LOUISVILLE, Ky. (WDRB) -- Developer Kevin Cogan's firm would receive up to $114 million in subsidies from Louisville Metro taxpayers over 30 years to help build its ambitious One Park project at Lexington Road and Grinstead Drive, according to an ordinance soon to be considered by the Metro Council.
One Park — a mix of apartments, offices, stores, restaurants and a hotel in various buildings up to 18 stories tall — has been in the works since 2016, including an expansion of the project approved by city planners in 2023.
The $554 million project "cannot be facilitated with private investment alone," according to an ordinance introduced this week by Metro Council President Markus Winkler.
WDRB News first reported a year ago that Cogan's Jefferson Development Group was seeking a "tax-increment financing" arrangement from the city and the state to subsidize One Park. Last year, the developer circulated a presentation indicating it was aiming for $96.3 million from Metro government and $147.9 million from Kentucky over the 30-year period.
In the formal documents released this week, Metro government's portion of the deal would be worth a bit more to Jefferson Development — up to $114.2 million — while the state portion wasn't specified.
Winkler, a Democrat representing eastern Jefferson County, was unavailable for an interview Tuesday, though he confirmed he supports the deal. The terms were negotiated by Mayor Craig Greenberg's economic development staff, he said.
Greenberg's spokesman released a statement for this story that doesn't specifically address whether Greenberg supports the proposed subsidy for the development.
"The proposed mixed-use One Park project is an excellent example of the positive economic development happening all across Louisville. Mayor Greenberg supports this proposal and looks forward to seeing it become a reality," spokesman Kevin Trager said.
Jefferson Development Group didn't respond to a request for comment.
Winkler said last year that One Park is the sort of ambitious project Louisville should support.
Markus Winkler, president of the Metro Council, spoke at a UAW Local 862 rally in Sept. 21, 2023. By Chris Otts, WDRB News
"What type of a city do we want to be? Do we want to be a city that attracts new people, new business, new opportunity? Or, do we want to be a city that stays the same or shrinks, right? And you either grow or you die," Winkler at the time.
But public support for a development with a rooftop pool and a grocery store adjacent to the Cherokee Triangle — one of Louisville's wealthiest neighborhoods — may meet opposition.
"I think we should be supporting projects in locations that would not otherwise be invested in, and this is not one of those locations," said Metro Council member Andrew Owen, whose district includes the One Park site.
Owen, who applauds One Park's dense design, said Tuesday that he wants to see the details of the agreement before deciding how he will vote.
According to the ordinance Winkler introduced, 7% of the 600-700 apartments that are planned as part of One Park would have to be rented at prices deemed "affordable" to households below Louisville's median income.
But Jefferson Development Group could buy down the affordable housing requirement to only 5% by cutting a check to Louisville Metro Affordable Housing Trust Fund. The payment to the trust fund would work out to about $1,500 for every One Park residential unit built.
The $114 million that would be pledged to Jefferson Development Group represents future taxes Louisville Metro would receive from the One Park real estate and from the paychecks of people working within the One Park development — for example, the employees of a company whose office would be located there.
Whether Jefferson Development Group receives the full $114 million depends on the taxes actually generated at One Park over the 30 years.
Another provision of the deal ensures that Cogan's group wouldn't benefit by recruiting employers from Louisville's Central Business District, also known as downtown, to One Park. Any employer relocating from the CBD to One Park wouldn't count toward the potential subsidy, according to the terms.
While the origin of that provision wasn't immediately clear, downtown Louisville has been struggling with a glut of unleased office space and Metro government is offering other incentives to employers who lease space downtown.
