|
|||||
|
|
|
|
|
|
DOING BUSINESS WITH THE ARENA
 Concessions and Catering Services Agreement - Centerplate
 LETTER FROM THE CONSULTANT ARENA SITE INFORMATION
|
Arena Authority FAQs What is the total cost of the Arena, and who is paying for it? The total guaranteed maximum cost to build the Arena is $249 million. The project is funded by at least $360 million in gross proceeds from bonds issued by the Louisville Arena Authority. According to the Leib Report (an independent review of the Louisville Arena Authority’s development and financing plan prepared in 2006 and updated in 2007 by The Leib Group, LLC), the Arena-generated revenues are projected to be $1,100,000,000 over 30 years, or the life of the debt service. Revenues include income from the University of Louisville’s lease of the Arena, as well as a percentage of sales of premium seating, luxury suites, loge boxes and club seats; naming rights; advertising and sponsorships; facility rental; concession sales; facility fees; and tax increment financing (“TIF”) Revenue. If the Arena’s cost is only $249 million, why is it necessary to issue $360 million in bonds? In addition to the direct Arena costs, the Arena Authority will issue bonds to capitalize interest during the construction period, to fund a debt service reserve, and to pay bond issuance costs. What is Tax Increment Financing (TIF) and how does it work? Tax increment financing (“TIF”) allows communities to create special districts in which a percentage of future gains in tax revenues helps finance development projects within the district. The Arena TIF District is a 6-square-mile district around the Arena site. The Arena will share the incremental state property and sales taxes generated within that district with the state. The TIF District also includes state income taxes generated from salaries and wages paid to employees within the Arena complex itself. From now until 2010, the Arena project is expected to generate an additional $5.1 million (approximate) in sales, income and state property taxes, with increases annually thereafter. This income will be used solely for debt service on the Arena bonds. Are there additional costs other than construction? The acquisition of the site, the cost of relocating LG&E, and the moving costs associated with Humana are approximately $87 million. Will ticket prices increase for UofL basketball games? The ticket pricing structure will be determined by the University of Louisville. The Arena Authority’s pro-forma is based upon the University’s current pricing structure. Will we have trouble finding parking downtown? A 760-space parking garage is being built on the Arena site. The garage will be owned by Metro Louisville through the Parking Authority of River City. There are approximately 12,000 parking spaces within three blocks of the Arena. What accommodations are available for overnight guests? There are more than 4,200 hotel rooms within walking distance to the Arena. What type of new events will the Arena attract? In addition to the University of Louisville men’s and women’s basketball games (approximately 37 annually), the Arena is expected to attract concerts, family shows, other sporting events such as high school tournaments and professional exhibition games, NCAA championships in a variety of sports such as wrestling, hockey, basketball and volleyball, and miscellaneous events such as large group assemblies, conventions, trade and consumer shows and graduations. How will the Arena impact downtown Louisville? More than $2.5 billion of construction is occurring or planned downtown, including the new Arena, the Iron Quarter, Museum Plaza, the expansion of Fourth Street Live, and numerous condominiums and residential apartment buildings. Fourteen projects are now in the pipeline, with many already under construction. These projects include hotels, office development, condos/retail/office mixes, and a city block reserved for major waterfront development. The Arena will bring hundreds of thousands of people downtown each year, generating new revenue for Louisville Metro and the Commonwealth. What impact will the Arena have on Freedom Hall? The Kentucky Exposition Center has a rich history of hosting the Kentucky State Fair, the National Farm Machinery Show, numerous concerts, trade shows, conventions and other events. As the nation’s sixth largest tradeshow and convention facility, it will certainly continue to attract premier shows and events. When will the Arena open? The Arena will open in November 2010. How many will the Arena seat? The Arena will seat a minimum of the following:
What accommodations are being made for disabled guests? Louisville Metro government’s Disabled Citizens Department, representatives from the Center for Accessible Living, and other interested organizations and individuals are being consulted throughout the design process. Wheelchair accommodations and accessibility will be priorities in the new Arena. The rise between the wheelchair platforms and the seats immediately in front of them are twice as high as the rise between regular seat rows. Parking for disabled guests is available in the Arena garage and all nearby parking facilities. Can I host a business meeting or special event at the Arena? The Arena will have four spacious rooms (total of 32,000 square feet), three of which overlook the Ohio River, as well as a restaurant/sports bar overlooking the river and numerous other private spaces that can be leased for meetings or social functions. Additionally, the Arena’s 14,000 square foot lobby will be a wonderful location for pre-function receptions, dinners and other events. How can I book an event at the Arena? Please call 1-800-618-5151 or email sales@ksfb.ky.gov Will the Arena have a green initiative? The Arena has a green initiative and will be as energy efficient as possible, while adhering to the established construction budget. Minority hiring – what are the goals and how will you accomplish them? It is the policy of the Arena Authority to promote the participation of women and minorities in all phases of the design, development, construction, operation and maintenance of the Arena project. Consistent with this policy, the Louisville Arena Authority has established a goal of at least 20% minority participation for employees and contractors on the Arena project; a goal of at least 5% women participation for employees and contractors; and a goal that 75% of Arena project jobs be reserved for Kentucky and Indiana residents and that at least 60% of Arena jobs be reserved for residents of the Standard Metropolitan Statistical Area. Following the Arena Authority Affirmative Action and Labor Committee’s initiative, KentuckianaWorks, Louisville’s Workforce Investment Board, received $1 million from the state to establish the “Construction Pipeline Project,” a one-stop career center focusing on jobs in construction and the skilled trades. The program is a unique partnership between the Louisville Urban League, Justice Resource Center, and union and non-union contractors; all of whom are working together to recruit, assess and provide training to minorities, women and other individuals interested in entering the growing construction and skilled trades sector in our community. Additional information can be found at www.lul.org
The Arena is being built on the former LG&E and Humana sites. Does this pose any environmental concerns?
|
CONSULTANT STUDIES
|
 |