Indianapolis Venues May Go Private

A dozen firms, including SMG and a four-way partnership of industry and local powerhouses, responded to a request for proposals from the city of Indianapolis, Ind., to help it find ways to cut costs and may include privatizing Lucas Oil Stadium, the Indiana Convention Center and possibly Conseco Fieldhouse.

The partnership comprises AEG, Global Spectrum, Pacers Sports & Entertainment and the Indianapolis Convention & Visitors Association, according to the Indianapolis Business Journal. It’s believed to be the first attempt by AEG or Global Spectrum to pursue an NFL stadium.

“We are prepared to offer our full corporate concentration and resources to this project, and we look forward to the opportunity to work with you on this exciting civic project,” PS&E President Jim Morris and ICVA CEO Don Welsh wrote in their cover letter to local officials, the paper reported.

The stadium, home of the Indianapolis Colts, and convention center are currently run by the Indianapolis Capital Improvement Board.

Some of the cost-cutting proposals could be implemented in coming weeks. But city leaders told the Indianapolis Star they needed more information before deciding whether an outsourcing of facility management is in the cards.

“If there’s a big-bang solution, there’s more homework to do,” Indianapolis enterprise development director Michael Huber told the paper. “We need more information about whether a large-scale outsourcing of operations and management would save taxpayers in the millions of dollars.”

Last year the facilities faced a projected $47 million deficit and had to ask for financial assistance from the state legislature. The Capital Improvement Board managed to cut operation costs from $78 million to about $51 million last year, and has budgeted about $60 million for operating expenses in 2010.

The city hopes privatization would save millions of dollars while maintaining its standard of service at the venues.

The Indianapolis Pacers operates Canseco Fieldhouse and has asked for the city’s help in covering some operating costs. Whether the venue is brought in to the deal depends on the outcome of those talks, according to the Star.