4th Street Live
4th Street Live has been a good deal for Louisville taxpayers, even if Metro government never receives a share of the profits from the heavily subsidized downtown entertainment district, Louisville Mayor Greg Fischer said Monday.
In an interview with the Courier-Journal editorial board, Fischer was asked when the city will receive its first dividend check from the Baltimore-based Cordish Co., owner and operator of 4th Street Live.
The question, from a member of the public, was obviously informed by my Oct. 28 story about Cordish?s lack of profit-sharing with the city.
That story said:
Despite eight years in business and more than $20 million in taxpayer subsidies, Fourth Street Live has not turned a profit.
At least, not according to the confidential profit-and-loss statements that the developer of the downtown entertainment district shares annually with Louisville metro government.
That?s not to say Fourth Street Live isn?t making money for its developer, the Baltimore-based Cordish Cos.
?Presumably Cordish considers the project profitable or else they wouldn?t continue to operate it,? said David Morris, assistant director of the Louisville Metro Department for Economic Growth and Innovation.
But under the definition of profit in an 11-year-old arrangement with the metro government, Fourth Street Live has shown no profits. And therefore, Cordish has paid no dividends to the city, according to city documents.
The agreement defines profit in a very favorable way for Cordish, allowing the developer to take cash out of the operation before profitability is calculated, said Uric Dufrene, a corporate finance expert who reviewed the documents for The Courier-Journal.
Fischer said the city has enjoyed a boost in tourism and convention business downtown thanks to 4th Street Live, and that Cordish ?deserve(s) to make some money? from its investment in Louisville:
?People need to remember what the Galleria was like before Cordish invested $85 million there? That is the dividend check, when all these people come and shop and stay in our city.?
To be sure, Cordish?s investment was estimated to be $55 million, according to state tourism tax credit documents. A University of Louisville economic study released in October estimated the development would generate $80 million in state and local taxes over a 30-year period.
Fischer added that Cordish has been good about making sure vacancies at 4th Street are promptly filled with new restaurants and bars. He reiterated that the city?s original deal with the developer was signed by former Mayor David Armstrong and said many cities want to work with Cordish:
?I didn?t do the deal with them but as I have been able to evaluate it?It?s good that Cordish is here.?
Watch the full interview with Fischer at courier-journal.com.
Pin It At Derby City Cents, Courier-Journal business reporter Chris Otts makes sense of what's happening in the Louisville economy - from jobs to housing to development. Otts joined the C-J business desk in August 2009 after three years covering eastern Jefferson County for the paper's Neighborhoods section. He's a native of New Orleans and a 2006 graduate of the University of Alabama.acl earthquake los angeles unemployment 2012 nfl draft grades young justice nfl draft d rose
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.