$10 million from an expansion of the city's sports development taxing district; $9 million in state
loans during three years; and $1 million from licensing fees at Downtown parking garages.
Gov. Mitch Daniels instead pushed a plan that required $25 million in spending cuts, citing a
pair of independent reviews that he said showed the CIB could achieve more savings in running
the convention center and Lucas Oil Stadium.
Ultimately, the legislature gave the city only the immediate authority to raise the hotel tax and
delaying any votes by the City-County Council to raise auto rental and admissions taxes until 2013.
It also granted the city $8 million from an expanded sports development district, $4 million in debt
service savings and a three-year, $27 million state loan.
The CIB, however, recently determined it may be able to forgo that loan after making several
budget cuts and resolving a complicated debt insurance issue.
CENTERPLATE RESOLVES ISSUES AT LUCAS OIL STADIUM
November 19, 2009
Copyright 2009 MediaVentures
Indianapolis, Ind. - With 42 citations and $3,900 in fines, officials with Centerplate say they
will move immediately to end health department concerns about conditions at Lucas Oil Stadium.
Among the actions is to set up a 24-hour hotline to respond to fansŐ concerns. The company also put 15
of its own food safety inspectors to work at last SundayŐs game that hosted the New England Patriots.
The issue came to light in a local television report saying rodents were found at the venue.
The company has a contract worth more than $13 million to serve food at Lucas Oil Stadium, a
$720 million facility that opened last year.
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