Tagged: kfc yum center

Standard & Poor's on Friday revised the outlook for the bonds used to build the KFC Yum! Center from "stable" to "negative" -- citing several areas of uncertainty.

In announcing its decision, S&P cites the Louisville Arena Authority's reliance on tax increment financing,  concerns about efforts to stabilize operating costs and questions about the arena's ability to bring new revenue under its new operator, AEG. The rating on the bond remains BBB-.

The tax increment financing has the potential to be volitile, S&P said.

The Kentucky State Fair Board has approved its operating budget for fiscal 2013 that includes a projected deficit of more than $5.4 million.

Business First reports that the budget was approved during Thursday' monthly fair board meeting.

The budget forecasts a net income of more than 476-thousand dollars but also projects nearly $3.7 million in capital expenses and $2.3 million in construction expenses.

The Louisville Arena Authority wants new management of the KFC Yum Center.

The authority voted today to look into dissolving its management agreement with the state fair board and inking a new deal with a private firm.

“When you're trying to manage the Yum Center, the convention center and Freedom Hall, I think it's just hard to focus on controlling expenses at the arena because it's not their first priority," says Metro Council President and authority board member Jim King.

Moody's credit rating agency has downgraded the bonds used to finance the KFC Yum Center, citing high operating costs and poor performance of businesses around the arena.

Part of the plan to pay off the bonds relies on tax increment financing. A TIF district was created in downtown Louisville so any development spurred by the facility would help pay the debt. The arena was supposed to give downtown development a boost, but Moody's says the TIF district may not be enough to support the arena.