LOUISVILLE, KY (WAVE) – A special meeting at the KFC Yum! Center has dollar signs all over it.
The Arena announced a refinancing plan that is evolving, thanks to an agreement made with Bank of America, who recently merged with Merrill Lynch, along with Siebert Cisneros & Shank Co. L.L.C.
In a previous interview, Louisville Arena Authority Board chairman Scott Cox explained the Tax Increment Financing, or TIF, district that provides tax dollars from the surrounding area to pay for the arena is not bringing in the amount of money that it should.
As a result, he asked for a restructuring of the deal which would refinance about $349 million in outstanding bond debt and lock the city into paying $10.8 million a year, the maximum allowed in the current contract.
Cox pointed out the city already pays the maximum but council members were upset they'd be locked into the rate for 20 years. The minimum allowed in the current contract is $6.5 million.
Cox now says the new agreements will help everyone move forward.
"We are hoping to make some significant progress in the next two weeks," Cox said. "I can tell you that the principals involved, the Governor, the Mayor, they're all talking to officials involved. We think that we're making progress and we hope to have some restructuring with our financial arrangements very soon."
Cox said he expected University of Louisville Basketball to maintain its relationship with the arena and play for many decades to come.