Plan set to end RiverPark debt

By Steve Vied, Messenger-Inquirer
Published: Tuesday, March 8, 2011 12:04 AM CST

A plan to address the RiverPark Center's $4.6 million in outstanding debt is the subject of a press conference set for 10 a.m. today in the center's lobby, sources have indicated.

The RiverPark board of directors, the city of Owensboro and Daviess Fiscal Court will hold the press conference to make an "important announcement," according to a press release issued Monday by the RiverPark Center. The release said David Renshaw, chairman of the RiverPark Center board, Mayor Ron Payne and Daviess County Judge-Executive Al Mattingly will speak.

Sources in positions to know confirmed that the subject of the press conference will be the RiverPark Center's debt and a method of eliminating it will be announced.

RiverPark Center officials said Monday they were asked by the city and county not to comment before today's press conference. But a RiverPark official confirmed that a new million dollar match fundraising initiative the center is launching is related to today's announcement. Information about the pledge campaign was included on the center's Web page Monday afternoon. It stated that more information about the campaign would be coming soon from the center's board of directors, and a pledge form was included, with a note that said the first 1,000 people to donate $1,000 a year would receive special recognition. Later Monday afternoon, all the information about the pledge campaign was removed from the Web page.

It was unclear Monday how the center's debt will be addressed, but one source indicated that a hefty cash surplus held by Daviess Fiscal Court in its hotel room tax account could play a role in the solution. According to a source, the RiverPark Center will raise $1 million in donations, with that amount matched by the county. The remaining money needed to retire the debt would be contributed by the city.

How the city would come up with the more than $2 million needed to pay off the rest of the debt was not disclosed. Attempts to speak to Payne and Mattingly about the debt were unsuccessful Monday.

Then-Judge-Executive Reid Haire announced in early December that the fund, which had reached $920,000 by then, had been taking in more money than was being spent for the past eight years and had accumulated the surplus. He proposed dividing the surplus equally between retiring more of the RiverPark Center's debt and retiring the county's debt for the planned downtown convention center at a faster rate. The outgoing Fiscal Court decided to leave the money for the new court and let it make the decision.

Mattingly said in late January that the county was not in a hurry to spend the money. At the time, Mattingly and Payne were said to be having discussions about the RiverPark Center's debt and ways to eliminate it.

Fiscal Court passed a 2 percent tax on bills for motel rooms in 2002 to help retire the RiverPark Center's debt and to fund a climate control system at the Owensboro Museum of Fine Art.

Haire said that the 2 percent tax has brought in more money than the county projected in each of the past eight years -- even with the loss of the Executive Inn Rivermont in June 2008.

In December, former Daviess County Commissioner Bruce Kunze suggested that the new court issue another $1.4 million in bonds to be retired by the annual $100,000 surplus the hotel tax is generating, to pay off some the RiverPark debt.

In early October, the RiverPark Center repaid the city of Owensboro $434,146.88 for making its annual debt service payment for its mortgage earlier in the year. The performing arts center was able to do so because it received a large bequest from a still unnamed donor.

In September, the RiverPark Center was unable to make its debt payment and the city stepped in to cover it.

The performing arts center is owned by the city. The city makes the debt service payment to the bank, then the RiverPark Center is responsible for paying the city back.

At the time, Payne said he planned on recommending to the City Commission that the repaid money be set aside for a maintenance fund for the RiverPark Center. But that has not happened.

"We're going to continue to work and do everything we can to shore up the finances of the RiverPark Center. It is an anchor downtown. It is critical to the success of our downtown," Payne said at the time.

The RiverPark Center has an interest payment due each March. It was able to make the approximately $114,000 payment in 2010. Officials anticipate being able to make the interest payment this year as well, Renshaw previously said.

Messenger-Inquirer reporter Beth Wilberding contributed to this report.
Steve Vied, 691-7297, This e-mail address is being protected from spambots. You need JavaScript enabled to view it