- 401 Frederica Street, B-203
- Owensboro, Kentucky 42301
- (270) 685-2652 | FAX (270) 685-6074
Big Dreams, Big Decisions :
A citizen guide to prioritizing proposed community projects
Downtown Arena
A downtown arena could be an anchor to complement the Executive Inn and a new
or expanded convention center. The need for a more competitive facility gained momentum
after Owensboro lost this year’s Kentucky-Indiana high school all-star game
to Bowling Green and its renovated Diddle Arena. Some feel such a facility is key
to the Executive Inn’s long-term viability, and the tourist-convention business
it generates and accommodates.
Capacity:
6,000 seats (sports events)
8,200 seats (concerts)
Cost Estimate: $29 - $32 million
Potential Uses:
- KWC basketball
- Trade shows exhibitions
- Arena Football
- Professional Hockey
- Indoor Soccer
- Special events: concerts, circuses, wrestling, boxing, rodeos, basketball tournaments and all-star games, assemblies, etc.
Financing Options:
- State Government
- Grant
- Bonds
- Tax Increment Financing (TIF)
- Hotel-Motel Tax
- Private Sources (i.e., naming rights)
- Local Government
Est. Debt Service: $1.25 million annually (assumes 50% financed through TIF, 50% @ 4.6% over 20-25 years)*
Operating subsidy: $200-300,000 per year
Economic Impact: construction jobs, construction purchasing, permanent operating jobs, annual payroll/payroll taxes, out-of-town visitors, annual local purchasing
Taxes generated: sales tax, payroll tax, hotel taxes, other taxes
*current rates and terms for municipal borrowing
Advantages:
- Expands our capacity to attract and accommodate larger conventions, concerts, assemblies, exhibitions, tournaments, and all-star games
- Better facility to attract larger crowds for KWC basketball
- A boost to the Executive Inn and other hotels
- May enable us to attract another sport (e.g., arena football, minor league hockey)
- Increased revenue from hotel-motel tax
- Creates jobs (construction, operating) and spin-off business
- Boost to downtown, new restaurants, shops, increased restoration, etc.
- Enhances community image
Disadvantages:
- Construction/financing cost
- Limited market to support such a facility
- Will likely require an operating subsidy
- KWC may prefer a campus facility
- OHS and OCHS will likely play basketball in their own facilities