Arena authority and fair board settle KFC Yum! Center dispute
The Louisville Arena Authority agreed to pay $793,340 to the Kentucky State Fair Board within the next 10 days, paying off early an amount owed to the fair board for operating the Yum! Center during its first two years.
LOUISVILLE, Ky. (WDRB) – The Louisville Arena Authority and the Kentucky State Fair Board have settled a long-running dispute over the KFC Yum! Center.
The arena authority agreed to pay $793,340 to the fair board within the next 10 days, paying off early an amount owed to the fair board for operating the Yum! Center during its first two years.
In reality, the arena board owes $921,909 over nine years but will pay a discount based on the “present value,” according to a settlement agreement signed by arena authority chairman Scott C. Cox and Don Parkinson, the fair board’s interim CEO and secretary of the Kentucky Tourism, Arts and Heritage Cabinet.
The arena authority approved the settlement at a special meeting Friday. The deal also ends another quarrel over millions of dollars the fair board lost when the University of Louisville basketball teams moved from Freedom Hall to the downtown Yum! Center in 2010.
At the time, the arena authority promised to pay the fair board for the lost business from U of L basketball moving away – a so-called “negative impact reimbursement” -- of $750,000 per year. In 2015, then-Attorney General Jack Conway’s office issued an opinion that concluded the amount wasn’t owed.
But as recently as late 2016, the fair board contended it was entitled to reimbursements of $11.1 million.
The arena authority in December refinanced the construction debt on the Yum! Center, a move that will reduce the amount that is owed in the coming years.
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