CIB president says he supports merger plan

Scott Olson, The IBJ

solson@ibj.com

Capital Improvement Board President Bob Grand today declined to predict the future for the cash-strapped sports facilities agency, but said he backs a proposal that would merge the CIB into a new organization.

"I'm 100 percent in support of their solution," he said, referring to the plan presented last Thursday by Indiana Gov. Mitch Daniels and Indianapolis Mayor Greg Ballard.

The new plan will be debated by state legislators starting Thursday, when they reconvene for a special session to settle Indiana's budget.

At what could be the CIB's last regular monthly meeting, Grand said he is proud of the efforts made by members to help pare down the agency's $47 million budget deficit. The CIB so far has made $10 million in cuts and will continue to make more, Grand said, unless he is instructed to disband the board.

Daniels and Ballard have proposed raising hotel, rental car and sports-admission taxes, and merging the CIB into a new agency, to raise the funds they say will help cover its budget shortfall.

Under the plan, the county would generate an estimated $20 million annually by raising the hotel tax from 9 percent to 10 percent, admissions tax from 6 percent to 10 percent and the rental car tax from 4 percent to 6 percent.

Daniels and Ballard also estimate that $13 million can be saved by combining the CIB and the Marion County Building Authority into a new entity called the Facilities Management Board of Marion County. It would operate 13 facilities.

During their announcement last week, Daniels said the CIB is overstaffed and that its budget is larger than similar organizations operating in comparative cities.

Daniels, however, has not divulged where the additional cuts could be made, and Grand said the governor has not shared details with him. Grand, however, did not dispute the governor's assessment.

"All I can do on this board is to cut, and we'll continue to cut," he said. "But I don't have pride of authorship that I'm the only one who can make cuts."

The plan backed by Daniels and Ballard would raise about $8 million annually by expanding the Professional Sports Development Area to include the new J.W. Marriott hotel complex. The $250 million development is under construction near White River State Park.

The $10 million in budget cuts the CIB already has made were included in the proposal.

The CIB operates the city's professional sports venues - Lucas Oil Stadium, Conseco Fieldhouse and Victory Field - as well as the Indiana Convention Center.

It is facing a shortfall largely due to the additional $20 million required annually to operate the stadium, which is much larger than the RCA Dome, where the Indianapolis Colts previously played. CIB also expects to absorb $15 million next year in Conseco Fieldhouse operating costs.

The CIB conducted little business at its regularly scheduled monthly meeting today and concluded it in about a half hour. Members did grant approval to the Indianapolis Colts to use an image of the Lucas Oil Stadium on a Christmas ornament the team plans to sell during the holiday season.