College Basketball Experience deal avoids loan forgiveness but allows refinancing

Kansas City’s College Basketball Experience facility, which had sought loan relief from the city, still must pay the money back but will probably get more time.

Operators of the downtown hoops attraction had asked the city last year to forgive $600,000 of a $1.17 million taxpayer-provided loan. Instead, the City Council is to vote Thursday on a plan that stretches out the payments and frees up more money for facility improvements.

Previously, payments of about $86,000 were due each year through 2023. The refinancing reduces annual loan payments to $40,000. The principal would be repaid by Dec. 31, 2031, and $314,107 in deferred interest is due by the end of 2038.

That compromise allows the city to get its money back with interest while helping the facility to thrive and thus is a “way to be fair to everybody,” said Scott Wagner, chairman of the council’s Finance Committee, which endorsed the plan Wednesday.

The facility at 1401 Grand Blvd., connected to the downtown Sprint Center, is owned and operated by the National Association of Basketball Coaches Foundation. It receives no city operating subsidy, said foundation board chairman Bill Hall.

It has attracted 850,000 visitors in nearly nine years, with about 100 events per year, and will celebrate its 10th anniversary in October 2017.

The foundation raised $14 million toward the facility’s original construction cost and has continued to contribute to its annual operations and capital improvements.

But a late cost overrun on the Sprint Center lobby was unanticipated, and the foundation was asked to share in that cost, with the city extending the original $1.17 million loan in 2007.

Hall and others said the loan refinancing will free up funds so the facility can continue the annual upgrades to keep its exhibits and interactive attractions relevant and contemporary.

This story was originally published April 13, 2016 at 11:36 AM with the headline "College Basketball Experience deal avoids loan forgiveness but allows refinancing."