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Governor says Colts stadium deal in doubt

By Mary Beth Schneider and Matthew Tully
mary.beth.schneider@indystar.com

A deal to build a new stadium for the Indianapolis Colts is disintegrating because Indianapolis Democrats are demanding too much from a skeptical state, an angry Gov. Mitch Daniels charged today.

"Your stadium is about to go down," Daniels said as he walked out of his office and by an Indianapolis reporter. "The fact that with hours to go and not close to a majority, we've still got people in Marion County saying 'I may not vote for it' is nuts. We can get all of them and all of the Northwest (lawmakers) and get creamed."

The legislature must finish its work by midnight.

Daniels had just finished a meeting with Democratic lawmakers from Northwestern Indiana, who also have an economic development initiative at stake in the bill that would provide a funding mechanism for the new stadium. He also said he would meet behind-closed-doors with the House Republicans.

But in a possible sign that he is concerned about the fate of the stadium, Daniels called Indianapolis Mayor Bart Peterson late this morning to talk about the project. Peterson assured the governor he was working to help find a compromise on the $900-million project.

The project is controversial because the state would take over its construction, and it requires increases in local taxes in Marion and surrounding counties.

Daniels said that for lawmakers outside of Indianapolis, "this is the easiest 'no' vote in the world."

People outside Marion and Lake counties don't trust leaders here to make wise decisions, he said.

"Their constituents will say 'here it is again, giveaways to Indianapolis and Lake County' and the money won't be well spent and honestly spent in either place," Daniels said.

Asked what Indianapolis Mayor Bart Peterson and other Marion County leaders could do to salvage the stadium -- considered crucial to keeping the Indianapolis Colts from leaving the city -- Daniels said: "One thing they could do is to help us sell this bill. We are losing at the moment. They ought to quit demanding more. They're getting 98 percent of everything that they asked for and it's not easy to deliver."

Daniels said he is trying to convince lawmakers that it is in the state's best interests to invest in Northwest Indiana. The bill provides help for the Gary airport and other projects.

There is a pervasive attitude in Indiana that Indianapolis gets everything and Lake County is not to be trusted -- suspicions Daniels called "well founded."

"We've got a chance to take a big step forward in thinking like one state, but it's a close run thing and frankly we don't have any more time to argue about minutia," he said.

Indianapolis Deputy Mayor Steve Campbell said that, "We've got 12 hours to go. I know that doesn't sound like a lot, but that's 12 hours to work out a compromise."

But he stressed that Peterson last week ceded control of the issue to Daniels, at the governor's insistence that the state control the massive stadium and public works project.

Campbell said the mayor and his staff were not very involved in the issue now because it's a matter for the governor and the lawmakers.

Campbell said the latest GOP plan would bankrupt the Capital Improvement Board, which runs local sports and convention center facilities, and does not provide for adequate minority business participation in the construction of the stadium and a new convention center.

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Regrets, Daniels had a few

In two letters and a statement, Gov. Mitch Daniels tried to ease Democrats' hard feelings about a comment he made Wednesday night. Here are excerpts of the controversial comment Daniels made and his follow-up.

7 p.m. Wednesday: Daniels' news conference

"The Democratic Party is entitled to take a position of opposition or even obstruction, and I guess it wasn't a surprise. I will say that if there had been any element of bipartisan interest on their part, a stronger budget might have been possible. But since there was zero interest and zero votes available from the Democratic side, we had to go with something that could attract essentially every Republican vote, particularly in the House.

"That's why we came up a little short of the grand slam that for a while I thought we might achieve."

9:45 p.m. Wednesday: Handwritten note to lawmakers from Daniels

"When asked about the united Democratic opposition to the budget, I said that the requirement to devise a package that every Republican (House member) would vote for prevented us from achieving even greater deficit reduction. That was a true and non-judgmental statement of fact. I honestly do not know how these remarks could be misinterpreted, but I sincerely regret if anyone did so and took offense."

Mitch D.

Thursday: Daniels' letter to Sen. Richard Young Jr., minority floor leader

"It seems I've unintentionally made everyone's life more difficult and should apologize to someone, so let me start with you. . . .

"I know, but failed to make clear, that the loyal opposition attempted to take an active part in shaping the state's next budget."

Sincerely, Mitch

7:34 p.m. Thursday News release from Daniels' press secretary

"This afternoon, Governor Daniels met with the Senate Democratic caucus for 30 to 45 minutes. He apologized for any misunderstanding caused by the remarks he made during a news conference Wednesday evening