Final state approval for Louisville’s One Park development expected in coming weeks

LOUISVILLE, Ky. (WDRB) -- The One Park project appeared to be moving swiftly ahead.

In December 2023, the Louisville Metro Council voted to help subsidize the ambitious high-rise complex through a multimillion-dollar rebate of local taxes. Just more than two months later, Kentucky's incentives board gave the first of two approvals needed to provide state support for the estimated $554 million development. 

A state official suggested at the time a final vote could come by the end of 2024.

That hasn't happened. And, in fact, there has been little visible progress on the site at Grinstead Drive and Lexington Road since then. 

But the development team said One Park is moving forward, telling WDRB News and Louisville Business First the last step in securing tax increment financing, or TIF, is "a couple weeks away."

"That's what's really important is to get those final numbers, because you have to know what you're financing — and TIFs are part of that financing package," said Bill Bardenwerper, attorney for Jefferson Development Group. Kevin Cogan, the company's CEO, was contacted but not available for an interview for this story. 

The TIF plan would funnel a portion of state tax revenues to the developers to help pay for a public parking garage at the 7-acre One Park, which calls for commercial office space, retail/restaurant space, a grocery store, 200-room hotel and 600-700 units of multifamily residential housing.

"We're waiting for the final numbers from the state," Bardenwerper said. "Once we have those, then everything is in place."

One Park remains "under review of the consultant report," Brandon Mattingly, spokesperson for the Kentucky Cabinet for Economic Development, said in an email last week. Under state law, such incentive deals must have an independent consultant analyze projections before they're granted. 

Mattingly was unable to provide additional details or a timeline of any next steps. 

The Kentucky Economic Development Finance Authority, which governs economic development incentives and granted the preliminary approval in February 2024, meets next week. It doesn't provide detailed agendas in advance. The cabinet denied an open records request for studies connected to the project because the TIF approval hasn't been finalized. 

A separate request for "progress reports" required under a Louisville Metro government ordinance produced no records because the TIF district authorized by Metro Council hasn't started.

Louisville Mayor Craig Greenberg told reporters this week that his administration has been working with the developers and will "know more" once the deliberations in Frankfort are complete. 

"I will continue to support it and I'm proud that this has an affordable housing component as part of it, if it's able to get built — which I hope it is," he said.

What will happen to businesses around One Park development

Meanwhile, businesses that lease properties at the One Park site continue to wait. At German Imports on Grinstead Drive, shop manager and head technician James Lindgren said not much has changed since plans for redeveloping the area were announced nearly a decade ago.

"We're just here and we're going to stay here in this location as long as we can," he said. "And we just really want all our customers to know that we're going to stay here and stay open as long as possible."

The shop, which is marking its 30th anniversary this year, hopes to reopen nearby when it is forced to move, Lindgren said.

"That's what we would like to do, but we'll just really assess that at that time," he said.

The One Park area is owned by companies connected to Jefferson Development Group, the Louisville-based firm that's been working on plans for the area since at least 2014. The development team didn't respond to a question asking if it has done an adequate job keeping the tenants informed of the progress.

Goodwill Kentucky's donation center at the corner of Grinstead and Lexington also has an active lease, spokesperson Kayla Wessling-Radus said.

"We plan to continue serving donors there until development plans require otherwise," she added.

At neighboring Le Moo, owner Kevin Grangier said a number of developers have reached out about the restaurant's possible relocation. But he also believes it eventually could be incorporated into One Park. 

Plans for the broader site were already underway when Grangier opened Le Moo in 2015, "so there's no surprises and we're thankful for whatever time we have remaining (at the current location)," he said.

Across Lexington Road on the northern edge of the One Park site, Estes Public Relations intends to leave its offices for new space in St. Matthews this fall, founder and president Jamie Estes said. But she emphasized the decision had nothing to do with the future development. 

"We were just looking for a more conducive floor plan for our work flow," Estes said.

Also on the site are businesses that include Fante's Coffee, the No Direction Home store, a Nu Yale dry cleaners location, a Pure Barre studio, Game restaurant and other commercial offices. Most of the tenants contacted by WDRB and Business First didn't return messages seeking comment or declined to speak on the record. 

The One Park proposal includes two developments — One Park North and One Park South — within the triangle of Lexington Road, Grinstead Drive, Etley Avenue and a section off Lexington to the north.  

One Park South was approved in 2019 after almost two years of debate and 11 public meetings about its height and density. Introduced for more than 4 acres in 2021,One Park North got its rezoning approval in 2023.

"It's one of the largest private development projects ever seen in the community — maybe the largest — so anything like this is harder (to get done) than your usual subdivision or big box distribution facility. And infill is always a lot harder than green field development," Bardenwerper said. 

Work to prepare the area for development is ongoing, according to project representatives and local government officials. 

Bardenwerper said "final designs" on traffic configuration and road work are underway, as are efforts to remove utility poles. During project planning, the developers agreed to work with Louisville Gas & Electric to remove 11 poles on Lexington Road and bury the lines underground. 

LG&E spokesperson Liz Pratt said the utility provided "preliminary layout and associated costs to the developer this spring."  

Jefferson Development also agreed to make improvements to a 2-acre park at the corner of Lexington and Grinstead at the trailhead to the Beargrass Creek trail, including adding a new sign at the trail's entrance, clearing undergrowth and dead trees and adding new lamps and park benches. 

Those improvements have occurred, said Christie Battista Choate, spokesperson for Louisville Parks and Recreation.

How big is the One Park development in Louisville?

One Park would have roughly 240,000 square feet of commercial office space as part of a broader mix of uses. 

Of the new construction office and mixed-use projects currently tracked by Business First's Project Watch map, fewer than a handful are inside the Watterson Expressway.

Louisville's office market has had its share of ups and downs, especially after the work-from-home changes during the COVID-19 pandemic. But real estate executive David Hardy said one thing remains constant: New space always leases well. 

Hardy, who has been brokering office properties in Louisville for nearly 40 years, said he believes new tenants will be drawn to One Park.

"Anytime you build a new office product, it's appealing to the tenant, because you're going to have modern amenities and a modern feel that you can't replicate very easily in older inventory," said Hardy, managing director for CBRE's Kentucky operations since 2005. "It's kind of like throwing up a new hotel in a market — everybody goes to the new one."

The lack of new inventory could be a contributing factor to downtown's struggling office market. CBRE's November Downtown Louisville SkyView report showed there is more than 1.5 million square feet of rentable office space available in downtown towers, equating to a 35% direct vacancy rate.

Hardy said a new office construction like One Park could exacerbate those numbers further when tenants in existing office buildings leave for the new development. 

But new construction is necessary for Louisville to compete with other cities for jobs and talent, Hardy said, and the market has weathered previous projects. 

"If Louisville is going to attract new companies with new workforces and a Fortune 500-type mentality they want to see newer product that meets their vision, needs and accommodates their staff," Hardy said. "I think having something that's interesting and appealing to those types of groups is a plus for Louisville and really a necessity."

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