INDIANAPOLIS — Commercial property owners downtown will likely see a new fee on their tax bill next year to help keep Indianapolis beautiful. An updated Economic Enhancement District proposal is headed to the City-County Council next week.
The Economic Enhancement District fee would provide consistent funding for downtown services like cleaning crews, beautification projects, safety ambassadors on the streets, and homelessness initiatives.
"Services that elevate the quality of experience, the property values, things that help to move the needle for the needs of property owners downtown that are really services catered toward the people living, working, and investing here in downtown,” said Taylor Schaffer, president and CEO of Downtown Indy Inc.
The services are currently provided through a pilot program using federal American Rescue Plan dollars. This proposal would provide funding through the tax district for the next 10 years.
"There is a real momentum around this investment,” said Schaffer. "There's real desire from downtown stakeholders to see it continue."
Those services also include the Homeless Street Outreach Team, which was working on Monument Circle Tuesday, wearing bright orange shirts.
"Engaged with those that are experiencing homelessness, kind of learn their story, learn their journey, build that rapport with them in an effort to start working on barriers to any of their housing needs,” said Niki Wattson, street outreach manager with Horizon House.
The tax district would also provide funding for a low-barrier homeless shelter planned just southeast of downtown.
"Working in the downtown areas specifically has really allowed us to have platforms and tables to sit at to really start dispelling myths and allowing people to see others as not their experience and see them as an individual,” said Watson.
The expanded district is now about two square miles, with Interstate 65 providing the north and east border. The south border is primarily South Street. The west border is primarily Blackford Street.
Residential-only properties are excluded from the fee. The fee for commercial properties is capped at .168% of the assessed value. Residential property owners can opt-in to the services for a $250 flat fee annually. The total money raised by the fee is capped at $5.5 million annually.
The City-County Council is expected to refer the updated proposal to the Metropolitan and Economic Development Committee. The proposal will be scheduled for a public hearing on July 15, 2024, at 5:30 p.m. in the Public Assembly Room. Property owners within the boundaries of the Economic Enhancement District will receive a notice in the mail. This notice will include information about the fee as well as details regarding the upcoming public hearing.