Rupp Arena Rednerings of designs by NBBJ and EOP Architects
Lexington, KY – University of Kentucky President Dr. Eli Capilouto has stated in a letter (see the letter in its entirety here) that he and the university could not support Mayor Jim Gray’s plans to rehab Rupp Arena and reconstruct Lexington’s convention center.
“Our challenge – before and throughout the legislative session – was the amorphous nature of so much of the rest of the financing plan, which seemed to shift numerous times and often without any perceptible due diligence. Uncertainties existed throughout the legislative session about the full scope of the project as well as the firmness and magnitude of the revenues from the hotel tax, naming rights, and other sources. It is very difficult to partner in such an enormous project when the financing story changes so often,” Capilouto wrote in a letter dated Tuesday to Lexington Center Corporation Chairman Brent Rice.
Through Rice, the Lexington Center, which oversees Rupp Arena, the convention center as well as the Lexington Opera House, had promised a “bulletproof” financing plan last summer, but that never materialized.
Not seeing a plan was a main bone of contention for lawmakers in Frankfort during this year’s legislative session in which an initial $65 million request and a subsequent $80 million request for state funding failed to make its way into the two-year state budget.
Capilouto’s letter hinted at one of the reasons no plan was ever publically released.
“As we communicated to you and others throughout this process, the University did not want a public discussion of our financial commitment until we had assurance that the other pieces of the financing plan were well-defined, thoroughly analyzed, and reflected a firm commitment from the other participants, including the Urban County Council and the Kentucky General Assembly,” Capilouto’s letter stated.
The university’s portion of the financing plan, which Capilouto details in the letter as $10.7 million per year over 30 years, was not made public until a presentation to the state Senate Republican Caucus was released in the last 30 hours of the legislative session.
Business Lexington
When asked about how UK’s desire to keep their 30-year commitment of $321 million in rent for Rupp private until which point the Lexington Center had secured funding from the state and council, Mayor Jim Gray’s spokeswoman Susan Straub referred to a statement released earlier by the mayor’s office.
“Game-changing projects create passion and emotion, especially when things don't go as hoped, so I think it's important to step back, take a deep breath, and sit down with all our partners and work things out,” the statement reads.
“UK is so important to Lexington; and Lexington is so important to UK. A vibrant city engages everyone – students, fans, families, faculty and staff – and a vibrant city creates jobs.
“So I hope we can continue to work on an agreement that benefits UK, Lexington, and our entire state,” the statement concludes.
At the conclusion of his letter, Capilouto hints at the possibility of taking UK basketball out of the downtown: “Because of the lack of enthusiasm for the current plan among various constituencies (including the Kentucky General Assembly), the lack of firmness of the $350 million financing plan, and the approaching expiration date of our lease (following the 2017-18 season), it is important to explore all potential options. Our preference is to continue to play men’s basketball games in downtown Lexington, under the right lease conditions.”
In a response late Thursday afternoon the Lexington Center Board's Rupp District Project Committee responded to Capilouto (read the full letter here).
"From the beginning, the goal has been to create a vibrant downtown that benefits the City, as well as the University. Our commitment from the outset has been to bring in the top talent in order to maximize the economic benefit for all parties for decades to come. This goal will continue," the letter states.
It goes on in its response to Capilouto in stating: "Although it is apparent our opinions differ on some of the issues raised in your letter, nevertheless, we must proceed in our fiduciary roles to ensure the citizens and taxpayers continue to enjoy benefit from our facilities.
"We will continue to work with various parties associated with LCC, including the Kentucky High School Athletic Association, VisitLex, The Triangle Foundation, and the University to provide the best experience for all. Should the University have any desire to discuss and explore alternatives further, please feel free to contact us."