As noted briefly last month, Louisville is in the process of refinancing its debt on the KFC Yum! Center, which has been hemorrhaging city money since it was built for the University of Louisville in 2010. Now the numbers are in on how much the city will save in annual debt payments, and it turns out it’ll be paying … wait, more?
Even after refinancing a burdensome debt load, the Louisville Arena Authority would pay more per year to retire new bonds for the KFC Yum! Center than under its current plan, according to a WDRB News analysis of documents made public last week.
Arena officials would be on the hook for annual payments averaging $29.3 million through 2045, compared with $25.8 million under current obligations that end in 2042.
What’s actually going on here is simple: In exchange for lots of big payments soon, Louisville has pushed back a bunch of its payments to 2030 and later, by which time surely that whole “wait for tax receipts from new development around the arena to soar” plan will be working out great! Or, at the very least, the people currently running Louisville will be long since retired. It’s a win-win!
(Tl;dr version: Tax increment financing is for suckers.)