Push for self-imposed tax on downtown property owners intensifies
In an effort to improve downtown Indianapolis, property owners are considering whether to self-impose a tax.
It’s an idea Downtown Indy Inc. has pushed for months, and the organization said there are more than 1,000 other Economic Improvement Districts nationwide.
Walk around downtown, and supporters of the push talk about some trash, and note people hide their clothes in different bins.
Supporters said those are some of the growing problems downtown, which itself is growing. Twice the number of people will live there in 2020 than 2010.
“Density causes wear and tear,” said Bob Schultz, the senior vice president of marketing, communication and events for Downtown Indy Inc.
Schultz said there’s a solution. Downtown property owners in the Mile Square area would tax themselves. How much you pay would depend. If you are a residential property owner, you would pay $100. If you owned commercial property, it would be $0.125 for every $100 of your assessed property value.
It could bring in about $3 million a year over 10 years, which Schultz said could help complement city services.
“A way to have the folks who own property and have a lot invested downtown control a significant amount of money, to control and invest in those problems,” said Dennis Dye, who is a partner at TWG Development, which manages properties in the Mile Square area.
To take effect, 51 percent of property owners must sign a petition, which would then need City-County Council approval. A selected board would decide spending.
Some ideas include cleaning streets and helping panhandlers and the homeless get proper assistance.
“Half of the money we intend to raise is to staff people to connect folks in situations where they are panhandling with services,” said Dye, who is on the inaugural EID board.
Eventually, one idea is to establish a downtown dog park. We showed the plan to folks downtown. Lisa Mercer, who rents downtown, is not sold.
“So there’s a hesitancy to put more money in things when we’re not seeing results with what we’re paying taxes for,” Mercer said, while acknowledging she does not have a vote in the matter.
She says an example of money not necessarily making a difference: the potholes.
Mercer said she’s also concerned how much change would actually happen if the City-County Council doesn’t like an idea.
“I hope they’re able to do what they want to do but without top-down support i think it’s hard to sustain,” said Mercer.
Right now, 46 percent have signed the petition. Downtown Indy Inc. said time is of the essence because in July the state law will change. You will need 60 percent, not 51 percent, of property owners on board with establishing an EID, which would make this push a lot more difficult.