Fishermen’s Council Approves Food and Beverage Tax and Property Tax Cut – Inside Indiana Business

The Fishers Event Center will host 8,500 fans for concerts. (Rendered courtesy of the City of Fishers)

Fishers City Council approved a 1% food and beverage tax late Monday to help fund a $170 million event center in the Fishers District and a 2023 budget that includes a tax decrease land.

Council unanimously approved a new $144.5 million budget that Mayor Scott Fadness says will reduce property tax rates to 2020 levels. Residents will pay $0.7115 of every 100 $ of property assessment in 2023, compared to $0.7165 in 2022, according to the presentation of the budget.

The budget includes $110.6 million in operating dollars and capital investments – including $12 million to be spent on roads, bridges, roundabouts and other infrastructure – and $33.9 million in debt service payments. Fadness said last month that the higher debt service payments were due to the city’s $90 million purchase in 2021 of part of Hamilton Southeastern Utilities.

The city expects to have about $57.6 million in cash reserves.

The council voted 8 to 1 in favor of the 1% food and beverage tax that would raise about $3.2 million a year for the construction of the Fishers Events Center. The tax will come into effect on December 1.

The new tax will apply to all food and beverage purchases at Fishers restaurants or foods prepared at other retailers. The tax, in addition to the state’s 7% sales tax and an existing 1% food and beverage tax in Hamilton County, means customers will pay 9% tax at restaurants. Fishers.

The new tax will align anglers with the county towns of Hamilton, Carmel, Noblesville and Westfield, and Zionsville in Boone County.

Councilor Jocelyn Vare voted against the food and drink tax after proposing two failed amendments. Vare wanted to add a sunset clause in the ordinance that would end the collection of the food and drink tax after 40 years after the obligations were paid, and put in writing that the tax would only be used to fund the center of events.

The 8,500-seat event center is part of a larger $650 million expansion plan for Fishers District. The development is planned east of Interstate 69 between East 106th and East 116th streets and southeast of Ikea.

Construction of the arena is expected to begin in the spring of 2023 and be complete by December 2024, according to Ryan Menard, vice president of development for Indianapolis-based Thompson Thrift Development LLC.

The Fuel, an affiliate of the NHL’s Chicago Blackhawks, will begin playing at the arena in the 2024-25 season. The arena will also host graduation ceremonies for students from Hamilton Southeastern and Fishers High Schools, basketball games, concerts and theatrical performances.

The event center will accommodate 6,500 fans for Fuel and basketball games and approximately 8,000 to 8,500 people for concerts and other entertainment events.

The fishermen will own the arena and issue 40-year bonds to pay for the facility.

The City will make annual reimbursements of $9.7 million which will come from four different sources: the City’s cumulative capital fund, food and beverage tax, operating revenue and payment in lieu of taxes, or PILOT funds.

Thompson Thrift Development is Fishers District’s master developer. The expansion project is also expected to include new retail, dining, entertainment and residential options.

Expansion plans for the fishing district also include:

  • Slate at Fishers District, a previously announced $63 million multi-family and garden community;
  • The Union, which is expected to include approximately 250 luxury apartments, 60,000 square feet of retail and restaurant space, 150 hotel rooms and up to 80,000 square feet of Class A office space;
  • and The Commons, which would include the event center and dining, retail and entertainment options. Thompson Thrift began construction of the original Fisherman’s Quarter in 2018, with the help of city incentives. He began planning the $110 million project, originally called The Yard at Fishers District, in 2015. More than 20 homes were acquired and demolished to make way for the development.

The 18-acre property south of 116th Street just east of Interstate 69 in Fishers has been sold to JVM Realty Corp. last year for an undisclosed amount.

The sale included The Mark at Fishers District apartments and 105,000 square feet of fully leased retail and restaurant space in multiple buildings. The acquisition did not include the HC Tavern or the two-brand, six-story, 145-room Hyatt Place/Hyatt House hotel.

Esther L. Steinbach