© 2024 WUKY
background_fid.jpg
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

League of Cities May Issue CentrePointe Bonds

Funding to construct a parking garage at Lexington’s CentrePointe property may come via the Kentucky League of Cities. 

The Kentucky League of Cities presented an ordinance to the Lexington Urban County Council Tuesday that would let them issue bonds for part of the CentrePointe development downtown.   According to General Counsel Temple Juett, the developers approached the League after the state refused to finance the construction of a parking garage.  He says the League of Cities normally issues bonds for general obligation, and for a specific project like CentrePointe, they would need to create a new nonprofit, known as the Kentucky Bond Development Corporation.

“After some conversation, we decided that forming a new entity to issue these bonds, which operates the same or at least similarly to the existing operation that we have would be the best way to do that," he said. 

The bonds would come from TIF, or Tax Increment Financing.  Under this system, the city uses future gains in tax revenue around the project site to pay for current improvements, such as the CentrePointe parking garage.  Councilman Julian Beard confirmed with League officials that if the project wasn’t a success, there wouldn’t be a significant financial burden on Lexington.

“From the investor’s standpoint, because this is a relatively reliable revenue stream, they’re willing to take some risks, and from the other side of it, should that risk turn out to be a bad idea, it’s the bond holders themselves who will suffer a loss.  Correct.”

At Tuesday’s meeting, the Urban County Council passed a resolution for an interlocal agreement, which would help create the Kentucky Bond Development Corporation.  For KBDC to be formed and other cities to take advantage of its bonds, the agreement requires the cooperation of at least one other city.  League officials indicated that they’re currently considering Midway.  

Chase Cavanaugh first got on the air as a volunteer reader for Central Kentucky Radio Eye, a local news service for the visually impaired. He began reporting for WUKY in February 2012, after receiving his Master’s degree from the University of Kentucky’s Patterson School of Diplomacy and International Commerce.
Related Content