LOUISVILLE, Ky. (WDRB) -- A Chicago-based developer is asking for a public tax subsidy to help cover the cost of transforming an area home to the old Joe Ley Antiques building into a hotel, restaurant and event space.

Metro government would rebate $5.3 million in local property taxes over two decades for the estimated $84 million project in the 600 block of East Market Street, according to an ordinance introduced at Metro Council this week.

If approved, the tax increment financing (TIF) district would return a portion of new taxes generated at the site to the development group to offset its costs, with the rest going to city coffers. The project will result in $6.6 million in local property taxes over that period, according to estimates.   

Documents filed with the TIF ordinance shed new light on the proposal in the Phoenix Hill neighborhood for two parcels owned by a company connected to the Aparium Hotel Group of Chicago.

Besides the overall cost, the development plan now calls for a 189-room hotel, restaurant and event space, while preserving the 134-year-old Joe Ley structure and adding a new building next to it. A banner in front of the property reads, “Hotel Anomalie.”

Aparium partner Michael Kitchen said in an email that the expected opening date is mid-2026, but that depends on the timing of the TIF approvals. 

He said the hotel can't pursue a state property tax TIF subsidy because it's within the footprint of the KFC Yum! Center TIF district. 

Renderings and planning documents show a new seven-story building next to and wrapping around the back of the Joe Ley building. Also on the nearly 1-acre property would be an “event lawn,” outdoor terraces and a pool.

The Aparium-linked company bought the property in early 2023 for $7.1 million.

The TIF ordinance will be sent to the Metro Council’s labor, economic development and appropriations committee. It would need approval there and from the full council to take effect.

Like other projects in recent years seeking public funds, a “community benefits” agreement is part of the overall development.  

The pact between the developer and the Phoenix Hill Neighborhood Association includes a job fair that targets local residents for construction, along with “periodic” job fairs once construction ends, and an annual donation of at least $1,500 to the neighborhood association.

This story may be updated.

Related Stories:

Copyright 2024 WDRB Media. All Rights Reserved.