In development terms, the $200 million—from investors, bonds and borrowing—that is going toward NUCLEUS, can only buy so much, so the University of Louisville Foundation went to Frankfort to appeal for a long-term, commonwealth-backed investment.

"Tax increment financing, or TIF, is a financing method where the state and city are willing to share a portion of their taxes with the university," Explains Vickie Yates Brown, president and CEO of NUCLEUS. In this case, the Commonwealth of Kentucky and Louisville would share income taxes left over from the arena initiative.

The NUCLEUS TIF, which is known as a "signature TIF," is more difficult to qualify under, but promises more increment to those that satisfy the stringent requirements, including arriving at a specific figure. "You establish base-year figures, then quantify what you'll build, jobs you'll create, then negotiate with the state," Brown says.

The resulting $350 million request may be approved, but by no means is the cash in NUCLEUS' hands, says Brown. "Before NUCLEUS can access the tax increment, the various entities included in the TIF have to invest $200 million in new public infrastructure projects such as buildings, sidewalks and landscaping." Eventually, NUCLEUS will receive fifty cents out of every dollar of payroll taxes paid within the development area, and eighty cents of new income taxes paid within the footprint. "The local government believes in this as a way to create new jobs, promote economic development and attract companies to our state," Brown says.

In Frankfort, Brown and U of L president James Ramsey learned that TIFs had passed to help build Museum Plaza and other projects in and around Louisville. "It became clear to folks involved that there is an opportunity to use the TIF legislation as a catalyst to make this happen," she says.

Brown feels that given the enthusiasm for the NUCLEUS-led project across Kentucky and the innovation it promises to bring to Louisville, the campus will be complete in a relatively short time span. "The TIF is for thirty years, but we hope to complete it in fifteen to twenty," she says. "The TIF should leverage us to provide $1.3 billion in new funding for the support of $2.3 billion in public infrastructure to support research over the next twenty years."