There haven’t been any law firms or bail bonding companies that have leased space near the Indianapolis-Marion County Community Justice Campus in the Twin Aire neighborhood since the 140-acre campus opened in 2022.

But Gary Perel, a principal and senior director of retail at ALO Property Group LLC, thinks the neighborhood is primed for redevelopment.

To that end, ALO is working on a lease with a potential tenant for a 3,300-square-foot restaurant on the ground floor of a professional services building on the north side of the campus.

Perel said it’s been his primary goal to find a restaurant tenant for the building.

“This is what folks in the building are looking for,” Perel said, noting there aren’t many restaurant options in the area.

ALO hopes to have a lease executed with that tenant as soon as next week. If that happens, Perel estimated the restaurant could be open by fall.

Perel said there were originally two commercial buildings planned on the site, with the second building to offer an additional 80,000 square feet of potential office space.

Redevelopment ideas for Twin Aire have been percolating since 2016 when it was selected by the Indianapolis branch of the Local Initiatives Support Corp. as one of five neighborhoods in its Great Places community development and investment initiative.

Shortly thereafter, the administration of Mayor Joe Hogsett announced it had chosen the neighborhood’s former Citizens Energy coke plant at 2900 Prospect St. as the site for the Community Justice Campus. That resulted in $590 million in construction for a new jail, courts and ancillary services and the the moving of Marion County’s courts from downtown’s City-County Building to the southeast-side campus.

A Great Places strategy for Twin Aire, released in 2018, included a development plan built around the campus, outlining dozens of potential commercial, transportation and infrastructure projects. City and neighborhood leaders have expressed hopes that the opening of the campus would spur redevelopment in Twin Aire, but change has been slow to take root.

Aliya Wishner, the city’s director of communications and policy, told The Indiana Lawyer via email the city has been pleased to see some new developments in the nearby strip center and elsewhere.

“Kroger is in the process of undergoing renovations that are anticipated to be complete this year–not only keeping but improving a critical point of food access for the neighborhood. Infrastructure improvements have been underway in the area, including the trail along Southeastern, a rehabilitation of the Pleasant Run Greenway and a roundabout at English and Southeastern,” Wishner said.

Wishner said seven public buildings have been constructed to date on the CJC site, with plans for additional buildings in the future.

The Community Justice Campus is home to the Marion County Courts, housing 71 courtrooms shared by 37 superior and circuit court judges, as well as 45 magistrate judges.

In addition to the courts, the campus also includes the Marion County Jail, the Marion County Public Defender Agency, Marion County Probation Department and a Youth and Family Services Center.

Whether more government agencies, such as the Marion County Prosecutor’s Office, will move their offices to the campus remains unclear.

Michael Leffler, a spokesperson for the prosecutor’s office, said he did not have an update on any potential move.

“The prosecutor’s office will continue to be open to exploring potential opportunities as they emerge,” Leffler said in an email.

Marion County Prosecutor Ryan Mears was not available for an interview.

Mears has previously said his team is still trying to determine whether moving to the campus was preferable to staying downtown in Two Market Square Center, a Class B office building at 251 E. Ohio St.

He said the hesitancy arises from concerns over how such a move could increase the prosecutor’s operating costs, particularly since his office already signed a much less expensive 16-year, three-month lease extension in 2017.

“This has been a financially driven conversation, in terms of what’s ultimately going to be the cost” of going there “and what are going to be the costs associated with moving,” Mears said in 2021.

Multiple real estate sources said a move to the CJC would cost the prosecutor’s office an additional $7 to $8 per foot per year after factoring in development costs, utilities and other expenses, according to Indianapolis Business Journal.

Kim Reeves, vice president of development services for Browning Investments, also told IBJ in 2021 that any plans for a second professional building at the Community Justice Campus site were “in the hands of the city” and contingent upon finalizing contracts with the Prosecutor’s Office as its anchor tenant.

“The trigger for building No. 2 is based on the prosecutor,” she said. “We’ll work with the city to see how large the second building needs to be” if it moves forward.

She said the building would likely have three to five stories with per-floor square footage that is similar to the first building. It would also include some first-floor commercial uses.

Move of courts not welcomed by all

For some of the downtown attorneys and businesses linked to the legal system, the move of the courts, jail and other city departments from downtown to Twin Aire has eliminated the previous easy access to the judiciary.

Robert Hammerle, an of-counsel attorney specializing in criminal law at Hackman Hulett LLP, said the move of the courts was “regrettable” and had impacted attorneys on multiple levels.

“It’s left downtown a lawyer’s wasteland,” Hammerle said.

Hammerle said that, for lawyers and anyone visiting the Community Justice Campus, there is nowhere to go in terms of restaurants in the area.

He said people on jury duty are getting notice to bring their own lunches due to lack of outside eating options.

Access to court staff is also restricted and the interactions with other attorneys and judges is limited, unlike when court services were consolidated downtown.

“There was a closeness that developed. It was significant. Now that’s all gone,” Hammerle said.

J.P. Penn is the owner of downtown’s J.P. Bail Bonding. He’s been at 114 N. Delaware St. for almost 20 years.

When the courts and jail were still downtown, Penn was able to get walk-in traffic at his bail bonding business, something he said no longer happens during court hours.

“I no longer even go to the office now. I’m on call,” Penn said.

Penn said the move of the courts and jail to Twin Aire came as he was dealing with the emerging prominence of cash bonds, the COVID-19 pandemic and a gradual slowing of business.

He used to have multiple agents and his doors were never locked. Now, it’s just Penn and another agent.

“So, a lot has changed,” Penn said.

Attorneys staying put in downtown Indy

When the move was announced, Jeff Cardella wondered initially if there would be a mass exodus of attorneys from the downtown area to Twin Aire.

Cardella, an Indianapolis criminal defense and expungement attorney with an office on Massachusetts Avenue, acknowledged he also considered buying or renting a building in Twin Aire and leasing it out to bail bond companies and/or attorneys.

He said he has no interest in moving his office to be closer to the CJC.

Pre-pandemic, with the way the law was practiced, Cardella would drive downtown every day, park at his office, walk over to the City-County building and do morning sessions.

Then, he’d walk back to his office for lunch before heading back to the courts for afternoon legal work.

“It was basically half of my day was spent in the City-County building. And I just had to be within walking distance of it,” Cardella said.

After COVID ushered in the expanded use of remote, electronic options for court hearings and client consultations, things changed for Cardella.

He does expungements all over the state now in counties ranging from Dearborn to Lake.

Cardella said there are times when people have to show up for things in person, but he’s able to cast a wider geographic net.

He also does depositions via Zoom calls, although Cardella added that, for civil cases, he thought most attorneys were still doing those in person.

“Being close to this one specific building, it’s just not that important,” Cardella said.

Attorney/client interactions have also changed a lot in the last five years, Cardella noted, with it not being rare now to not meet a client in-person for an expungement case, given online payment options and the technical ability to communicate remotely.

Cardella said he has not heard anyone complain too much about the new CJC site.

One advantage of it is that it has ample parking, something Cardella said was sometimes an issue when the courts were located at the City-County building.

Kevin Potts owns Potts LLC, a downtown criminal defense and personal injury firm located on East Washington Street.

Potts said he did not anticipate or see the need to locate closer to the CJC and described the neighborhood around the campus as still underdeveloped.

With the influx of virtual hearings as well as virtual jail visitation, Potts said it has cut down on the need for day-to-day travel to court.

For Potts, the only downfall is that the move has significantly diminished the personal relationships amongst attorneys, judges and court staff.

“This creates many issues in communication, litigation and case resolution, not to mention the loss of camaraderie amongst the criminal justice community,” Potts said.

Future redevelopment around campus

Penn said he’s not opposed to changing locations, even though he’s been downtown for such an extended period.

At the moment, there’s no available space for lease for him in Twin Aire, Penn noted.

“It would depend on if it could fit my needs,” he said, adding that he would prefer a storefront location like his current site, as well as suitable lighting and a reasonable price.

Penn said he’d like to see a dedicated shuttle running from the City-County building to the jail.

The city released a request for proposal in 2023 regarding redevelopment of the Twin Aire Shopping Center and Twin Aire Drive-In sites.

After receiving five bids, the city held a public meeting where developers discussed their proposed redevelopment plans.

In its statement of need, the city noted that competitive responses would include:

Prioritizing redevelopment of the Twin Aire Shopping Center with expanded mixed use and retail opportunities with an emphasis on preservation and expansion of grocery anchor tenant.

Redevelopment of the Twin Aire Drive-in Site with an emphasis on single family homeownership opportunities and multifamily development–both with a mixture of housing types including workforce and affordable housing options.

Specific component that includes retail and office space for government, nonprofit, health, or career development organizations.

Incorporation of community amenities and benefits.

Wishner said the city and Health and Hospital Corporation are actively engaging in conversations with the developers hat were recommended for selection by the selection committee to thoroughly vet respondent teams and their proposals.

“Once we have finalized negotiations, we will share more information on the planned development phasing and timeline,” Wishner said.

Parel said the goal of building the Community Justice Center was to spur development in the Twin Aire neighborhood.

He said it’s also brought road infrastructure improvements and investments in residential real estate.

A big reason is the more than 2,000 people working at the Community Justice Campus, with close to 4,000 people traveling to the area on a daily basis.

He expects that kind of traffic to help the area “fill in” over the next decade, with more businesses and office space along Southeastern Avenue and surrounding streets.

The Indianapolis Department of Public Works also plans to build a $2.1 million trail along Southeastern Avenue to connect the Twin Aire neighborhood and the city’s Community Justice Campus with downtown.

Construction of the multi-use trail is expected to be completed by the end of 2024.

It will stretch for just over one mile along the north side of Southeastern Avenue from Washington Street to Leeds Avenue, near Rural Street.

Wishner said the Southeastern Avenue Multi-Use Trail is under construction and is expected to be completed later this year.•

Demolition is underway on a pair of structures at downtown’s Pan Am Plaza as crews make way for a $250 million expansion of the Indiana Convention Center and construction of a 40-story, 800-room Signia by Hilton hotel.

The work is taking place over much of the block bordered by Illinois Street to the east, Georgia Street to the north, Capitol Avenue to the west, and West Louisiana Street to the south. The structures and public spaces being erased from the site include the former Pavilion at Pan Am event center at 201 S. Capitol Ave. and the Pan American Plaza, making way for vertical construction later this spring. A one-story, city-owned structure at 260 S. Illinois St. also is being demolished.

The structures are expected to be fully razed within the next few weeks, according to representatives with the Capital Improvement Board of Marion County, which operates the convention center, and AECOM Hunt, the construction manager for the project. The buildings are being torn down using four excavators.

“Over the course of the next couple of weeks, those structures will be demolished completely back down to the grade, and once that’s done, we’ll clear rubble and start excavation for foundations,” said Bill Sewall, vice president of AECOM Hunt. “In May, we will start to erect a tower crane and begin the foundations for the new Signia tower and convention center expansion. We’re close to that next major milestone.”

The entire sub-grade parking garage below the plaza already has been removed, leaving a gaping hole in the site with only the outer perimeter walls of the structure still in place. The garage will be rebuilt in order to serve the hotel.

The cost of redeveloping Pan Am Plaza is expected to cost more than $750 million, including the Signia by Hilton hotel and the expansion of the Indiana Convention Center.

The latter component will add 143,500 square feet of space, including extensive pre-function space and a 50,000-square-foot ballroom. The project also calls for an enclosed skywalk connecting the addition to the existing convention center across Capitol Avenue.

The 12-story Pan Am Tower office building at the northwest corner of Georgia and Capitol will not be affected by the development.

“We’ve, of course, seen progress since this project got started, but most of that has been underground,” said Andy Mallon, executive director of the CIB. “This [step] is certainly visible from office buildings and hotel rooms throughout downtown, so it’s exciting to hear from people as they see tangible progress being made.”

New utility lines are expected to be run to the site as part of the project, which will involve the closure of Illinois Street’s northbound lanes from April 1 to July 1. That portion of the project will run new steam and chilled water lines, as well as new communication lines from AT&T.

Construction crews and the CIB are working closely with the Indianapolis Department of Public Works to ensure that businesses affected by the closure between Georgia and South streets will still be accessible.

The structure and exterior of the hotel are expected to be completed by the end of 2025.

Sewall said the project remains on track for an autumn 2026 opening. Of the $410 million allotted for subcontractors on the project, only $19.2 million has been awarded, with 41% of that going toward diverse companies. Several bid packages are set to go out in late April, focused on mechanical, plumbing, drywall, masonry and interior components. Additional bids for more specific interior components like ornamental metals and bathroom fixtures will be due in June.

“Success of those bidding rounds is pretty vital to the remaining success of the project,” Sewall said.

The city of Indianapolis could ultimately pay in excess of $1.6 billion for the redevelopment project, after taking into account the total debt service the city is expected to owe on hundreds of millions of dollars in bonds for the project.

In November, the city sold $581 million in bonds for the development through the Indianapolis Local Public Improvement Bond Bank, consisting of $436.8 million in tax-exempt revenue bonds for the hotel portion of the project, and another $155 million for the convention center expansion.

Including interest, the total cost for the project is now expected to be around $1.63 billion.

The space on the City-County Building’s 12th floor didn’t initially look like much—blank walls, sticky notes indicating a need for new window blinds, empty cubicles with the names of employees on white printer paper—but for the Department of Business and Neighborhood Services, the new home was a big deal.

Kurt Christian, the department’s chief communications officer, described the agency’s former space at 1200 Madison Ave. as having a “1970s library basement vibe.”

The city had rented offices for the department there since 2008. The location was 2 miles south of the City-County Building, which is in the core of downtown on East Market Street. Employees felt cut off from other government agencies, and visitors often got lost wandering the six-story structure.

The relocation last fall kicked off a $7 million, three-phased move for several city agencies from various rented spaces to either the City-County Building or the new Community Justice Campus, on Southeastern Avenue. City officials say the moves will eventually bring cost savings, foster positive employee morale and improve services to the public.

The agency worked with an outside vendor to move most of the BNS department’s furniture, but Eva Flick, deputy director of the department, oversaw the process. The relocation created a modern, open-concept space that allows better collaboration. A labyrinth of interior walls wasn’t conducive to efficiently handling matters of building code compliance, inspections and permitting.

“We have found that things are much more lively, and, like, there’s definitely a stronger energy since we’ve been in this building versus when we were at Madison. … Our offices were next to each other, and it was still like miles away,” Flick told IBJ.

Plus, the new space has an amenity the Madison Avenue space didn’t: break rooms with kitchen sinks, “where you can wash your dishes in the sink instead of in the bathroom, which is huge,” Flick said.

The move also allowed the department to make space for new employees. Amy Wunder, deputy director of construction and business, told IBJ the office is seeking two program managers to oversee right-of-way and stormwater matters.

“[The move] really gave us the opportunity to reevaluate some of our existing organizational structure,” Wunder said.

The BNS move is just the start. When city-county courts moved in 2022 to the Community Justice Campus in the Twin Aire neighborhood 2-1/2 miles southeast of downtown, the City-County Building was left half empty. That opened plenty of space for agencies located off site to move in.

In the first phase of the transition, which cost $2 million, workers from the Parks and Recreation planning division and the Department of Public Works engineering division also vacated 1200 Madison Ave. That move—including the Department of Business and Neighborhood Services workers—involved about 250 employees.

In the upcoming second phase, workers with Marion County Community Corrections and Marion County Forensic Services Agency will vacate the former Jail I at 40 S. Alabama St. The building is set to be demolished by the end of the year to make room for redevelopment.

Corrections will move to the City-County Building in May. Forensics is expected to move this fall to a facility under construction now on the Community Justice Campus, as will the Marion County coroner. The coroner is currently in rented space on McCarty Street.

Phase II is projected to cost $1.8 million, city spokeswoman Aliya Wishner told IBJ in an email.

The administration is still planning the final phase. Moving costs have not been projected, but the city expects to spend $3.7 million on renovating the City-County Building’s east wing to make room for the Indianapolis Metropolitan Police Department Downtown District.

The district, currently in Union Station at 39 W. Jackson Place, will join other IMPD agencies in the east wing. The Downtown District includes officers with the homeless unit and mobile crisis assistance team.

Upfront cost, future saving

While the Hogsett administration expects to shell out more than $7 million for all the costs associated with the reshuffling, it estimates $450,000 in annual savings on operating costs. That’s based on the cost of renting and operating non-city-owned spaces compared with each agency’s costs in city-owned spaces.

In order to update the 62-year-old downtown tower and demolish the former Jail I, the Indianapolis Bond Bank is in the process of selling $23.3 million in facility revenue bonds.

Joe Glass, executive director of the Bond Bank, gave a presentation before the City-County Council Administration and Finance Committee in November where he laid out the City-County Building remodeling costs.

On the first floor, the city aims to create a more efficient and modern public-facing space for several city departments.

About $3 million of the bonds will fund the gutting of courtrooms and holding cells on the fourth and sixth floors. Those funds are also expected to pay for office furniture, flooring, wiring, appliances, updated break rooms, moving costs and a remodeling to fit IMPD workspaces in the east wing.

An update of the building’s electrical and HVAC systems is expected to cost $10 million.

Repairs to the city employee parking garage will cost just over $10 million and are expected to be complete by December. The city intends to ensure the garage is structurally sound, repair areas damaged by water leaks, reseal the structure with a water-resistant membrane and restripe the lot.

Although the City-County Building and Jail I are owned by the city of Indianapolis, the city pays an independent municipal corporation called the Marion County Building Authority to maintain and manage the spaces. Those payments cover rent (at a lower-than-average rate) utilities, maintenance and repairs.

After all the moves, the city will pay $358,000 to the Marion County Building Authority for the additional space it will use in the City-County Building, according to a representative from the building authority. Last year, the city paid $6.5 million to the agency.

The city pays the building authority $9 to $10 per square foot per year to occupy the City-County Building. At the end of last year, the average asking rent for Class A office space downtown was $24 to $25 per square foot per year, according to the local office of Chicago-based real estate firm Cushman & Wakefield.

Other city expenses will stop, such as rents paid for non-city-owned spaces. Ending the lease at 1200 Madison Ave. will save the administration $1.3 million a year by itself. The move will also eventually cut out rent, utilities and maintenance from Union Station, Jail I and the McCarty Street building that houses the Coroner’s Office.

…..

Council OKs bonds for Broad Ripple Park family center acquisition

The city can move forward its plan to acquire the new Broad Ripple Park Family Center, after the council voted Monday to authorize up to $26 million in principal bonds.

The unanimous vote follows weeks of pushback by neighborhood leaders and residents in Midtown neighborhoods who have expressed concern about how debt for the project might be serviced on a long-term basis. Councilor John Barth, who will represent Broad Ripple and other parts of Midtown after redistricting takes effect in January, was not present for the meeting.

The city plans to use up to $22 million from the Midtown tax-increment financing district to repay bonds that would be issued for the acquisition through the Indianapolis Public Local Improvement Bond Bank. The $26 million issuance would be paid back over nearly 20 years and carry an interest rate of up to 8%.

Residents and representatives of several neighborhoods have said they are disappointed by the city’s decision to lean so heavily on the TIF district to cover the debt, as well as the speed at which the city has sought to gain approval for its financing plan.

The city since 2021 has said it plans to purchase the 40,000-square-foot, $19.7 million building within a year of the facility’s opening—which occurred in January—in order to take full control of the property and avoid shelling out nearly $1 million per year as part of a long-term lease agreement with BR Health.

Parks officials have said not buying the property now would also put several capital projects related to master planning and erosion mitigation at risk in 2024, and potentially other projects beyond that.

The center at 1426 Broad Ripple Ave. was developed through a partnership between Indy Parks and BR Health Holdings LLC, a holding company of Indianapolis-based Avenue Development. It is expected to cost the city about $22 million.

Representatives from the neighborhoods of Broad Ripple, Butler Tarkington, Mapleton-Fall Creek, Meridian Kessler and Midtown have said they were not made aware of the plan to use the TIF for the project until early November and were not able to have substantive conversations with city officials until the middle of the month.

The bonds would be used to cover the principal cost of the purchase, establish a reserve fund, pay financing costs and cover a portion of interest on the debt. In addition to dollars from the TIF, debt would be serviced by facility-generated revenue and other parks department revenue.

Rental payments from Community Health, which has a 25-year lease to operate a health clinic in the building, would also be applied to the debt service. Community is paying $493,350 in rent this year and will pay $412,500 next year, with lease payments increasing by 2% each year thereafter.

Under its current deal with BR Health, Indy Parks agreed to lease at least 25,000 square feet in the family center for 30 years, with the option to buy the building. While rent was waived for the first year, the department will be required to pay $79,900 per month in rent—$958,800 per year—as well as contribute funds toward maintenance and upkeep of the property.

The price tag for the purchase of the building was established in the lease agreement between the parties, with the cost increasing by $1 million per year if the city fails to close on the acquisition by Jan. 3.

…..

A City-County Council committee on Monday night recommended the creation of a new downtown taxing district to support a proposed 20,000-seat soccer stadium—a key component of Indy Eleven and Keystone Group owner Ersal Ozdemir’s $1.5 billion Eleven Park project.

The resolution, which unanimously passed the Metropolitan and Economic Development Committee, allows for the creation of a new professional sports development area, or PSDA.

The district would collect various taxes to cover a portion of the cost for the stadium at the proposed Eleven Park development, slated to occupy the former Diamond Chain Manufacturing Co. site southwest of the Mile Square along the White River. The first phase of the project is now under construction.

The PSDA would generally rely on state retail taxes, local and state income taxes, and food and beverage taxes collected within the district, but the resolution for the district also allows innkeepers taxes and admission taxes to be used.

The full City-County Council during its December meeting will consider the measure, which also passed the independent Metropolitan Development Commission on Nov. 1.

The Eleven Park project still would require several approvals from local government bodies in coming months.

The city continues to work with Keystone Group to establish additional incentives for the Eleven Park development. Keystone also must sign a deal with the city’s Capital Improvement Board (which also operates the Indiana Convention Center and Lucas Oil Stadium), designating the board as the stadium’s owner.

The Indiana General Assembly passed legislation for the PSDA in 2019, permitting state tax contributions of up to $9.5 million per year toward debt service on the soccer stadium, as long as Indy Eleven and Keystone Group owner Ersal Ozdemir or his firm contribute at least 20% of the venue’s overall cost.

The city and CIB are working with Chicago-based firm Hunan Partners to finalize a feasibility study, evaluating how much revenue could be generated by both the stadium itself and the Eleven Park project as a whole. Once that is completed, bonds will be pursued for the project.

Before the PSDA is finalized, the city must complete its feasibility study and submit those findings to the state budget committee. That process must be completed by July 1, 2024.

Kelly Mulder, vice president of development for Keystone Group, said Monday that the expected cost of the development has risen recently from $1 billion to $1.5 billion. The project as proposed includes the stadium, 600 apartments, 205,000 square feet of office space, 197,000 square feet of retail and restaurant space and a 4,000-seat indoor music venue. It also would include extensive green space and an amphitheater.

The proposed boundaries for the PSDA include the entire 20-acre site, but go beyond the property to form a piecemeal, non-contiguous district made up of properties throughout downtown. All the properties are within a one-mile radius of the Eleven Park site, as required by law.

Those include numerous hotel properties like the planned Motto by Hilton at 1 N. Meridian St. and the Kimpton hotel project at 1 N. Pennsylvania St. It also includes the 220 N. Meridian St. office tower and the still-under-construction InterContinental Hotel at 17 W. Market Street—both of which are owned by Keystone Group.

The PSDA also includes the former General Motors stamping plant property on the west bank of the White River, a portion of which is being redeveloped into a headquarters for Elanco Animal Health Inc.

The new PSDA would be the second in downtown Indianapolis, joining another created in 199. It captures state income and sales taxes collected at Lucas Oil Stadium, Gainbridge Fieldhouse, Victory Field and 13 downtown hotels, including the downtown Marriott, the JW Marriott, the Westin and the Hyatt Regency.

The city of Indianapolis could ultimately pay in excess of $1.6 billion for the redevelopment project at downtown’s Pan Am Plaza.

The cost for the project, which consists of an expansion to the Indiana Convention Center and an 800-room Signia by Hilton hotel tower, is significantly higher than the $751.6 million figure first reported by IBJ earlier this week after taking into account the total debt service the city is expected to owe on hundreds of millions of dollars in bonds for the project.

The city on Wednesday and Thursday sold $581 million in bonds for the development through the Indianapolis Local Public Improvement Bond Bank, consisting of $436.8 million in tax-exempt revenue bonds for the hotel portion of the project, and another $155 million for the convention center expansion.

Including interest, the total cost for the project is now expected to be around $1.63 billion.

The hotel bonds alone are expected to create $1.15 billion in debt for the city over a repayment period of up to 44 years. All of that debt is expected to be paid through revenue generated by the hotel itself, rather than new or existing tax revenue streams.

City officials said Thursday an aggregate interest rate of 5.41% was secured for the three series of municipal bonds tied to the Signia. When the bonds were initially approved by City-County Council, the city was authorized to have interest rates of up to 8%, which would have resulted in hundreds of millions of dollars more in interest over the life of the debt service.

The city was able to negotiate better terms for those bonds because they were oversubscribed—or in greater demand from investors than the total bonds available—when the sale occurred Wednesday. In fact, the city received a combined $2.76 billion in orders for the bonds, nearly seven times their face value.

The average annual debt service for the hotel is expected to be $26.6 million, with the high mark being $43.9 million in a single year. Depending on the success of the hotel operation, the city could also pay off its debt early, as it will be required to put any revenue exceeding operating costs (and not allocated for reserve accounts) toward its balance. The bonds already account for a reserve fund of at least $30 million for the project.

A city-commissioned study conducted by New York City-based LW Hospitality Advisors projects the hotel will generate about $50.6 million in room revenue during its first year, based on an occupancy rate of around 67%. By the fifth year of operation, it’s expected the hotel will be operating at 77% occupancy and generate about $72.3 million in annual revenue.

“The wisdom of capital markets has spoken: Indianapolis is set up for success as we build the Hotel Signia by Hilton and the Convention Center expansion,” Mayor Joe Hogsett said in written remarks. “This news indicates clear support from the market for our vision for Downtown and the next era of Hoosier Hospitality in our city.”

The city expects to issue another $25 million in bonds for the hotel at an unspecified date. Hilton Worldwide Holdings Inc., which will manage the Signia hotel, has pledged to contribute $39.7 million toward construction of the hotel.

For the convention center expansion bonds, the city will owe $344.9 million in debt service. Those bonds will have average annual payments of $14.28 million, with service as high as $29.2 million in a single year.

Those bonds are expected to fully mature in 2048, with repayment coming via property taxes generated by properties in the city’s Downtown tax-increment financing district.

The city secured a rate of 5.34% for the convention center bond issuance, which city leaders said was also oversubscribed, to the tune of $1.22 billion.

That portion of the projectwill receive more than $100 million in contributions through the acquisition of land and cash from the Capital Improvement Board of Marion County and the city’s Metropolitan Development Commission.

City officials told IBJ it’s difficult to know what the city’s rates would have been for the bonds had they not been oversubscribed. The convention center bonds received an AA+ rating from financial rating agency S&P Global, while the hotel bonds all received a rating of at least BBB-.

The BBB- rating indicates the agency believes the city will be able to meet its financial obligations related to the hotel, but that the project still presents a moderate risk to investors.

The interest rates are likely much better than what previous developer-owner Kite Realty Group Trust likely would have been able to secure on the private market, as the current Wall Street Journal prime interest rate is 8.5%. Kite in May asked the city to take on the project because it was unsuccessful in securing favorable enough rates to move forward with the project itself.

The demand for the bonds represents continued interest in Indianapolis as a market for investors, even amid uncertainty related to construction costs and inflation, said Chris Reckley, director of acquisitions for Michigan-based Dietz Property Group.

“I think this large of an oversubscription … really shows the strength of the Indiana economy and demand for investment in Indiana, specifically Indianapolis,” he said. Investors find Indiana to be a safe haven while treasuries have seen record volatility.”

The city in June acquired the 3.1-acre Pan Am Plaza property from Kite Realty Group for $54.3 million. Kite remains involved in the project as a development partner—it will collect $13.7 million for the development, in addition to what it received for the land—but the company won’t have an ownership stake once the project is completed.

The bonds are expected to close in December, but infrastructure work on the construction site is already underway, using funds already allocated for the project by the CIB and MDC.

The development is expected to be completed by October 2026.

OCTOBER 16, 2023

Indianapolis City-County Council unanimously approves 2024 budget

JILL SHERIDAN

The Indianapolis City-County Council approved more than $1.5 billion dollars in spending for 2024 with a unanimous vote Monday.

The budget is spread between departments, with the most spending set aside for public safety and infrastructure. IMPD will receive a record $323 million in funds. The money will allow the department to hire more officers and purchase new technology. The Indianapolis Fire Department will receive a spending allotment of $255 million. The Marion County Sheriff’s office is budgeted for nearly $130 million.

Independent councilor Ethan Evans, who is not running for reelection, was a sole vote against the budget for the past two years. He said he supports this year’s budget as it fills some public safety gaps.

“If we address all these root causes and mental health care, housing, living wages, education, food security, transportation and clothing and hygiene, and make all of these more affordable and accessible, we will see a much larger drop in crime and violence than more police and cameras,” Evans said.

Added funding for the Department of Public Works is also part of the budget.  The council approved $284 million for transportation-focused projects and $79 million for stormwater projects. That raises city investment over a five-year period to $1.2 billion.  An additional $25 million dollars is set aside for residential road repairs.

Republican councilors voted for the budget, but spoke out with concerns about sustaining infrastructure spending and public safety.  Minority leader Brian Mowery said he would like to see a more concerted effort to attract police officers.

“We're making headway, but is it enough?” Mowery said. “I do think that now it is more important than ever for rubber to meet the road and for us to actually get and retain some new talent in the city.”

Spending for departments including Indy Parks and the Department of Metropolitan Development remains steady.

A new Office of Equity, Belonging and Inclusion will receive more than $687,000 in funding.

Council committees have held public hearings over the past two months to discuss spending. Separate proposals for affiliated municipal corporations including Indy Go and the Indianapolis Public Library also received approval.

The new budget will start in January 2024.

Contact WFYI city government and policy reporter Jill Sheridan at jsheridan@wfyi.org. 

The head of the Indianapolis Local Public Improvement Bond Bank has been named the next city-county controller by Mayor Joe Hogsett—one of several staffing changes announced Monday.

Sarah Riordan, who has led the bond bank as its executive director and general counsel since 2016, will replace Ken Clark in the role. Clark was named controller in December 2019 after four years as the chief information officer for the city’s Information Services Agency.

Riordan has been directly involved in several public finance projects since joining the bond bank, including funding for the Community Justice Campus, multiple Indianapolis Airport Authority efforts, the $360 million renovation of Gainbridge Fieldhouse and the ongoing effort by the Hogsett administration to use up to $625 million in bonds for the development of the Signia by Hilton hotel at Pan Am Plaza.

Her appointment was one of six made public Monday.

By the fall of 2024, IndyGo’s Purple Line is expected to provide some of the city’s most distressed neighborhoods along the East 38th Street corridor and northward with better access to jobs, groceries and safe travel.

But before the $188 million rapid-transit bus line moves its first passenger, there’s still a lot of work to do. Building of passenger stations has yet to begin; all progress so far has laid the groundwork for future construction.

IndyGo broke ground on the Purple Line in late February, and construction has been on track since, said IndyGo spokeswoman Carrie Black, although she cautioned that supply chain challenges or other problems could still cause delays at some point.

“Right now, we’re going through and laying the groundwork and infrastructure for the line, including some storm sewer separation, street paving, sidewalks and curb ramps,” Black told IBJ in an email.

The agency has also acquired all necessary land for the line, which will include dedicated bus lanes. The Purple Line will run from downtown to the Ivy Tech Community College campus just south of Fort Harrison State Park, in the heart of Lawrence. It replaces Route 39, one of IndyGo’s busiest, and will provide more frequent service.

Improvements to the rapid-transit version of the route, besides the dedicated bus lanes, include nearly 10 miles of additional or repaired sidewalks and nearly 27 miles of street resurfacing. IndyGo is also working with Citizens Energy Group on stormwater improvements.

Purple Line construction is currently causing its second major detour. Westbound lanes of East 38th Street from Keystone Avenue to Emerson Avenue closed July 11; they are scheduled to reopen in November.

Contractors have recently poured concrete for the terminus, a bus-charging facility at the end of the line, at Ivy Tech. It will include a break area for bus drivers.

The first 12 stops of the Purple Line, starting downtown, are shared with the Red Line, IndyGo’s first bus rapid-transit line, which opened in September 2019. The remaining 18 stations on the 15.2-mile line, mostly along 38th Street and Post Road, will not be built until next year, Black said.

The Purple Line is partially funded by an $81 million U.S. Department of Transportation grant. The rest comes from a combination of local and federal sources.

Bloomington-based Crider & Crider Inc. is being paid $95.6 million for its work on roads, drainage and sidewalks. Indianapolis-based F.A. Wilhelm Construction Co. is building the bus stations, for $18.2 million.

Moving Forward

After a devastating few years, city leaders hope the distance between where downtown is and where it’s going will be a short walk. 

IT TAKES ROUGHLY an hour and a 3-mile walk to travel between the future of downtown and its past. One sunny day this summer, I took that walk, simultaneously traversing the current Indianapolis, the one it supplanted, and the one that will soon replace both of them.

Beginning in the Bottleworks District at High Alpha—the venture studio that has created nearly $1 billion in local economic impact through its tech portfolio companies—I walked down Mass Ave toward the old GM Stamping Plant.

For 80 years, the hulking, 2.1 million-square-foot site powered much of the local economy, employing thousands. Instead of portfolio companies, it stamped Chevrolet trucks and buses. But cities and economies change. Abandoned since 2010, the GM Stamping Plant spot is finally moving in the right direction again. Elanco Animal Health broke ground this spring on a $100 million headquarters there, which city leaders hope will transform the blighted industrial area back into the bustling spot it once was. 

As I got closer to the land nestled along the White River, I looked to my right and saw a sign. “FIND WHAT’S NEXT” read a giant poster draped on the Indiana State Museum, almost cheering me on as I got closer to my destination.

That’s what civic boosters here are trying to do right now: find what’s next for a somewhat bleary-eyed city. Indianapolis finds itself in the middle of a “vibe shift.” The pandemic-era term, coined by trend-forecasting consultant Sean Monahan and popularized by _New York _magazine earlier this year, is exactly what it sounds like: a cultural change, following a period when a “social wavelength starts to feel dated,” according to the magazine’s Allison P. Davis.

The city’s vibe shift has been unfolding over the last year, as officials placed cultural defibrillators on the heart of downtown, attempting to shock it back to life after the twin forces of the pandemic and the new civil rights movement roiled the Mile Square in 2020. Storefronts were boarded up. Crime increased. Open drug use, and occasionally feces, dotted downtown streetscapes. The economic currents laid waste to treasured restaurants like Ed Rudisell’s Black Market on Mass Ave and Rook in Fletcher Place. A downtown that had been on the rise for decades was suddenly in huge trouble.

Now, with the worst of the pandemic in the rearview mirror, the city’s core may be transforming again. Civic leaders spent years preparing downtown to be the kind of place that could host a Super Bowl. Now they want to do something very different: make it a desirable place to live.

“We’ve traditionally thought of our downtown as a place where people work, so we thought about the population of downtown as workers,” says Scarlett Andrews, director of the Indianapolis Department of Metropolitan Development. “Then we thought about how to make it a place that people wanted to visit. Now workers want something different. Visitors to some degree want different experiences. But we have a lot of people living downtown, and we need even more.”

Consider this: The occupancy rate of downtown apartments is 97 percent. That suggests an opportunity for more housing. It may also call for new kinds of development.

“We need to change how we think about our public spaces and infrastructure,” Andrews says. “We need a more people-centered approach to what residents, visitors, and workers want.”

What, exactly, does that mean? Back to the vibe shift: In the coming five years, a historic slate of projects will take shape downtown. For the most part, these won’t be the office towers and malls that characterized development here in the late-20th and early-21st centuries. A new kind of neighborhood-based construction, represented by campuses like Bottleworks, Elevator Hill, the Stutz complex, and 16 Tech, seems to be in vogue. Then there’s the city’s partnership with the cultural development firm GANGGANG to create the South Downtown Connectivity Vision Plan, which could reshape everything from the kinds of trees you see planted to the variety of benches you sit on.

Last year, nearly a decade after Super Bowl XLVI, the city finally took down its city-limit signs touting our experience as the host city. It was time for something new. Indianapolis is ready to find what’s next, as the sign at the museum urged.

I told Jeff Bennett, Indy’s deputy mayor of community development, about my walk, and asked him what he made of the new Indianapolis that will spring up alongside that path in the next few years. 

“You can stand and point at historic resources that have already become revitalized campuses like Bottleworks,” Bennett says. “Then you can point at sites like the stamping plant that will be changed over the next few years. No city is fixed in time. They’re always changing. You’re either moving forward, or you’re moving backward, but you’re never standing still. And I think that corridor you walked represents that—the city is moving forward.” —Adam Wren

Six years ago, a diverse group of elected officials, government experts, and community stakeholders convened with the goal of reforming the Marion County criminal justice system. That innovative team sought to address underlying challenges generations in the making, which had resulted in an overburdened, antiquated, and unequal system of justice for residents.

After months of listening and learning, the Criminal Justice Reform Task Force released a series of recommendations to fundamentally change the existing system. They included a shift to prioritize assessment and treatment over incarceration, especially for those who struggle with mental health or substance abuse disorders. There was also a clear need to address aging, inefficient facilities that served as barriers to collaboration and successful re-entry — specifically our county jail system.

Soon after, we found partners in the Twin Aire neighborhood and the surrounding communities, who jumped at the chance to replace a 15-year-old brownfield resting on $24 million of environmental remediation efforts. And as we broke ground on the site, we combined our reform-minded approach with an intention to uplift one of our city’s most historic areas.

On May 16, after two years of a pandemic and a national reckoning on race that only further exposed the inequities of a broken system of criminal justice, we cut the ribbon on the Community Justice Campus.

The event represented a significant step forward in implementing the original recommendations for reform. The campus brings a modern, holistic, and data-driven approach to criminal justice in our city. Critically, it unites partners on a single site, making it easier for those who interact with the justice system to navigate it.

The campus houses the Marion County courts, sheriff’s office, Adult Detention Center and our flagship Assessment and Intervention Center, or AIC. The AIC, which was the first facility to open on the campus in December 2020, provides mental health and addiction assessments as an intervention point before someone is arrested. The goal is to help keep non-violent, low-level offenders out of jail by providing them with the resources and support they need to address underlying mental health or substance use issues.

In its first year of operation, the AIC received 2,419 referrals and conducted 1,707 assessments of individuals for mental and behavioral health and substance abuse issues. Instead of being thrown in jail, these individuals are now getting access to resources and services, including short-term stays at the AIC to address withdrawal management and connection to direct service providers such as recovery housing and community mental health treatment.

Not only is the AIC making a significant difference, but the Adult Detention Center itself is restructured with a focus on improved physical and mental health services for inmates. The facility features Medication Assisted Treatment capabilities, Narcan vending machines, and suicide prevention advocates. It also includes enhanced space for inmates to take part in education, job training, counseling, and other programs to assist with re-entry.

More facilities are on the way: a modern Youth and Family Services Center, to replace our aging Juvenile Detention Facility and guide young people toward positive paths; a professional building to house the Public Defender and Probation Department in close proximity to the new courthouse; and coroner and forensics facilities to more quickly find justice for families who have had loved ones taken from them too soon. And as the Community Justice Campus continues to grow, we will work with neighbors to bring responsible local development along with it.

At the outset, we knew the work of criminal justice reform would not be finished in one year, or four years, or even in the life of my administration. And our work is not yet finished. But with the opening of the Community Justice Campus, we have made a vital step toward improving outcomes for generations of Indianapolis residents to come.

For Immediate Release
Monday, May 16th, 2022

Mayor Hogsett, City Leaders Celebrate Opening of Community Justice Campus

New Campus Brings Modern, Holistic, Data-driven Approach to the Indianapolis Justice System

Indianapolis – Mayor Joe Hogsett, city leaders and community partners celebrated the opening of the new Indianapolis-Marion County Community Justice Campus (CJC) today with a ribbon cutting ceremony at the now fully operational site on the city’s southeast side.

The opening of the CJC is a cornerstone of Mayor Hogsett’s criminal justice reform efforts, bringing together community partners on one campus for a modern, holistic, data-driven approach to the Indianapolis justice system.

The CJC now houses the Marion County Superior Court, Marion County Circuit Court, Marion County Sheriff’s Office, the Adult Detention Center and the Assessment and Intervention Center (AIC). The AIC, which opened to the public in December 2020, is a pioneering mental health and addiction treatment facility to help keep non-violent, low-level offenders out of jail, provide wrap-around support services and reduce recidivism.

“The opening of the Community Justice Campus represents the closing of multiple jails and the opening of the first, purpose-driven facility built for our City’s criminal justice system in nearly 60 years,” Mayor Hogsett said. “As we mark this occasion, we recognize that our work to reform our criminal justice system is not finished. Because we did not set out to build buildings, we set out to change as many lives as possible.”

Mayor Joe Hogsett was joined at the ribbon cutting by Sheriff Kerry Forestal, Marion Superior Court Judge Amy Jones, Indianapolis City-County Council President Vop Osili, City of Indianapolis Director of Public Health and Safety Lauren Rodriguez and more than a hundred community partners involved in the project.

The Marion County Sheriff’s Office moved its operations to the new campus earlier this year alongside the opening of the Adult Detention Center. In addition to increased capacity, the new Adult Detention Center features advanced technology and monitoring capabilities. It also offers improved physical and mental health services for inmates, including modern medical facilities, enhanced addiction treatment and Sheriff Forestal’s new Suicide Prevention Advocates.

“We’re proud of the enhanced support we’re able to provide at the new facility, such as improved medical services and access to mental health and addiction treatment. The design of the ADC and the dramatically improved technology will allow us to keep our employees and the people in our custody safer and more secure,” said Sheriff Forestal.

The Marion Superior Court moved its operations to the new Courthouse earlier this month, with the exception of the Marion County Probation Department, Juvenile Detention Center and its Juvenile Delinquency hearings which continue to be held at 2451 N. Keystone Avenue.

The new Courthouse includes 71 state-of-the-art court rooms supporting 36 Superior Court Judges, 1 Circuit Court Judge and 45 Magistrates. It includes enhanced technology and security features and improved public services.

“For the first time in many years our local Judiciary will be united on one campus.  The technological capabilities of the new Courthouse are unmatched.  We can now allow for increased opportunities for remote appearances as well as digital evidence presentation and preservation.  We also have a robust legal resource center that will provide assistance to individuals navigating the court system as well as enhancing their access to justice,” said Judge Jones.  

The Community Justice Campus, which broke ground in 2018, is located in the Twin Aire neighborhood at the site of the former Citizens Energy Group Coke Plant. In 2019, the Indianapolis Bond Bank and Building Authority issued bonds to generate project funds of $571 million for the Courthouse and Adult Detention Center and $13.8m for the Assessment and Intervention Center. The annual debt service, approximately $37.5 million, will come from savings and efficiencies created by the consolidation of facilities. Remaining costs were covered with budgeted funds and additional savings. No new taxes were levied to pay for the facilities.

"The Community Justice Campus is much more than a new set of buildings; it reflects the new culture of our local system of justice, one centered on our commitment to value the humanity of incarcerated persons, to treat mental and behavioral health challenges, including addiction, as medical problems, and to see the period of incarceration as one during which individuals can receive help to make better choices when they leave,” said Indianapolis City-County Council President Vop Osili.

The CJC site was chosen with input from and collaboration with the Twin Aire neighborhood and other community and justice partners.

The Community Justice Campus is located at 675 Justice Way, Indianapolis IN 46203. For more information and parking instructions, visit IndyCJC.com. For specific details on Marion Superior and Circuit Court proceedings, visit mycase.in.gov.

More than a building, new headquarters represents Elanco’s endeavor to build a post-COVID workplace destination, the company’s next era of growth an innovation, an expanded downtown Indianapolis that connects the Valley Neighborhood with the Circle, and an epicenter for Animal Health innovation.

The public plaza under construction north of Gainbridge Fieldhouse now has an official name as well as plans for two public sculptures created by Honduras-based artist Herman Mejia.

Bicentennial Unity Plaza, named in reference to the 200th birthday of Indianapolis in 2021, will be home to a large arched sculpture titled “Together” and a dome-like installation titled “Sphere.”

Amenities including the sculptures, a community basketball court/ice rink and public restrooms are being funded through a $28.5 million grant from Lilly Endowment Inc.

The Capital Improvement Board, which owns Gainbridge Fieldhouse, announced the plaza’s name and art installations Friday as part of ongoing renovations to the downtown arena, 125 S. Pennsylvania St.

In addition to being a site for pickup basketball games in mild weather and ice skating during winter months, Bicentennial Unity Plaza will be used for community programs, civic conversations and artistic performances.

“It’s a great event space, and 80% of those events are going to be community-based,” said Andy Mallon, executive director of the CIB. “We’re really focused on creating a destination that benefits all of central Indiana. Downtown Indianapolis is everybody’s neighborhood. Everybody has ownership in downtown.”

Construction of the plaza is expected to be completed by the end of this year. Mejia’s sculptures likely will be installed in early 2023, Mallon said.

The larger artwork, “Together,” will be 30 feet tall and 110 feet long. Made of stainless steel and limestone, “Together” features two rising arcs that are nearly aligned but need a third component, a limestone keystone, to join in the middle.

“It’s a symbol of, ‘We don’t always get it square, but we keep trying,’ ” Mallon said.

Mejia was partially inspired, Mallon said, by the “Landmark for Peace” sculpture at Dr. Martin Luther King Jr. Park, 1702 Broadway St., in Indianapolis. “Landmark for Peace” features depictions of King and Robert F. Kennedy, two leaders assassinated in 1968, reaching toward one another.

Mirrored alcoves at the two bases of “Together” are designed for visitors to capture photos.

The “Sphere” sculpture is primarily geared for visitor interaction. Two screens inside the artwork will display live images of people at the plaza as well as photos of Indianapolis landmarks. In a nod to basketball played inside Gainbridge Fieldhouse, “Sphere’s” height is 23 feet, 9 inches, or the distance between the NBA 3-point line and the basket.

Pacers Sports & Entertainment will manage the plaza.

According to the CIB, the present allocation of the Lilly Endowment grant breaks down as:

• $10.18 million for artwork and landscaping;
• $6.5 million for site preparation and utilities;
• $4.95 million for plaza elements including the basketball court/ice rink;
• $2.5 million for restrooms and concessions building;
• $2.38 million for a canopy above the basketball court/ice rink;
• $1.26 million for storage and connectivity;
• $700,000 for miscellaneous costs.

An arched sculpture titled “Together,” created by artist Herman Mejia, is seen in the foreground of this rendering of Bicentennial Unity Plaza north of Gainbridge Fieldhouse. (Image provided by The Capital Improvement Board)

Capital Improvement Board to add iconic public art installations, community programming at newly named Bicentennial Unity Plaza next to Gainbridge Fieldhouse with support of $28.47 million grant from Lilly Endowment

• Public plaza, already under construction, will be home to significant sculptures that connect Indianapolis’s past and present
• Pacers Sports & Entertainment to manage plaza; collaborate with community groups on special events, diverse cultural and artistic programs

New high-tech Marion County jail awaits inmates as Community Justice Campus begins to open

Amelia Pak-HarveyLawrence Andrea

Indianapolis Star

The new courts and jail complex just east of downtown Indianapolis is nearly ready for full occupancy as the sheriff's office and Marion County court system gradually fill in to the new building. 

Supply chain issues prompted by the coronavirus pandemic have somewhat delayed some departments from moving into the Community Justice Campus built between Southeastern Avenue and Prospect Street. 

Yet the sheriff's office administrative team has already moved to the campus, which awaits the transfer of inmates from the downtown City-County Building sometime this month.

City Announces Details of Upcoming General Obligation Bond Sale (ILPIBB Bonds Series 2021E)

Moody’s Affirms Aaa credit rating for City

INDIANAPOLIS – Today the City of Indianapolis announced the details of its upcoming bond sale.  The Indianapolis Bond Bank anticipates issuing approximately $35.29 million* in Series 2021E tax-exempt general obligation to secure funds for projects on behalf of the City of Indianapolis. The City’s underwriting syndicate, comprised of all XBE firms, will be led by Siebert Williams Shank & Co., LLC (MBE/WBE) as senior manager and Academy Securities (VBE/DBE) and Blaylock Van, LLC (MBE) as co-managers. The municipal advisor is Sycamore Advisors (WBE).

Also announced today, Moody’s Investors Service has assigned a “Aaa” rating to the Series 2021E bonds, with the following rating outlook: “The stable outlook reflects the city’s role as a growing economic hub with strong financial management. Significant federal funding from the American Rescue Plan Act further supports the city’s financial stability and allows strategic investments to services and capital.”

The projects covered by the bond are included in the first phase of Mayor Hogsett’s Circle City Forward initiative, announced in February 2021, to invest over $190 million in capital improvements across Indianapolis without raising new taxes for Marion County residents.

“These bonds will help make transformative investment in public facilities across Indianapolis,” said Mayor Joe Hogsett. “They will help propel our community forward by creating construction jobs, improving City services, and enhancing overall quality of life.”

Pricing of the bonds is planned for Tuesday, November 23, 2021.  The transaction will include new money bonds and will be priced via negotiated sale led by book-running senior manager Siebert Williams Shank & Co., LLC along with Academy Securities and Blaylock Van, LLC as co-managers. Approximately $43 million* in new money bond proceeds will be used to finance various Parks projects throughout the City and construction of certain facilities, including a new fire station and DPW Solid Waste garage.

The Preliminary Official Statement for the issuance is available here.

###

Mark Bode
Communications Director
Office of Mayor Joe Hogsett – City of Indianapolis

mark.bode@indy.gov

P: (317) 327-4287  C:  (317) 995-3289www.indy.gov

Marion County courts, jail get ready for big move

October 15, 2021 | Leslie Bonilla Muñiz

Thousands of objects must be moved. Typical office stuff like cabinets, chairs, desks and computers, but also an organ and a baptismal font. And people, too, including some 2,400 inmates.

That’s what happens when a major city relocates the bulk of its criminal justice system to an entirely new site.

The centerpiece of Indianapolis’ $590 million Community Justice Campus is set to open in December, five years after Mayor Joe Hogsett first unveiled his vision for it.

Indy’s courts, sheriff and jail are set to join the Assessment & Intervention Center by the end of the year at the new location in the Twin Aire neighborhood, three miles southeast of their longtime downtown sites.

The City-County Council unanimously approved new bonds Monday evening that will provide $25 million for improvement projects at three Indianapolis public parks.

 Phase 2 of Banker’s Life Fieldhouse project well under way

August 18, 2021| Mickey Shuey

"Work is well under way on the second phase of the extensive makeover of Bankers Life Fieldhouse.

The renovations—part of a three-phase, $360 million plan that tipped off in 2020—include the demolition of the Maryland Street Parking Garage directly north of the arena, new concession areas, major suite-level modifications and the replacement of thousands of seats.

Mel Raines, executive vice president for corporate communications, community engagement and facility operations with Pacers Sports and Entertainment, said while some of the renovations will conclude by Oct. 1—in time for a concert and the 2021-2022 NBA season—much of the work will extend into December. 

Raines said the Krieg DeVault Club Level of the arena will be reduced from 36 suites to 14. The first phase of the renovation project added 10 suites and two loge boxes to the KeyBank Level. Overall, the total suite count drop from 64 to 52.

Some of the updated suites will have moving walls, so they can be rented out individually, in pairs or as a whole—allowing groups to occupy up to seven suites at a time.

The Lexus Lofts area is also being extended to double the space’s fan capacity to more than 200 people, and the Varsity Club restaurant is being reconfigured to allow for more flexibility with single-game ticket sales or group sales. The new space will be broken into thirds, allowing groups to rent one or all of the spaces.

Raines said those changes and the addition of the upper-level standing-room balcony that will come with the third phase of renovations are part of the franchise’s “premium for all” strategy.

“Every level of the building has something—regardless of your price point, you’ll find something you’re excited about,” she said.

Rick Fuson, president and chief operating officer of PSE, said the club expects to see more money from the moves.

“The bottom line is one of the reasons that we’re trying to do these kinds of things is to be able to try to increase revenue,” he said. “In the end, we’re hopeful that will work out.”

At least one grab-and-go stand is planned for the suite level, meaning fans can quickly get water, beverages or prepackaged food without waiting in line to pay for it. The level will also have a new sensory area for those who could be overstimulated by live events. All the non-suite seats on that level are also being replaced.

On the main concourse, two grab-and-go areas will be added and restrooms are being updated to offer more touchless features. A new nursing room is being added. The memorabilia cases on the north end of the building, adjacent to the entry pavilion, have also been removed to make way for new bar areas.

The Planet Fitness Lounge has been removed to create a more casual viewing space and bar area. The facility will have multiple areas for visitors to stand and watch the game directly from the concourse. PSE is also adding the Yuengling Flight Deck to the concourse as part of its revamp.

Most of the general concession areas will be configured much differently, with the adoption of a no-cash setup and separate areas for spectators to pick up their orders. The former Steak ’n Shake concession area will be replaced by a yet-to-be-named partner, Raines said.

The box office area in the entry pavilion has been removed to allow for the new plaza space. That area will remain under construction for at least another year, with the plaza expected to be completed by the end of 2022.

The walkway from the Virginia Avenue Garage is being more than doubled in width to accommodate foot traffic from the structure, which is used by about 2,500 fans per game.

Fuson said the new box office area “will be like checking into a hotel,” rather than composed of small, individual cubbies occupied by ticket takers and separated from patrons by glass.

“This is a really exciting time for us,” he said. “We can’t wait for people to come back into what I’m calling a brand new building.”

The city of Indianapolis plans to spend $190 million on multiple infrastructure and community-revitalization projects, including a new family services center, forensics lab and improvements to four local parks, it announced Monday afternoon.

City Announces Details of Upcoming Bond Sale

Fitch/Moody’s affirm AAA/Aaa credit rating for City

INDIANAPOLIS – Today the City of Indianapolis announced details of its upcoming offering of road bonds. Subject to market condition, the Indianapolis Bond Bank plans to sell $50 million in Series 2020D tax-exempt bonds and $135,645,000 in Series 2020E taxable bonds by negotiated sale on Tuesday, September 22. The City’s underwriting syndicate will be led by Citigroup as senior manager and Siebert Williams Shank & Co. as co-manager. The municipal advisor is Sycamore Advisors.

The bond issuance was passed on Monday, September 14 with the unanimous, bi-partisan support of the City-County Council. The bonds will finance $50 million in new street, road, and bridge infrastructure projects identified in DPW’s 4 year Transportation Capital Plan. The remaining bonds will refinance outstanding road debt to achieve interest costs savings up to $300,000 annually. 

The Series 2020 D&E were rated AAA by Fitch and Aaa by Moody’s. During the bond issuance process, the two major ratings agencies confirmed the City’s overall credit rating of AAA/Aaa with a stable outlook, despite many municipalities experiencing downgrades or more negative outlooks due to COVID-19 lowering revenue projections. Moody’s cited Indianapolis’s “diverse economy with young, educated labor force” as a credit strength in affirming the rating.

“These bonds will make possible major upgrades to our city’s infrastructure,” said Indianapolis Mayor Joe Hogsett. “Our continued high bond ratings are a testament to the strength of our Bond Bank team and the City’s sound fiscal management, and will save taxpayers millions in interest savings.”

Additional information can be found on the Bond Bank’s website, indianapolisbondbank.com. The report from Fitch can be found at fitchratings.com and the report from Moody’s can be found at moodys.com.

###

Mark Bode
Deputy Communications Director
Office of Mayor Joe Hogsett – City of Indianapolis

mark.bode@indy.gov

P: (317) 327-4287  C:  (317) 995-3289
www.indy.gov

Notice is hereby given that the Meeting of the Board of Directors of The Indianapolis Local Public Improvement Bond Bank previously scheduled for Monday, May 18, 2020, at noon, City-County Building (Room 260), 200 East Washington Street, Indianapolis, Indiana has been cancelled. The next Meeting of the Board of Directors is scheduled for Monday, June 15, 2020.

INDIANAPOLIS – The Indianapolis Department of Public Works (Indy DPW) today announced upcoming construction projects included in its 2020 capital projects plan to improve roads, rehabilitate bridges, increase pedestrian safety and improve stormwater drainage.

Each spring as the weather warms, contractors working on Indy DPW projects resume work from the previous season and begin construction on improvements in new locations. Deemed essential under Indiana’s current Stay-At-Home executive order, this year’s construction projects will move forward at each contractor’s discretion and with Indy DPW’s strong direction to heed all social distancing guidelines.

View the full 2020 Construction Season list and map, showing where work will be occurring this year.

Construction work this year will include:

• 232.7 lane miles of street rehabilitation
• 10.2 lane miles of strip patching
• 21,380 linear feet of new trails
• 21,870 linear feet of new sidewalk
• 31,276 linear feet of sidewalk rehab
• 11 bridge projects, including the installation of new bridges and rehabilitation of old bridges.
• 22,021 linear feet of storm sewers.

Indy DPW has programmed $134 million in transportation projects and $35 million in stormwater projects for year 2020. 

Major projects beginning work in the 2020 construction season include:

• The installation of a raised five-span multimodal bridge on the Monon Trail constructed at the 38th Street crossing. This $5.6 million investment will improve trail safety and mobility by eliminating the crossing and include sidewalk connectivity as well as hosting a Pacers BikeShare Station.
• Rehabilitation of 19.2 lane miles of street rehabilitation along Keystone Avenue from 39th Street to 65th Street. The $7.66 million investment includes full-depth asphalt repairs, milling and resurfacing as well as sidewalk and curb repair, curb ramp installation, and drainage improvements.
• Storm drainage improvements in the westside Furman Stout neighborhood to mitigate chronic flooding on residential streets. This $5.4 million investment will be broken down into two phases; work is underway on the first phase, south of Rockville Road. The second phase, primarily north of Rockville Road, is expected to begin this year.
• Work to extend the Pennsy Trail from German Church to Post Road ($2.689 million) and Post to Shortridge Roads ($1.892 million) in Warren Township. Both projects will feature a continuous multi-use path, pedestrian beacons, enhanced lighting, and drainage improvements when complete in summer 2021.

For more information on current and upcoming DPW construction projects visit www.indy.gov/dpw

Mayor Joe Hogsett joined leadership of the Indy Chamber today to announce nearly $3 million in investments committed for a Rapid Response Loan Fund for small businesses affected by the COVID-19 pandemic, including $1.5 million from City of Indianapolis sources. The Indy Chamber also issued a challenge to top area businesses and financial institutions to provide additional funding and support toward its $10 million goal for the fund. More information on the Rapid Response Loan and the process to apply is available at response.indychamber.com/loans.

“It’s clear that restrictions are necessary to help curb the spread of COVID-19, but we know that small businesses and their employees are hurting as a result,” said Mayor Joe Hogsett. “As we face this pandemic, leaders from public, private, and philanthropic organizations must work collaboratively and fight for the continued success of our community. History has shown that when Indianapolis faces significant hardship, our community rallies together. Today’s announcement is one of many steps our city’s leaders are taking in order to support and preserve the businesses that form the backbone of our economy.”

$1 million in loan capital contributed by Capital Improvement Board (CIB) is earmarked for the food and beverage industry, two industries significantly affected by the first wave of the COVID-19’s business impact. CIB-funded loans will offer working capital to existing food and beverage industry entrepreneurs to keep their businesses afloat, providing bridge loans while traditional financing or disaster recovery loans from the U.S. Small Business Administration materialize.

"Our restaurants and bars are part of what fuels Indianapolis as a convention and event city. We want to do our part to help our partners in the entertainment and restaurant industries be there to welcome our convention business back when it returns,” said Andy Mallon, executive director of the Capital Improvement Board.

Also in today’s announcement, the Indianapolis Local Public Improvement Bond Bank has committed $500,000 toward this fund.

“To keep our focus on making critical investments in public infrastructure throughout Indianapolis, there must be thriving neighborhoods and thriving neighborhood businesses,” said Sarah Riordan, Executive Director and General Counsel for the Indianapolis Bond Bank. “Small business is a driving force for a growing community, and our commitment today is one in the future of our great city.”

In addition to contributions from the City of Indianapolis, Indy Chamber President and CEO Michael Huber issued a call to action for top area funders to invest in this loan fund with a target goal of $10 million. Private and philanthropic funds raised will extend to all eligible small businesses in the 9-county region.

“Time is of the essence for local entrepreneurs and small businesses,” notes Huber. “While federal loans and tax credits will provide significant relief, our businesses need more immediate financial support. We are calling on all major employers, financial institutions, and philanthropic organizations to join us as we invest in the livelihood of our small business community.”

Anthem has committed $1 million dollars to this fund.

“It is imperative that we do everything we can to support the nearly 43,000 small businesses in the Indianapolis region during this time of uncertainty,” said Anthem President and CEO Gail K. Boudreaux.  “As an Indianapolis-based company for 75 years, we are committed to improving the health of our community and the health of our local economy at this crucial time.”

Other initial funders include the Indy Chamber ($300,000) and LISC Indianapolis ($75,000). Today’s total announced commitments of $2.8 million add to the loan fund’s existing $840,000 balance, bringing the fund to just over $3.7 million toward a $10 million goal.

The Rapid Response Loan Fund will be administered by Business Ownership Initiative (BOI) and other partners. BOI, a program of the Indy Chamber, recently pivoted its focus to emergency assistance for small businesses affected by COVID-19 via free one-on-one business coaching and access to lending capital. Indy Chamber staff, as well as faculty and alumni of the IU Kelley School of Business at IUPUI, leaders of the Indianapolis Bar Association, communications professionals at Vox Global, and other subject matter experts are on call to field small business questions via the Chamber’s Rapid Response Hub.

For more information on loan requirements and steps to apply, visit response.indychamber.com/loans.

Fitch Affirms Indianapolis Local PIB Bond Bank, IN GOs at 'AAA'; Outlook Stable
Fitch Ratings - New York - 28 January 2020:

Fitch Ratings has affirmed the following ratings of the Indianapolis Local Public Improvement Bond Bank, Indiana bonds:
--$111 million ad valorem special benefits tax bonds at 'AAA';
--$32 million unlimited tax general obligation (ULTGO) bonds at 'AAA';
--$300 million downtown tax increment financing (TIF) revenue bonds, series 2014A, 2014B, 2013F,
2009B, and 1999E at 'AA';
--$8 million Fall Creek TIF bonds, 2014C at 'AA-'.

Fitch also affirms the City of Indianapolis Issuer Default Rating (IDR) at 'AAA'.
The Rating Outlook is Stable.

The bond bank is the winner in the Midwest for its $625 million issuance of bonds secured by lease rental payments for its Community Justice Campus.

November 01 2019, 9:50am EDT- The Bond Buyer Friday announced the recipients of its annual Deal of the Year awards, marking the 18th year that it has recognized outstanding achievement in municipal finance.

This year, The Bond Buyer increased to 10 the number of categories of deals eligible for awards. The 2019 awards, which considered deals that closed between Oct. 1, 2018, and Sept. 30, 2019, includes three new additions: ESG/Green, Public-Private Partnership (P3), and Innovation, the last of which replaces the Non-Traditional category, which has been retired.

All 10 award winners are also finalists for the national Deal of the Year Award, which will be announced at a Dec. 4 ceremony held at the Conrad New York Downtown in lower Manhattan. The winner will also be revealed at BondBuyer.com later that evening.

“This year’s lineup reflects the full range of communities and public purposes this market comprises,” said Mike Scarchilli, Editor in Chief of The Bond Buyer. “The deals honored vary in size, complexity and structure -- as were the nominations we received, which were deeper and more diverse than ever.”

The Bond Buyer’s editorial board considered a range of factors when judging entries, including: creativity, the ability to pull a complex transaction together under challenging conditions, the ability to serve as a model for other financings, and the public purpose for which a deal’s proceeds were used.

For the ninth year, the Deal of the Year gala will also include the presentation of the Freda Johnson Award for Trailblazing Women in Public Finance. This year marks the fifth in which the organization is honoring two public finance professionals; one from the public sector and one from the private. The 2019 honorees are public finance professional Ritta McLaughlin, most recently the MSRB's Chief Education Officer, and Courtney Shea, owner and managing member of Columbia Capital Management LLC.

Here are the 2019 Deal of the Year award winners:

INNOVATIVE FINANCING
The first recipient of the Innovative award is the Cities of Dallas and Fort Worth, Texas’ nearly $1.2 billion taxable refinancing. DFW’s plan to discontinue issuing alternative minimum tax bonds and focus entirely on taxable debt resulted in the largest ever taxable airport deal and international orders totaling 39% of the deal size.

ESG/GREEN FINANCING
The inaugural winner in the ESG/Green category is the Los Angeles County Metropolitan Transportation Authority’s $545 million offering of Proposition C sales tax revenue bonds, which included $418.5 million second-party-verified green bonds. The transportation issuance was the second largest green deal in 2019, and the second largest green offering in California history.

PUBLIC-PRIVATE PARTNERSHIP FINANCING
The first-ever honoree in the P3 category is the Virginia Small Business Financing Authority’s $262 million offering to fund its Fredericksburg Extension project. The deal, a partnership between the authority and 95 Express Lanes LLC, will help finance the development, design, construction, maintenance and operation of a 10-mile extension of the 95 Express Lanes.

HEALTH CARE FINANCING
The Health Care winner is the $6.5 billion CommonSpirit Health financing, the largest ever by a not-for-profit health system. The financing consisted of both a complex debt restructuring of nearly 50 series of debt and new money reimbursement. It generated the largest order book for a municipal not-for-profit transaction, with $40 billion in orders.

SMALL ISSUER FINANCING
The Vermont Municipal Bond Bank is the Small Issuer honoree for its $31.5 million issuance of Local Investment Bonds. The designation serves a two-fold purpose: raising awareness of the social and environmental impacts of the projects the Bond Bank funds, and making access to those investments more widely available through $1,000 denominations.

NORTHEAST REGION
The Battery Park City Authority claimed the Northeast crown for its $673 million offering for resilience projects in a neighborhood devastated by Superstorm Sandy in 2012. The complex financing saw the authority issue variable-rate demand bonds and SIFMA floating-rate notes for the first time. The transaction also received a second-party sustainability bond designation.

MIDWEST REGION
The Indianapolis Local Public Improvement Bond Bank is the winner in the Midwest for its $625 million issuance of bonds secured by lease rental payments for its Community Justice Campus. The design consolidates operations and replaces the current outdated, overcrowded, and unsafe facilities with three new, modernized buildings on a single campus.

SOUTHWEST REGION
The Southwest recipient is the City of Austin’s $464.5 million offering of taxable revenue bonds to fund its acquisition of a biomass-fired power plant for the city’s electric utility. The transaction created a clear path to eliminate an above-market power purchase agreement, a source of considerable cost and frustration for the city and Austin Energy.

SOUTHEAST REGION
The Solid Waste Authority of Palm Beach County, Florida wins the Southeast for a $347.6 million refunding utilizing "Cinderella bonds," which employ a crossover taxable and tax-exempt convertible refunding bond structure. This creative approach allowed the issuer to solve a problem it otherwise couldn’t have after the elimination of tax-exempt advance refunding.

FAR WEST REGION
The San Diego Association of Governments’ $331 million capital grants receipts revenue bond sale is the honoree in the Far West. The first public market, stand-alone securitization of a federal full-funding grant agreement in nearly 20 years, the deal accelerated the completion of the city’s $2.2 billion Mid-Coast Corridor Transit Project.

THE INDIANAPOLIS LOCAL PUBLIC IMPROVEMENT BOND BANK PLANS THE SALE OF AN ESTIMATED

$50 MILLION* BONDS, SERIES 2019F (STORMWATER PROJECT)

The Indianapolis Local Public Improvement Bond Bank (the “Bond Bank”) plans the sale of the following bonds (“Bonds”) for the Qualified Entity, the Marion County Stormwater Management District (the “District”).

Negotiated Sale scheduled for the week of September 30, 2019*

$50,000,000*  The Indianapolis Local Public Improvement Bond Bank Bonds, Series 2019F (Stormwater Project)

Proceeds of the Series 2019F Bonds will current refund the Indianapolis Local Public Improvement Bond Bank Notes, Series 2016 (Stormwater Project), outstanding in the aggregate principal amount of $50 million, and fund costs of certain additions and improvements to the District’s Stormwater System.

The Series 2019F Bonds will be secured by a pledge of net revenues of the District, which includes all revenues and income from the Stormwater System, including but not limited to charges, and user charges, but excluding revenue from ad valorem taxes, minus operation and maintenance expenses.

The Preliminary Official Statement and Investor Roadshow for the Bonds is expected to be available on September 25, 2019*. A rating presentation was given to Standard & Poor’s on September 18th, 2019 with a rating determinant forthcoming. 

Sycamore Advisors, LLC is serving as the Municipal Advisor to the Bond Bank for this issuance.

This notice does not constitute a recommendation or an offer or solicitation for the purchase or sale of any security or other financial instruments, including the Bonds, or to adopt any investment strategy. Any offer or solicitation with respect to the Bonds will be made solely by means of the final Official Statement relating to such Bonds which will describe the actual terms of such Bonds.

This notice does not constitute an obligation of the Bond Bank to issue bonds.

Prior continuing disclosure filings for the Bond Bank and the District can be accessed at the following link:

https://emma.msrb.org/IssuerHomePage/Issuer?id=48F81DF5F4D01CA5E053151ED20A6930

Indianapolis receives fifth positive financial rating from national agency

Kroll Bond Rating Agency awards highest rating to the city, citing strong local economy

INDIANAPOLIS – Today, the office of Mayor Joe Hogsett announced that Indianapolis has received yet another General Obligation rating upgrade from the Kroll Bond Rating Agency (KBRA).  This is the second upgrade the City has received from KBRA within the last year, and the fifth positive rating action taken by a national agency since October of 2018. 

KBRA cited several trends in issuing the rating, noting the City’s two years of balanced budgets, a steady increase in unassigned fund balances, and good liquidity. Additionally, the rating agency pointed to the strength of the local economy, the continued residential and commercial development, as well as the expansion of the technology sector as proof that Indianapolis’ financial position continues to demonstrate an upward trajectory.

This announcement comes as the City-County Council is debating the 2020 budget, the third balanced budget submitted to the legislative body by the Hogsett administration.  After nearly a decade of imbalanced budgets, Mayor Hogsett and City-County Councillors have prioritized responsible fiscal policies aimed at right-sizing city government and making strategic investments in critical city services.  

“Bipartisan leadership and thoughtful fiscal policies have caused national agencies to take note of Indianapolis,” said Mayor Hogsett.  “We are committed to strengthening our local economy and investing in our neighborhoods, while being good stewards of taxpayer dollars. This combination of thoughtful spending and meaningful investments are helping to attract jobs and residents, ensuring Indianapolis is on sound financial footing.”

In October of 2018, Kroll upgraded the City’s General Obligation rating to AA+ stable. In November 2018, Moody’s affirmed the City’s Aaa rating and upgraded the municipality’s financial outlook to stable. In December 2018, S&P upgraded our outlook to AA+ Stable and in February of 2019 Fitch affirmed a AAA stable rating for the city.

KBRA is a full-service credit rating agency registered within the U.S Securities and Exchange Commission.  To learn more, click here.

Taylor Schaffer
Deputy Chief of Staff - Communications
Office of Mayor Joe Hogsett – City of Indianapolis

taylor.schaffer@indy.gov

P: (317) 327-2793  C: (317) 694-0463
www.indy.gov

Market snaps up Indianapolis/Marion County justice center debt

By: Nora Colomer

Published: March 21 2019, 6:13pm EDT 

Good timing and strong retail participation set the stage for a strong reception of Indianapolis and Marion County's $623 million of tax-exempt bonds.

The consolidated city-county government priced the deal Thursday after a retail order period Wednesday. It consists of $610 million of bonds for the long-anticipated justice center project, plus roughly $13 million of bonds to finance an assessment and intervention center. 

The finance team received $3 billion in orders, allowing it to trim yields from the initial pricing.

“The timing on this sale was impeccable in that there was really very low supply of about $3 billion and with the Federal Reserve notes coming out and saying they are not raising rates.” said Evercore Wealth Management Municipal Bond Research Director Howard Cure. “I think that really increased the institutional buyers demand at the rates they were showing. They couldn’t have timed it much better."

A 2024 maturity in the Aa1 and AAA-rated deal with a 5% coupon landed at a yield of 1.76%, or five basis points over the Municipal Market Data's top-rated benchmark. A 2044 maturity with a 5% coupon landed a yield of 2.97% or 22 basis points over MMD. A 2054 maturity with a 5% coupon landed a yield of 3.20% or 40 basis points over MMD, according to MMD's daily market close column.

Bank of America Merrill Lynch and UBS Financial Services are co-senior managers. Faegre Baker Daniels LLP is bond counsel. Sycamore Advisors LLC is the financial advisor.

Most maturities were repriced 5 to 7 basis points lower across most of the curve but the team did not reprice the 30-year and the 35-year maturities, said Diana Hamilton, president of Sycamore Advisors.

The city and county took retail orders on Wednesday with more than $218 million in orders received including $53 million from Indiana buyers. Hamilton said it was “incredibly strong” retail participation for an Indiana deal.

Hamilton said the city was pushing for retail participation.

"From the city's perspective, they wanted this deal to have local support and from a pricing standpoint, strong retail participation gives us a good anchor for the deal going into the institutional order period," Hamilton said.

"The project itself as interesting as it is about the city and county taking over what was a privatized facility, I don’t think it is coming into play very much," Cure added.

The Federal Reserve on Wednesday scaled back their projected interest-rate increases this year to zero and said they would end the drawdown of the central bank's bond holdings in September after holding policy steady.

The bonds tap a new revenue pledge to fund a criminal justice complex billed as a cornerstone of reform plans.

The $610 million, 35-year, Series A bonds that finance construction of the city-county’s adult detention facility and local courthouse are secured by lease rental payments, which are repaid with a local income tax. The deal marks the first time the city has pledged the revenue source to secure bond payments.

The $12.6 million, 20-year, Series B bonds that finance the assessment and intervention center will be secured by lease rental payments backed by a property tax. The center will be operated by the Marion County Health and Hospital Corporation.

“It is ultimately appropriation with some abatement risk but I don’t think people are concerned about that because it is pretty typical structure,” Cure said.

Indianapolis and Marion County on Thursday will sell more than $623 million of tax-exempt debt that taps a new revenue pledge to fund a criminal justice complex billed as a cornerstone of reform plans.

By: Nora Colomer

Published: March 19 2019, 2:39pm EDT

Indianapolis and Marion County on Thursday will sell more than $623 million of tax-exempt debt that taps a new revenue pledge to fund a criminal justice complex billed as a cornerstone of reform plans.

The consolidated city-county government is pricing $610 million of bonds for the long-anticipated project, plus roughly $13 million of bonds to finance an assessment and intervention center.

The three-building complex, which will house the county’s civil, criminal, juvenile and probate courts, jail and sheriff’s department, in addition to the assessment and intervention center, will repurpose a formerly vacant industrial site with the intent of revitalizing a long-underserved neighborhood on the Eastside.

Indianapolis has recognized the need for a new jail for more than a decade but previous efforts to build one have stalled. “Like other large metros the criminal justice infrastructure in Indianapolis is aging, inefficient and overcrowded,” Mayor Joe Hogsett said in an investor presentation.

Hogsett created a criminal justice reform task force three years ago to make recommendations. It found that nearly 30% of inmates suffer from mental illness and nearly 85% of inmates suffer from substance abuse or addiction. They recommended primary goal or reform should be to identify these non-violent inmates and send them to treatment rather than prison.

“With that in mind we are creating something new; a modern justice campus for entire community,” Hogsett said in the investor presentation.

The assessment and intervention center, run by the county‘s public health department, is designed to be a place where people can be diverted at the beginning of the process, assessed and offered the medical intervention needed rather than sending them to a jail bed, Sarah Riordan, executive director and general counsel of the Indianapolis Local Improvement Public Bond Bank, said in a phone interview. The bond bank will issue the debt.

“There is significant population of people in our jail facilities that are cycled in and out,” Riordan said. “They are not violent offenders but people who came into police interaction for whatever reason whose real problems are undiagnosed or untreated mental health issues or substance abuse.”

The building will be owned by the Indianapolis-Marion County Building Authority and will then be leased back to the city-county government.

The $610.5 million, 35-year, series A bonds will finance construction of the city county’s adult detention facility and local courthouse. The proceeds will also current refund $75 million of direct placement debt related to the project the city and county issued through the bond bank in 2017 and 2018. The first was for $20 million and was placed with PNC Bank. The second was for $55 million and was placed with Fifth Third Bank.

The new bonds are ultimately secured by lease rental payments, which are repaid with a local income tax. Local income tax is derived from an income tax with a flat rate structure imposed on state adjusted gross income of county taxpayers that is authorized by statute and available to all Indiana municipalities.

The deal marks the first time the city has pledged the revenue source to secure bond payments.

The $12.6 million, 20-year, series B bonds that finance the assessment and intervention center will be secured by lease rental payments backed by a property tax. The center will be operated by the Marion County Health and Hospital Corporation.

Bank of America Merrill Lynch and UBS Financial Services are co-senior managers. Faegre Baker Daniels LLP is bond counsel. Sycamore Advisors LLC is the financial advisor.

The bonds are scheduled to price on Thursday after a retail order period Wednesday.

“We have had positive meetings with some exiting bondholders and other investors,” Riordan said. “The reception has been good.”

Fitch Ratings has assigned the bonds its AAA rating and Moody’s Investors Service rates the bonds Aa1. Both Moody's and Fitch also affirmed the city's Aaa/AAA issuer ratings, with stable outlooks.

Moody’s rates the bonds one notch below the city/county rating “due to abatement risk if the facilities cannot be occupied,” the rating agency said.

“The dedicated tax revenue structure provides ample financial resilience in the event of a moderate economic downturn and incorporates strong legal protections to mitigate abatement risks,” Fitch said. “The city/county plans to capitalize interest on the bonds through the projected construction completion date. Additionally, the city/county will maintain two years of rental interruption insurance to mitigate abatement risks post completion.”

Andy Mallon, corporation counsel for Indianapolis, said in the investor presentation that relocating the justice functions to a single campus will generate significant operating and cost savings to make the project effectively budget neutral.

About $35 million in annual savings are expected from the expiring leases for those offices currently located in privately owned buildings.

“We determined for the 2019 budget what it costs to operate all of our criminal justice facilities and when those are no longer used we will apply that same amount of money to debt service,” Riordan said.

The assessment and intervention program is designed to improve people’s lives but may pay off financially.

“We are not banking on any type of savings to be generated from this in terms of our ability to pay back our bondholders but we predict there will be savings generated from fewer occupancies ultimately of the adult detention facility making it less expensive to run and also lower medical care costs,” Riordan said.

Mallon said that vacating the existing justice facilities would also create significant opportunity for private investments and jobs through the redevelopment of the real estate.

The local income tax-backed base is a new structure for Indianapolis. The city's pledged component of its LIT is 1.72% and the current all-in rate, which includes unpledged IndyGo LIT, is 1.97%. The maximum allowed all-in rate in the county is 2.75%.

The tax represents the second largest city revenue source with the city’s portion of the certified distribution a projected $336 million for fiscal 2019 up 41% from 2014, according to the presentation. The city and county have covenanted not to reduce the rate or otherwise impair LIT while the 2019 series A bonds are outstanding.

“The bonds have 3 times additional bonds test and nearly 8.7 times coverage, so we have a lot of LIT revenue and there is an irrevocable pledge of LIT revenue to service these bonds,” Riordan said. “There is a tremendous amount of capacity not only for these bonds but also for the city to raise revenues in the future should it decide to do that.”

For the series B bonds the city will continue using a levy that was instituted for healthcare-related projects. Riordan said there will be no new increase in the property tax rate or debt burden as a result of the financing.

The structure also provides safeguards to mitigate construction and abatement risks. The detention center and courthouse are expected to be completed by Dec. 31, 2021 and the assessment and intervention center has an earlier completion date of July 1, 2020. The facility will be constructed at the site of the former Citizens Energy coke plant.

The bonds benefit from additional security provisions to mitigate the risk of abatement if construction delays were to push the completion date back. The capitalized interest, funded with bond proceeds, is enough to cover debt service payments six months beyond estimated project completion date. There is also the revenue stabilization fund, which is equal to 25% of maximum annual debt service, that can be drawn on in first instance if rent is interrupted due to abatement or other causes. The debt service reserve fund will be funded equal 100% of maximum annual debt service or $38.7 million.

Riordan said the bonds also benefit from rental interruption insurance to cover two years' rental interruption to cover lease payments in event the property is unavailable for use or occupancy. Bonds will also have 100% coverage against physical loss or damage sufficient to fully repair property or call outstanding debt.

Fitch awards its highest rating to Indianapolis Community Justice bonds
National ratings service assigns a “AAA” rating to bonds that will fund new Community Justice Campus in the Twin Aire neighborhood 

INDIANAPOLIS – Fitch Ratings Service (Fitch) awarded its highest rating – “AAA” – to the Indianapolis Public Improvement Bond Bank’s two Community Justice Campus (CJC) bonds. Rarely, if ever, has Fitch awarded a ‘AAA’ rating to a lease abatement financing of this kind in Indiana. The series 2019A and 2019B bonds total more than $623 million and will fund the new consolidated adult detention facility and courthouse, as well as an assessment and intervention center being built on the 140-acre site formerly occupied by the Citizens Energy Group Coke Plant in the Twin Aire neighborhood.

“We worked diligently to assess and ensure the affordability of this project – without a tax increase,” said Mayor Joe Hogsett. “The ‘AAA’ rating represents the fiscally conservative and taxpayer-first mentality of our team, potentially resulting in millions of dollars in interest savings.”

Series 2019A, valued at approximately $610.5 million, will fund the consolidated county jail that replaces existing correctional facilities, as well as a consolidated county courthouse that joins civil, criminal, juvenile and probate courts into one building. Series 2019B, valued at approximately $12.6 million, will fund an assessment and intervention center to provide temporary shelter, case assessment and treatment referral services to individuals suffering from addiction or mental illness. The 2019A bonds are backed by a pledge of local income tax revenues, while the 2019B bonds are backed by a pledge of property taxes.

Fitch explains its ‘AAA’ rating on the 2019A bonds reflect anticipated income tax revenue growth based on the city’s expanding local economy, grounded in positive trends in population growth, employment and personal income. Fitch cited a 6% cumulative increase in taxable assessed values in 2018 and 2019, due in large part to a boom in residential and commercial development. Fitch also noted that the city’s unemployment rate has been trending below the national rate since 2015, likely attributed to the swift expansion of the technology sector in Marion County. The ‘AAA’ rating on the 2019B bonds reflects the city’s strong underlying credit strength.

For More Information:
Emily Koschnick
317.995.3289
emily.koschnick@indy.gov

Rating Action: Moody's assigns Aa1 to Indianapolis Local Public Improvement Bond Bank's (IN) lease bonds; outlook stable

New York, March 06, 2019 -- Moody's Investors Service assigns a Aa1 rating to the $610 million Community Justice Campus Bonds, Series 2019A (Courthouse and Jail Project) and $12.6 million Community Justice Campus Bonds, Series 2019B (Assessment and Intervention Center Project). The bonds are issued by the Indianapolis Local Public Improvement Bond Bank and are ultimately secured by lease payments made by Indianapolis-Marion County (the city). Concurrently, Moody's has affirmed the city's Aaa issuer rating. The outlook is stable.

The issuer rating represents Moody's assessment of hypothetical debt of the city supported by a general obligation unlimited tax (GOULT) pledge.

Fitch Ratings-New York-05 March 2019: Fitch Ratings has assigned 'AAA' ratings to the following Indianapolis Local Public Improvement Bond Bank, Indiana bonds:
--$610.5 million Indianapolis-Marion County Building Authority (the Building Authority) Community
Justice Campus lease rental revenue bonds, Series 2019A ;
--$12.6 million Indianapolis-Marion County Building Authority (the Building Authority) Community
Justice Campus lease rental revenue bonds, Series 2019B.
Fitch has also affirmed the City of Indianapolis' $60 million limited tax general obligation (ULTGO)
bonds at 'AAA'.   

The Rating Outlook is Stable.

The 2019A and B lease rental revenue bonds will sell via negotiation on March 21. The 2019A
bonds will fund a consolidated county detention center to replace existing correctional facilities
and a consolidated county courthouse that joins civil, criminal, juvenile and probate courts into
one building (and capitalized interest through April 1, 2022). The 2019B bonds will fund an
assessment and intervention center to serve as a facility for providing temporary shelter, case
assessment and treatment referral services (and capitalized interest through Jan. 15, 2020).

The Indianapolis Local Public Improvement Bond Bank (the “Bond Bank”) plans the sale of the following bonds (“Bonds”) for the Qualified Entity, the Indianapolis-Marion County Building Authority (“IMCBA”), to construct a new community justice campus and an assessment and intervention center.

City of Indianapolis receives fourth consecutive positive financial rating

Fitch Ratings affirms the City’s “AAA” score, states outlook is “stable”

INDIANAPOLIS – Today, Fitch Ratings, one of the four major national credit rating agencies, has affirmed Indianapolis’ “AAA” rating for ad valorem special benefits tax bonds – bonds based on assessed property tax value – as well as for the City’s unlimited tax general obligation (ULTGO) bonds.  Fitch also affirmed the City of Indianapolis’ Issuer Default Rating (IDR) at “AAA.”  The rating outlook remains “stable.”

This most recent “AAA” rating is the fourth in a series of positive financial reports for the City of Indianapolis since late last year.  In December, S&P Global upgraded its long-term rating on the City’s ad valorem tax-secured bonds to “AA+” and affirmed the City’s “stable” outlook.  Last November, Moody’s Investors Service affirmed the City-County’s “Aaa” issuer and the City’s “Aaa” General Obligation Limited Tax Ratings and revised the outlook on all Indianapolis ratings to “stable,” removing the “negative” outlook imposed in 2015.  In October of 2018, the Kroll Rating Agency gave the City a credit rating of “AA+” and upgraded its outlook from “stable” to “positive” for the City of Indianapolis General Obligation Funds.

“This fourth positive report gives the City of Indianapolis affirmation that we are moving in the right direction for our residents, while demonstrating to prospective businesses, developers, and employers that we are a city that supports growth and expansion,” said Mayor Joe Hogsett.  “When companies and their employees move here and see success, we can reinvest in our neighborhoods, bringing that financial prosperity to all of Indianapolis.”

Fitch explained its “AAA” rating for Indianapolis reflects the City’s ability to grow its general fund revenues, keeping it above the rate of inflation.  This revenue growth is based on the ongoing expansion of the local economy, due in large part to the residential and commercial boom happening in Marion County.  As evidence, Fitch listed developments such as the Waterside District along the White River and the downtown projects that will convert the former Coca Cola Bottling plant and the historic AT&T Building to mixed-use developments.

Also cited in Fitch’s release is the City’s unemployment rate – which has been trending below the national rate since 2015 – and continued job growth, specifically within the City’s burgeoning tech sector: Salesforce plans to add 800 new jobs to its already 1,400 employees by 2021; last year, Infosys announced plans for a $245 million expansion at the site of the former Indianapolis International Airport, expected to bring nearly 3,000 jobs to the area over the next three years; and Fed Ex’s $1.5 billion expansion at the airport will add 20 new commercial gates by 2023.

Other key factors in Fitch’s decision to affirm the “AAA” rating include the observation that the City’s overall debt and long-term liability burden is relatively low in relation to income.  Local tax revenue is projected to increase by six percent in 2019.  Fitch also expects the City to be on solid financial footing and able to maintain stability should there be a moderate economic downturn.  Additionally, the ratings agency cites the City’s ability to control expenditures by managing the size of its workforce – mainly through employee attrition and by carefully managing service contracts.

For more information on the report from Fitch Ratings, click here.

###

Moody's removes 'negative' outlook on city's credit rating

November 29, 2018   Hayleigh Colombo

Credit rating agency Moody’s affirmed the city of Indianapolis’ financial path under Mayor Joe Hogsett by revising its former “negative” outlook on the city’s overall Aaa credit rating to a “stable” outlook.

Moody’s also this week assigned an initial Aa2 rating to $30 million in revenue bonds issued this year by the Indianapolis Bond Bank to pay for long-term transportation planning.

Moody’s, in a press release, said the "stable outlook reflects our expectation for continued growth in tax base valuation and the maintenance of ample operating reserves." The city's Aaa rating is technically on $119.4 million of outstanding general obligation limited tax debt.

"These strengths should continue to offset credit challenges, positioning the city in the Aaa category for the foreseeable future," according to Moody's.

In a separate release, Moody's said its rationale for giving the Aa2 rating to the $30 million in new revenue bonds was “based on a diverse and growing revenue base that is anchored by” the city.

“Indianapolis sits at the center of a broad network of local and regional roadways, including four US interstate highways,” according to the Moody’s release. “This base should provide for continued growth in pledged revenues, which consist of a gas tax and other transportation-related revenue.”

Moody’s had previously rated all Indianapolis ratings as “negative” in 2015.

Hogsett, who spent the first two years of his administration trying to create a “structurally balanced budget,” cheered the news in a press release.

“This upgrade to our credit outlook affirms what we already know – Indianapolis is in a strong fiscal position,” Hogsett said.  “Our strong rating and improved outlook is emblematic of our city’s commitment to consistent and cost-saving initiatives. 

“In turn, these initiatives foster a climate that will continue to attract businesses, a talented workforce, and families who want to relocate to a city that is on firm financial ground and invests in its public safety, infrastructure and neighborhoods."

The Indianapolis mass transit system is set to price the first round of bonds to finance projects under the system’s $522 million, five-year capital plan.

Indianapolis Public Transportation Corporation, marketed to riders as IndyGo, will bring $26 million of local income tax revenue bonds Nov. 8. They are selling through the city's borrowing arm — the Indianapolis Local Public Improvement Bond Bank.

Indianapolis, IN | October 26, 2018 Nora Colomer, The Bond Buyer

Indianapolis is one of 20 cities total to be awarded with resources and technical support to help achieve their ambitious climate goals under Bloomberg American Cities Climate Challenge

INDIANAPOLIS – October 29, 2018 - Today, Bloomberg Philanthropies announced Indianapolis as a winning city in the Bloomberg American Cities Climate Challenge. The Bloomberg American Cities Climate Challenge is a $70 million dollar program that will accelerate 20 ambitious cities’ efforts to tackle climate change and promote a sustainable future for residents. Through the Climate Challenge – which is part of Bloomberg’s American Cities Initiative, a suite of more than $200 million in investments to strengthen city halls and advance critical policies – Indianapolis is accepted into a two-year acceleration program and will be provided powerful new resources and access to cutting-edge support to help meet or beat the city’s near-term carbon reduction goals.

October 26 2018 - Indianapolis' growing record of keeping its finances structurally balanced has earned the city an outlook upgrade from Kroll Bond Ratings Agency.

Kroll raised the outlook to positive and affirmed its AA-plus rating on the city, saying that the city’s financial position continues to demonstrate an ascending trajectory.

“Indianapolis has continued to post improved financial results and, in recent years, has reversed a historical pattern of structural deficits in its General Fund,” Kroll said.

The upgraded outlook comes after the city-county council approved Indy Mayor’s Joe Hogsett's third annual budget on Oct. 15. The budget totaled $1.2 billion, an increase of 4% from the fiscal 2018 budget and the second consecutive structurally balanced budget. As in 2018, the budget does not rely on any reserve draw-down and estimates a small operating surplus and an $80.8 million Fiscal Stability Fund balance.

“In its budget for FY 2019, the city continues to forecast structurally balanced operations by extending its conservative revenue projections, diversifying its funding sources and holding the line of expenses,” said Kroll.

Kroll said that the city has managed to reduce the strain on its general fund operations while increasing overall financial transparency by establishing dedicated revenue sources to fund capital improvements.

Indy has budgeted more than $650 million in capital improvement spending between 2019 and 2022. The city’s storm water projects are funded through capital and debt. The city’s transportation projects, including bridges, streets, and streetlight repairs, are funded from a mix of funds and community grants generated from the state gas tax and matching funds, local funds such as the COIT reserves and external funds such as federal aid.

Kroll rates the city’s general obligations one notch lower than the city’s triple-A marks from Fitch Ratings and Moody’s Investors Service. S&P Global Ratings rates Indianapolis AA after downgrading its AAA rating in 2013.

Total direct debt and overlapping debt for the consolidated city/ Marion County government totals $1.2 billion.

As of Dec. 31, 2017, the City had $135.8 million of GO debt outstanding and another $867.4 million of debt backed by the city’s moral obligation pledge.

The Bond Bank serves as a conduit issuer and provides access to the capital markets for qualified entities, including the city, Marion County, all special taxing districts of the City and County, and all entities whose tax levies are subject to review and modification by the Council and certain authorities.

Indianapolis, IN | October 26, 2018 Nora Colomer, The Bond Buyer

Indianapolis, IN | September 28, 2018 Hayleigh Colombo, The Indianapolis Business Journal

The $572 million Criminal Justice Center won’t open until 2022, at which time scores of city and county employees—working for the courts, public defender, prosecutor, sheriff and other agencies—will move from downtown’s Market East Cultural District 2-1/2 miles east to the Twin Aire neighborhood.

But city officials and businesses are already thinking about how both neighborhoods will be changed by the shift.

Downtown, city leaders see potential for redevelopment that builds off recent successes near the City-County Building, including the opening of Cummins Inc.’s $30 million divisional headquarters and the $120 million Market 360 apartment tower.

They envision that the subtraction of the nearby Jail I and Jail II, and the relocation of a slew of bail bonds businesses, will liven up the area.

Indianapolis, IN | July 20, 2018

In 2017, Director Riordan discovered possible evidence of fraud or abuse in the Bond Bank’s payroll and benefit records beginning as far back as 2008. Director Riordan immediately terminated the employees she had reason to believe were involved and notified law enforcement of potential fraud on June 26, 2017. The Bond Bank made all its records available to the Marion County Prosecutor for review and worked with investigators in a year-long investigation. 

Director Riordan implemented immediate corrective action in consultation with the Bond Bank’s external auditing firm. The Bond Bank will pursue all available remedies to recover such losses. 

The alleged misappropriation does not affect bond proceeds or bond debt service payments, all of which are maintained by outside Trustee banks and are subject to annual audit and disclosure requirements.

Indianapolis, IN | January 17, 2018 Hayleigh Colombo, The Indianapolis Business Journal

An Indianapolis City-County Council committee on Tuesday night unanimously approved spending $55 million to pay for a fraction of the construction funding to build the city’s proposed criminal justice center.

The same proposal also authorizes the city to spend $4.2 million for the acquisition of 140 acres of land from Citizens Energy Group as the site for the new jail, courthouses and mental health center. The facilities are being built on the property of the former Citizens coke plant in the Twin Aire neighborhood.

The proposal also indicates the council’s support for the project, which is expected to eventually cost the city $571 million. The full council will have to vote on the $55 million construction funding and land acquisition proposal—as well as future spending on the justice center.

Indianapolis, IN | June 16, 2017 Hayleigh Colombo, The Indianapolis Business Journal

The Indianapolis Bond Bank is looking for firms interested in working on the city’s new criminal justice center—from providing civil engineering services to mechanical, electrical and plumbing work.

The bond bank released a “request for qualifications” on June 9 for 17 design services associated with the project, with submissions due June 27. The city will select chosen contractors sometime after Aug. 1.

The new jail, an assessment and intervention facility, and the courts will be moving to a new complex at the former Citizens Gas and Coke Utility plant just southeast of downtown. The plant closed in 2007.

The new complex is expected to cost upwards of $575 million, and is part of Mayor Joe Hogsett’s overall criminal justice reform efforts.

The RFQ notes that selections are “not based on competitive bidding, but on professional qualifications, competence, documented experience and the expertise of key personnel."

Indianapolis, IN | July 24, 2017 James Briggs, The Indianapolis Star

The City-County Council has moved Mayor Joe Hogsett's plan for a new Marion County criminal justice center one big step closer to reality, while also signaling that the project could face increasing scrutiny in the months ahead.

The council on Monday approved the Hogsett administration's request for $20 million to pay for planning and design work for a project that could cost up to $575 million. That money will allow the administration to shepherd the project through the rest of the year, completing engineering, site work, legal work and bidding.

Dallas, TX | August 1, 2017 Nora Colomer, The Bond Buyer

Marion County and Indianapolis took a first step toward getting a long-anticipated criminal justice facility off the ground with the approval of an initial $20 million in financing.

The City-County Council of Marion County and Indianapolis approved the bond anticipation note issue in a 17 to 7 vote on July 24, providing a strong indicator on how it might vote next year on the 35-year, lease appropriation bonds that will take out the note and cover the entire $571 million of project costs. The Indianapolis Bond Bank will serve as conduit issuer for the debt on behalf of the consolidated council.

Indianapolis, IN | January 23, 2018 Nora Colomer, The Bond Buyer

Indianapolis officials are asking the City-County Council to approve $55 million of notes to proceed with a criminal justice center project.

It’s the second leg of financing needed for the $571 million project and follows a $20 million draw note approved in July 2017 to finance design work on the planned courthouse, sheriff’s office, jail and assessment and intervention center.

Both the $20 million approved in July and the $55 million in bond anticipation notes are secured by local auction income tax but the borrowing will ultimately be paid off by bond proceeds. The Indianapolis Bond Bank will serve as conduit issuer for the debt on behalf of the council, the legislative body for the combined government of Indianapolis and Marion County.

New York, NY | December 13, 2017 Moody's Investors Service

Moody's Investors Service has assigned a 'Aa2' rating to $159.5 million Indianapolis Local Public Improvement Bond Bank Bonds (IN), Series 2017C (PILOT Infrastructure Project). Moody's maintains the Aaa rating on Indianapolis-Marion County (the city), IN's outstanding general obligation (GO) debt.

The Aaa GO rating reflects a diverse economy, improved financial position and moderate pension liabilities. These attributes are balanced against challenges that include weak resident income indices, a restrictive revenue raising environment and high debt levels.

The Aa2 rating on $159.5 million of Refunding Bonds, Series 2017C (PILOT Infrastructure Project) reflects the credit characteristics inherent in the city's GO rating. The MO rating on the current bonds is notched twice from the city's GO rating, reflecting the city's MO pledge to consider appropriating to replenish the debt service reserve (DSR), the risk of non-appropriation, and the more essential nature of the financed assets (wastewater system infrastructure improvements).

The outlook on all ratings is negative. The negative outlook reflects weak resident income indices and a restrictive revenue-raising environment, both of which will challenge the city to grow revenues that keep pace with ongoing cost growth, particularly in the areas of public safety, capital maintenance, debt service, and pensions.

Chicago, IL | October 4, 2017 Moody's Investor Service

Moody's Investors Service affirms the 'Aaa' issuer rating on Indianapolis-Marion County (Indianapolis), IN. The rating reflects a diverse economy; improved financial position; and moderate pension liabilities. These attributes are balanced against challenges that include weak resident income indices; a restrictive revenue-raising environment; and high debt levels.

Concurrently, Moody's affirms the following ratings:

• The Aaa rating on $82 million of outstanding general obligation limited tax (GOLT) debt. The GOLT pledge is subject to Indiana's (Aaa stable) Circuit Breaker taxing limitations. It is rated on parity with Indianapolis' issuer rating given the ample margin under its rate limitation as well as the city's first budget obligation to levy ad valorem taxes for debt.
• The Aa1 rating on $515,000 of Certificates of Participation (COPs), Series 2010A and 2010B. The rating is notched once from the issuer rating because the pledge to make lease payments is subject to appropriation and the financed assets (public safety vehicles) are more essential.
• The Aa2 rating on $160 million of Bond Bank Bonds, Series 2010F (PILOT infrastructure Project - Build America Bonds). The Aa2 rating is notched twice from the issuer rating due to the moral obligation (MO) pledge to consider appropriating to replenish the debt service reserve (DSR) and because the financed assets (wastewater system infrastructure improvements) are more essential.
• The Aa3 rating on $376 million of MO debt issued for economic development projects. The Aa3 rating is notched three times from the issuer rating due to the MO pledge to consider appropriating to replenish the DSR and because the financed projects are less essential.

The outlook on all ratings is negative.

While the city has made progress in improving its financial profile by reducing expenses, its debt burden and limited flexibility to raise revenues weakly position its issuer rating in the Aaa category. If there is no further improvement in financial or leverage metrics over the next 12 to 24 months, the rating could be pressured.

New York, NY | January 18, 2017 Fitch Ratings

Fitch Ratings has assigned a 'AAA' rating to the following Indianapolis Local Public Improvement Bond Bank, IN bonds:

• $58 million series 2017A bonds (ad valorem property tax-funded projects);
• $11.99 million series 2017B bonds (taxable) (ad valorem property tax-funded projects).

The Rating Outlook is Stable.

Indianapolis, IN | February 1, 2017 The Indianapolis Local Public Improvement Bond Bank

The Indianapolis Bond Bank’s first bond issue of 2017 assisted four Qualified Entities to raise $71.325 million, through Indianapolis Local Public Improvement Bond Bank series 2017A and B. The General Obligation Bonds were issued to finance infrastructure and capital needs for Consolidated City, Park District, Metro Thoroughfare District and Public Safety and Communications District. The Consolidated City used the funds for solid waste equipment, police vehicles, City-County Building generator, voting machines, two firehouses, and fire apparatus. The Park District used its funds for its capital improvement needs. The Metro Thoroughfare District used its proceeds on roads and streets improvements and other major capital equipment. Finally, the Public Safety and Communications District funded a computer-aided dispatch (CAD) system, record management system and E-911 system. Series 2017A and B Bonds were rated AAA by Fitch and AA by Standard & Poor’s.

New York, NY | June 14, 2016 Moody's Investor Services

Moody's Investors Service has assigned a rating of 'A1' to the Indianapolis Local Public Improvement Bond Bank/Indianapolis Airport Authority Refunding Bonds (AMT), Series 2016A-1.

Chicago, IL | May 3, 2016 S&P Global Ratings

S&P Global Ratings has assigned a rating of 'A' to the Indianapolis Local Public Improvement Bond Bank/Indianapolis Airport Authority Refunding Bonds (AMT), Series 2016A. 

The Rating Outlook is Stable.

New York, NY | April 25, 2016 Fitch Ratings

Fitch Ratings has assigned a rating of 'A' to the Indianapolis Local Public Improvement Bond Bank/Indianapolis Airport Authority Refunding Bonds (AMT) Series 2016A-1. 

The Rating Outlook is Stable.

New York, NY | October 30, 2015 Kroll Bond Rating Agency

Kroll Bond Rating Agency, Inc. ("KBRA") has assigned a long-term rating of AA+ with a stable outlook to the City of Indianapolis, General Obligation Bonds. The KBRA long-term rating does not apply to bonds backed by a letter of credit or liquidity facility, unless otherwise noted.

Chicago, IL | August 31, 2015 Moody's Investor Services

Indianapolis, IN’s (Aaa negative) strong credit profile is supported by a fundamentally healthy economy, as evidenced by job growth that has outpaced other Midwest regional hubs. However, escalating operating costs under a somewhat restrictive revenue-raising environment have weighed on the city's finances. The region’s strong economy and a recent influx of cash from the sale of the city’s water and sewer utility will buoy credit quality in the short term, but continued operating budget pressures and elevated leverage pose hurdles in the long term.

Chicago, IL | July 24, 2015 Caitlin Devitt, The Bond Buyer

Indianapolis won a coveted triple-A rating from Standard & Poor's on its stormwater system bonds as the city heads into market with a $15 million borrowing and puts the final touches on a new $300 million capital plan.

The deal will fix out a chunk of stormwater bonds the city privately placed in 2011 that are scheduled to shift into a variable-rate mode in 2020. The city has almost all of its $4.1 billion debt portfolio in a fixed-rate mode, with the exception of some airport debt. The stormwater system is a mix of natural and manmade infrastructure managed by the city's public works department. It's one of the city's last publicly managed utilities, after Indianapolis sold its water and sewer departments to a non-profit in a high-profile privatization in 2011.

Chicago, IL | July 21, 2015 Standard and Poors Rating Services

Standard & Poor's Ratings Services raised its rating on The Indianapolis Local Public Improvement Bond Bank, Ind.'s existing stormwater system senior-lien revenue bonds to 'AAA' from 'AA+'. At the same time, we assigned our 'AAA' rating to the bond bank's series 2015H refunding bonds.

The outlook is stable.​​​​​​​

New York, NY | June 5, 2015 Fitch Ratings

Fitch Ratings assigns an 'AA+' rating to the following Indianapolis Local Public Improvement Bond Bank (Health and Hospital Corp. of Marion County), IN bonds:

• $16,750,000 refunding bonds, series 2015 B (the bonds).

The bond proceeds will be used to currently refund the bond bank's outstanding series 2005 D bonds for an estimated present value savings of $2.1 million with no extension of the final maturity date of 2025.
In addition, Fitch affirms the following ratings:

• Approximately $170 million unlimited tax general obligation bonds (ULTGOs), series 2010A-1 and 2010A-2 affirmed at 'AA+';
• Approximately $19 million general obligation bonds, series 2005D affirmed at 'AA+';
• Approximately $502 million lease revenue bonds, series 2013A, 2010B-1 and 2010B-2 affirmed at 'AA'.

The Rating Outlook is Stable.

Chicago, IL | June 8, 2015 Standard & Poor's Rating Services

Standard & Poor's Ratings Services raised its rating on the Indianapolis Local Public Improvement Bond Bank, Ind.'s series 2011D, 2011I, and 2012B bonds (senior obligations) to 'AA' from 'AA-'. The outlook is stable. The rating improvement reflects strong revenue performance, which continues to support very strong debt service coverage (DSC).

Indianapolis, IN | May 16, 2015 Jared Council, The Indianapolis Business Journal

Officials who manage the Indianapolis Airport Authority’s $1.1 billion in bond debt typically refinance bonds when they can shave at least 3 percent off total remaining debt payments.

The Indianapolis Local Public Improvement Bond Bank handles what the industry calls bond refundings for entities including the airport, and it recently helped refund a $165 million airport bond to chop total projected debt obligations by about 9 percent.

New York, NY | November 13, 2014 Moody's Corporation

During and in the wake of the US recession, many large local governments in the country have proven just how resilient their credit quality has been to the systemic economic downturn and other challenges such as pension underfunding. In fact, 34 of the 50 largest US cities have either improved or maintained their credit quality since the onset of the Great Recession.

Chicago, IL | January 29, 2015 Fitch Ratings

Fitch Ratings affirms the 'AAA' rating on the following Indianapolis Local Public Improvement Bond Bank, Indiana (the bond bank) bonds: ­­

• $61.3 million series 2013B taxable refunding bonds;
• ­­$12 million series 2013C multipurpose refunding bonds; ­­
• $55.1 million series 2008A ad valorem bonds; ­­$55 million series 2007D multipurpose refunding bonds.

The Rating Outlook is Stable.