Economic enhancement tool for downtown Indianapolis targeted by state lawmakers

Indiana lawmakers voted to pass a bill that blocks Indianapolis from the creation of an economic enhancement district, or EED. The funding tool targets property owners in the mile square and sets up a fee to support public safety, beautification and homelessness initiatives in the downtown core.

A House Ways and Means Committee voted mainly along party lines to repeal the district. Representative Cherrish Pryor (D-Indianapolis) said the repeal feels wrong.

“Almost a bait and switch, we give you this tool, but now we don’t like that you’ve acted upon that tool so we’re going to take it away,” Pryor said.

The City-County Council passed the measure late last year after 2023 legislation allowed the move.  Indy Downtown Inc. President and CEO Taylor Schaffer said the EED has wide support.

“It wasn't just the corporate community. It was developers, it was residents, it was property owners saying, ‘We choose downtown as the place that we want to be and we want the ability to be able to invest directly in it,” Schaffer said.

Many of those groups testified at a hearing last week. Some apartment building owners spoke in support of the repeal at the hearing. An out-of-state political group may also have an interest in doing away with the EED.

The district would fund efforts to expand new safety technology, add police support, cleaning crews, and homeless outreach workers.

In total, the EED would provide about 5.5 million dollars a year and is capped at that amount.
The district also helps support Indianapolis’s first low-barrier shelter.

At a news conference Wednesday Indianapolis Mayor Joe Hogsett said he believes the shelter will still be realized.

“I want all of you to know that we as a city remain committed to working with our legislators to ensure the future of the unique funding mechanism for this proposed housing facility,” Hogsett said.

Indy Chamber Vice President of Policy and Strategy Taylor Hughes said the timing is critical.

“To undercut the momentum that has been built is not just the delay but but a serious back step,” Hughes said.

The bill now heads to the full House. It is one of several bills that seek to roll back measures implemented by the Indianapolis government.

Contact WFYI city government and policy reporter Jill Sheridan at jsheridan@wfyi.org.