LOUISVILLE, Ky. — Louisville Metro Council voted last Thursday to give up to $114 million in tax rebates to Jefferson Development Group (JDG) to make the $550 million One Park housing project at the intersection of Grinstead Drive and Lexington Road a reality.
The developers agreed to up the amount of affordable units in the project to roughly 55 units out of 700; the council also removed the clause that would allow Jefferson Development to buy itself out of that commitment through a payment to the Louisville Affordable Housing Trust Fund (LAHTF).
The tax increment financing district (TIF) that was created will now have to be approved at the state level, as JDG is seeking a "signature TIF" that also includes state funds. Metro Council approved its portion 17-7.
One Park is a two-part project that included One Park South, approved for rezoning in 2019, and One Park North, approved for rezoning in February 2023. The southern part includes plans for an 18-story tower, 421 multi-family dwelling units, 250 hotel units, commercial space, office space and 1,202 parking spaces.
The northern portion includes plans for a 17-story and 10-story tower, over 200 additional housing units, a grocery store, retail space and more.
Metro Council President Markus Winkler, D-17, gave an endorsement for the project and said approving the TIF was the only way to make the project happen.
"This is a way for us to put state taxes back into our community," Winkler said.
The project came under fire again earlier this month, when residents said they didn't want public tax dollars going towards the development.
To partially appease those concerns, JDG agreed to up the affordable housing commitment from 7% total to 10% in the southern part of the project and 5% in the northern part of the project. JDG also removed the "draw-down" clause that would have allowed them to skip the affordable units all together by making an investment to the LAHTF.
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Winkler estimated this would lead to between 55-60 affordable units project-wide.
The TIF is written to work like this: JDG has to first make a $200 million investment in the property. After that point, JDG will get reimbursed 80% of the taxes it pays to the city for the incremental tax value generated by the development. That process will continue over 30 years to a maximum amount of $114 million.
Councilman Andrew Owen, D-9, voted against the TIF, which is in his district.
"TIF financing should be reserved for projects that meet at least one of the following criteria: incentive development in an area that otherwise would not get it...provides a product type that we are in need of, preferably at the low-end of the affordability spectrum," Owen said. "In my mind, this project meets none of that criteria."
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