Louisville's Cordish Bailout
I don't know whether the Cordish Company that runs 4th Street Live in Louisville is in trouble, but it seems Mayor Abramson is proposing a Paulson Bailout-type deal to them. In much the same way Congress provided funding without instruction to Secretary Paulson, Mayor Jerry is askig for a few-strings-attached, $31 million dollar giveaway to the company. John David Dyche provides the details:
The city will cover $2.5 million of Cordish's design, engineering and marketing costs. It will also lend, and likely forgive, $1.8 million to a Cordish affiliate to renovate the Starks Building's first floor for restaurant use. Metro government will sell the Galleria parking garage to Cordish for $2.7 million and a return promise of $500,000 in improvements.
Finally, the city is giving Cordish $2 million to "attract tenants" to the "very successful" Fourth Street Live. As part of this complex transaction, the city gives up more than $25 million Cordish evidently owes on that deal.
In addition, the city is buying land at a premium above its assessed value, then leasing it to Cordish for $1 per year.
The Courier-Journal describes efforts by Republicans and some Democrats on the city council to get guarantees about returned investment in the city.
"Deals" like this provide new appreciation for projects that risk their own dime.
