Bill to increase economic development money spurs talk of $100M Evansville ballpark
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The first hearing for legislation to raise the maximum covered tax amount captured in the Evansville professional sports and convention development area was held at the Indiana Statehouse last week.
On Jan. 29, the House Ways and Means Committee heard testimony in favor of House Bill 1451 from Evansville Mayor Stephanie Terry, Evansville-based United Cos. Executive Chairman Ron Romain and Evansville-based Old National Bank CEO Jim Ryan.
The trio testified the resource expansion could pave the way for economic growth, including a downtown sports and entertainment venue for a minor league baseball team. The project was touted as a catalyst for the region’s River Vision project, a strategic plan to redevelop a 50-mile stretch along the Ohio River from Mt. Vernon to Newburgh.
“Through House Bill 1451, Evansville and southwest Indiana can become a model of how visionary investment transforms communities, attracting residents, talent and opportunities for generations to come,” Terry said at the hearing.
If signed into law, the legislation would give Evansville a larger PSCDA capture cap similar to Fort Wayne and South Bend. Rep. Tim O’Brien, R-Evansville, authored the bill with the support of Rep. Wendy McNamara, R-Evansville, Rep. Matt Hostettler, R-Patoka, and Rep. Alex Burton, D-Evansville.
“Increasing our allocation will bring Evansville more in line with statewide funding levels and enable us to do more to compete effectively for major events that boost the entire state’s economy,” O’Brien said at the hearing. “This is a true bipartisan collaboration effort with the entire city of Evansville delegation on the bill.”
O’Brien talked about the potential impact of the bill on the region.
‘It’s not a new tax’
Evansville’s PSCDA capture cap is currently $10 per resident, which generates about $1.2 million annually. Most of the money comes from state gross retail tax; however, adjusted gross income tax and local income tax are also included. The tax area is Bosse Field, home of the Frontier League’s Evansville Otters, and the downtown DoubleTree by Hilton.
Each year, $1.2 million from the PSCDA is contributed to the annual debt service of the Ford Center, the downtown sports and entertainment arena that opened in 2011. Any captured tax money above that amount goes to the state’s general fund.
“With an annual debt service [on the Ford Center] of more than $7.5 million, we face financial constraints that limit our ability to fund other transformative projects until the debt is retired in 2039,” Terry said at the hearing.
Starting July 1, HB 1451 would raise the PSCDA capture cap to $5 million annually for 20 years, allowing the city to retain an extra $3.8 million every year.
“PSCDAs are used all over the state for their purposes. But Evansville’s is structured differently than all of them,” said O’Brien.
“It’s not a new tax,” added McNamara. “It’s just drawing down the dollars that are already there that go back to the state in their revenue form.”
O’Brien said the goal is to continue contributing the same PSCDA tax revenue to the Ford Center debt service and redirect the additional captured money into other economic development projects.
“We embrace the idea of regionalism in southwest Indiana. And there’s so much opportunity in our region. Restructuring this shows that southwest Indiana is open for business,” he said.
“If we’re able to divert the $3.8 million that’s projected towards those projects, who knows what kind of transformations can take place in the Evansville area?” added McNamara.
Proposed ballpark development
At the hearing, Terry mentioned several potential projects for the extra PSCDA funds, including a performing arts venue and enhancements at Mesker Park Zoo and Evansville Regional Airport. However, the main focus was enriching the city’s downtown and riverfront areas.
“While the full cost of the River Vision will require significant resources over many years, the potential for private sector investment is already clear. One particularly exciting project led by the private sector, with support from our office, has the potential to ignite the rest of the River Vision,” said Terry at the hearing.
That private sector project is a $100 million downtown sports and entertainment venue with a 5,000-seat capacity. With Nashville being a top contender for a Major League Baseball franchise, the business community is banking on an opportunity to attract a minor league team to Evansville.
“We are projecting annual attendance of all events including minor league baseball, concerts, special community events and festivals at approximately 270,000,” Ryan said at the hearing. “[Our financial performance] shows an estimated $1.6 million in net income in the first year of operation. And over the construction period and 30 years of operation, we anticipate the project will generate approximately $135 million in new direct spending in Evansville.”
Ryan also proposed additional revenue from the project beyond baseball games and other events at the facility.
“These figures are just one element of the multipurpose sports and entertainment venue. We envision much more. It’s going to come with new housing, restaurants and retail that will surround the facility that perfectly complements the River Vision,” he said at the hearing.
O’Brien said the next step for HB 1451 is to amend the legislation to expand the tax area’s boundaries. Then, he hopes to get the bill in front of the Ways of Means Committee meeting again to move the legislation to the House.
“I will say, as a member of our fiscal Ways and Means Committee, every dollar is going to be tight this year. The budget’s going to be tight, and I’m hoping that we’re able to secure this win,” he said.
At the hearing, Rep. Dave Heine, R-Fort Wayne, commended the Evansville coalition for coming to the Statehouse to support the bill.
“As someone from the Fort Wayne area, I will just tell you this is a home run. In fact, it’s a grand slam. You’ll be very happy with this. And it just builds your community and like you said the housing around it,” he said.