LOUISVILLE, Ky. — The runway is now officially clear for a local developer to begin demolition and start construction on the former Urban Government Center in the Paristown Pointe Neighborhood.
Upper Paristown Preservation Trust LLC (UPPT) intends to turn the former government hub, and longtime site of Kentucky Baptist Hospital, into more than 11 acres of apartments, single-family homes, office and commercial space, a hotel, a parking garage, and all new green space.
There is also a requirement to create at least 51 affordable housing units.
Metro Council approved a development plan in February 2023, but the plans never went into motion due to lack of funding. Head of UPPT Steve Smith wanted a special "tax increment financing district" or "TIF" that would force Metro Government to pay him $20.3 million in tax credits over the next 20 years.
Metro Council approved that TIF Thursday night in a 17-7 vote.
“I believe the behavior of the developer has been abhorrent," Councilwoman Jennifer Chappell, D-15, said explaining her "no" vote. "The excuse that the current site is blight and unkept, is at the fault of Louisville Metro Government."
Many councilors criticized the way Smith and the city's Cabinet for Economic Development handled the "community benefits agreement" for this project. As late as December 2023, the benefits agreement was to be signed by five neighborhood associations near the project. During a falling out of that panel, the city removed four of the neighborhood associations. Paristown Pointe NA, Bates Memorial Community Development Corp. and Highlands Community Ministries are now planned to sign the agreement.
Many councilors said this led to Louisvillians being under a false understanding that they had a say in the project.
"Whether it’s a good idea for us to enter into CBAs connected to TIFs is irrelevant at this time. We DID," Councilman Ben Reno-Weber, D-8, said. "We said to community members, ‘Your voice matters, until we disagree with you.’ And then we will sub you out because we disagree with you."
Reno-Weber acknowledged that a lot of what the four neighborhood associations wanted in the agreement was put in there; like a promise of a "courtyard that encourages public use" and a playground somewhere on the property. But Reno-Weber said the fact that the four associations were removed still bothered him.
"This community benefits agreement (CBA) is largely the agreement that the neighborhood panel negotiated over the last couple of years. That agreement includes a requirement for affordable housing, a donation to surrounding neighborhood associations, construction of a new playground on the greenspace on Vine Street," Jeff O'Brien, head of economic development, said earlier this week over email.
The council debate also included a spat between councilors Brett Ackerson and Andrew Owen. Owen explained his "no" vote by saying no one on the council or in the public is excited about this project, and they need to work harder to get a better proposal. Ackerson responded by saying Owen was being idealistic and not realizing they need to do something with this property now.
Owen took the mic again after this point to say Ackerson "was talking about things he had no idea about", before saying UPPT's demolition and abatement was going to cost more than anticipated.
"If you’re talking about me and what I don’t know about I say, ‘Piss on you,'" Ackerson said to Owen. "My colleague is certainly not the expert on everything. He’s entitled to his opinion, I’m entitled to mine."
UPPT is planning to only save the "smokestack building" along Vine Street. Demolition on the old Kentucky Baptist Hospital could begin soon. Smith confirmed over text Friday afternoon they are free to move forward with demolition.
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