INDIANAPOLIS — In their final meeting of 2023, the Indianapolis City-County Council approved a proposal that will bring millions of dollars to downtown.
The proposal to create an economic enhancement district in a mile square radius of downtown passed Monday night by a vote of 19-5.
The district will raise $5.5 million annually from downtown property owners to pay for services and issues in downtown. Those services include outreach to the unhoused, street cleaning services seven days a week, and new public safety technology.
Residential property owners will pay a yearly flat fee of $250. The total raised from those residential fees will be subtracted from the $5.5 million. The balance will be paid for by non-residential downtown property owners based on an assessed value.
"If you impose a tax, somebody's going to pay it, and it's going to end up being the patron," said Howard Howe, an attorney downtown who represents Giorgio's Pizza on Monument Circle.
Howe said he sees the issues downtown is grappling with every day.
"I see homeless people relieving themselves in the alley," Howe said.
He's all for doing something but isn't sure an enhanced economic district is the way to do it.
"Why is this not being addressed now through money that's already being collected in property tax?" Howe asked.
"There are more than 2,000 of these districts across the country," said Taylor Schaffer, with Downtown Indy, Inc. "This type of tool is not unique, and we're excited to be able to implement it here in downtown Indy."
Before Monday's vote, Downtown Indy, Inc. was using one-time federal funding from the American Rescue Plan to pay for an 18-month pilot program that included increased downtown services. Some of those services included outreach workers for the unhoused, power washing of sidewalks and new crimefighting technology. The creation of an EED will provide long-term funding for those services.
"How do we ensure that the quality of life in downtown is consistent?" Schaffer asked.
Downtown Indy, Inc. and a majority of the council thinks an economic enhancement district is the way.
"These dollars will really allow us to ensure that downtown is vibrant and clean and safe and welcoming 365 days a year," Schaffer said.
Downtown Indy, Inc. would administer the funds but not decide how they'll be used. An appointed eight-member board will do that. This fund will be separate from the existing city budget and need council approval annually.
Collections from property owners would begin in the spring of 2025.