Saturday, April 16, 2011

No-So Fleeces Indy Taxpayers

"The $156 million North of South project is a complicated, risky and potentially transformative bet on downtown," writes Cory Shouten on

"Taxpayers are putting up nearly every dollar used to build the apartment, hotel and retail project, chiefly by loaning $86 million raised from the sale of municipal bonds. All without the city’s landing any job commitments, charging the developer a spread above the city’s cost of capital as any banker would, or installing a mechanism for taxpayers to enjoy some upside if the deal succeeds....

"The city sold about $98 million in bonds to finance the project and will kick in another $9 million for infrastructure improvements. Add in a $6 million state grant, and taxpayers are on the hook for about $113 million."

This Indianapolis Observer remains in a state of shock that Indy's on the hook for big bucks while private company's stand to benefit from our tax dollars. Way to go, Ballard!

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