INDIANAPOLIS – The city of Indianapolis will still be able to enact their economic enhancement district for downtown.
During the 2023 Indiana legislative session, the Indiana General Assembly authorized the retention of an Economic Enhancement district or an EED. An EED is a funding tool to address safety, cleanliness, and homelessness within a specific area.
In this instance, it means increased cleaning services, safety presence, public safety technology and homeless outreach within downtown Indy.
House bill 1199 would have repealed the EED. The bill passed out of the house but was changed in the Senate Tax and Fiscal Policy committee. Now the EED will remain but with some changes.
"It's a bit of a stop and insert,” State Senator Scott Baldwin, a Republican representing Noblesville said. “It allows the economic enhancement district code which was enacted last year to remain, with some modifications. It removes apartments and it removes anything with homestead credit in the downtown area. It allows an expansion to the extent the city of Indianapolis desires to do so. It allows you to opt into the entities that you heard in testimony that want to do so."
Baldwin helped craft the amendment with stakeholders from the city. The compromise comes as many homeowners and businesses wanted to see the EED remain.
Christine Smalley owns a condo in downtown Indianapolis. She says she would opt into the tax. She is in her 70’s and says since the city started a pilot program performing some of the extra maintenance the district will create, she has felt safer walking downtown. She also wants to see the low barrier homeless shelter be built.
"I believe in this particular cause,” Smalley said. “I think it's important for it to be funded. Somebody has to opt in, it might as well be me.”
Businesses would not have the option to opt out of the EED, which is why democrats say the compromise works.
"Most of our units downtown, our multi-family housing units have commercial space,” Senator Andrea Hunley, a Democrat from Indianapolis said. “So, their commercial property, that first floor retail that will still be assessed. So, the portion they will be able to opt in the assessment for will be actual housing units. So, everyone will still be contributing their fair share which is also important."
NBA All Star Weekend was a success, but it also highlighted the importance of keeping downtown clean and vibrant which is why republicans say this compromise was needed.
"Generally what it does it allows for the operational revenue that they seek to pay for, their low barrier homeless shelter and I think everyone can agree there are problems that need to be addressed,” Baldwin said.
The money from the Economic Enhancement District would also be used to improve safety and cleanliness in the downtown area. It's not a done deal yet though. The bill is now headed to the senate floor for debate, but will have to go back to the house before the governor’s desk.
