Large development under construction in downtown Lexington
LEXINGTON, Ky. (Aug. 14, 2014) — The state will not issue $30 million in state bonds for the CentrePointe development in downtown Lexington.
In a letter to Mayor Jim Gray, Kentucky Cabinet for Economic Development Secretary Larry Hayes said the city was the more appropriate entity to issue the bonds.
The CentrePointe project includes a Republic Bank branch, an 11-story Marriott hotel with an additional seven floors containing 23 condos, a separate Marriott extended stay hotel with 90 apartments atop and first floor retail, and a 700-space underground parking garage.
Hayes said the state is not interested in issuing the bonds for the project’s parking garage because of the possibility that the state would be “assuming costly obligations that it does not generally assume,” the Herald-Leader reported.
CentrePointe developer Dudley Webb has said on multiple occasions that the city nor state would be on the hook for debt payments if the project does not generate enough tax revenue, the newspaper said.
The Lexington-Fayette Urban County Council had been expected to discuss the issue tonight in its meeting and pass a resolution backing the application for bond funding. But after Hayes’ letter, the resolution was removed from the agenda. Webb said he plans to attend tonight’s meeting to discuss it with the council.
Construction of CentrePointe, located at South Limestone, West Vine, West Main and South Upper streets, continues.