SRC Rejects Economic Study Bids

(posted Dec 22)

The Speedway Redevelopment Commission rejected economic analysis proposals from Crowe Horwath and Umbaugh and Associates at its Dec. 15 meeting, citing what they felt were excessive fees to perform an economic analysis for the Speed Zone. The SRC felt $18,000 was a more appropriate figure for the report.

The SRC voted to have Executive Director Scott Harris work with Crowe Horwath on lowering its $22,500 fee. Although Umbaugh and Associates had the lowest proposal at $20,000, the commission chose not to pursue a less costly contract with Umbaugh.

Commissioner Ron Fisher urged renegotiating for a lower amount, saying the commission should be able to dictate the price. "That is what the taxpayers of Speedway wants us to do," he said.

Harris said that Crowe Horwath knows SRC's financial history, so the firm should be able to revise its quote because it has already compiled information for other reports. Crowe Horwath provided the financial analysis to the Department of Local Government Finance so the SRC could receive a $62 million bond approval.

President Vince Noblet said the analysis is needed for several reasons. American Structurepoint did not include tourism as a variable, the two-year old report does not account for last year's legislative changes of tax caps, and changes in the project's timetable. The SRC needs the report to seek additional funding.

During the Metropolitan Development Committee meeting the same night, Greenstreet Limited's Jeff Kingsbury, the master developer for the SRC, told the committee that transportation improvements are estimated at $125 million.