Evansville gets OK to use food tax for new arena

Jimmy Nesbitt, Evansville Courier & Press staff writer

State legislators have approved a bill that allows Evansville to use food and beverage tax revenue to help fund a new arena.

"This is a big, big step forward," Mayor Jonathan Weinzapfel said Thursday.

The food and beverage tax generates around $3.7 million a year, $3.3 million of which is committed annually through 2017 to retire bonds on The Center. Those bonds are scheduled to expire in 2018.

Revenue generated by the tax above the amount needed to pay those bonds will be available to the city starting July 1.

Once bonds for The Centre are retired, the food and beverage tax's revenue will be available for the arena.

Arena manager John J. Kish said bonds for construction of the arena will be issued late this year. Kish said the exact timing will depend on market conditions.