Bad news for Louisville's new downtown arena project

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WHAS11.com

Posted on August 15, 2009 at 6:45 PM

Updated Tuesday, Oct 13 at 4:25 PM

Louisville, Ky. (WHAS11) - Louisville's new downtown arena project is now suffering from tough economic times.

The $350-million dollar bond deal to fund the arena is dead.

The folks who have been working for three years to build a new Louisville arena downtown are now scrambling to come up with the money to build it.

The $350-million dollar deal to sell bonds to finance the project is dead due to concerns about the stability of the company insuring the bonds.

With the implosion of the old Humana building on Saturday, helping clear the site for the new arena, all systems were go.

Arena Authority Chairman Jim Host didn't know when he talked to WHAS11's Mark Hebert on Saturday that the implosion would not be a sign that the arena was a done deal. He was looking to ink the bond deal on Wednesday.

Obviously that didn't happen.

Now Host and others are trying to save the arena project by piecing together a new financing plan that could include something like a line of credit or a block of loans from a consortium of banks. City and arena authority officials are insisting the arena is still on schedule and will be built despite problems in financial markets.

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