Citing the deep recession gripping the country and “the most challenging lending market ever,” the developers of the planned Museum Plaza in downtown Louisville have canceled the project.
Plans for the project, which were announced in 2006, called for a 61-story, 1.2 million-s.f. skyscraper to be built next to the Muhammad Ali Center that would include two museums, a 300-room hotel, office space, luxury condos, residential lofts, restaurants, a grocery, farmers market and dry cleaners.
In a statement issued by the development team – made up of Laura Lee Brown and Steve Wilson, a husband-and-wife team who also own 21c Museum Hotels; real estate developer Steve Poe and attorney Craig Greenberg – the group said that despite pursuing numerous financing options it was ultimately determined that the $465 million project could not be built given the current economy.
The team has also withdrawn its application to the U.S. Department of Housing and Urban Development for a $100 million loan to help fund the project.
According to the statement, the team invested $15 million to prepare the Museum Plaza site by rerouting underground transmission duct banks and removing a 10-story electrical transmission tower. The group said that despite the cancellation of the Museum Plaza project, it will continue with its plans to restore Seventh Street in downtown Louisville so that it can be reopened.