New arena far from done deal

03:19 PM EDT on Friday, August 12, 2005

In Louisville, the argument is over where to build a new arena. But for legislators from rural Kentucky, it's whether to build a new arena.

“If you’re living paycheck to paycheck with no health insurance and worrying about paying your medical bills and the price of gas and all those things, it may not be much of a priority,” says Rep. Robin Webb (D- Carter County).

Also Online

View this story

“It’s not a done deal by any means, but I think people are open-minded to hear the proposal,” says Rep. Harry Moberly, (D-Richmond).

It'll be up to the only Louisville state legislators in leadership roles to convince 136 colleagues to include money for the arena in next year's state budget:

“Now we’ve invested in different legislator’s projects across the state. That’s where all of us in Jefferson County gotta go back and say, ‘Now look, you owe us one. We’re the economic engine of the state and you’re gonna have to help us grow our economy down here,’” says Rep. Larry Clark (D-Louisville).

“If we can show that this arena can pay for itself and pay for its own debt payments, I think we can sell it,” says Sen. Dan Seum (R-Louisville).

Cost estimates on a new arena range from $175-$244 million. Revenue sources could generate $16-$22 million a year -- perhaps enough to cover the annual debt payments on the building. Economist Paul Coomes told an arena task force subcommittee Thursday some of the revenue could come from things like passing a local tax on rental cars, leasing land for a new hotel and naming rights for the new arena.

State Commerce Secretary Jim Host says he's close to signing a $40 million, 20-year deal for the naming rights, but he wouldn't say what company wants its name on the arena.

“No, I wanna lever everybody,” he says. “I’m reasonably confident that $40 million is the realm of possibility and I want to get more.”

The companies most often mentioned as possibilities for the naming rights include UPS, Toyota and Yum! Brands.

The full arena task force meets Monday to talk more about where the arena should be built. State Representative Clark and Senator Seum both say it might be easier to sell their colleagues on the fairgrounds location because it would cost less since the state already owns that land.

Web story produced by Jay Ditzer.