LOUISVILLE, Ky. (WDRB) -- Jefferson County Public Schools wasn't aware of a proposal to change Metro's longstanding lease agreement with Churchill Downs and eliminate the racetrack's payment to the school district, a JCPS spokeswoman said.
The ordinance introduced at Metro Council on Monday would keep city ownership of the iconic home of the Kentucky Derby for 30 more years — a move that also keeps the Churchill property off the tax rolls.
The horse racing and gambling company needs Metro Council approval to use bond proceeds to finance $920 million in planned upgrades. As part of that process, Churchill and Mayor Craig Greenberg's administration agreed to revise the compact that lets the city lease the land back to the track.
While exempt from property taxes, Churchill agreed to make an annual payment to JCPS in the initial agreement reached in 2002 meant to equal the tax revenue the school system would get if the land were still privately owned.
That's changing in the latest version, with Churchill making the "payment in lieu of taxes, or "PILOT," to Metro government only. JCPS, which has a $1.9 billion annual budget, has received more than $1 million from the Churchill payment each year since 2020.
"We were not aware of this ordinance until media reports came out," JCPS spokesperson Carolyn Callahan said in an emailed statement Tuesday afternoon. "It is of concern to us and our legal team is looking into any legal ramifications."
Speaking at Waterfront Park hours earlier, Greenberg said he didn't know if school district officials knew about the proposed change before the ordinance was filed. But he defended the terms of the new deal and stressed the importance of Churchill's planned investment.
"I think it's a long-term win for the city. And here, I think it's a long-term win for JCPS as well," Greenberg said. "New jobs will be created. Those individuals will be buying homes. They will help increase other property tax values that will go up surrounding Churchill Downs, across this entire city. And so I don't think there's any — I think there are only winners in this agreement."
Mayor Craig Greenberg speaks at Waterfront Park in Louisville, Ky. on April 22, 2025. (WDRB Media photo)
The mayor said he believes the "theory" behind removing the school district payments is that Metro provides services to the track, but there "are no residential units, so there won't be any additional children going to the school system."
The ordinance is set to be assigned to the Metro Council's budget committee. It is sponsored by council members Kevin Kramer, R-11, and Markus Winkler, D-17.
The legislation would allow Churchill to use industrial revenue bonds for a series of renovations planned for the track that include permanent "premium" seating in the infield and a 5-story "entertainment and hospitality complex."
Despite the council's role, the racetrack operator is responsible for paying off the debt.
Since 2005, JCPS has received $9.3 million in payments from Churchill, according to figures obtained in public records requests. That amount jumped significantly starting in 2019 following WDRB News' reporting that showed how tax assessors hadn't updated the track's value in years despite sweeping investments there.
This story may be updated.
Top Stories:
DoorDash driver pistol whipped while delivering food to Louisville man, police say
New Albany woman charged with allegedly sex trafficking a child on a dating app
Louisville's Camp Taylor swimming pool won't reopen this summer due to construction delays
Copyright 2025 WDRB Media. All Rights Reserved.
