Thursday’s editorial Explosion of the arts incorrectly described how the $160 million Uptown project will be funded. The car rental tax will not fund the arts venues, the city’s General Fund will.

Funds from the increase in the local car rental tax must, by state law, go to CATS for spending on transit-related items. Funds equal to the amount which had previously gone to CATS from the city’s General Fund will henceforth be used to finance $69 million in borrowing for the project. In addition, $1.5 million in annual property tax revenue from Wachovia’s office tower that would have, absent the arts projects, flowed into the city’s General Fund will also be diverted to to fund the projects.

The Observer regrets the error.