Southern Indiana development projects receive $11.5 million in state funding

LOUISVILLE, Ky. (WDRB) -- Two clients of a consulting firm received $11.5 million for two development projects in southern Indiana.

According to our partners at Louisville Business First, Indiana's Regional Economic Acceleration and Development Initiative approved $6.5 million for the Jeffboat redevelopment project and the Padgett District redevelopment project received $5 million.

The Wheatley Group, based in New Albany, is a partner in both projects. The firm is leading the conception, planning and implementation of the economic development initiatives.

The Padgett District project in New Albany is a $90 million mixed-use development. The Jeffboat project is almost a $1 billion mixed-use development. It would transform a former shipyard in Jeffersonville into a residential and commercial area.

Funding from the state for both projects will mainly go toward site work to prepare the property for new construction.

For Jeffboat, the funding awarded through Indiana's READI 2.0 program marks the largest single allocation from the $100 million in grants designated for southern Indiana projects. The redevelopment of the 80-acre site is expected to include housing, shopping, restaurants, and community spaces, reshaping the area’s riverfront.

IMAGES | An aerial view of the former Jeffboat site in Jeffersonville

Thrive Companies, a Columbus, Ohio-based developer, has been selected to lead the project. Paul Wheatley, representing the property owner through the Wheatley Group, said the redevelopment is a chance to breathe new life into the vacant industrial site, which ceased operations in 2018.

"It's going to turn a liability—a vacant industrial site—into a performing asset for both the city and the region at large," Wheatley said.

The redevelopment is expected to take place in four phases, with initial funding focused on critical site preparation, including environmental cleanup. Wheatley said the first phase of development alone represents an estimated $500 million investment.

Construction is expected to begin with site preparation in late 2025, followed by vertical construction in 2026.

With the Padgett District, READI funding will replace an existing storm sewer pipe that services a large portion of downtown New Albany. New commercial and residential components are expected to start before the end of 2025 and plan to be completed in 2027.

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