I'm either paranoid or I am just starting to figure out why Indianapolis proposes a major construction project just as another one comes to completion.
Case in point. Remember when the Hoosier/RCA Dome was built in the early '80's? Well, our fair Mayor Hudnut felt, and rightfully so, that Downtown Indianapolis needed a kick in the pants. So, he proactively proposed building the Dome with the enormous help of the Lilly and Krannert Foundations even though we had no promise of landing the Colts or numerous NCAA events. It cost the city less than $40 million (and a 1% restaurant tax). It was a GREAT deal. The downtown immediately began to change for the better. On the bad side, we also got the Irsay's. Mayor Hudnut also made the choice to use union labor on the condition that they promised to never strike as a tool to negotiate during its construction.
However, just like the greedy bankers in NYC, the locals saw an opportunity to squeeze a lot of cash out of the local citizens of Indianapolis. Soon after the dome, we landed the Pan Am Games in 1984. Subsequently, we built the Natatorium, the Velodrome, the Track & Field Stadium, and upgraded numerous facilities using Hunt Construction and Wilhelm Construction, the same folks who built the Dome.
In the meantime, the bonds for the Dome were being paid down rapidly by the 1% food tax, so Hudnut decided to roll them over and add onto the Convention Center. Thus, since it was connected to the Dome, the tax would not expire and Hunt, Wilhelm, and the unions had a meal ticket extension. Not to drag this out, but we soon had new buildings all over the IUPUI Campus, Conseco Arena, Lucas Oil Stadium, a new billion dollar airport terminal, and a new $300 million addition to the convention center being built on the land where the RCA Dome once stood with a $48 million debt that was built in 1980 for less than $40 million. Hmm, something stinks.
Now, we have forked over about $25 million to help a billionaire build a new hotel across the street from the convention center. So, what do all of these projects have in common? Nearly all were all built by Hunt or Wilhelm with union labor at increasingly ridiculous costs. Moreover, none of these government funded buildings pay a dime in taxes. Meanwhile, the hotel, rental car, local income, property, and food taxes have all increased dramatically as people like the Irsay's have increased their wealth. The Colts are now valued around $1 billion. Next time they threaten to leave, I'll help load the Mayflower van.
Which brings me to Wi$hard Ho$pital's proposal to build a new $700 million facility. The current building is tired and out-of-date. But, the city would be the guarantor of $600 million of new bonds. Looks like Hunt, Wilhelm, and the trade unions are going to have plenty of work. The taxpayers? They are getting lots of new debt and taxes, but we get to vote on this one.
I hope to see you at the polls on November 3rd. It's your money.
