In a reversal, Louisville's mayor backs Churchill Downs payment that aids JCPS

LOUISVILLE, Ky. (WDRB) -- Mayor Craig Greenberg said Thursday he wants Jefferson County Public Schools to benefit from the city's ownership of Churchill Downs' land and will work to revise the deal.

The mayor's comments come days after an ordinance filed at Metro Council proposed changes to a longstanding agreement that keeps the racetrack property off the tax rolls -- but lets the school district get money it would receive if those taxes were paid.

The changes shifted those "payments in lieu of taxes" from JCPS to Metro government. Greenberg defended the move Tuesday by saying the money is better served for the city, which provides services at the track while no schoolchildren live there.

JCPS has said it was caught off guard by the new compact and on Wednesday said its 2002 deal "remains in force." The legal agreement between Churchill and JCPS, which WDRB News obtained in a public records request, says it remains in effect as long as the racetrack property stays tax exempt.

On Thursday, Greenberg said he will work to amend the ordinance.

"Due to potential federal funding cuts to JCPS and other issues, I am committed to working with Metro Council, JCPS and Churchill Downs on an improved ordinance that is beneficial for everyone involved," he said in a statement.

JCPS has not immediately responded to a request for comment.

The school system has received $9.3 million in payments from Churchill since 2005, but that amount jumped significantly starting in 2019 following WDRB reporting that showed how tax assessors hadn't updated the track's value in years despite sweeping investments there.

The payments to JCPS, which has a $1.9 billion annual budget, are set to continue until 2032. The new ordinance filed at Metro Council proposes extending city ownership of the land until 2055.

The measure is part of Churchill's funding request for $920 million in construction projects. The industrial revenue bonds need city approval, although the racetrack operator and gambling company would be responsible for repaying the debt.

Churchill Downs Inc. announced Wednesday that it is pausing those projects amid financial uncertainty caused by President Donald J. Trump's tariff and trade policies.

This story will be updated.