The Louisville (Ky.) Metro Council budget committee approved a new funding agreement with the Louisville Arena Authority on Thursday night, according to Marty Finley of Louisville Business First. In the new agreement, the city will pay $10.8 million annually toward the arena debt until either 2054 or until the debt is paid off.
The ordinance next will need approval from the Louisville Metro Council, but it is expected to reach approval, according to Finley.
In July, the University of Louisville approved a new lease that will see the school pay an additional $2.42 million each year to use the KFC Yum! Center. Over the next 30 years, Louisville will pay an additional $75 million in the new lease. That’s on top of the $1.3 million to $1.8 million the Courier-Journal estimated the school already contributes toward the arena.
In the new lease, the arena authority also has the ability to schedule concerts and other revenue-producing shows in October. In return, the men’s basketball team might be able to schedule more scrimmages at the arena.
All of this is in an effort to increase revenues to pay off the $690 million construction debt accrued by the arena authority when the KFC Yum! Center was built in 2007. Tax-increment financing has fallen well short of projections, according to the Courier-Journal.