The neighborhood is located across from a massive warehouse and directly beneath a busy airport flight path.
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The empty building has become an attractive playground for thieves and vandals since JCPS sold the building to the city about a year ago.
Many cities have much stricter requirements for affordable units in projects that receive tax incentives.
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LDG Development wants to build 281 apartment units in three buildings on nearly nine acres on a rare patch of undeveloped land in St. Matthews.
The Paristown Preservation Trust plans to raze almost all of the existing buildings on the site, including the old Kentucky Baptist Hospital building.