By Kyeland Jackson —
U of L’s Athletic Association agreed to help the university take on $91.15 million in bonds to expand the Papa John’s Cardinal Stadium.
Chief Financial Officer Harlan Sands first presented proposal to U of L’s Board of Trustees last week. The proposal will pay the $55 million stadium expansion and settle outstanding mortgage revenue bonds owed to the city since 2008. The bonds, essentially interest-rate loans from a bank, will bundle financial promises from the university, ULF and the University of Louisville Athletics Association.
“From a financial standpoint, we thought it made sense to roll these (university, ULF and ULAA financial obligations) together,” Sands said during the board of trustees meeting. Sands said the term of the bonds will be 20 years.
Athletics brings big money to U of L. Last year athletic revenue totaled almost $95 million. The football program contributes almost $34 million of that.
Sands’s resolution will retire a $36.2 million debt owed to the city, and save an estimated $2.2 million in refunded bonds and an annual $207,000 from debt service.
A bid will go out for banks to issue the bond Dec. 6, potentially fixing bond issues by Dec. 27.