Economic Vitality Committee Agenda and Packet 2021 11 18

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SUBJECT: STRATEGIC PLAN ITEM #14 (CONTINUED) DATE: NOVEMBER 18, 2021 PAGE 3 OF The objectives for this Urban Renewal Plan were to: create a retail rich environment where area businesses and residents can be successful; re -tenant or develop the Property; and increase retail activity by encouraging occupancy of the Property. With these goals in mind, one of the powers authorized to the Louisville Revitalization Commission (LRC) through the Plan was that of eminent domain — to eliminate defective or unusual condition of title nonmarketable to prevent the spread of deterioration via property acquisition. It is staff's understanding that the condemnation authority was put in place to address the restrictive covenants rather than with the intent of acquiring any real property. As such, the Urban Renewal Plan did not authorize the use of Tax Increment Financing (TIF) to create a funding source to address the determined blight factors. Condemnation must have a "public use" —essentially eradicating the blight factors that were found in the conditions survey and determined by the City. Condemnation cannot be used to take private property to transfer it to a private entity when the only purpose of the transfer is economic development or tax revenue enhancement. With the property owner's cooperation, the LRC's steps to remove the covenants would include: condemn the fee title to the entire property, receive clear title from the Court in the condemnation proceeding, and then reconvey the property to the owner under a redevelopment agreement. The redevelopment agreement would then address new covenants, use restrictions, and development obligations. Following the Urban Renewal Plan, the LRC and the City released a joint Request for Proposal in 2016 for retail redevelopment of the site. Ultimately, a process to negotiate a Development Agreement for a new retail user was put on hold indefinitely in 2017. Subsequently, the City led the McCaslin Parcel O Redevelopment Study which was completed in January 2019. As noted at the EVC meeting, prior to the 2020 GDP amendment, there was consideration by the property owners to seek zoning changes that would have allowed mixed -use and residential development. There was some Council support for the concept at the time. However, the property owners did not pursue the zoning changes that would have permitted residential development. McCaslin Boulevard was the subject of Small Area Plan adopted by the City in 2017. The intent of the plan is to guide public and private investment in the McCaslin Boulevard corridor over a 20 year period —incorporating the west and east sides of the Boulevard from Via Appia Way to US 36. The outcomes of the plan included give major recommendations: 1) Limit allowed height to two stories along McCaslin and adjacent to existing residential neighborhoods; 2) Decrease total allowed development in the area from what existing zoning and regulations would allow; 3) Improve connections for pedestrians, cyclists, and automobiles; 4) Orient development to be more inviting to visitors on foot, on bikes, and in cars; and 5) Develop new public gathering space and access to nearby existing public amenities. Agenda Packet P. 9