New plan to relocate 750 jobs to heart of downtown Louisville brings hope to local business owners

LOUISVILLE, Ky. (WDRB) -- The U.S. Army Corps of Engineers announced plans to relocate hundreds of employees to the heart of downtown Louisville, a move that could have a lasting impact for small businesses.

The Corps announced Tuesday it is negotiating a lease in the 24-story building at 220 W. Main St. that LG&E plans to vacate when its rental agreement runs out next year. In all, according to the Corps, 750 workers would move into roughly 150,000 square feet on 11 floors in the tower at 3rd and Main streets across from the KFC Yum! Center by late 2025 once construction of the new space is finished.

"This move marks a significant milestone for our district," Col. L. Reyn Mann, the Corps' Louisville district commander, said in a written statement Tuesday. "The new facility will allow us to serve our workforce, our community, and the American public for years to come."

Daniel Passafiume, owner/operator of In Season Harvest Kitchen on West Main Street, said it's the best news they've heard since opening in 2021.

"Humana left across the street from us, and the landscape kind of changed on this block," Passafiume said Wednesday. "We kind of shifted what we've had to focus on."

The Corps has been headquartered at the Romano Mazzoli Federal Building since 1969. Mayor Craig Greenberg said its move to Main Street "will further enhance our city's economic vitality and contribute to the ongoing revitalization of our downtown."

Among other things, the Louisville district oversees seven locks and dams on the Ohio River and manages permitting and other programs related to waterways. It recently issued a cease-and-desist order to New Albany city government for unauthorized work on the Silver Creek Dam.

Commercial real estate firm CBRE, whose Louisville office leases the building at 220 W. Main St., declined to comment on the Corps' plans.

About 24% of the prime "Class A" office space downtown was vacant during the April-June period, according to the most figures from real estate broker JLL. That rate was essentially unchanged from the same period the year before.

Passafiume is a Louisville native with local produce in his blood. His grandfather retired in 2018 from the wholesale produce company the family ran for more than 100 years in Louisville. Today, he sources local ingredients to serve made-from-scratch salads, stir fry and harvest bowls.

But the transient nature of downtown traffic since the onset of the COVID-19 pandemic has made day-to-day business unpredictable.

"People getting back at work, back into the office, is something we've been really hoping for here," Passafiume said. "... just to have that consistency, because, right now, the irregularity between Monday through Friday for business traffic is kind of amiss."

The Corps' search for a new location took months, according to Rebecca Fleischaker, executive director of the Louisville Downtown Partnership. In the LG&E building, they found a modern working environment with state-of-the-art upgrades.

220 W. Main St. in downtown Louisville. Aug. 20, 2024. *(WDRB Photo)*

"The question was which building really suited them the best, and they really spent some good time touring several buildings in and around downtown," she said Wednesday.

For those who work downtown, tourism is a huge part of businesses. But having hundreds of people who move in just down the street is something they are hoping brings in a more steady crowd.

"Having 750 employees in one building walk out at lunch time and be able to get something somewhere is huge for these small businesses," Fleischaker said.

Passafiume said while lunch crowds can often line up out the door, it can be hit or miss. Hopefully, he said, the announcement spurs more movement back into the Central Business District.

"Obviously, this is great news," Passafiume said. "We are really excited about it and very hopeful for what that means for downtown."

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