Council punts Angie's List proposal back to committee

The City-County Council on Monday sent an $18.5 million package of tax incentives back to committee for further vetting -- marking the second time the proposal has been delayed heading into a vote.

One week after the proposal was approved in committee, the full council was expected to vote on whether to invest Downtown tax-increment financing dollars in Angie's List, the online consumer rating service based on the Near Eastside.

But on Monday -- in a nod to resident concerns about the company's profit woes -- the council voted unanimously to send it back to where it came from.

Company officials last fall announced a major expansion of their campus headquarters, with the caveat that it wouldn't happen without significant help from the public sector.

Supporters see it as a win-win for the city. New jobs mean new taxes that, if all goes well, eventually would pay for the city's contribution. But for many, the real boon is where the jobs will be located — a depressed corridor that was once an economic juggernaut on the periphery of Downtown.

Skeptics, though, see a company that has never turned an annual profit and wonder whether taxpayers should invest in its future when Wall Street's interest has plummeted in recent years.

Under the proposal, Angie's would invest $40 million in the old Ford building off East Washington Street. The 101-year-old assembly plant would be converted to office space for 1,000 new employees over the next five years and 800 others who would be relocated there from the Landmark building Downtown.

The city would take out an $18.5 million TIF bond to finance its contributions. About $9.6 million of it would go into street improvements and a parking garage, the latter of which would be owned and maintained by Angie's List. The city also would chip in $6.75 million to help relocate an Indianapolis Public Schools warehouse from the old Ford building.

The remainder of the bond would be set aside for issuance costs ($1.55 million) and contingencies ($600,000). The state has agreed to contribute $6.5 million in tax credits and $500,000 in training grants.

The proposal passed 7-1 out of the Metropolitan and Economic Development Committee, with much of the discussion centered on so-called "clawback" provisions that would require Angie's List to return money to the city if it doesn't hit certain benchmarks. For instance, if Angie's created half the jobs it promised, half of the city's $9.6 million would be set aside in an escrow to be repaid.

The focus on taxpayer protections is a direct result of resident fears about the company's stability.

"The comments I've gotten from people are 'I hope they're around in five years,' " said Councilman Jeff Miller, a Republican who voted in favor.

Meanwhile, the job totals have been a subject of some debate, because different numbers have been used in the company's various presentations.

The administration has cited 1,820 new jobs — a reference to a prior TIF package in which Angie's committed to employing 980 people.

Angie's describes the project as an additional 1,300 jobs — a reference to the 1,500 employees it had when the project was conceived back in 2013.

The proposal before the council commits Angie's List to maintain 2,800 jobs — about 1,000 more than at present.

Call Star reporter Brian Eason at (317) 444-6129. Follow him on Twitter: @brianeason.