State legislators target new fee for some downtown Indianapolis property owners

2023 legislation that allowed Indianapolis to set up a fee for taxable properties downtown is at risk of repeal. The Mile Square Economic Enhancement District, EED, aims to support public safety, beautification and homelessness initiatives in the downtown core.

The EED would provide about 5.5 million dollars a year and is capped at that amount.

Representative Julie McGuire (R-Indianapolis) authored the bill to repeal the district.  She says her concerns were driven by rising costs for property owners, a lack of transparency and timing.

“If this funding was so important, why didn’t the mayor and city county councilors campaign on the creation of this taxing district?” McGuire said. “Why did the city council not include it in their budget that was passed earlier this fall?”

The House Ways and Means Committee heard hours of testimony this week for and against the measure.  Numerous apartment building owners in the Mile Square supported the repeal including the Indiana Apartment Association.

The Indianapolis City-County Council approved the EED at the end of last year.  It passed along party lines. The work builds off a pilot program funded with federal relief dollars that expanded new safety technology, added police support, cleaning crews and homeless outreach workers.

IMPD Interim Chief Chris Bailey said without the EED it will be hard to continue this work. 

“I can not guarantee that the level of engagement in this one Indianapolis neighborhood can continue without these additional funds,” Bailey said.

The district would also help support Indianapolis’s first low-barrier shelter.

Testimony against the repeal cited other municipalities have been using similar funding models with success. Others said it was necessary as downtown expects a big tourism year.

Indy Chamber Vice President of Policy and Strategy Taylor Hughes said the district has the support of many businesses.

“This is an effort that has been led by the business community in downtown Indianapolis,” Hughes said. “Folks who believe in downtown Indianapolis who believe that the downtown area, the Mile Square in particular, has an outsized impact on the health, vitality and economy of our state.”

The committee did not vote on the measure. It will receive amendments and may get a vote next week.

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