Revitalization Commission Agenda and Packet 2024 07 17

Home Browse Search

SUBJECT: LRC PROJECT FUNDING DATE: J U LY 17, 2024 PAGE2OF9 Louisville's Highway 42 Revitalization Area Urban Renewal Plan was adopted in 2006 and focuses on the downtown area, including Main Street. The purpose of the Plan is to stimulate growth and reinvestment in the urban renewal area and surrounding blocks and reduce, eliminate, and prevent the spread of blight. As a historic downtown, there are buildings and infrastructure that was constructed across many decades. Currently, there are some large vacancies within the downtown area that the commission, businesses and community would like to see filled with active and exciting uses. In addition, as a historic downtown, there is aging infrastructure throughout the area that could benefit from renewed investment for revitalization and blight -mitigation. Staff originally explored bonding at three intervals, to allow opportunities to participate in large scale capital projects and continue with current programming. Below is a generalized summary of the bond service and payback schedule. These bonding scenarios used a general yearly revenue of $2 million/ year as the baseline for the projections. Bond Amount Total Repayment Aggregate Debt Service * $3 Million $4,016,854 $7,181,017 $7 Million $9,086,938 $12,251,100 $10 $12,843,688 $16,007,850 Yearly Payback Amount $703,500 - $945,250 $1,400,000 (approx.) Estimated Average Remaining Yearly Revenue** $1,000,000 $500,000 $1,900,000 $74,000 Million (approx.) *- Note: Aggregate debt includes existing LRC debt, estimated payoff date in 2027. **- Note: Estimated average remaining revenue available less on -going programming, including COL Support Services, TIF Refunds, Fapade Improvement Program and Property Improvement Program. In June 2024, the LRC passed a resolution directing staff to move forward with the bonding process to bond $10 million for capital projects within the Highway 42 Revitalization Area. This bonding process does not preclude the LRC from continuing their operations or impact the ability to enter into TIF agreements with qualifying projects within the urban renewal area. Attached to this staff report is a copy of the 2024 LRC adopted budget. This budget includes the following expenses. While these expenses are budgeted, not all of these line items are spent down in totality every year. COMMISSION COMMUNICATION