Possible Taxing District for The 800 Apartments in Louisville to be Discussed at Public Hearing
Louisville Metro Council has scheduled a public hearing to discuss the creation of a special taxing district to provide financial help for a major makeover of The 800 Apartments in downtown Louisville. Bingham Greenebaum Doll LLP attorneys Jeffrey A. McKenzie and Michael J. Holtz are representing Detroit-based Village Green, owner of The 800 Apartments. This 29-story Louisville landmark is planned to be renamed 800 Tower City Apartments.
Creation of this taxing district will require Metro Council’s approval of an ordinance. According to the Courier-Journal, numerous tax-increment-financing districts have been created across Jefferson County to support projects ranging from the KFC Yum! Center to a University of Louisville business park. The arrangements allow a portion of the increase in the real estate tax base in the district generated by a project to be returned to the developers, usually over a 10- or 20-year period, to help defray the cost of the investment. The percentage of the tax return is usually negotiated between the developer and the city and is set by the ordinance.
The Courier-Journal said Village Green has filed the draft ordinance for introduction to the council, in which it states that the developer is investing $32 million — including the $20.6 million purchase plus the renovation cost. The ordinance says the maximum that can be returned to the developer is $2.66 million over 20 years. The boundaries of the taxing district will, in effect, be confined to the immediate site of the tower at Fourth and York streets.
Proposed Taxing District Ordinance Details
The ordinance says the proposed taxing district had a 2014 taxable assessment of $10.1 million and that the renovated apartment tower project will create more than 100 construction jobs. It says the project will generate significant new taxes for the city and state and also be a catalyst for spinoff development.
All units will be upgraded and renovated over about 18 months, with the number of units to be increased from 247 to 286. The revamped site will include a movie theater, business center, fitness center, exercise room, ground-floor restaurant and other amenities. Other upgrades will include a rooftop swimming pool, outdoor yoga area and club.