Taxpayers would be freed from financing new basketball and baseball facilities for the University of Kentucky as well as major renovations to Commonwealth Stadium under a unique concept now under study by IMG College, a division of IMG Worldwide and its affiliate, International Stadia Group (ISG.)
The feasibility study, expected to be completed in six months, was endorsed by UK and authorized by the board of the Lexington Center Corporation (LCC).
Steve Moore, president of North and South America for ISG, explained that IMG officials have offered to employ a unique private financing model that "first looks at marketing and branding components of facilities and searches for ways to maximize revenues," providing return on investments. The concept has produced Britain's Wembley Stadium and is currently being used to develop stadiums in Brazil and India.
Moore said this is the first time IMG and ISG have explored this private financing model in the United States.
Rupp Arena in downtown Lexington has hosted Kentucky Wildcat basketball games, concerts and other events for 32 years. Late last year, the LCC hired a consultant to evaluate Tax Increment Financing (TIF) laws and analyze how TIF revenues could be used to support the design and construction of a new downtown arena. Officials envisioned a new arena located on land across High Street that is now a parking lot, leaving the current arena space for conversion into a performing arts center and additional convention and meeting areas.
The IMG proposal would free the cash-strapped Lexington Fayette Urban County Government from bearing the cost of constructing a new arena and enable it to concentrate financial resources on the proposed conversion of Rupp. And UK, where budget cuts have been widespread, would gain a new baseball facility to replace the outgrown Cliff Hagan Stadium, as well as significant upgrades, including new suites, club seats and other improvements to the home of UK football, Commonwealth Stadium.
Kentucky Athletics Director Mitch Barnhart said ISG and its chosen architectural partner, HKS, current author of both the Indianapolis Colts and Dallas Cowboys new NFL stadiums, will work with the city, LCC and UK on the design of the facilities.
If the combined projects move forward, IMG/ISG will manage the marketing and other rights for the facilities but Lexington Center and the University of Kentucky are expected to retain operational management. "ISG would manage the design process and develop the business plan," explained Tom Stultz, senior vice president and managing director of IMG College, UK's multimedia rights partner. "We would have input on the local marketing rights and we would combine all of our expertise and energies into figuring out how to make the numbers work."
Once the feasibility study is completed, explained ISG's Steve Moore, "We will make specific recommendations to the city, Lexington Center and the university about how to best use our model to fund and construct these new and expanded facilities."
Stultz said when he first heard about the work of ISG in Europe, he knew Kentucky schools would be excited to hear about it. "I live here in Lexington. We're based here, and I knew the university had some needs. We talked to Mitch Barnhart and Rob Mullens (UK's deputy athletic director) about it immediately and then to (UK President) Dr. Todd, then (LCC president and CEO) Bill Owen and then (Central Bank President and LCC Board Chairman) Luther Deaton and Mayor Newberry. We've walked it through all the channels, and the response has been enthusiastic all along the way. In some ways, it seems too good to be true and time will determine that. But if we all look at it as what's good for all of us and none of us gets real greedy, I think we can make this work."