What is an Economic Improvement District (EID)?
An EID is a financing mechanism for a defined district used to provide revenue for a variety of local improvements and services that enhance, not replace, existing municipal services. An EID is self-imposed and self-governed and must be supported by property owners. EIDS are common in commercial districts throughout the nation and have proven to be an integral part of revitalization efforts in a variety of business districts.
I already pay taxes. Why support an EID?
We all pay local taxes that are used for priorities all over the city, not just in our area. Legally, funds raised by the EID must be used in the same area that is being assessed - in this case, boundaries of the GVAC area. EID budget and assessment rate decisions are made by the property and business owners, ensuring a high degree of accountability.
What do EID funds pay for?
Based upon input from property and business owners, an operating plan has been developed to guide EID services in year one. The EID budget will focus on capital improvements, economic development, maintenance and safety. Projects will vary from year to year.
Who will manage the EID Programs?
To maximize accountability to taxpayers, the EID operating plan provides criteria for an EID Board of Directors that will consist of property and business owners representing different geographic areas and a variety of property and business types within the EID district. Policies, budgets, assessments and annual operating plans will be developed and monitored by the EID Board, which will consist of seven to nine voting members.
Will the City reduce existing services in the GVAC area?
No. A base level of services including police, landscaping, maintenance, trash and street cleaning will remain at current service frequencies.
How is the EID formed?
By Indiana statute, the formation of the EID requires a submission of petitions from a majority of the owners of property within the proposed district constituting a majority of the assessed value in the district. Petitions are then submitted to the City-County Council for a public hearing and approval of the ordinance forming the EID.
How much will it cost?
Assessments will be based on the linear parcel frontage of each property located on Virginia Avenue, Shelby & Prospect Streets. The first year budget for the EID is proposed to be $82,000 (not including a $45k match from the City of Indianapolis - Department of Public Works). Commercial property assessment rates will be $7.75 per linear foot per year. Tax Exempt properties located in the district will be assessed using a parcel frontage rate of $5.75. Residential properties within the district will not be assessed.
Will the EID last forever?
No, the EID has a 15 year term with a full program review every five years.
Will they raise my EID Assessment later on?
There are no plans to raise the EID assessment and any attempt to do so would have to be voted on by the EID Board and presented to the City-County Council for approval.
Are there examples of other EID's in the Midwest?
Yes, Woodruff Place neighborhood became the first EID in the City of Indianapolis. Several EIDs exist throughout Indiana and the Midwest in places such as Ft. Wayne, St. Louis, Lincoln, Milwaukee and Kansas City.