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Arena Authority considering using citizen money to cover debts

Arena Authority considering using citizen money to cover debts

by WHAS11 newsroom

WHAS11.com

Posted on September 11, 2012 at 7:30 AM

Louisville, Ky. (WHAS11)- Metro Louisville may be asked to chip in more money to cover debt payments on the KFC Yum! Center.

The Louisville Arena Authority voted Monday morning to alert the city it may need to tap into the city's maximum contribution of $9.8 million.

 The city is currently slated to pay $6.5 million to the Arena Authority.

The Arena Authority's Vice-Chairman says it may have to pursue the larger amount if the board is not able to access millions of dollars of investment gains in a separate arena account called a "GIC" or Guaranteed Investment Contract.

“You know, right now there's still a lot of unanswered information as far as how much money that may be available with this 'GIC,' and we're going to be hopefully finding that out pretty soon.  But it's really going to be dictated among how much we ask for when we get that to be answered,” says Bill summers the Arena Authority Vice-Chairman.

Summers says the authority will look at every option it is before tapping into the maximum amount from the city.

Tax revenues in a special six-square mile district around the arena have fallen far short of projections.

 A share of those tax proceeds goes to pay off $349 million in arena construction bonds.

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