Monday, October 31, 2011

Carmel's White Elephant Gets Whiter

Carmel's Palladium
Headline story in the Indianapolis Business Journal (subscription only) is that the taxpayer subsidy for operating Carmel's Palladium is being nearly tripled to $5.5 million.  This is despite the fact that the venue is booked solid and is filled to near capacity for most events.

Mayor Jim Brainard says in the article he hopes to have the subsidy down to $1 million in 3 or 4 years.  It's not clear how that is going to be accomplished.

Last year, the City gave $2 million from its general fund to cover the Palladium's budget of $7.5 million.  IBJ reports that this time money is coming from a private entity that is supported by tax increment funding (TIF) rather than the city's general fund.  Like that makes a difference. Regardless of what governmental pocket the money is taken from, the money initially came from property taxes paid by Carmel residents.  If TIF money is drained off, that is less tax dollars for schools, libraries, roads, etc.


Downtown Indy said...

I seem to recall Brainard touting tax rates being low in Carmel.

I can guess where/how he plans to cut the deficit. By telling everyone taxes are much too low for a city of Carmel's quality of life -- as he jacks them up.

guy77money said...

The million dollar (or should I say 5 million ;) ) question should be how much tax revenue it the place generating. You may be getting alot of people shopping, eating and using the lodging in Carmel thus generating tax revenue. I would say they are getting a bit more bang out of these events then the city of Indy claws back on the Colts.

Pete Boggs said...

Someone's "gotta pay" for ornamental socialism.