The Yum! Center bond debacle ... and an interesting perspective on Freedom Hall.

First, the theme.

A Little Bit More On The Arena Debacle … (The 'Ville Voice)

... By now you know that the Yum! Center’s been downgraded by Moody’s. But if you don’t, here’s a refresher from Gregory Hall:

A credit rating firm has again downgraded the KFC Yum! Center’s bonds, putting on hold a potential refinancing for a lower interest rate that could save millions a year, according to Metro Council President Jim King, who is also a Louisville Arena Authority board member.

Citing persistent risks to the arena’s ability to pay off the $349 million worth of bonds, credit rater Moody’s Investors Service downgraded its opinion of the Yum Center bonds to Ba3, pushing them deeper into “junk” status.

Moody’s said existing agreements — namely the arena authority’s deal with the University of Louisville — and scheduled increases in interest and principle payments will be a drag on profitability, even with improvements in the arena’s operations and a reconfiguration of a taxing district around it.

Then, in the comments section, the variation.

J. Bruce Miller

The ‘real shame’ of all is that had our majority Chinese investors not gotten ‘cold feet’ as a result of the NBA ‘lockout’ there was every indication they would have purchased the Hornets FROM the NBA, moved them to Louisivlle and ‘likely’ have remodeled Freedom Hall. This ‘concept’ was specifically discussed with David Stern. Freedom Hall is ‘historic’ — in actuality — the ‘first integrated basketball palace in America’ for the NCAA — where a whole bunch of Final Fours were played in the 60′s with integrated teams. The place could have been a ‘shrine’ like Fenway Park or Wrigley Field. Such a ‘shrine’ would have been of ‘international importance for Louisville – where the international television of NBA games could have immenated to Beijing, and 180 countries. Stern was interested — but it didn’t happen. Just like Jake’s said so many times “We really have a hard time doing the ‘big things’ right around here.”

Yes, but: If you think it’s hard in Louisville, try living in New Albany.

New Albany kiddie athletics: More money than balls.

It's only a matter of time until the News and 'Bune's Chris Morris gratefully defers to his county elder political heroes on this issue, so let's instead look at the story as reported by Grace Schneider of the Courier-Journal.

New Albany mayor, Little League at odds over location of new ballpark complex

New Albany Mayor Jeff Gahan and the leaders of the New Albany Little League are locked in a battle over competing plans to build a new youth baseball and softball complex.

Both the city and New Albany Little League officials have released statements saying they intend to build ballfield complexes — and each is criticizing the other’s plans.

NAC co-editor Jeff Gillenwater's thoughts at Facebook mirror my own.

All the backdoor scheming to move New Albany Little League out of New Albany reflects very poorly on county government, the Little League, the new Floyd County Parks Board, and the Horseshoe Foundation. It represents some of the ugliest politics I've seen in Floyd County, every Little League parent stereotype proven true ... people who use the terms "Little League" and "economic driver" interchangeably should be banned from activities involving children.

But the issues go deeper. In a city noted for its chaotic, poorly plotted and frankly archaic street grid, one that reduces humans choosing not to travel by automobile to a degraded status as second-class citizens, the Redevelopment Commission has indicated that up to $19 million might be bonded for aquatics, soccer and Little League ball fields.

Owing to the comprehensive absence of transportation infrastructure not exclusively dependent on private cars, all of these recreation facilities, if built, will require even more auto-centric infrastructure to use than we have now ... and what we have now needs to be drastically altered.

All this money for sports, and just two years ago, didn't the departing England administration insists that the million bucks or so needed to facilitate downtown street conversions simply couldn't be found?

It becomes increasingly evident that prioritization has been removed from the gene pool of the city's political culture.

What's missing isn't money. It's balls ... and I'm not talking about the kind you fungo, either.

From Insider Louisville: "Louisville joins ‘junk bond’ club as Moody’s downgrades $340 million KFC Yum! Arena debt."

But the Cards made the Final Four ... and Lady Gaga (performed) there. Meanwhile, amid the basketball circuses and plenty of bread at Taco Hell, we're about to get stuck with lifelong tolls to support bridges which are supposed to generate jobs, even as Louisville remains on the wrong side of the manufacturing/higher ed divide at No. 78 on list of 100 best-educated cities, giving you an idea as to what sort of jobs Kerry Stemler intends to create.

Move over Greece: Louisville joins ‘junk bond’ club as Moody’s downgrades $340 million KFC Yum! Arena debt

By STAFF | Published: MAY 31, 2012

Gordon Gekko at Goldman Sachs, placing the KFC Yum! Arena debt.

Louisville and Greece now have something in common: Both have bonds that have been downgraded to “junk” because of a bleak outlook when it comes to our servicing public debt.

Two days ago, without anyone much noticing, Moody’s Investors Service downgraded the underlying rating on the Kentucky Economic Development Finance Authority’s Louisville Arena Project Revenue Bonds to Ba2 from Baa3.

For the non-bond vigilantes, that’s two ratings below Baa, where high-risk junk rating begins and investment grade ends – along with low interest rates.

Not that this was unexpected: Moody’s put KEDFA on notice back in December this was coming unless Louisville officials figure out some way to increase tax revenues in the tax increment financing district around the arena, which was projected to be chock full of retail, hotels and restaurants by now.

Read the whole article