Capital Improvements Board agrees to pay into Downtown economic enhancement district; $1.3M hit to budget

The Capital Improvements Board voted to approve a memorandum of understanding (MOU) to make an annual payment to Downtown Indy Inc. equal to a property-fee assessment in the city’s Economic Enhancement District, an agreement the board said will total about $1.3 million and will be paid from the board’s operating budget.

Board members said the payment is intended to fund downtown cleanliness, beautification, visitor engagement and outreach services that the Economic Enhancement District (EED) statute authorizes. The board’s contribution will be routed through Downtown Indy Inc., which the board and Downtown leaders said will operationalize services on behalf of the EED board beginning in July.

Board staff and Downtown Indy representatives said the payment was calculated on the same per-value basis as the district fee and represents the board acting as a non-taxed property owner paying a payment-in-lieu of the EED assessment. "We've been so appreciative of the capital improvement for its support over the last several years and over decades," Downtown Indy representative Taylor Sheeter said during the meeting. "This can be a real complement to the EED funds, as they sort of flow into the district and begin to be operationalized beginning in July."

The board’s staff said the $1.3 million figure will be offset in the CIB budget by reducing some existing discretionary support the board provides downtown, including direct sponsorships and event funding. The staff gave specific examples of programs the board expects to remove from its budget to offset the new payment: its direct support for Spark, some Downtown fireworks funding and other event-related contributions the board historically paid in partnership with Downtown Indy.

Board members debated how the payment interacts with proposed funding for a low-barrier homeless shelter. Several members asked whether EED funds or the board’s payment would be used to operate the shelter. Meeting discussion clarified that the MOU payment to Downtown Indy Inc. is separate from the EED tax revenues collected under statute and that the board’s payment is not directly controlled by the EED board. Staff said some portion of EED revenue is envisioned to support shelter operations once the shelter opens; staff and Downtown representatives estimated the shelter’s opening and ramp of services in late 2026 or 2027, but they said how much of any funding stack would come from the EED, the state or other sources remained to be determined.

The board moved to approve the MOU and voted by roll call; the motion passed with all recorded members voting aye. Following the vote, board members said the annual payment is renewable and can be revisited in future budgets if priorities or funding needs change.

The MOU and its uses were described in the meeting as aligning with the EED statute’s authorized categories: downtown security and visitor engagement (for example, street ambassadors), cleaning and beautification, outreach support and low-barrier shelter operations, and public-space activation. The board’s MOU specifies Downtown Indy Inc. as the recipient and manager of the funds on the board’s behalf rather than routing the payment to the EED board itself.

Board members and staff emphasized the payment is intended to supplement—not replace—other funding streams and public safety contributions that support downtown operations.