With hopes of landing Amazon, lawmakers reconsider state ban on light rail in Indianapolis

With hopes of landing Amazon's second headquarters, Indiana lawmakers are reconsidering a state ban on light rail in Indianapolis.

A House panel gave initial approval Wednesday to a measure that would repeal the prohibition on public spending on light rail projects in Marion, Hamilton, Hendricks, Hancock, Johnson, Delaware and Madison counties.

Supporters argue that the city needs all mass transit options on the table, especially if it is going to attract major new employers such as Amazon.

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"Transit is a very major factor for a lot of these major companies that are looking to move here — particularly as we see the Amazon process unfold," said the bill's author, Rep. Justin Moed, D-Indianapolis.

The online retail giant announced last week that Indianapolis was one of 20 finalists for its second North American headquarters. The $5 billion campus is expected to employ 50,000 workers with average salaries of more than $100,000 a year.

Amazon has said public transit options are an important consideration for the project.

The House Roads and Transportation Committee voted 11-1 in favor of the measure, House Bill 1080. Rep. Mike Speedy, R-Indianapolis, was the sole "no" vote. The bill now moves to the full House.

It's just the latest example of how the competition to land Amazon's HQ2 project is influencing Indiana's legislative landscape.

While supporters of progressive legislation have often cited economic development and business attraction in their pitches, Amazon's highly publicized site selection process has given advocates for any number of proposals a shiny object to dangle in front of lawmakers.

And there's some evidence that bills that wouldn't have gained much traction in the past years are now getting hearings and votes.

The light rail ban, for example, was just implemented in 2014 as part of a legislative compromise.

The law gave Indianapolis and most surrounding counties the ability to raise income taxes for public transit through a ballot initiative. But to get enough votes from the Republican-dominated legislature, fiscal conservatives insisted on the elimination of light rail, fearing that high costs might eventually require a taxpayer bailout.

Now, though, lawmakers are rethinking the ban amid the prospect, however unlikely, of adding 50,000 new Amazon workers to Central Indiana's workforce.

Lawmakers and city officials said there are no current plans for a light rail project, but that local governments need the flexibility in today's competitive environment.

During his presentation on the bill, Moed pointed to Detroit, which did not make Amazon's list of 20 finalists, as a cautionary tale.

"It was indicated that one of the reasons they got knocked out of the first round of cuts was because of their lack of planning for transit," he said.

Supporters of light rail aren't the only ones invoking the Amazon project. It also came up Tuesday during a hearing on a proposed hate crimes bill, which would let judges impose tougher sentences for crimes motivated by race, religion, sex, disability, gender identity or sexual orientation.

Indiana is one of just five states without such a law, but similar proposals have failed in past years in the face of conservative opposition.

The same fate seemed likely again this year; opponents said they were told several weeks ago that the bill wouldn't even get a hearing. But with newfound support from Senate leader David Long, R-Fort Wayne, it did get a hearing earlier this week.

While a spike in hate crimes might be the driving interest in the legislation, much of the testimony during Tuesday's hearing revolved around the importance of attracting large corporations like Amazon, which cited support for diversity as one of the factors it would consider in choosing a new headquarters location.

"It has a lot to do with economic development," said Fishers Mayor Scott Fadness, who is helping lead the Indianapolis area's Amazon bid. "In today’s world we are in a race for human capital."

City and state officials have not publicly revealed the details of their pitch to Amazon, but Indianapolis Deputy Mayor Angela Smith-Jones said the hate crime and light rail bills will send important messages to the company and others like it.

When it comes to the values of transit and diversity, "Amazon was pretty explicit in their RFP," she told IndyStar. "So to that point, I would say these matters are specific with regard to that bid."

Several other measures are also widely regarded as important to the Amazon bid — or at least to the prospect of landing such a large project.

They include several bills aimed at improving the state's ability to train skilled workers who could fill new jobs, a measure that would require every Indiana high school to offer computer science, and legislation intended to promote and regulate self-driving vehicles.

Michael Hicks, an economic professor at Ball State University, said that if nothing else, the Amazon project is bringing into focus for lawmakers issues that could be impediments to such a company.

"This is the time to examine every detail through the prism of Amazon," he said, "because what Amazon wants is what every modern company wants."

House Speaker Brian Bosma said Tuesday that talk of the Amazon project's influence on legislation this session is overblown. Rather, lawmakers are simply continuing a long running effort to make Indiana more business friendly, he said.

That supporters of all various causes are trying to hitch their issue to the Amazon bid is not surprising, he said.

"I believe we’re going to hear that, both pro and con, on every issue," he said.

Some of those claims, though, may have more legitimacy than others, he said.

"The light rail, there may be some reality to that," he said. "Part of (Amazon's) analysis was public transit."

Of course, one of the looming questions is how much state and local governments plan to offer Amazon in subsidies.

That's a figure they have not disclosed, but Bosma has said legislative leaders are prepared to take up legislation authorizing an incentive package for Amazon if needed.

Call IndyStar reporter Tony Cook at (317) 444-6081. Follow him on Twitter and Facebook.