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The executive director of the Kentucky Horse Park is not optimistic that bonds to fund a proposed resort hotel will be sold by the Tuesday deadline.
Bond brokers say the sale is being delayed by the national economic slowdown. If the sale doesn't occur by Tuesday, state officials say the project must be postponed because there would be too little construction time before the Alltech FEI World Equestrian Games begin in September 2010.
"We do not want to have a hotel under construction while the World Games are going on," the park's executive director, John Nicholson, said earlier this month.
Fortunately, Nicholson told the World Games 2010 Foundation on Thursday, the proposed 265-room Westin hotel, spa and conference center project is "not an essential element" for the games, which the foundation is organizing.
The games will be held for 16 days beginning Sept. 25, 2010. Eight world equestrian championships will be decided.
About 700,000 tickets to individual events are expected to be sold, but the actual number of spectators could be far less. Many spectators will buy tickets to more than one event.
There also will be thousands of volunteer workers, reporters and more than 800 competitors, with about 900 horses.
Most hotels and many rental properties within driving distance of Lexington are expected to be affected.
Nicholson said it is inevitable that a hotel will be built at the 1,200-acre park off Interstate 75 north of Lexington. It is the last piece needed to complete development of the park, now that an indoor arena and outdoor stadium are in the works.
To build the Westin, the Kentucky Economic Development Finance Authority would issue $118 million in tax-exempt bonds that would be retired by the developers.
The project also would be eligible for up to $39 million in tax rebates and a $3 million loan to help with debt payments if developers run short of cash.
If the hotel fails to attract enough business to pay off the bonds, Kentucky taxpayers could be liable for about $42 million of the total.
Terry Johnson, the foundation's vice president for external relations, said the economic downturn has affected games organizers in other ways, primarily in the recruiting of corporate sponsors for the games.
Businesses are delaying commitments because managers are uncertain what the economy will be like in a year or two.
"The good news," Johnson said, is that "we haven't been told 'no' by anybody."
Nevertheless, he told the board on Thursday, more sponsors will be announced very soon.
