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Classic Center authority touts near‑$90M annual impact and flags bond repayment timing
Summary
Classic Center Authority presented FY27 budget highlights May 21, reporting the Akensport Arena has helped grow annual economic impact to roughly $89 million and urging clarity on bond interest and a potential parcel sale to finish project obligations.
Paul Kramer, executive of the Classic Center Authority, told the commission May 21 that the authority’s facilities — including the theater, convention center and the new Akensport Arena — are generating sharply increased economic activity and private reinvestment.
Kramer said a pre‑opening study predicted the arena would lift annual economic impact from about $60 million to $90 million; the authority now reports roughly $89 million in annual impact, with the arena in its second year of operation. He said ticket revenue rose from roughly $2 million pre‑arena to about $11.8 million in the current budget year, and that premium and food‑and‑beverage revenue lines have grown significantly. Kramer also cited $60.5 million in capital reinvestment the authority has managed into the asset.
Commissioners questioned Kramer about the intergovernmental agreement that governs hotel/motel tax distributions. Kramer described a long‑standing IGA that he said directs 54.29% of the configured hotel tax share to the Classic Center while bond payments are outstanding, with a separate, state‑required share going to the convention and visitors bureau.
Kramer acknowledged the project opened later than planned; bond payments, which had been capitalized for the early years, began earlier when construction finished two and a half years late. He said the authority has paid $9.1 million toward bond payments to date and expects to reach about $15.6 million by the end of the budget year. Kramer said the authority needs interest earnings tied to bond accounts to meet an outstanding $10.9 million obligation and that a settlement with the builder remains to be finalized.
As one option to shore up remaining obligations and fund parking and infrastructure in the developing entertainment district, Kramer said the authority has discussed selling a parcel of property. He also said the authority engaged Accenture for a 90‑day pre‑development study and expects a master‑plan recommendation and the first land leases by December 2028.
The commission requested Kramer circulate the digital slide deck and supporting materials. Kramer said the presentation materials are available in the commissioners’ digital folder and can be redistributed.
