The Indianapolis Capital Improvement Board yesterday "voted unanimously in favor" of a 10-year, $160M deal keeping the Pacers at Bankers Life Fieldhouse, while city officials "defended" the cost against critics, according to Tony Cook of the INDIANAPOLIS STAR. The agreement also includes "three one-year renewal options." Critics question whether the "financial burden is too great for a city that struggles to fund police and pothole repairs." But supporters said that the deal “ensures a continued economic impact and vibrancy for Downtown." CIB President Ann Lathrop "sought to further reassure skeptical City-County Council members when she pledged there would be no tax increases associated with the deal." The CIB will pay for the $160M deal over the next decade "with a combination of operating and reserve funds." Pacers Sports & Entertainment President Jim Morris said the deal is "a major factor in helping us get on solid financial ground going forward." Cook notes an aspect of the deal that has "drawn particular scrutiny" is the $9M the CIB will pay over 10 years to "license" the arena's scoreboard and sound system. The CIB will then "take title of the equipment at the end of the deal." That is a "sore point for some" because when the Pacers purchased the system for $16M in '12, city officials said that it "wouldn't play a role in the upcoming negotiations with the team" (INDIANAPOLIS STAR, 4/15). The AP’s Michael Marot noted the Pacers will give city leaders the "right of first offer" in the event team Owner Herb Simon "dies and his heirs attempt to sell the team." The provision means the city could "designate a new potential owner and that person would be able to make the first offer on the team or could match an offer from someone else" (AP, 4/14).
