Arena: A Stim of Our Own

Evansville would use an existing tax increment district to finance a $127 million downtown arena under a plan pitched by Mayor Jonathon Weinzapfel in his state-of-the-city address last week.

Weinzapfel said construction of a new tax-exempt bond-financed arena would be the city’s own stimulus package, in light of Evansville’s weak economy and relatively high unemployment rate. By locating the arena downtown in an already-existing tax increment financing district, the city would not have to raise taxes to pay for the project, he said.

The project would create 600 new jobs, with an additional 500 jobs coming from local businesses opening nearby, city officials estimated .

Tentative plans call for an 11,000-seat facility. In addition to TIF funds, the project could be financed by tapping existing food and beverage taxes and casino revenue, according to officials. Evansville   would need to get approval from Indiana to use state food and beverage taxes for the project.

Weinzapfel estimated those revenue streams would be sufficient to repay up to $127 million of tax-exempt bonds plus interest.

“There really couldn’t be a better time to build a new arena,” the mayor said. “It will create community pride, improve our quality of life, and attract more prestigious and visible events to Evansville. An arena will be our own stimulus package. It will put hundreds of people to work and support more economic development downtown. And we will not raise property taxes to build it.”

He also said that the city is looking for firms interested in building a hotel near the arena, and already has one developer who is “seriously interested.”

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER