Vanderburgh County council approves joint resolution and memorandum of understanding to extend convention-center funding; members seek clearer capital rules

Vanderburgh County Council members on [date not specified in transcript] approved a joint resolution and an accompanying memorandum of understanding intended to extend a portion of county innkeeper-tax support for the Old National Events Plaza and to set terms for rebates to Explore Evansville if operating losses shrink.

The vote followed extensive debate over whether expenditures categorized as "capital improvements" should be excluded when calculating the target loss threshold that would allow a partial rebate of the county's 1% innkeeper-tax allocation. Council members said they would work to tighten the MOU language after the vote.

Council President Tom Shetler and representatives of Explore Evansville, the hotel-motel association and county staff described the agreements as a “peace accord” designed to enlist hotels and other stakeholders in stabilizing convention-center operations and reducing the county subsidy. Mike (presenter) said the arrangements were the product of multiple meetings and that stakeholders agreed to a three-year extension with a target ($1,000,000) for allowable operating losses before a potential rebate is considered.

Several council members pushed for clearer rules on what the MOU excludes as capital and asked for a detailed list of exclusions. Council member Raven said he was “not totally convinced,” but would support the resolution on the condition that the MOU be clarified in short order. Raven and other members repeatedly emphasized that taxpayers’ money must be protected and called for the MOU to specify which line items (for example, roof or HVAC replacements versus routine kitchen supplies) count as capital.

Proponents argued the compromise reduces financial risk versus taking no legislative action. Council members and county staff said the joint resolution is the instrument to carry the request to the state legislature; the MOU is the local agreement among stakeholders on how rebates would be handled if the loss target is met. Tom Shetler and other speakers said that if Explore Evansville and hotel partners are successful in reducing operating losses, the rebate language would allow the 1% currently allocated to the convention center to be redirected to tourism capital improvements under council appropriation.

The council held separate roll-call votes: the joint resolution passed with seven ayes and no nays; the MOU passed with seven ayes and no nays. Council members pledged to continue negotiating the MOU wording and to produce a clearer itemization of capital versus operating costs while the state process moves forward.

Why it matters: Old National Events Plaza operations have required significant county subsidies in recent years. Council members said the measure locks in a negotiated pathway for the hotels, Explore Evansville and the county to pursue revenue and programming changes together rather than reverting to the status quo or leaving the decision fully to the State Legislature.

What comes next: County and partner staff said they will refine the memorandum’s definitions of capital and operational costs and report back to the council as the state legislative window proceeds. The agreement and any future rebates remain subject to council appropriation and the county’s oversight of the tourism capital-improvement fund.

Ending: Council members emphasized the MOU is temporary and subject to refinement; members of the hotel and tourism community told the council they will participate in follow-up working sessions to produce the more detailed cost definitions requested by several councilors.