LEXINGTON, Ky. (WTVQ) – The financial impact of the pandemic is claiming more victims as the Lexington Center Corporation announces full-time workers will be laid-off this summer.
The Lexington Herald-Leader reports 53 employees will be laid-off effective July 30, 2020. More than 100 workers were furloughed earlier this spring.
The furloughs and layoffs are the result of no new money coming in since events have been canceled at Rupp Arena, the Convention Center and Opera House due to the coronavirus.
The report says the Lexington Center Corporation board agreed to try to get a $2.75 million loan to cover operating expenses and stay afloat.
The report says the Lexington Center Corporation is asking the city for help to restructure debt payments owed on its $275 million expansion. Officials say the expansion is currently on track and could be completed by late 2021.
The Lexington Center Corporation board also voted to restructure its expansion loans so the group could borrow more money to make debt payments for three years, according to the report. The refinancing would have to be approved by the Urban County Council, which could be presented the proposal as early as next week, according to the report.
The newspaper report says the $33 million in new borrowing would largely go to paying off previous loans for the next three years. The city would be responsible for $1.6 million in additional interest payments as part of the refinancing, if the Lexington Center Corporation couldn’t make those payments.
The Lexington Center is a subsidiary of the Lexington-Fayette Urban County Government. The city owns the building and leases it back to the Lexington Center. The Lexington Center does not receive any direct money from the city’s general fund, according to the report.
The Lexington Center expansion is scheduled to include a new addition, a ballroom, more exhibit hall space, meeting rooms, a new lobby and a new two-story building along Main Street, according to the report.