Indianapolis Soccer Stadium Bonds Clear Legislative Hurdle

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CHICAGO - Indianapolis could float $84 million of bonds for a new downtown soccer stadium under a measure passed by the Indiana House on Feb. 25.

The bonds would be backed by state revenue captured at the 18,500-seat stadium plus a back-up revenue pledge from a planned hotel several blocks from the stadium site.

The yet-to-be-built stadium would be owned by the same businessman that owns the Indy Eleven, which plays in the second-tier North American Soccer league.

Like stadium projects nationwide, the proposed Indianapolis facility has sparked controversy, with the debate echoing the national debate over professional sports facility financings.

Critics say the soccer stadium may not generate enough ticket revenue to cover debt service and that the private company that owns the team and the hotel should assume all risk.

Opponents also say the back-up pledge from the planned hotel revenue could mean less money for other city projects and that the soccer team, with only one season under its belt, has not proven its staying power.

Supporters counter that ticket revenue, which will include non-soccer events, will be sufficient, that the complex will spark economic development in the city, and that soccer is the nation's fast-growing sport.

The House approved the measure, House Bill 1273, by a vote of 73-21.

The bill now heads to the Senate, where it's fate is uncertain as some lawmakers have downplayed its importance in the current budget-crafting session. A similar bill died in the Senate last year.

Lawmakers amended the original bill to require that the team's owner guarantee at least 50% of the financing costs.

"The purpose of the amendment is simply to make sure the public is not left to foot the bill for an underused or empty stadium," Rep. Ed DeLaney, D-Indianapolis, said from the House floor.

The measure allows for up to $5 million of state revenue to be captured annually for 32 years for debt service.

The bill also expands the city's existing sports and entertainment development area to include both the stadium and the proposed 200-room hotel. The expanded district would capture sales, use and income tax from taxable events or other stadium events in the expanded district starting in fiscal 2018.

Taxes generated in the sports district, as well as a new 10% Marion County admissions tax on all tickets, would go toward construction costs.

The bill also allows for the possible expansion of a tax increment financing district and a new fund with at least $10 million from property taxes to be used within the complex, according to the state.

The Indy Eleven currently plays at a stadium on the Indiana University - Purdue University Indianapolis campus.

Gov. Mike Pence on Thursday said the project deserves a "fair look" if it's financially responsible, according to local reports.

President Obama's fiscal 2016 budget proposed prohibiting tax-exempt bonds from being issued after 2015 to finance professional sports facilities.

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