Renderings of designs by NBBJ and EOP Architects
Lexington, KY – A two-year $20.3 billion state budget is on Gov. Steve Beshear’s desk awaiting his signature after late night closed door meetings between House and Senate leaders came to a consensus over the weekend to reject the proposal to fund the proposed renovation of Rupp Arena with up to $65 million.
In its place the budget offers Lexington $1.5 million in the upcoming fiscal year if it is matched by Lexington’s Urban County Council for “expenses including architect and engineering fees, preconstruction planning, development and other appropriate costs associated with the project. This permits all parties involved to finalize a viable financing plan.”
The compromise budget was approved by overwhelming margins in both the House (89-11) and Senate (37-1) on Monday. The budget proposed by the governor and one passed initially by the House both included $65 million to finance the project. The Senate’s version included no funds for Rupp.
Mayor Jim Gray has indicated he will use the remaining time the Kentucky General Assembly has to meet before it is constitutionally required to adjourn on April 15 to secure more funds.
"We just got the information on the debt service yesterday afternoon so we're plugging it into the Rupp budget. The session isn't over ’til April 15 and we're going to work every day between now and then to get the legislation that allows us to fund the project, but I can say it's going to take more than $1.5 million to keep us on schedule for a $310 million project," a statement from Gray said.
The legislature has two more days it is scheduled to meet before April 15. Those days are typically used for little more than to override vetoes issued by the governor. A third day that was called off as a result from a snow day can also be scheduled.
When asked if an inability to secure more funding would lead to a delay in the project or the death of the project, Gray’s spokeswoman Susan Straub declined to elaborate beyond the statement.
The legislation on awaiting Beshear’s signature goes on to state: “This permits all parties involved to finalize a viable financing plan. It is the intent of the General Assembly to advance this project when all financing components of the project are identified, secured, and in the public domain.”
In July when Gray introduced the Rupp project’s architects and construction management company, Lexington Center Corporation Board Chairman Brent Rice said a “bulletproof” financing plan would be released in 30 to 45 days. As that time passed indications were that a plan could be expected once final plans for the building were available.
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After a press conference unveiling the new designs, which included the relocation and expansion of the city’s convention facilities, Gray told a financing plan wouldn’t come out until planners knew how much money the legislature was willing to offer up.
Beshear has 10 days to sign the budget, allow it to become law without his signature after 10 days, veto it as a whole or issue line item vetoes on parts of the bill.