CIB Approves Pacers DealPosted: Updated:
The Capital Improvement Board in Indianapolis has unanimously approved a $160 million deal to keep the Indiana Pacers in Bankers Life Fieldhouse for up to 13 more years. The money will fund the operation, maintenance and upgrades at the arena. Our partners at WTHR-TV report the city says taxes will not be raised to cover the new contract.
April 14, 2014
Indianapolis, Ind. -- By a unanimous vote of eight to zero (with one absence), the Board made a long-term commitment to Bankers Life Fieldhouse and to make the necessary upgrades to the nearly-twenty-year-old building.
"Today's vote means that the Fieldhouse's two major tenants, the Indiana Pacers and the Indiana Fever, are locked in for the next 13 years," said Board President Ann Lathrop. "With this agreement, one of our city's most important facilities will get some critical upgrades and continue to be home to some of our most amazing events."
Bankers Life Fieldhouse is one of city's most important economic development facilities. Specifically, the Fieldhouse and the teams contribute at least $208 million in annual economic impact and support more than 2,000 jobs.
"Pacers Sports & Entertainment is very grateful to CIB chairperson Ann Lathrop for her strong leadership; the entire CIB, and to Mayor Greg Ballard, a tough negotiator whose bottom line always was doing what was best for the city," said Jim Morris, president of Pacers Sports & Entertainment. "This significant public-private partnership provides the funds for PS&E to ensure that Bankers Life Fieldhouse remains a first-tier entertainment and community venue for years to come and a source of pride for the nearly two million people who come to the Fieldhouse annually."
Important provisions of the agreement include:
• The extension locks in the premier tenants of Bankers Life Fieldhouse—the Indiana Pacers and the Indiana Fever—for up to 13 years; that term coincides with final debt service payments due on the Fieldhouse in 2027.
• The extension also removes the ability of the teams to leave Indiana due to economic losses.
• Pacers Basketball LLC will create a separate entity, Fieldhouse Management LLC, that will manage and operate the Fieldhouse complex.
• If the owners of the Pacers decide to sell the team, the City is entitled to a Right of First Offer.
The Capital Improvement Board of Managers finances, constructs, equips, operates, and maintains any capital facilities or improvements of general public benefit or welfare which promote and serve the commercial, industrial, and cultural interests of Indiana and its citizens.
Source: Capital Improvement Board