BRADENTON, Fla. — Kentucky Gov. Steve Beshear ceremonially signed a bill into law that helps finance $180 million in improvements at the Kentucky International Convention Center in downtown Louisville.
House Bill 401 allows an existing transient room tax to secure bonds issued for the project. It is projected to provide $2 million annually toward the renovation and expansion of the convention center, or $41 million total over the life of the bonds.
The rest of the funding will come from a 1% increase in the hotel bed tax and bonds to be sold by the Louisville Convention and Visitors Bureau.
"This legislation is a key component to the success of this project," Beshear said while signing the bill at the convention center on May 1. "This investment will bring $53 million into our economy annually and create more jobs in our tourism and hospitality industry sector."
Karen Williams, president of the CVB, said the Convention Center is a driver for the lucrative convention business. It draws nearly a million people each year.
"The improvements to our product will position Louisville well in a very competitive hospitality industry and encourage further growth," she said.
The expansion within the center's existing footprint will increase contiguous exhibit space by more than a third, to 230,000 square feet from 146,000 square feet, and includes renovations.
On April 25, Beshear vetoed bill that required Lexington to repay $2.5 million used to plan an overhaul of Rupp Arena by April 1, 2015.
Beshear said the deadline was unnecessary and could cause future bonds for the arena project to lose tax-exempt status.
"The setting of a specific deadline date for the repayment is premature because the timing of the repayment is contingent on further actions that still need to take place to fund the project," he wrote in his veto.
The proposed legislation would have increased Lexington's hotel tax to provide the city with $65 million in bonds toward a $310 million renovation of Rupp Arena, home of the University of Kentucky Wildcats.
A deal to finance the renovation died in the General Assembly though Beshear said he urged funding of the project as a matter of fairness since similar projects received bond approvals such as the Louisville Convention Center. Senate Republicans cited concerns over the Rupp financial plan and voted against, according to published reports.
The plan of finance was not complete during the legislative session. The Rupp Arena Arts & Entertainment District is considering tax increment financing and other funds to pay for the rest of the project.
