New downtown fee district passes Indianapolis City-County Council
The Indianapolis City-County Council Monday night approved levying a new fee on Indianapolis' downtown property owners, in one of the final acts before a newly elected council takes office in the new year.The city’s new downtown fee district proposal, which aims to spruce up downtown, passed the City-County Council by a vote of 19-5.
All Democratic councilors supported the plan, with one councilor absent from the meeting, and all Republicans voted against it. The minority caucus had previously voiced opposition to the timing of the proposal, which City-County Council president Vop Osili announced just two days after the Nov. 7 municipal election, as “dishonest.”
The plan would levy a fee on Mile Square businesses and residents to raise an estimated $5.5 million annually to keep downtown streets clean and reduce homelessness.
The proposal now heads to Mayor Joe Hogsett, who is expected to sign it into law.
The new funding tool, known as an "economic enhancement district," would require all property owners within Mile Square to pay an annual fee for street cleaning, homelessness outreach workers, surveillance cameras and other measures intended to address challenges downtown.
The Indiana General Assembly created the tool that allows Indianapolis to propose this special district in the state's two-year budget passed this year.
Homeowners would pay a fixed fee of $250 a year. The fee for all other property owners would be 0.1681% of the property's gross assessed value. So, if a property is worth $50 million, the owner would pay about $84,000 a year.
The district would start collecting fees from property owners in spring 2025 tax payments.
Indianapolis downtown enhancement: You might soon be paying an annual fee for owning property downtown. Here's why
However, some, including the Council's Republican caucus, opposed it. One downtown property owner, Mark Firmin, said that he thought that the city should pay these costs, not downtown property owners.
Those who supported the proposal called it a historic milestone, stating that it would help the homeless community as well as protect property values downtown.
Contact IndyStar reporter Ko Lyn Cheang at kcheang@indystar.com or 317-903-7071. Follow her on Twitter: @kolyn_cheang.
This article originally appeared on Indianapolis Star: Indianapolis downtown economic enhancement district fee passes council
