LOUISVILLE, Ky. (WDRB) – Louisville City FC has completed the previously announced financing on its proposed Butchertown soccer stadium, the team said in a news release Thursday.
The $50 million deal, which had been expected to close in August, involves seven banks and is led by Cincinnati-based Fifth Third Bank, according to the release.
The privately funded stadium is the centerpiece of a larger $193 million mixed-use development planned near Adams and Cabel streets that also envisions office space, restaurants, retailers and possibly hotels. Messer Construction and Harmon Construction are building the stadium.
“Our new stadium is a real sign of progress both for this club and the community at large,” Brad Estes, president of Louisville City FC, said in the release. “For the first time, we will benefit from all the revenue streams associated with professional soccer, which means sustainability for our business model long into the future.”
The amount the banks will lend is $5 million less than the $55 million deal the team unveiled last summer. Scott Stewart, a Louisville City FC spokesman, said in an email that the lower amount is needed to complete the stadium pictured in recent renderings.
Louisville City owners have agreed to put $10 million of their own money toward the stadium cost.
Also loaning money with Fifth Third are Stock Yards Bank & Trust Company, Commonwealth Bank and Trust, First Financial Bank, Regions Bank, Paducah Bank, and Wesbanco Bank.
Besides the private funding, local and state governments are helping cover some costs of the project. The Louisville Metro Council last year agreed to issue $30 million in bonds for land costs, require developers to guarantee that $130 million in private capital will be spent and reimburse the city $14.5 million through stadium rental and other revenue.
A state incentives board also will let the project's investors get rebates of up to $21.7 million in withholding, sales and property taxes generated over 20 years through a "tax increment financing" district.
Construction already has begun on the site. The stadium must be completed by March 2020 under a requirement from the United Soccer League.
Louisville City won its second straight USL Cup in November.