Indianapolis – The Indiana Stadium and Convention Center Building Authority (“Authority”) announced today an agreement that resolves the funding of the $48 million payment due the Indianapolis Colts as part of the plan to keep the Indianapolis Colts in Indiana. Dave Frick, Chairman of the Authority, said that State and City leaders have been meeting the past few days on ways to fund the payment.  The agreement provides that $40 million of excess project contingency will be used along with $8 million of additional project financing to cover the payment due from the Marion County Capitol Improvement Board (“CIB”).

 

Also, to keep the project moving forward, the parties agreed that the CIB will continue with some current projects and contracts until the Authority finalizes the financing for the project.  The state then would reimburse the CIB for costs it continues to incur.

 

“We reached a good solution for the financing package.  Our design and construction team is convinced that the original project budget had ample room for reduction, and we will work closely with the CIB and the Colts to continue with the existing design and schedule. It is now important that the parties reach agreement on the Colts’ lease and development agreement so that the construction can start and the Stadium can be completed for the 2008 season,” Frick said.

 

“The most important thing for Indianapolis and central Indiana is for this important economic development project to move forward,” Indianapolis Mayor Bart Peterson said today.  “I am very pleased that, working together with the governor and his staff, we have come to a resolution that will create jobs and investment in our community.”

 

Governor Mitch Daniels said, “As I have said all over Central Indiana these last few weeks, the Stadium and Convention Center project is an important investment for Central Indiana’s future. I am glad these financial issues have been resolved and the parties can focus on wrapping up the Colts lease and development agreement as soon as possible.” 

 

In December, the city reached an agreement with the Colts to keep the team in Indiana for 30 years. In addition, the agreement:

 

·       Contains no future makeup payments and no suite, ticket sales or attendance guarantees;

·       Pumps $104 million dollars into the community and creates 1,500 jobs;

·       Replaces the 1998 lease agreement with the Colts which could have expired as early as 2006 and contained guarantees that required the CIB to pay make-up payments to the Colts if their revenue fell short of the NFL median;

·       Paves the way for Indiana to bid for the NFL Super Bowl.

 

In exchange, the city agreed to build a new retractable roof stadium for the Colts, as well as NCAA Final Fours and tournament action, conventions and trade shows and many other local, national and international events, and pay a $48 million lease termination fee, which compensates the team for what it was owed under the previous lease with the city.

 

Overall, the new stadium and convention center expansion will pump $2.25 billion into the economy, create more than 4,200 permanent jobs and 4,900 construction jobs over the next 10 years, and make Indiana one of the world’s top convention destinations.

 

 

For more information:                Jane Jankowski, Governor’s Office, (317) 232-1622

Steve Campbell, Mayor’s Office, (317) 327-3622