BY EARNEST WINSTON
The Cincinnati Enquirer
NEWPORT -- The riverfront aquarium received a huge boost Monday with the city's preliminary approval of a deal to help finance the $40 million project.
Newport City Commission agreed to issue $20 million in industrial revenue bonds to help pay for acquisition of property and the construction and equipping of the aquarium.
Final approval of the ordinance is expected today at a 5 p.m. special meeting in the first floor multipurpose room at the city building.
Aquarium Holdings of Northern Kentucky LLC expects to close the deal with the city next week.
"I think that means that things are really moving. It's great," Mayor Tom Guidugli said. "It's really happening."
By agreeing to issue the bonds, the city will not incur any expense, and Newport's credit will not be affected, City Manager Jim Parsons said. The city is acting as a conduit for the sale of the bonds, making it easier for the developers of the for-profit attraction to get a more favorable interest rate on the project.
The agreement calls for the city to lease the aquarium to Aquarium Holdings of Northern Kentucky LLC, which will pay back the bonds over 20 years with revenues from the project.
Aquarium Holdings of Northern Kentucky LLC is a joint venture of five Greater Cincinnati businessmen and Oceanic Adventures International Corp. in Toronto.
"The issuance of the industrial bonds does not place any liability on the city," Commissioner Jan Knepshield said. "They now have everything in place; the banks have made the commitment to issue the bonds and sell the bonds."
Newport has approved similar bond issues for a number of projects, including the expansion of Trauth Dairy and the conversion of a former girls school into the Hannaford Apartments.
The aquarium, expected to support nearly 1,300 jobs once it opens, and about 1,500 jobs during construction, is expected to draw 1.2 million visitors a year. That would make the aquarium Kentucky's fifth-largest tourist attraction when it opens May 1, 1999, according to state Tourism Development Cabinet.
Groundbreaking for the 100,000-square-foot, two-story facility occurred in November.
The aquarium is being built at a site north of Third Street between the L&N and Taylor-Southgate bridges. It will serve as the anchor for an adjacent entertainment district that could include everything from a multiscreen movie theater and live animal wilderness display to an interactive video arcade.
The aquarium will showcase exotic saltwater fish, and include freshwater exhibits.
In other matters, the city:
Met in executive session to discuss the water works and police departments. No action was taken.
Unveiled its new call-in program, which enables residents to call during commission meetings and ask questions or comment. The number is 292-3666. "It gets us closer to the people," Mr. Parsons said.
