Sept. 7 update: Downtown Indy, Inc., plans to mail petitions today to the 1,170 property owners in the Mile Square to establish an Economic Improvement District. In two to three months, if Downtown Indy receives at least 51 percent of owners' signatures, as well as signatures from owners whose properties represent at least 51 percent of the assessed total value of property Downtown, the petition will move to the City-County Council for a vote. Indianapolis Mayor Joe Hogsett has been supportive of an EID, said Bob Schultz, senior vice president of marketing and events at Downtown Indy Inc.

From Aug. 6: Downtown property owners soon will decide whether to willingly tax themselves to make more than $3 million in improvements each year to the Mile Square.

Money raised under a proposed Economic Improvement District would be used to improve the area's cleanliness, decrease panhandling and increase safety, among other measures, its proponents say. The district would encompass the area bounded by North, South, East and West streets.

"We're in the discovery process right now," said Bob Schultz, senior vice president of marketing and events at Downtown Indy Inc. "We're having outreach conversations with those property owners on the commercial and residential areas of Downtown Indy. We as an organization are following their lead; they’re the ones telling us they’re ready to start an Economic Improvement District."

Downtown Indy Inc., which markets and helps maintain Downtown, is coordinating the initiative.

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Most major metropolitan cities — about 1,200 — have similar districts, Schultz said, to help with graffiti and weed removal, landscaping and other needs that are not maintained by other city services.

"We’re the largest downtown in the nation that doesn't have an EID," Schultz said. "What if every Downtown street was similar to Georgia Street? This provides significant funding to what we call barrier busters."

Residential property owners would pay $100 annually and commercial owners would be responsible for 12.5 cents for every $100 of assessed property value. Commercial property owners would cover more than 90 percent of the total district tax revenue.

The first step toward creating the district is gathering petition signatures. For the plan to advance the petition would need at least 51 percent of owners' signatures, as well as signatures from owners whose properties represent at least 51 percent of the assessed total value of property Downtown. Downtown has about 1,100 parcels of property.

The proposal would then go to the City-County Council in late fall and, if adopted, to Mayor Joe Hogsett for signing.

"We have every reason to believe that if it got to that point, that it would pass," Schultz said.

If approved, the initiative would go into effect in 2018 and last 10 years, with a review in five years.

The $3.16 million collected annually would be governed by a 15-person board of stakeholders, including at least 20 percent of residential members. The rest would be commercial property owners and stakeholders.

Here's how the funds would break down:

$710,000 would go toward safety and security through working with homeless outreach and panhandling remediation and by increasing foot and bike patrols of off-duty Indianapolis Metropolitan Police Department officers.

would go toward safety and security through working with homeless outreach and panhandling remediation and by increasing foot and bike patrols of off-duty Indianapolis Metropolitan Police Department officers. $1,505,000 would go toward street cleanliness and maintenance by hiring 10 to 15 street maintenance ambassadors to remove weeds, clean streets, power wash and plant trees.

would go toward street cleanliness and maintenance by hiring 10 to 15 street maintenance ambassadors to remove weeds, clean streets, power wash and plant trees. $585,000 would go toward improving the "Downtown user experience" by increasing bike parking and providing more Wi-Fi options and amenities such as dog parks.

would go toward improving the "Downtown user experience" by increasing bike parking and providing more Wi-Fi options and amenities such as dog parks. $360,000 would go toward the Mile Square's marketing, as well as to create a consistent brand and a retail plan.

The tax revenue would only add to current city maintenance, said Downtown Indy's vice president of finance and operations, Timothy Boruff.

"An EID cannot replace any existing services," he said. "So I'm confident our relationship with the city will be stronger."

Downtown Indy Inc. began as a private-public organization in the 1990s, but direct funding from the city budget ended in 2015. The Department of Public Works still contributes to Downtown Indy for maintaining Georgia Street, but the organization is now funded mostly through private membership fees.

"Both the city dollars as well as the private dollars, those funding streams have not continued to provide a consistent level of funding to sustain the beautification of Downtown," Schultz said.

Other Indiana cities, including Evansville and Fort Wayne, have downtown Economic Improvement Districts.

"The downtown improvement district has just played a pivotal role in downtown Fort Wayne," said Bill Brown, president of Fort Wayne's Downtown Improvement District. "I've really seen the benefits of having a downtown improvement district. Downtown was just basically dying on the vine. Things were going solid with suburban areas, but downtown was really struggling."

Brown said Fort Wayne property owners created a $150,000 improvement district in 1995. Since then downtown has doubled from 45 blocks to 91, eventually raising the tax to $360,000 through a millage process.

"It really helped to increase an interest in downtown Fort Wayne," he said. "There were now some things happening. The whole notion of events and the beautification of public realm, that creates a situation where people feel safe and a level of unity and ownership."

Indianapolis City-County Councilman Vop Osili, who represents Downtown, said he would support the measure if his constituents do.

"Our Downtown has reached a place of maturity," Osili said. "People see the value in a supplemental revenue for maintenance and enhancements. It'll have an impact on the beautification and other enhancements that make the downtown very desirable."

Call IndyStar reporter Amy Bartner at (317) 444-6752. Follow her on Facebook, Twitter, and Instagram.