The contractor with Indianapolis’ first car-sharing program, BlueIndy, has received the green light from city officials to begin construction on more than 200 locations, which city and private officials say will provide residents access to electric cars. Twelve initial sites have been approved and are currently under construction.
“A number of construction sites are popping up around town,” Hervé Muller, president of BlueIndy LLC told the Indianapolis Recorder Newspaper. “We are doing our best to limit the inconvenience of the construction and to keep people safe. The goal is to have a massive amount of stations and then proceed with a grand opening before using the service.”
BlueIndy was set to open to the public in December 2014, but then the would-be largest electric car share service in the U.S. experienced a few bumps in the road.
The major players involved, including the City of Indianapolis; Bolloré Group, a French company which owns BlueIndy; and Indianapolis Power & Light Company (IPL) had trouble securing funding approval from the Indiana Utility Regulatory Commission (IURC).
In April 2015 a request was submitted for the commission to approve $16 million to cover the cost of the program, which would have left IPL customers paying an estimated 44 cents on each monthly bill. The IURC struck down that proposal.
Before the denial, taxpayers and state representatives voiced opposition to funding a private company, even one in partnership with the city.
Rep. Cherrish Pryor, D-Indianapolis, explained her objections to that proposed request.
“It was not fair to tell people everyone must pay for a project they may never use. The people who are going to be using the cars should be the ones paying,” she said.
Pryor also believes the city did not do its research on the feasibility of the ambitious project.
“They did not provide any supporting data on whether or not the project would be successful. It’s unfair to have taxpayers on the hook for a project that is uncertain and unproven. Especially for a private company that should have the funding to cover it,” commented Pryor.
The subscription-based program allows cars to be reserved for a day, week, month or year. Fees have yet to be announced.
Residents will have 24/7 access to a four person car that can be driven for 150 miles on a full charge. The in-car GPS allows the driver to reserve a parking spot with a charging station near their destination which makes this rental a one-way service. The goal is to have 200 stations within the city.
Pryor said her other concern involves the program’s targeted audience and reliance on credit card holders.
“Many low-income individuals, regardless of the rates, don’t have a charge card and a lot of the people that live in those older homes pay higher electrical bills during the summer when it’s hot and during the winter when it’s cold, don’t have the money to pay their bills, then you’re going to ask them to pay more for these electrical cars,” she commented.
Local businessman Jeff Smith, co-owner of Georgia Reese’s Southern Table & Bar, agrees with Pryor.
“I think the money could be spent in better places. I think it was a great idea in theory, but without the funding, I don’t know how it’s going to work and I don’t know if we put the carriage before the horse. We should have secured the funding first, instead of breaking ground and making it happen,” said Smith who recently opened a second Georgia Reese’s location on East Washington Street just feet from the BlueIndy test drive location.
Nevertheless, Muller asserts the program is on track.
“We were delayed in starting the work and that was due to the regulatory approval IPL needed for their portion of the work,” said Muller. “Initially when we signed our contract in 2014, IPL was set to do the majority of the work but they had to go through regulatory approval.”
Muller admits that process took longer than anticipated.
The program also relies on dollars from IPL. A joint statement released by the City of Indianapolis and BlueIndy states, “The BlueIndy system will be financed by more than $40 million from BlueIndy, a $6 million commitment from the City of Indianapolis and up to $3.7 million investment from IPL.”
Public money is earmarked for “infrastructure improvements, including road markings, small signage, and curb and street maintenance. The city will receive a portion of BlueIndy’s profits and the State of Indiana and Marion County will receive an additional excise tax from BlueIndy. IPL funds will support work related to public utility infrastructure for the EV charging services,” according to the statement.
At Recorder press time, IPL had not responded to a request for an interview.
In a prepared statement, Kelly Huntington, president and CEO of IPL said, “At IPL we understand that an ‘energized’ city is a significant driver of economic development. We are excited about the opportunities this program will bring to Indianapolis and committed to helping to power the efforts of those who are working toward innovative uses of electric vehicles.”
Muller said early feedback from the community has been positive.
“There have been lots of people stopping by and taking test drives and saying they are eager to see the cars out,” he said. “Initially people were saying they’re only going to be downtown but that’s not the case at all. Obviously we are starting downtown and some of the most visible locations but throughout the next year, year and a half, it’s going to be an ongoing construction site.”
Muller stated new stations will open every week.
“The goal of the service is to serve people who don’t have a car or who want to get rid of their car,” he said. “It is meant to be a way of alternative transportation.”
BlueIndy approved service stations
A full grand opening for the BlueIndy service is anticipated to take place this summer. The following are the first 12 station sites:
Washington & Illinois
Statehouse East
Ohio & Pennsylvania
City County Building
Fountain Square
Irvington
University of Indianapolis
Broad Ripple & College
City Market
Convention Center North
Mass Ave
IUPUI
For more information on BlueIndy, visit Blue-Indy.com.
