Metro Council approves ordinance to reduce the size of Louisville Arena TIF District
Thursday September 26, 2013
For Immediate Release:
Louisville Metro Council
Contact: Tony Hyatt %74-4137 / 526-3622
Stephen Haag 574-1204 / 645-1752
Contact: Tony Hyatt 574-4137 / Louisville – In a unanimous vote, the Louisville Metro Council on Thursday approved an ordinance which reduces the size of the Tax Increment Financing District for the Louisville Arena Authority from six square miles to two square miles. This change helps in the development of realistic revenue projections to help pay down bonds on the Yum Center.
“Reducing the TIF area allows the TIF revenues to directly reflect the success of the Arena and eliminates changes in business activities unrelated to the Arena,” said President Jim King (D-10) sponsor of the ordinance. “This approach is more realistic and gives the city a better monetary outcome in the future. It also taps into promised state tax revenues.”
The ordinance creates “The Two Mile Zone” within the Central Business District. Only the area of the TIF has changed, the remaining agreements within the original TIF Ordinance remain intact. The land that is no longer within the TIF area is now available for other projects.
“By narrowing the TIF area, the city and residents will have an opportunity to see the real impact of building the arena,” said Councilwoman Marianne Butler (D-15) chair of the Council’s Budget Committee. "The numbers generated are a direct result from the project."
“The reduction more firmly establishes a nexus between increases in new tax revenue and the arena. This appropriately allows arena activity to pay down the arena debt, said Councilman Kelly Downard (R-16) Vice Chair-Budget Committee.
Forecast projections using the 2 square mile TIF yield a $5,700,000 payment for 2012 compared to $3,500,000 in 2011 until a target goal of at least $8,000,000 within the next few years.
The ordinance will take effect when signed by Mayor Greg Fischer.
Jim King (D) 10
Marianne Butler (D) 15\
Kelly DOwnard (R) 16