Will Yum! Center Help Development in Downtown Louisville?

Years in the planning, Louisville’s new arena, Yum! Center, opened on October 13, 2010 for an exhibition basketball game between the University of Louisville and Northern Kentucky University.

Though the arena is the official home of the U of L Cardinals’ Volleyball and Basketball, it will host of variety of sports events, concerts, ice shows, conventions and other events. More than an entertainment and sports facility, the $238 million center is hoped to be the engine of development for Louisville.

The prime waterfront location in the center in downtown Louisville is bordered by Main Street on the south, Third Street on the west, River Road on the north and Second Street to the east on a site previously owned by Louisville Gas & Electric (LG&E). After much wrangling, this site was selected over less expensive alternatives, or over locations further from downtown where the predicted traffic congestion would be less. Its proximity to the river has made way for water taxi service on the Belle of Jeffersonville between downtown and Southern Indiana, which should offer one group of fans an interesting way to circumvent traffic.

Near the 4th Street Live entertainment district, the arena has already boosted the fortunes of locally – owned business in the area or looking for a new location. Unlike national chains who plan their moves to new locations after years of strategizing, local businesses may have more flexibility to make decisions and move more quickly. As Sam DeShazer, board member of the Louisville Independent Business Association, notes in the Courier-Journal, “The large guys aren’t relocating anywhere. I think the economy - in a sort of ironic way – has turned its attention to independent business.”

Some businesses like the Bluegrass Brewing company developed a space across from the arena into a restaurant and brewpub rather than open a new location outside the city. They anticipate that their $2 million investment will be easily justified by pre- and post-event patrons. White Castle planned for the opening of the arena by expanding and renovating its location at First and Market a couple years back. Impellizzeri’s Pizza made a similar decision when they opened a new location on Main Street; one of their partners called the new location the “local 4th Street Live.” The arena area and the 4th Street areas are expected to cross pollinate with restaurants, events, and patrons so both districts are will be seen as one large entertainment district and provide each other with both people and activities.

Even businesses not tied to entertainment are attracted to the downtown area, as the State of Kentucky is offering tax credits for employers who locate in the city. According to the Downtown Development Corporation, there are eight projects on Main Street near the arena that are under development due to the energizing effect of the arena project.

What is less certain is the extent to which the arena will draw patrons from the outside the region. Concerts like the Eagles, Lady Gaga, Dan Cook, The Judds or Justin Bieber, already scheduled at the facility, are expect opted to lure overnight guests to downtown Louisville. Traditionally, University of Louisville sports events have only attracted only 5% of their patrons from more than 100 miles away.

Yum! Center is expected to make the city more attractive for conventions, businesses, and events and upgrade the image of Louisville as a major American city. The arena will be an attractive feature for companies who want to attract employees to the area. The caliber of entertainment acts already booked for 2011 also show that Louisville is a “player” in the entertainment scene. Five religious conventions, expected to contribute $23 million to the area, have been booked through 2014; attendees at those events not only book hotels, but are notorious eaters and shoppers between convention events. Given the size of the arena and its ability to seat 22,000, other types of conventions are sure to follow.

The center will showcase Louisville in other ways too. As the city strives for recognition as a “green city,” the area contains many sustainable design features, including a light colored roof with an efficient type of reflectivity and has a “heat island effect.” It is a partner in the EPA’s ENERGY STAR® Program. Since it is committed to being green, Yum! Center will enhance Louisville as a leader in finding practical way to incorporate green principles into daily life. What has been learned in building the Yum! Center will undoubtedly find its way into building practices for commercial and residential developments.

The true impact of Yum! Center on downtown Louisville development and on the region will keep statisticians busy for years. But, early predictions are positive. The huge center is mesmerizing in its appearance. The impact is expected to be ever larger.

Fun Fact on the KFC Yum! Center

• Structural steel placed in the arena weighs 5,975,000 pounds - the same weight as 746 average- size Asian elephants.
• The center-hung scoreboard weighs 40,000 pounds - as much as 11 Ford Explorers.
• There are 130 miles of electrical conduit and 322 miles of electrical wiring installed in the Arena - enough to stretch from Louisville to Chicago.
• There are 9,000 light fixtures in the arena with 17,000 lamps.
• The overall square footage of the arena (721,762) equals approximately 13 football fields.
• 60,000 cubic yards of concrete were placed in the arena, equaling 6,000 concrete trucks - represented by 25 miles of concrete trucks parked bumper to bumper.
• The arena contains 58,655 square feet of exterior glass panels - the glass on the east side of the Arena could provide for approximately 60 houses.
• The length of the Arena's catwalk totals ½ mile.
• The Arena’s escalators are 556 linear feet – the same length as a line of 733 basketballs.
• Churchill Downs’ Twin Spires would fit from the court floor to the underside of the roof.
• The Belle of Louisville could be parked inside the Arena Lobby.
• The Louisville Slugger Museum’s outdoor Bat could be laid down in the Arena’s practice court.
• Total stairs in the Arena could service a 30-story building.

Plus….

• There are six restaurants in the facility, which include all the Yum! Brand favorites like Pizza Hut, KFC, and Taco Bell – a perk to the company for paying $13.5 million for a 10 year agreement for naming rights to the arena.
• Still hungry? You can buy a snack or souvenirs from 27 permanent stands, 32 portable locations, two fixed novelty stands, and 234 total points of sale, all operated by Centerplate, the concessionaire for the facility

Come to Louisville and get in on the fun! Contact Mollie Younger of Younger Group Real Estate. We know Louisville!