LOUISVILLE, (KY) --- A bipartisan group of Kentucky state senators plan to file a bill they say is designed to spark much-needed economic growth in west Louisville.
The bill would create a special taxing district, known as tax-increment financing or “TIF,” in an area bounded by Ninth Street on the east, Algonquin Parkway on the south, and the Ohio River on the north and west.
Eighty percent of the increment, or the increase in tax revenues above the baseline, within the district would be earmarked for economic development projects over the 30-year duration of the TIF.
Sen. Morgan McGarvey, one of the bill’s co-sponsors, said the revenue could add up to as much as $1 billion for investment in west Louisville projects.
Metro Government, the state, and private donors would contribute $30 million in seed money to get the TIF off the ground.
Sen. Gerald Neal called the bill "potentially tremendous."
"I don't want to quote numbers. I'm just going to say, we start off with 30 million, it wouldn't surprise me where this thing goes," he said.
Also, property taxes payments would essentially be frozen at their 2021 levels for the duration of the TIF for current home owners in west Louisville and their heirs.
"Our ultimate goal is more owner-occupied homes because we know this builds generational wealth," said Neal.
Housing projects developed within the district must have an affordable housing component.
The bill also creates a special board to oversee the distribution of TIF funds. By statute, at least one half of the 17 member board must be African American, and would include five representatives from west Louisville neighborhoods, as well as organizations such as the NAACP and the Urban League.
Jackie Floyd, who calls herself a "proud resident" of the Russell neighborhood said she is concerned that the board will not include representatives from all nine west Louisville neighborhoods.
"This is our community, and we have a right to say about what goes on in our community." said Floyd.
Supporters admit it will take time to build trust.
"As things become concrete, and people begin to see concrete results, I think you will get that buy-in." said Neal.
The bill is being co-sponsored by two Republicans, Senate Pres. Robert Stivers and Majority Caucus Leader Julie Raque Adams; and two Democrats, Minority Floor Leader Morgan McGarvey and 33rd District Senator Gerald Neal.
“This is not Frankfort saying, ‘we’re coming in on a white horse,’” said McGarvey. “This is a first response.”
Stivers said something must be done to “change the trajectory of the economics of west Louisville.”
He said the population of the taxing district would make it the fourth largest city in Kentucky, and he believes he can convince rural lawmakers of the importance of a strong Louisville to the state’s economy.
"The state cannot be strong unless Louisville and Jefferson County are strong," Stivers said.
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