I guess they haven't given up just yet. Old School Executives woo Grizzlies owner Armstrong says current financing proposal won't work By Chris Poynter and Pat Mcdonogh, The Courier-Journal Vancouver Grizzlies owner Michael Heisley said Kentucky is the center of basketball in the nation. By Pat McDonogh, The Courier-Journal Mayor Dave Armstrong said yesterday that Louisville should build an arena to attract an NBA team -- but that a plan being circulated for a new downtown facility to lure the Vancouver Grizzlies won't work. The proposal, developed by a small group of business and community leaders, puts too much burden on the city, Armstrong said. And he said a 15-member committee he formed to advise him on financing an arena agreed it didn't work. The mayor's announcement came on the day that Grizzlies owner Michael Heisley arrived in Louisville for a two-day visit. Heisley, who dined last night with many local business executives, said all the details of building an arena would not have to be worked out before March 26, the deadline for telling the National Basketball Association where his team will play next season. ''I'd have to feel comfortable that there's going to be a new arena here, and the NBA would have to feel comfortable. If I choose Louisville and the NBA does not see a commitment to a new arena, they would not approve Louisville,'' he said. Heisley said the biggest attraction of Kentucky is that it is the center of basketball in the nation. ''Louisville would be the smallest market in the NBA, but when you consider the fact that there's no other major sports team here, and that it has the highest concentration of basketball fans in the country, it's attractive.'' Heisley arrived after spending part of the day in Memphis, Tenn., which also is courting the Grizzlies. Last night, Heisley had cocktails and dinner at Vincenzo's restaurant with 140 of the area's most prominent and powerful business executives. Today, he meets with Armstrong, Gov. Paul Patton, Jefferson County Judge-Executive Rebecca Jackson and executives of Tricon Global Restaurants, who have pledged millions in financial support to the Grizzlies, should they move to Louisville. IN TODAY'S talks, Heisley said, he will be looking to flesh out an arrangement to play in Freedom Hall until there is a new arena. He also will be looking for corporate sponsors and a commitment to build a new arena, he said. He said he plans to make a decision next week after sitting down with three or four advisers. Asked to handicap Louisville's chances, he said, ''Call me next week. I'll tell you then.'' Armstrong's arena advisory committee -- which includes Fifth Third Bank President Jim Gaunt and retired banker and fund-raiser Malcolm Chancey -- met Tuesday night for the first time. After being briefed, members concluded the financing plan was too risky for the city, Armstrong said. Gaunt said yesterday that everyone at the committee meeting wants to build an arena and attract the Grizzlies. But he said the current plan is unfair to the city and taxpayers. He would not elaborate, saying ''it makes no sense to negotiate deals in the newspaper.'' ''We have to find a deal that's a win for the team, a win for the city and a win for taxpayers,'' he said. For his part, Armstrong said Louisville is ready to play a ''major'' role in building an arena -- but he wouldn't name a dollar amount. ''AS I have said many times before -- and I've been very clear about it -- this is not something the city can or should have to do alone,'' Armstrong said yesterday. ''Gov. Patton already has indicated that he's in favor of a downtown arena, as has the University of Louisville. What we need to do now is find additional partners to make a downtown arena affordable.'' The circulating financing plan that was pitched to Heisley last night was prepared by PNC Bank of Pittsburgh, working with Louisville attorney Bill Skees and others. It would need the approval of the Board of Aldermen. J. Bruce Miller, the Louisville attorney leading efforts to land the Grizzlies, has refused to release the proposal. However, he said last week that the crux of the plan requires creating a special tax district for the arena. Under the plan, parts of which were revealed to The Courier-Journal by Miller last week, the city would issue $180 million to $220 million in bonds to cover construction costs for the arena. The annual debt payment on those bonds would be made through two sources: * Using revenue from income and sales taxes collected in the special tax district to cover 80 percent to 85 percent of the debt. * Using city money to pay the remaining 15 to 20 percent of the expense. The city money could come from several sources, including its annual budget or a tax increase. Skees and Miller said the city would own the arena, but the details of who could receive the revenue the arena generates haven't been revealed. MILLER SPENT time after last night's business supper trying to persuade Armstrong that the plan is viable. ''I don't believe that the mayor has a full understanding of the plan,'' Miller said yesterday at a pro-NBA rally in Louisville organized by a high school student. Miller won't release the plan because he said it contains information that would put the city at a competitive disadvantage with other cities vying for the Grizzlies. Miller briefed Armstrong on the basic plan early last week and gave him a final copy later that week. City officials, who have copies of the arena plan, wouldn't release it yesterday, saying it was draft and therefore exempt from Kentucky's open-records law. As businesspeople and NBA supporters arrived at Vicenzo's last night to fete Heisley, they were greeted outside by about 30 protesters chanting ''No more corporate welfare'' and ''Build your own arena.'' When Miller arrived, the protesters gathered around him and chanted louder, while a few yelled obscenities. Miller, holding a phone to his ear, smiled and entered the restaurant. Protester Malcolm Lilly, 78, of Louisville said he doesn't oppose an NBA team coming to the city, but he doesn't think city money should be used to build an arena. Protester Richard Lewis, also of Louisville, said the team should build an arena itself. ''We're not talking about necessity here,'' he said. ''We're talking about sports.'' Eight of the the city's 12 aldermen were present last night, as were bank presidents, lawyers, investment brokers and real-estate agents. Patton was there, as was his chief of staff, Skipper Martin. Armstrong also was present. Patton said he strongly supports building an arena but he wants to make sure it's financially feasible. Robert Clarkson, owner and president of Robert H. Clarkson Insurance Agency, said last night was an important event for Louisville. If Louisville lands the Grizzlies, ''it's a step to the next level for our city, especially for downtown,'' Clarkson said. He said the goal last night was to send a strong message to Heisley. ''We want to let him know that the business community, the people, are very sincere about this.'' WHEN HEISLEY arrived last night, he quickly worked his way through the invited crowd, shaking hands and introducing himself. Some told him they would rent luxury suites and buy club seats and season tickets. After cocktails, they sat down to a candlelight dinner. Heisley, a Chicago businessman who purchased the Grizzlies last year for $160 million, has been shopping for a city to move his team since February, when he got NBA Commissioner David Stern's permission to move. Heisley said the Grizzlies will lose about $40 million this year, in part because of the weaker Canadian dollar. Besides Louisville, Heisley is considering Anaheim, Calif.; New Orleans and Memphis. Yesterday, New Orleans sent its proposal to Heisley, a package that most likely will include relocation expenses, the value of TV broadcast rights, the probable location of a practice facility and the results of a campaign to sell season tickets, according to The Times-Picayune newspaper. The package also might include a list of eight to 10 area businessmen with the ability and willingness to buy a minority share of the team. Heisley said he wants minority ownership to give local citizens an interest in the team. He noted that in Vancouver, he has been an absent owner, spending much of his time at his home in Chicago. ------------------ I voted YES!
