Donhoff Kargl Nall Architects rendering
FRANKFORT, Ky. — State officials have given preliminary tax increment financing (TIF) approval to a proposed $1.4 billion multiuse development at Lexington Road and Grinstead Drive east of downtown Louisville that is pitched as one that can bring the city office tenants not satisfied with traditional space, including prospects now outside Kentucky.
The Kentucky Economic Development Finance Authority (KEDFA) gave preliminary approval for Signature Project tax increment financing for the One Park project at its board meeting on Friday, Feb. 29.
TIFs are a way to allow a development to help pay for portions of its project that become public infrastructure, such as roads and utilities, by channeling money determined to be tax revenue growth from the designated project area to pay for that.
The information presented by cabinet personnel at the KEDFA meeting showed the estimated impact of One Park and its infrastructure would be $17.4 billion over the next 30 years.
Approximately $165 million of expected tax revenue would go to pay for public infrastructure costs associated with the project:
- Land preparation
- Sewers/ storm drainage
- Curbs, sidewalks, promenades and pedways
- Roads
- Provision of utilities
- Environmental remediation
- Parking
The One Park development is expected to include 239,536 s.f. of commercial office space, 60,000 s.f. of retail and restaurant space, 200 room hotels, a 49,197-s.f. grocery store, 600-700 apartments and public infrastructure improvements. Construction of the development is expected to begin in 2025 and be completed in 2028.
The TIF applicant entity, Metro Development Authority Inc. estimates the project will support 2,392 direct and indirect permanent jobs, as well as 5,448 direct and indirect jobs from construction activity.
Craig Greenburg, Mayor of Louisville, certifies that the One Park development project is not reasonably expected to be developed without public assistance, including but not limited to tax increment financing, according to information presented at the KEDFA meeting.
The Cabinet for Economic Development staff recommended that special conditions be attached to KEDFA approval:
Total cumulative investment of $553,953,540 excluding financing costs must be achieved to be eligible for the maximum total incentive amount determined at final approval. The actual project completion percentage of the investment will be applied annually over the 30 year period of the TIF to the total incentive amount approved to determine the maximum total incentive available/ earned for the project during the term of the agreement.
Cabinet staff also recommended that eligible approved costs for the project will be limited to the cost and financing of the public parking garage. That amount is not specified.
New reports on Louisville Metro Council meetings over the past several years show an evolving project first proposed in 2016 now described as one that will help tenant employers attract and retain employees who can work, live, shop, eat, recreate and enjoy entertainment all in the same location.
The developer is Jefferson Development Group led by Kevin Cogan. Jefferson Development Group owns and manages commercial, retail and residential properties in Kentucky, Ohio, Illinois, and Florida.
A report in mid-December posted at WDRB.com says Metro Council approved $114 million in TIF benefits over 30 years for a nearly $600 million One Park development.
KEDFA’s approval will enable staff to begin working with the office of state budget director and the office of financial management to create criteria for a consultant to review and discuss the project’s feasibility.
Kristen Roberts is an intern at The Lane Report.
