LOUISVILLE (CelebrityAccess MediaWire) — A worsening credit situation is driving up the final cost of a proposed arena in Louisville by as much as $90 million, forcing the Arena Authority to shelve their ideas, at least for the time being.
The Courier-Journal reported that arena officials have decided to hold off on bond issuances until next year, with the hopes of finding a cheaper interest rate. Arena Authority Chairman Jim Host told the Courier-Journal that the initial cost projections were made last year and that "the market then and the market today are two entirely different markets."
The authority had been looking to raise up to $360 million in bonds for the project and to compound matters, the bond underwriters Ambac Financial Group have been moving very slowly in approving the process. "We have probably lost weeks because of their 'over' due diligence" said Larry Hayes, a representative from the governor's office said. Still, Hayes was confident that despite the delays, the arena was still on track. "I don't think they've expressed any lack of confidence in this deal getting done," he told the Courier-Journal. – CelebrityAccess Staff Writers