By Jimmy Nesbitt, Evansville Courier & Press
The Evansville Redevelopment Commission approved a bond issue Tuesday for up to $950,000 to pay for consulting fees and other preliminary expenses associated with a new city arena.
Around $300,000 of the bond money will be used for consulting fees. The rest will be used for environmental reviews, soil testing, transportation studies, site control and property acquisition-related costs, said Tom Barnett, director of the Department of Metropolitan Development. The additional funds also could be used as a contingency for unexpected costs.
The bond will not be used to buy land, Barnett said. But it could be used to option land at fair market value, which then could be purchased after the consulting studies are completed.
Of course, that's assuming the city decides to build an arena, Barnett said. He emphasized that a decision has not been made.
Mayor Jonathan Weinzapfel and the City Council will have the final say in the project, he said. They aren't expected to make a decision until the architect, engineering and financial consultants return with a report, slated to be completed by the end of November.
A portion of the consulting fees could be refunded if the arena is not built.
The Redevelopment Commission will play a significant role in the arena project if it moves forward. Future contracts, bond issues and decisions over how the money is allocated must receive its approval first before going to the City Council and the mayor. The commission consists of five voting members, two appointed by the City Council and three by the mayor. Each serves a one-year term, which is renewable.
The question on the minds of the decision makers, both elected and appointed, is whether the arena can be built without using property taxes, the city's main source of revenue. Gateway Consultants, which conducted the initial arena study, said it could be done, but it recommended the city hire a financial consultant to develop a financial plan of its own. London Witte Groups of Indianapolis is preparing a financial plan.
"The most important piece is how do we pay for it," Barnett said.
Tax increment financing funds, which will be used to pay off the $950,000 bond, would be a large revenue source for a new arena. Gateway's Tom Chema estimated a TIF District could generate $32.5 million in revenue for a Downtown arena, more than a third of the projected $92 million construction costs.
The Redevelopment Commission already has voted to extend the Downtown TIF District to include the Executive Inn, the D-Patrick Ford properties and the Civic Center parking lot. Gateway identified eight Downtown sites for an arena, and Weinzapfel and other city leaders have said all locations are being considered.
Barnett said the public will have ample opportunities to comment as the city moves closer to making a decision. Those opportunities could include a chance to review architectural renderings of a new arena once they have been completed, he said.
The Redevelopment Commission opened a public hearing before voting on the bond. Two people, Frank Peterlin and Mary Blanc, spoke.
Peterlin of Big Cynthiana Road shared a survey with the commission, conducted by American Viewpoint, on the arena debate. He said the survey concluded that a majority of voters favored renovating Roberts Stadium.
Blanc of Bellemeade Avenue agreed, saying the commission should "invest in architects to design ... how to best renovate Roberts Stadium."
The stadium advisory board and Weinzapfel determined a renovation, estimated at $38.2 million to $89.9 million, was too costly.