Indianapolis Mayor Joe Hogsett is asking the City-County Council to approve a 25-year bond to expand the Indiana Convention Center.
The mayor's office plans to use tax revenue largely from two proposed hotels to fund an addition to the convention center onto Pan Am Plaza, featuring the state's largest ballroom.
A skywalk over Capitol Avenue would link the new space to the rest of the convention center.
Visit Indy estimated 30 million people visited Indianapolis last year, a record, but the city's convention business has been hit hard by closures and cancellations caused by the coronavirus pandemic.
Here's what you need to know:
What is in the expansion?
The expansion includes a 300,000-square-foot building addition on the other side of Capitol Avenue that will be connected to the current building by a skywalk. The addition will include the state's largest ballroom at 50,000 square feet and 40,000 square feet of additional meeting space.
Kite Realty, which owns Pan Am Plaza, would pay for the construction of two hotels. The first is a new Hilton luxury brand known as Signia that is planning to launch in just three cities: Indianapolis, Orlando and Atlanta. It would have 800 rooms.
Kite would wait at least five years to build the second hotel, unless the Signia hotel reaches a capacity of 72% over two consecutive years. If that benchmark is hit, Kite would need to build the second, 600-room hotel within six months.
How will the city pay for it?
The city is seeking a $150-million, 25-year bond to pay for its portion of the expansion — including the skywalk and the 300,000-square foot addition over Pan Am Plaza.
Construction is estimated to cost $125 million, while financing costs and interest brings the total to $150 million.
Big plans: Indianapolis to consider bond for $150 million expansion of Indiana Convention Center
The bond will be backed by money from the Downtown Tax Increment Finance District, which consists of property taxes from a variety of downtown developments.
Property tax revenues generated by the Signia hotel generated as part of that tax district would help pay the debt service.
The Marion County Capital Improvement Board would also redirect a portion of the annual $8 million it receives from the downtown TIF, perhaps as much as $6.7 million.
Why do it?
City and tourism officials believe the expansion will propel Indianapolis into an even higher level of competition in the nation's convention industry.
Visit Indy anticipates that the city would move from having the capability to bid on 75% of the nation's top 250 trade shows to 82%.
The agency also touts the expansion will provide Indianapolis a competitive edge by increasing its connective tunnel system that runs through downtown, making conventions more welcoming in the brutal winter months.
Visit Indy also claims the expansion would increase the number of badly needed downtown hotel rooms and allow the city to host two conventions on each side of the convention center simultaneously.
Visit Indy anticipates the project would allow Indianapolis to court 208 conventions worth another $1.1 billion in economic impact.
When will it start?
Construction on the first hotel would begin in 2022, potentially lasting through 2027.
Kite anticipates hiring 2,500 construction workers for the project.
Kite has also met with the city's office of Minority and Women's Business Development to ensure it retains female and minority employees.
What jobs will it bring?
Kite anticipates the first Signia hotel will create 400 jobs, with 200 more coming with the second hotel.
Those jobs would include a minimum wage of $14 an hour — the highest in the city's hotel industry history — plus a full benefits package.
Call IndyStar reporter Amelia Pak-Harvey at 317-444-6175 or email her at apakharvey@indystar.com. Follow her on Twitter @AmeliaPakHarvey.
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