HIGHLAND HEIGHTS — The slowing economy and a tight state budget is dimming prospects that state money will fund a $43 million arena at Northern Kentucky University.

        But even though Gov. Paul Patton is preaching financial restraint in the face of massive budget cuts, the Northern Kentucky lawmakers pushing for the project remain optimistic that at least some money will be allocated in the 2002 General Assembly session.

Officials look over a map that shows the proposed location of an arena at Northern Kentucky University. From left: Joe Wind, Ken Paul and Jim Callahan. (Enquirer file photo) | ZOOM |

        “I'm still giving it all the hope in the world, but the odds of this happening have shifted because of the economy,” said House Majority Caucus Chairman Jim Callahan, D-Wilder, a member of the House budget committee.

        “There's still a shot, but it's a long shot,” he said.

        Mr. Callahan and Rep. Jon Draud, R-Crestview Hills, have taken the lead in lobbying for money to build the 6,500-seat, $42.9 million arena on NKU's Highland Heights campus. The facility would host not just university sports but also concerts, large gatherings and other events for the entire Northern Kentucky community.

        Their efforts in Frankfort have helped land support from Mr. Patton, Senate President David Williams, R-Burkesville, House Speaker Jody Richards, D-Bowling Green, and House budget committee Chairman Rep. Harry Moberly, D-Richmond.

        The lawmakers are also working with two area business leaders — banker John Finnan and homebuilder Bill Erpenbeck — in trying to sell naming rights to the arena to a corporation. Estimates have those rights fetching up to $4 million.

        But the economy, already slowing down before the Sept. 11 terrorist attacks, and Erlanger-based Comair's strike of earlier this year, may make the naming rights a difficult sell right now.

        And Mr. Callahan and Mr. Draud both know that even though key lawmakers back plans for an arena, if the money isn't there the support may not be either.

        “I don't think the issue is completely dead right now, but it's not going to be easy,” said Mr. Draud. “We've worked hard on the politics of this, trying to get a bipartisan approach. But looking at the economy and all that has gone on, it's hard to stay optimistic.”

        Mr. Patton, in Burlington Thursday attending a Boone County Democratic Party event, said state budget cuts of $500 million will make money for any projects scarce.

        That is far cry from the 2000 legislative session, when millions in surplus was spent on projects all over the state.

        “I'm a strong believer in investing in infrastructure,” Mr. Patton said in an interview. “There's no doubt we are going to have to cut back on the amount of investments that we've been making over the last three budgets.

        “I have not given up (on the arena) but it's going to be a monumental challenge,” he said.

        Mr. Patton also hinted at the parochial politics of Frankfort. In a tight budget year, it may be difficult to land legislative approval and dollars for a project that essentially benefits just one part of the state. If Northern Kentucky gets money, lawmakers from other areas of the state will likely seek cash for their own projects.

        “This is one of those things where you can't just invest in one part of the state,” Mr. Patton said.

        Mr. Callahan and Mr. Draud said they are encouraged by the one bright aspect of the economy - falling interest rates.

        Since it's likely that the money for the arena would be borrowed through a state bond issue, the time to go into debt is now because money is basically cheap.

        Mr. Draud figures that to borrow $40 million the state would have to put up $4 million in cash or less to get the bond issue rolling.

        That is still a lot of money, Mr. Draud concedes.

        “But with interest rates they way they are, borrowing money is attractive,” he said. “That may be the way we can get this done.”
       

Police discipline inconsistent
Same punishments, very different cases
Issue 5 campaign moves to forefront
Against Issue 5
For Issue 5
Officers' trial hinges on moments
Fuller wins backing of two groups
Hockey team open to all
Hosts for conversations growing
Job juggles freedom, security
Name's same but doctor's no terrorist
These classes happen at home
Time to prevent bullying short
Tobias could have avoided conviction, prosecutor says
Tristate A.M. Report
Wright State course could benefit NSA
Some Good News
Anthrax scare
As auctions fade, burley future unclear
Burnt trees still a hazard
Hopes of new NKU arena fading
Land now for recreation
Official: Ky. sheriff focus of inquiry
Service agency plans expansion