Demolition of Urban Government Center buildings to start weeks after pending land deal

LOUISVILLE, Ky. (WDRB) – Demolition of the old Kentucky Baptist Hospital and nearby buildings on the Urban Government Center site could start by the end of the year.

Jeff O’Brien, executive director of the city’s economic development cabinet, told Metro Council members Tuesday that the work is expected to begin six weeks after they approve legislation declaring about 7 acres of city-owned land surplus in order to sell it for $1 to Metro’s chosen developer, Paristown Preservation Trust.

O’Brien spoke shortly before the council’s labor and economic development committee voted on the surplus resolution, sending it to the full council for its next meeting November 7.

In September, the council approved a tax subsidy for the development group. The tax increment financing (TIF) measure will let the Paristown trust get back $20 million in local property taxes if it meets certain development goals.

“They are currently working on financing for their project, and will be starting construction soon,” O’Brien said Tuesday.

The resolution is the final piece of city legislation needed for the estimated $249 million development, which calls for a hotel, apartments, condos and office space. The Paristown group, led by developer Steve Smith, is the third city-chosen entity to decide how to build on land once home to government offices in Paristown Pointe not far from downtown.

The city plans to own the land during the demolition of most buildings, including the old hospital that dates to 1924.

Developers would need to secure demolition and construction permits for the site. They plan to raze the hospital building and other structures, using state tax credits to help pay for the environmental and demolition work.

A former steam plant and smokestack would remain.

But a potential lawsuit still looms. In July, opponents of the Paristown trust’s plan warned that they will consider legal action if the work proceeds. They argue that Metro government has allowed changes that violate the initial request for proposals.

O’Brien previously said the plans are “substantially similar” to what the developer originally submitted and also what was approved when the land was rezoned in 2023.

The latest attempt to redevelop the roughly 10-acre site has been dogged by concerns over the fairness of a neighborhood agreement and whether a TIF subsidy is needed, among other issues.

In June, development team member Brian Forrest smacked project critic Steve Wiser's phone out of his hand while he was questioning Forrest in a hallway outside council chambers.

There was no discussion about the land deal Tuesday in the council committee and passed with no opposition.

Besides the city-owned land, the Louisville Metro Housing Authority owns about 2.5 acres on Barret Avenue that would be incorporated into the project. The Paristown group has a purchase agreement for that site for $1.7 million.

The group also owns adjacent land on Vine Street where single-family homes are envisioned.