LOUISVILLE, Ky. (WDRB) -- One Park, the $554 million mixed-use project planned in Louisville's Irish Hill neighborhood, would not generate a profit but for the assistance of Louisville and statewide taxpayers, Louisville developer Kevin Cogan told a Metro Council committee Tuesday.
"The project does not pencil, period," said Cogan, who added that he's eyed the ambitious development for 34 years since buying the first parcel of land at Lexington Road and Grinstead Drive.
The council's labor and economic development committee seemed receptive to Cogan's plea. They voted 6-2 to advance a subsidy that could bring Cogan's Jefferson Development Group $114 million from Metro government over 30 years.
Cogan is also seeking tax-increment financing from state government, which could add another $218 million in subsidies over the life of the development.
The committee's vote Tuesday puts the $114 million Metro portion of the subsidy deal one step away from approval with a vote of the entire 26-member council.
One Park would be one of the biggest developments in Louisville history — a mix of apartments, offices, stores, restaurants and a hotel in various buildings up to 18 stories tall. It's been described as a gateway from downtown to the suburbs.
Some neighbors have opposed One Park for nearly a decade, arguing it's too big for the area. Professional planners and many elected officials applaud its density.
While Cogan has all the land-use approvals needed to build the project, city officials are now debating whether taxpayers should help finance it.
"Do we want to sit here 10 years from now and look at cities like Cincinnati, Indianapolis — or even at that point, Lexington — and wonder 'Why are things like this being built there, and why aren't they being built here?'" said Metro Council President Markus Winkler, a supporter of the $114 million package, during Tuesday's meeting. "We often say 'no' to things. We are a town of 'coulda, woulda, shoulda.' And I'd like to see us put a stake in the ground, approve this project and move it forward."
If approved, Cogan's group would be able to be reimbursed over 30 years by taxpayers for "public infrastructure" costs associated with One Park, primarily a massive parking garage. These costs would normally be the developer's.
The payments from Louisville Metro and from the state would come from tax revenues attributed to One Park, such as property taxes and employee income taxes.
At Tuesday's meeting, Cogan and officials from Mayor Craig Greenberg's administration defended an agreement for One Park to include less affordable housing than Cogan verbally pledged in 2019.
Cogan said the cost of building apartments in an urban high-rise with concrete and other materials is significantly more than the two-to-three story affordable housing projects more common around town.
"In fairness, we have to address what is affordable for the developer because it's not just a one-sided discussion," Cogan told the council members.
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