Pacers And City Strike New Deal

The Indiana Pacers and Fever are staying in Indianapolis until at least 2024.

The city and organization agreed to a 10-year contract extension that includes three one-year options through the end of the 2027 season.

Pacers Sports and Entertainment President Jim Morris calls the past 10 years "tough" and admits the team suffered "substantial losses."

But, he thinks the new deal is a sign of progress.

"We had a serious problem.  The city, the CIB has helped us address the problem and we have a chance to make it financially going forward," said Morris.  "This is a major factor in helping us get on solid financial ground."

The Capital Improvement Board unanimously voted in favor of the new deal, Monday. The city will contribute about $160 million, including operating expenses, the scoreboard and capital improvements.

CIB President Ann Lathrop says it will not come with tax increases.

"We are taking cash reserves that we have set aside due to bond refinancing that we've done the past several years and that's totaled between $20 and $30 million dollars," said Lathrop.  "The board directed that those dollars be set aside for future large capital expenses, such as what we are going to see at Bankers Life Fieldhouse."

Some residents are raising concerns with the level of the city’s investment.  Indianapolis Mayor Greg Ballard contends putting money into the Fieldhouse is important for the city’s overall development.

"You are trying to generate economic activity for more tax dollars.  That's the whole point of it all.  So, that you can provide more police and potholes," said Ballard.  "That is what we are trying to do.  We are trying to increase property taxes and all these things to generate economic activity around that to make sure that you do that, so you can pay for the police and the potholes and everything else."

A study done by the Pacers finds the organization contributes $234 million of economic impact downtown and 2,500 jobs.