Checkered Flag in Sight for Speedway Loan
IMS would be able to repay $5M in state help if tax collections increase
Legislators are putting the finishing touches on a bill to loan up to $10 million dollars to the Indianapolis Motor Speedway and other motorsports businesses.
Indianapolis Senator Mike Young says precise wording still needs to be worked out, but the final bill will essentially adopt the Senate's financing plan while adding two key provisions introduced in the House: making the aid a loan instead of a grant, and making a similar amount available to other motorsports operations.
The Speedway would receive $5 million a year for proposed improvements, to be repaid through the anticipated increase in income and sales tax collections at the track. Young says the bill is likely to authorize the Speedway to impose a ticket tax as well to help it repay the loan, but says he doubts the track will make use of it.
An additional $5 million for other businesses will be set aside in a loan fund at the Indiana Economic Development Corporation. Young says he has no idea how many businesses besides the Speedway will make use of state aid, but says the fund offers them an opportunity to consider improvements they otherwise couldn't afford.
Unlike the Speedway loan, the IEDC fund leaves it up to recipients to raise the money to repay their loans.