What is an ECONOMIC IMPROVEMENT DISTRICT (EID)?
The Indiana State legislature enabled a way for local municipalities to fund services beyond what local governments can do through the formation of an EID. EIDs are intended to be a private sector led and managed improvement programs that can provide enhanced improvements and activities, such as more public safety, maintenance and image enhancement, in addition to those provided by local government. EIDs provide services that improve the overall viability of downtowns, resulting in higher property values, sales and tax revenues.
WHY AN EID?
Factors can vary from downtown to downtown, but all are consistent in wanting dream big, influence future growth and development, create a consistently clean, welcoming and attractive downtown, enhance property values, sales, and occupancies, help downtown remain competitive as a business location and a retail and entertainment destination in an increasingly competitive market while maximizing ratepayer control & accountability.
HOW MANY CITIES HAVE EIDS?
The International Downtown Association estimates that more than 1,000 EIDs currently operate throughout the United States and Canada. Here's a look at the cities that have EIDs in the U.S. below:
HOW IS IT IMPLEMENTED?
EID formation requires petition support from a majority of property owners within the proposed footprint representing more than 50% of the assessments to be paid. Signatures to petitions are currently being gathered. Once a majority have been collected, indicating support, petitions are then submitted to the City of Indianapolis and the EID is formed by an ordinance of the Indianapolis City-County Council. The EID will be established with an initial term of 10 years. In Year 5, the EID will undergo a formal evaluation to determine that the services and assessment methods are consistent with the needs of the district.
WHAT ARE THE PROPOSED EID BOUNDARIES?
The Downtown Indianapolis EID will encompass primarily the “Mile Square” bounded roughly by the streets named North, East, South and West with a slight carve out of Mass Ave.
WHAT ARE THE PROPOSED EID SERVICES?
- Improving streetscape maintenance, beautification and cleanliness.
- Enhancing safety and security
- Enriching the Downtown-user experience
- Drive economic development through marketing private sector planning.
Detailed ideas of each category can be found here.
SHOULDN’T MY PROPERTY TAXES PAY FOR THESE SERVICES?
Your property and income taxes go to pay for basic services and infrastructure. EIDs fund only services and projects that are above and beyond these services provided by the City. Within the EID, the funds are managed and controlled by your local EID Board of Directors and can only be spent on projects detailed in a business plan approved locally. These services help increase the value of your property or business and should ultimately allow you to leverage your resources to improve your neighborhood. The City of Indianapolis will establish a documented base level of pre-EID City services and the EID will not replace any pre-existing general City services. In fact, it is illegal for the City to do so.
WHAT IS THE ESTIMATED BUDGET AND ANNUAL COSTS?
For the initial year of EID operations, an annual operating budget of approximately $3 million is projected.
What is the proposed timeline?
HOW WILL THE EID BE GOVERNED IF IMPLEMENTED?
The EID will be governed by a board of directors comprised of property owners representing geographic sub-districts and use-types within Downtown. Indiana statute states that the City-County Council will select the board based on nominees presented by the property owners. Up to a 15-member EID board is anticipated with the following considerations:
- Geographic representation, including all quadrants in the Mile Square
- Use-type representation, including hospitality, office, retail, parking, and residential
- A mix of small and large property owners
- At least two business tenants that are not property owners
HOW WILL THE EID BE ENFORCED AND COLLECTED?
EID assessments will appear as a line item on annual property tax bills and will carry the same lien authority for enforcement as standard property taxes.
I MISPLACED MY SIGNATURE PAGE AND/OR WOULD LIKE TO CONFIRM MY PROPOSED EID FEE BASED ON MY PROPERTY'S ASSESSED VALUE...
Contact Erika Hinshaw at email@example.com. She is happy to assist.