Louisville Arena Authority's
Frequently Asked Questions
How many will the arena seat?
The arena will seat a minimum of the following:
- 22,000 for basketball
- 16,000 for ice shows, arena football, indoor soccer and the circus
- 17,500 for end stage concerts
- 22,000 for center stage concerts, wrestling and boxing
- 11,627 for ½ house (lower bowl) events
- 21,500 for NCAA swimming and volleyball
- 16,000 for NCAA wrestling
How do I get tickets to the games? Will ticket prices increase for UofL
basketball games?
The ticket pricing structure will be determined by the University of Louisville.
The Louisville Arena Authority’s pro-forma is based upon the University’s
current pricing structure. Please visit
http://www.uoflarenaseats.com/q-a/mens-basketball-tickets for more
ticket/seating information.
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 will 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,
basketball and volleyball, and miscellaneous events such as large group
assemblies, conventions, trade and consumer shows and graduations. In fact, the
NCAA Division I Women’s Volleyball Tournament has announced that it will hold
its 2012 Championship Final Four at the arena.
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 also
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
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 attract more premier shows and events due to the
availability of more prime dates in Freedom Hall.
How will the Arena impact downtown Louisville?
More than $2.0 billion of construction is occurring or planned downtown,
including the new arena. Twenty-five projects have been completed since the
announcement of the site. These projects include hotels, office
development, condos/retail/office mixes, and a city block reserved for major
development. The arena will bring hundreds of thousands of people downtown
each year, generating new revenue for Louisville Metro and the Commonwealth.
How will traffic and parking near the arena be handled?
The Arena Authority hired QK4, a traffic consultant, to develop a traffic
and parking management plan for the arena. Implementation of the plan, including
any changes to the downtown traffic system, will be the decision of Louisville
Metro. The traffic management plan was presented to Louisville Metro in January 2010.
A copy of the plan is included on the Louisville Arena Authority's website.
Will there be ample 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. The
Authority’s traffic consultant is also developing a parking plan for the arena.
What accommodations are available for overnight guests?
There are more than 4,200 hotel rooms within walking distance to the arena.
What is the cost of the arena and who is paying for it?
The guaranteed maximum cost to build the arena is $238 million. The
project is funded by approximately $349 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
$1,161,456,000 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, junior suites and
club seats; naming rights; advertising and sponsorships; facility rental;
concession sales; facility fees; tax increment financing (“TIF”) Revenue; and a
Louisville Metro guarantee.
If the Arena’s cost is only $238 million, why is it necessary to issue
$349 million in bonds?
In addition to the direct arena costs, the Arena Authority has issued bonds to
capitalize interest during the construction period and the first year of
operation, 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. Beginning with the benchmark year of 2005 until
2010, the arena project is expected to generate an additional $6.8 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 $88 million.
Considering the current economic climate, how are revenues for
sponsorships and advertising for the arena?
On April 19, 2010, Team Services announced that YUM! Brands has become the naming rights
partner of the arena, now known as the KFC YUM! Center. The total revenue from naming rights
and sponsorships is now $42 million.
Who will manage the arena? Will the Louisville Arena Authority dissolve
after the arena opens?
The Arena Authority will continue its financial oversight responsibilities of
the downtown arena through the life of the bonds. The Kentucky State Fair Board
will manage the day-to-day operation of the arena. The Arena Authority will not
dissolve after the facility opens.
When will hiring of arena employees begin? How many people do you expect
to hire?
The arena is scheduled to open in November, 2010. Because the Kentucky State
Fair Board will operate the arena, the application and hiring process will be
handled by the Fair Board. Hiring is expected to begin in the summer of 2010.
The Board will be hiring approximately 35-40 individuals. A general manager of
the arena should be on board in early 2010.
Will the arena be a green building?
The arena has a green initiative and will be as energy efficient as possible,
while adhering to the established construction budget. At the Arena
Authority’s direction, the arena’s architect prepared an analysis of the arena’s
sustainable design features and a design feature matrix (attached), comparing
the Arena with two recently-opened facilities. The Louisville arena
contains more sustainable design features than each of the other facilities.
For example, the Arena will have a light-colored roof. The light-colored roof is
considered green because it has a high albedo (more specific form of
reflectivity) and reduces the heat island effect in downtown Louisville. Both
the analysis and design features matrix can be found on the Arena Authority’s
website, www.arenaauthority.com.
Additionally, in March 2009, the Arena Authority became a partner in the EPA’s
ENERGY STAR® Program
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 have been 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.
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. This goal has consistently been reached. It established a goal of
at least 5% women participation for employees and contractors. The current
percentage is 5%. The Authority also set a goal that 75% of arena project jobs
be reserved for Kentucky and Indiana residents. This goal has been exceeded with
a current percentage of 88%. Furthermore, the Arena Authority set a goal that at
least 60% of arena jobs be reserved for residents of the Standard Metropolitan
Statistical Area. The Authority is close to meeting that goal with a current
statistic of 55% and expects to surpass the 60% goal in the coming months as
more workers are on the site.
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.
Governor Steve Beshear has committed an additional $500,000. 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 regarding the Construction Pipeline Project can be found
at www.lul.org.
Is the arena safe from harm if the Ohio River floods?
Yes. The arena floor has been built above the 100 year historical flood plain.
Will the arena withstand an earthquake?
The Louisville Arena Authority directed its design team to analyze the arena’s
design and its capacity to withstand an earthquake. To determine the response of
the arena during a seismic event, the design team’s structural engineer, Walter
P. Moore, analyzed the arena using a three-dimensional Response Spectrum
Analysis. This analysis exceeds the requirements of the current local, state and
national building codes and more accurately determines the response of a
structure during a seismic event. To account for structural complexity and
various loading scenarios, the structural engineer applied more than 100 seismic
load combinations in its computer models to capture the most critical design
forces.
The arena will be constructed in accordance with the building codes, which
require that it be designed to withstand the “Maximum Considered Earthquake”
without collapse. This level of earthquake is based on scientific research that
predicts the most severe event expected in 2,500 years. The arena will also meet
the requirements of a Building Occupancy Category III – a covered structure
whose primary occupancy is public assembly of more than 300 people. The arena’s
design is assigned an Importance Factor of 1.25, essentially increasing all
design forces by 25 percent. The building also is designed to the requirements
of Seismic Design Category C, which is assigned based on the building’s
occupancy category and the severity of the design earthquake ground motion at
the site. The building code’s intent with these last two requirements is
to improve the seismic performance of the building such that the building better
protects the lives of the occupants during the Maximum Considered Earthquake and
allows for safe occupancy after a severe but more common event.
When will the Arena open?
The arena will open in October, 2010.