Louisville banks help Arena Authority sell bonds for construction - WDRB 41 Louisville News

Louisville banks help Arena Authority sell bonds for construction

Louisville banks have stepped up to help the Arena Authority sell the bonds it needs to build the downtown facility.  Construction money should be in the bank by the middle of July.

Arena Authority Chairman Jim Host calls it the worst financial market since the Great Depression.  But despite months of obstacles, it appears the authority will finally be able to raise money to build the arena next month.

Monday morning, authority members got a look at some final drawings of the arena, inside and out, then approved a plan to sell construction bonds next month.

$280 million of the $360 million dollar bond issue will be variable rate bonds -- that means the cost of paying back the bonds can rise as interest rates go up.  But a coalition of local and state banks will back the sale of those bonds, and they will be insured.

So Jim Host says the bond package is a good risk for bond buyers and the authority which will have to meet bond payments.

There was also excitement Monday over the final plan for the Main Street Plaza outside the arena.  More green space has been added and the centerpiece will be a computerized fountain with a wall around it to invite people to sit down and hang out, arena events or not.

While the bond sale was approved Monday, Metro Council President Jim King convinced the Arena Authority to have its CPA firm take one last look at the financial package to make sure it is not going to put the city or state in financial peril.

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