LOUISVILLE, Ky. (WDRB) – A controversial public subsidy for the Urban Government Center redevelopment won approval from a Metro Council committee Tuesday, moving the plan closer to reality after years of delay.
The tax increment financing (TIF) ordinance cleared the council’s Labor, Economic Development and Appropriations Committee on a 6-0 vote following a public hearing at which most speakers raised concerns about the project and the city-led process meant to build neighborhood consensus.
The ordinance could get a full council vote as early as September 19. It requires developer Upper Paristown Preservation Trust to complete a minimum number of housing units, commercial space, cottage homes, hotel rooms and garage parking spaces before getting public funds.
“The property has been dilapidated over the years,” Council member Brent Ackerson (D-26) said in explaining his vote. “it's like crawling through molasses for 100 yards, and delay is the problem.”
Metro government first sought a developer for the former government offices near Barret Avenue and E. Breckinridge Street in 2016 and is on its third chosen group to transform the land into a mixed-use project on nearly 10 acres in Paristown Pointe.
The TIF subsidy would give the developer a portion of new property tax revenue generated at the site over 20 years. The city would withhold the property tax payments until the group certifies that four of the six proposed elements on the site have been built to minimum levels.
Those levels include at least 220 housing units; 165,000 square feet of office and commercial space; 16 “cottage homes” on Vine Street; 80 hotel rooms; and 400 parking spaces in a proposed garage. The developer’s plans call for as many as 450 apartments, condominiums or apartments for seniors, with at least 51 units set aside for renters making up to 80% of the Louisville area’s median income.
Rather than sell the property, the administration of former Mayor Greg Fischer chose a city-led process that would culminate in the site being declared surplus property and sold for $1.
Jeff O’Brien, executive director of the city’s economic development cabinet, told Metro Council members that the property hasn’t been appraised since 2017.
Council member Robin Engel (R-22) said it’s important to have an appraisal before the full council vote.
“It has to do with our ability to execute TIFs and to execute quality projects in this community,” he said. “Yes, this is a roll of the dice.”
Public hearing
Before the committee vote, most speakers at the public hearing on the TIF legislation urged the council not to approve it.
One argument made by skeptics of the public subsidy is that Upper Paristown Preservation Trust’s plan has changed so much from the city’s initial request that it no longer meets the initial goals. In July, a group that includes architect and preservationist Steve Wiser threatened a lawsuit if the project advances.
Wiser argued that the current plan – including a “massive six-level parking garage” -- isn’t designed to be compatible with the surrounding neighborhoods and has no guarantee that its tenants will simply be moving from other parts of Louisville.
“If you vote to approve this project, you're voting for less tax revenue, less affordable housing, less green space and lesser quality community,” Wiser said.
City officials estimate the site now generates $3,042 in property tax revenue but will create more than $25 million.
Another opponent, Nicholas Mellen, claimed the current plan “bears no resemblance” to the developer’s initial proposal.
“We're looking at a development for a boutique hotel that we need like a hole in the head, a parking garage which is obsolete, and office space in a city with 20% office vacancies,” he said. “This is a reflection of a process that has failed.”
Mellen also raised concerns about a key part of the development: A “community benefits agreement” meant to help lessen the impact on the surrounding neighborhoods from the proposed $249 million project.
Members of five neighborhood associations were charged with negotiating that deal, but they were removed from the panel when Mayor Craig Greenberg’s administration presented a new version in June.
Other neighbors took issue with what they said was short notice about the public hearing.
“These plan changes, I think, should be communicated with my neighbors and the people that live around me, because I just accidentally found out about this meeting yesterday afternoon,” said Cindy Pablo, a longtime Paristown Pointe resident.
Another resident, Joann Robinson, said she heard about the hearing less than an hour before it started but gave her support for the current plan.
“We have had years of waiting and waiting and waiting,” she said. “And finally, it's boiled down to the third developer that can get this done. We need this done, and we need it done now.”
This story may be updated.
Copyright 2024 WDRB Media. All rights reserved.
