2/18/2004
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2004 State of the City Address
Mayor Bart Peterson
Indianapolis Artsgarden, February 18, 2004
I, too, want to welcome you to the beautiful Artsgarden, here in the Crossroads of America, high over one of the most important intersections in our city and state - the very heart of Indianapolis and a symbol of our renaissance. Since I last addressed the state of our city, one year ago, so much has happened that we can be proud of: new businesses and jobs relocating to Indianapolis, remarkable success in our life sciences industry cluster, meaningful progress in public education, emergence of our cultural districts, more affordable housing, the agreement with the NCAA to regularly bring Final Fours to Indianapolis, and much more.
But just as we gather here at this vital crossroads, our city stands at an important crossroads in its history. We have had more than 30 years of virtually unbroken success. Even during these last three years of national economic downturn, we have made significant progress on many fronts. But we now face an accounting for many matters not addressed over these decades of heady achievement. I certainly do not point the finger of blame. It would be hard to argue with the priorities my predecessors and our community leaders set, and the manner in which they went about accomplishing those priorities. But there are issues that cannot be kept off the top of the list any longer, and it falls to this generation of leaders to address them and to take the great City of Indianapolis to the next level.
Jail overcrowding - technically not a city problem, but a county issue; but how can anyone wash their hands of it? $72 million in debt owed to the state for incarceration of juvenile offenders - now past embarrassing and becoming a dominant county fiscal issue. $817 million in unfunded liability for police and fire pensions - a problem that will grow until sometime in the late 2020's.
And what about some of our priorities? Decent, safe and affordable housing for all families in our city, and meaningful progress on the Blueprint to End Homelessness. A public transportation system that works and that leaves no one literally out in the cold. Continuing to improve the quality of life in neighborhoods with sidewalks and newly paved streets. Continued development of our extraordinary downtown. Keeping the Indianapolis Colts in Indianapolis - after 2006 and after 2013.
If there seems to be a theme here, that's not a mistake. Each of these important priorities requires money. 2004 will be a year for reexamining the way that local government works in Marion County. A year for dealing with emergencies and for planning for our financial future. We must be sure we are running as lean as possible and that we are doing only what government needs to do. And then we must make the tough choices to find the sources of revenue required for the important needs of our city. This means working together across lines that sometimes divide us - political lines, racial lines, urban/suburban lines. But with courage, a sense of responsibility to the generations that follow us, and in the spirit that has made Indianapolis the success story of the nation during our lifetimes, we will accept the challenge, and we will succeed.
Let us first, though, take a look at where we stand. Let's take a look at the state of our city in February 2004.
Across America, people in nearly every segment of the economy are suffering from three years of national economic decline. We have not stood still during these years. We have worked hard to diversify and modernize our economy to make Indianapolis not just competitive, but a leader in the world economy of the 21st Century.
Take, for instance, BioCrossroads, the Central Indiana Life Sciences Network, which has acted as a catalyst to bring together key partners to facilitate research, develop market opportunities and encourage business formation and expansion.
Perhaps chief among the many BioCrossroads success stories is the Indiana Future Fund. The Fund has more than $70 million from investors to support early-stage life sciences companies here. It's hard to imagine a better drawing card for new businesses in our city.
Another success story is the Indiana University Emerging Technologies Center, a life sciences business incubator, right here in downtown Indianapolis that opened last April. The City helped fund it with $500,000. The incubator has added a vital element to the mix by providing necessary support for young, growing companies. Demand for space in the incubator has exceeded all projections.
Our downtown research community has recently been designated by Lieutenant Governor Kathy Davis as a "Certified Technology Park," giving us an opportunity for meaningful state assistance in the development and growth of what we believe will evolve into a globally significant gathering of life sciences businesses, academic research facilities and world-class amenities.
Yesterday, we announced the establishment of a Center of Excellence for the Study of Proteins, which is a major area of focus and strength in our life sciences community. Right here in our backyard, a world-class facility will provide cutting edge research and validation to life sciences businesses that start and grow here.
We have had significant job creation and investment in our local economy, despite a national downturn. Since my last State of the City address, Roche Diagnostics committed to adding 600 new jobs with a $132 million expansion to its Indianapolis headquarters site. Last summer, Eli Lilly embarked on a $330 million investment in its downtown campus, and we saw the expansion of existing headquarters here, such as NNC Group. Tom, we are also proud of the successful relocation of Norwood Promotional Products from Austin, Texas to Indianapolis.
Anthem has been an outstanding member of the Indianapolis corporate community for decades, as well as a national leader in health benefits. This year, Anthem was the recipient of the Sam H. Jones Award - the top Mayor's Celebration of Diversity Award. Its announced merger with California-based WellPoint Health Networks will make Indianapolis headquarters for the nation's largest health benefits company, serving 26 million members, with a nationwide workforce of 40,000. Anthem's expansion affirms our status as a great place to do business, and we are committed to its continued growth and prosperity here in Indianapolis.
While focusing on such big picture matters as the transformation of our economy and the expansion of technology businesses and jobs, we have not lost sight of the importance of economic development in our neighborhoods. Last fall I created the Eastside Revitalization District to help fill the empty "big boxes" that littered the scene. Within weeks, the abandoned Venture store where I announced formation of the district was sold to a buyer who is developing a self-storage facility. And last month, Kerasotes Theatres and Dick's Sporting Goods announced they would be coming to Washington Square Mall.
The Lafayette Square area on the northwest side, like the eastside retail area, has faced many challenges in recent years and we may see other challenges in the near term. To address these challenges from the past and possible challenges in the future, I designated the area as Indianapolis's only "community redevelopment and enhancement district" to initiate state assistance to help spur growth in the area and bring new jobs.
Downtown is a neighborhood, too, and a growing one! Last week, I announced the plans for the former Market Square Arena site. For as long as I can remember, people have been asking when a high-rise condominium development would be built downtown. Well, the time is now. Along with much-needed neighborhood-style retail for downtown's burgeoning population and hundreds of permanent and construction jobs.
On the block behind you and to your right, work on a new landmark hotel, the Conrad, at the corner of Illinois and Washington Streets will begin shortly. Indianapolis will join other cities such as Bangkok, London, Brussels, Cairo and be one of only 19 cities in the world with this premiere line of hotels. Indianapolis will be the third city in the United States - including Miami and New York - to be home to a Conrad Hotel. The Conrad project will employ 500 people in construction for the two years it takes to build, and create nearly 250 permanent jobs, not to mention its boost to our reputation as a world-class destination city.
Big-league professional sports make our region a more attractive place in which to recruit new businesses and employees. The Colts and the Pacers provide national advertising and exposure for Indianapolis. And they pull the people of our city together in ways that few other things can. We need to keep the Colts in Indianapolis, and I am hopeful 2004 will be the year we reach a long-term agreement to do just that.
Indianapolis' reputation as a hotbed of hosting collegiate, Olympic and amateur sporting events and organizations is unsurpassed in the nation. Again, beyond reputation, this means jobs and hard dollars in the Indianapolis economy. For instance, a recent study showed that the NCAA relocation here has produced an annual economic impact for Marion County of more than $40 million and led to the creation of 857 jobs. In addition to that, NCAA events scheduled in Indianapolis from 2000 to 2006 will account for $100 million in direct spending.
Indianapolis has been so good for so long in this arena, that it's hard to top our past successes. Two weeks ago, we may have done just that. I was happy to join with Gov. Joe Kernan, the NCAA and the Indiana Sports Corporation in the blockbuster announcement that every five years in rotation Indianapolis will host a Men's Final Four, a Women's Final Four, a Men's or Women's First and Second Rounds or Regional Games, and the annual NCAA National Convention. That means a major NCAA event for the city every year for the next 35 years or more, bringing hundreds of millions of dollars in direct impact into the Indianapolis community.
We are a city deliberately designed with conventions and meetings in mind. The Indiana Convention Center is the engine that drives our hospitality industry, an industry that provides 51,000 jobs in Central Indiana. Indianapolis hosts more convention-goers than St. Louis, Cincinnati, Pittsburgh, and Charlotte combined! We continue to see the demand grow for convention space in Indianapolis and, quite honestly, the demand has already outgrown our supply of space. This is one of those problems of success! The convention center cannot accommodate more than its current 40 major conventions per year, and our largest annual conventions are bursting at the seams.
It won't be easy - either logistically or financially - but the reality is we must expand the convention center, and we must get the ball rolling this year. If we do nothing, we stand to lose $100 million annually from groups who want to stay here, but can't. We also will miss out on larger conventions and lucrative events that right now don't even consider Indianapolis.
Economic development isn't just about tax incentives and construction projects. Quality of life and image are as important. To attract and retain innovative, creative people, we have to offer more than just a job. Museums, theatres, galleries, festivals, public art and cultural districts are a significant part of what makes Indianapolis unique and dynamic. That's why our Cultural Development Initiative continues its work to enhance and promote Indianapolis as a world- class cultural City. A thriving cultural community not only fertilizes the economic development soil, but allows the imagination of our community to bloom.
Our emphasis on the cultural community is really beginning to pay dividends. Just consider the visual art and musical performance in this facility tonight, and you get a glimpse of why we landed on the top 20 list of the most creative regions in the United States. According to our host, the Arts Council of Indianapolis, the arts conservatively pump $294 million dollars into the local economy each year and are responsible for more than 10,000 jobs.
Distinct pockets of cultural activity are thriving in neighborhoods throughout the city. To harness the energy and creativity of these neighborhoods, we created the Cultural Districts Program to support cultural planning and provide strategic enhancements in five pilot areas: Broad Ripple Village, Fountain Square, the Historic Central Canal & White River State Park, the Massachusetts Avenue Arts & Theater District, and the Downtown Wholesale District. The cultural district program has invigorated community-based planning within the districts and is already serving as a magnet for economic development and jobs.
2004 is the year to decide on a downtown "Cultural Trail." In just a few months, feasibility studies will be complete. I hope the facts show we can build this unique community asset that would link our cultural districts, create a hub for our world-class greenways system, and weave public art into our downtown landscape. The Cultural Trail could be a national landmark that would further distinguish Indianapolis in a powerful way.
Education is another bright star in our city's sky. We are seeing advancements in the quality of public education in Indianapolis. We were all thrilled when the U.S. Department of Education named Indianapolis Public Schools' Charity Dye Elementary School a national "Blue Ribbon School" for its academic improvement and exemplary teacher and student attendance rates. Throughout the IPS school district, the percentage of 3rd, 6th and 8th graders passing the ISTEP+ exam in 2003 improved significantly from 2002. The IPS School Board recently received "The Outstanding Board Award" from the Indiana School Boards Association, an honor richly deserved for the extraordinary service these board members provide. And finally, IPS should be proud that the new president of the City-County Council is a graduate of historic Crispus Attucks High School.
Since 2002, public school options in Indianapolis have expanded with the addition of charter schools. Five mayor-sponsored charter schools are currently in operation. Five more are scheduled to open this Fall and another in the Fall of 2005. Two weeks ago, I granted charters to Goodwill Education Initiatives for two new schools, the Indianapolis Metropolitan Career Academies #1 and #2. These two new high schools will serve students whose academic careers suggest they are prime candidates for dropping out of school without a different educational approach. I'm pleased that such a strong local organization has partnered with a successful educational model to serve the young people in our community.
But with much to be positive about in public education in Indianapolis, we cannot ignore the link between success in school and early childhood education. I support full-day kindergarten in Indiana. Children who are prepared to enter school are more likely to succeed in school, and eventually at work, and in the community. The expansion of full-day kindergarten is an investment in Indiana's economic future.
Making investments in our neighborhoods' future is a key priority for my administration. From affordable housing to abandoned houses to property taxes, we continue to make progress on issues affecting our neighborhoods.
Many Marion County residents were hit hard by the court-ordered property tax reassessment last year. We have fought to ease the burden where possible, and I will continue to advocate in the General Assembly for relief for those most affected and for long-term solutions that make our property tax system more fair. Legislation remains alive in this session that would reduce property tax bills for owners of older homes, for seniors, veterans and others; and that would ensure that homebuyers or those refinancing their mortgages were informed of all property tax deductions available to them. It is important for the legislature to pass these bills.
In last year's State of the City address, I declared war on abandoned houses. Since then we have done a block-by-block survey that inventoried and categorized vacant homes in the city. We established an Abandoned Houses Work Group, which has been meeting regularly. We published the Top Ten List of problem property owners and, using this list, we have been able to start holding property owners accountable and encouraging neighborhood organizations to put public pressure on owners to fix up their properties. Just a few weeks ago, the City filed suit against a property owner on the Top Ten List who owned 37 properties with more than 80 housing code violations over two years.
I've also continued my commitment to making sure that occupied apartment buildings are safe for the families who live there. The City and the Marion County Health Department conducted a comprehensive inspection of the Sunrise Apartments, whose residents are primarily Latino, and cited the landlord for more than 1,400 violations. The landlord is now working with us under threat of a lawsuit to bring those apartments into compliance.
And our work to improve housing in our city has gone well beyond code enforcement. Amber Woods is an eastside apartment cooperative that suffered extensive damage from the tornado of September 20, 2002. The City invested $750,000 to help reconstruct and rehabilitate these 350 units of affordable housing. In addition to this important investment, there are more: We will direct $2 million from the sale of the former Market Square Arena site to support affordable housing opportunities in other parts of our city; we have committed $3 million to the Parkwoods Apartments in the Meadows area to support the creation of 220 new affordable townhouse-style apartments that will better serve families; we have set aside $5.5 million in community development dollars and public infrastructure support for the revitalization of the southeastside's Brokenburr Trails that will include 217 new affordable rental and homeownership units; and we're investing $1.6 million in the near eastside in Colonial Park Apartments, which will provide 106 units of quality affordable rental housing and supportive services to low and very low income renters.
Homeownership is vital to the stability of neighborhoods. Indiana has one of the highest homeownership rates in the country. But we've also suffered an unusually high foreclosure rate during this national economic downturn. One way we can help families maintain homeownership is through information and education.
For our part, we have created Indianapolis Housing Today, a show which I am pleased to announce began airing this morning. Two new shows will air each month on the government television channel. Topics will include predatory lending, mortgage foreclosures, homeownership counseling and financial assistance.
Strong families are the bedrock of our neighborhoods. Strong families produce strong children. The Family Strengthening Coalition is a broad-based coalition of community, faith-based, corporate and civic partners. Through the Coalition, we are working to keep families more connected - to each other and to the services they need - out of a belief that isolation is both a cause and a symptom of family breakdown.
The Family Strengthening Coalition has been hard at work laying the foundation for a movement in Indianapolis which encourages our families - with the help of people in this city - to be strong, capable, and connected. We have joined with partners across the city to promote the Earned Income Tax Credit and provide free tax preparation for eligible low-income families. To help thousands of families become more engaged in each others lives, the Family Strengthening Coalition has helped plan and promote family friendly events like the Family Strengthening Summit, the 4th of July Canal Fest, and Family History Day.
The issue of public transportation has more recently surfaced to the top of the public policy agenda in response to serious financial constraints facing our local bus company. We need to pull together as a community and take bold steps to not only stem this short-term problem, but come up with well thought out long-term strategies that might incorporate regional structures, alternative forms of transit and major changes in our current system. To look at important issues currently facing IndyGo, tonight I am asking IndyGo, the Greater Indianapolis Progress Committee and the Indianapolis Chamber of Commerce to co-convene a task force to identify ways to address IndyGo's needs and to bring our community together to share good minds, energy and resources.
So, we have much to be proud of and many exciting projects in the works, but we also clearly have many challenges that lie ahead of us. And as I mentioned earlier, our local units of government in Marion County face funding challenges that are truly daunting. And the track toward a solution has many hurdles: separate city and county budget processes that lead to competition for the same scarce resources; a large number of elected officials all of whom are accountable to the voters individually, but are not bound to work together on budgets; and 45 separate property taxing authorities in our county that act independently; to mention just a few of the hurdles.
There's an old adage that when everyone has responsibility for a task, no one has responsibility for that task. I believe that. Effectively, no one person is in charge of finding solutions to our local government funding challenges in Marion County. I am willing and eager to take responsibility as mayor and as the county executive for the job of reviewing the way local government in Marion County functions and how it is funded, with an eye toward proposing reforms that will simplify local government finance and save us money. Our needs are many. We can't keep throwing good money after bad.
Obviously, all local elected officials, key appointed officials, and other civic leaders will need to be partners in this effort. I will make a major commitment of my office's resources in carrying out this undertaking. I will ask the other local elected officials in Marion County to make a more modest commitment of office resources, but the creative energy of our community's leaders will be critical. Working together we can assure the people we represent that they are getting the most for their tax dollars, and we will know better what additional funding will be necessary to meet our many critical needs. All ideas are welcome in the process, with the only caveat that our review is of local government finance, not public education.
We simply cannot afford to muddle through year after year. The short-term financial fixes are about used up. It is time we rise to the occasion, fix a system that has been broken for a long time, and leave to the next generation a system of local government finance worthy of our world-class city.
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It has been my pleasure to serve the people of Indianapolis for the last four years. Although our future brings challenges, I know with the work of my administration and the city-county council, the cooperation of our city, county and civic leaders, and the support of Indianapolis residents, we will make our great city even greater.
Thank you.
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