Louisville Mayor Craig Greenberg on Thursday said he wants to tweak a Metro Council proposal to redirect Churchill Downs’ annual payments away from Jefferson County Public Schools and into city coffers.
He did not say how he wants to change the proposal.
Metro Council leaders filed the ordinance earlier this week to extend a controversial agreement that allows Churchill Downs to avoid paying property taxes. In the proposal, council members want to end a longstanding deal between Churchill Downs and JCPS that allows the school district to recoup the funds it would otherwise receive via property tax payments.
Since 2020, Churchill Downs has paid JCPS more than $1 million each year, according to records obtained by LPM News.
Earlier this week, Greenberg said the city and Churchill Downs have spent months negotiating a new agreement. The proposal, he said, would be a way for Louisville Metro to recover the costs that come with providing public services to the horse racetrack.
But on Thursday, in an email from his spokesperson Kevin Trager, Greenberg indicated he changed his mind.
“Due to potential federal funding cuts to JCPS and other issues, I am committed to working with Metro Council, JCPS and Churchill Downs on an improved ordinance that is beneficial for everyone involved,” he said.
Trager declined to provide more details on Greenberg’s plan.
Churchill Downs doesn’t pay property taxes on its historic racetrack because Louisville Metro owns the land. The company transferred the deed to the city in 2002. Churchill Downs, however, still agreed to pay a portion of its revenue to JCPS under a payment in lieu of taxes, or PILOT, agreement.
In a statement, JCPS spokesperson Carolyn Callahan said the district was not aware of the proposed resolution until local media outlets reported it earlier this week.
“We have a current PILOT agreement with Churchill Downs that remains in force and have not been part of any discussions related to changing its terms,” she said.
City officials said the proposed resolution is about fairness.
“I think the theory there is that Louisville Metro provides a lot of services to Churchill Downs and the neighborhood,” Greenberg said earlier this week. “There are no residential units [on the property], so there won’t be any additional children going to the school system.”
Metro Council member Markus Winkler, a District 17 Democrat and co-sponsor of the ordinance, said on Thursday that he didn’t know Greenberg would shift his stance on the proposed ordinance.
Winkler said he still plans to push the original proposal at the budget committee meeting on May 8.
“I'm open to what makes sense, and finding a solution that satisfies JCPS, satisfies the city,” he said. “I think that there is an argument to be made that aligning the taxes to where the costs are recognized—in this case, [Louisville] Metro—I think that makes logical sense. I also understand, nobody wants to lose revenue. And so I understand JCPS's position as well. And I think we can work together and find a solution that is amicable for everybody.”
The city operated on a $815 million for 2024-25 budget. Greenberg is expected to present the 2025-26 budget to Metro Council on Thursday.
The news of Greenberg seeking an “improved” ordinance comes after Churchill Downs announced a pause on some of their multimillion dollar renovation projects Wednesday evening, due to uncertainty with construction costs related to tariffs and trade disputes under the Trump administration.
The company was expected to spend nearly $30 million dollars to develop its Skye, Conservatory and Infield areas.
“The decision to pause the Skye Terrace and infield projects was a difficult one for us to make because we do not want to disappoint our fans,” said CEO Bill Carstanjen. “However, we have a responsibility to be disciplined given the recent changes in the economic environment.”
The PILOT program was expected to increase with Churchill Downs’ renovations.
