Louisville Metro to end negotiations with Underhill Associates
Louisville Metro Government has ended negotiations with Underhill Associates for the redevelopment of the Urban Government Center on Barret Avenue.
Today’s decision was made after Underhill Associates failed to identify private sources of funds to fill a nearly $13.7 million estimated budget gap for its proposal. The city had offered to provide the Metro-owned land for $1 and use Tax Increment Financing (TIF) to help fill a portion of the project’s gap.
The city chose to negotiate with Underhill Associates in November 2020, after the developer received the highest score from a project evaluation committee. Louisville Metro expressed concern then about the multimillion budget gap and the project’s reliance on local government funds.
Louisville Metro will now exercise its right to negotiate an agreement with the runner-up, Paristown Preservation Trust.
The city will offer to enter into limited negotiations with the development group within the same scope, meaning that, as a term of the negotiations, Louisville Metro will consider a TIF agreement, but it will not entertain requests for a direct subsidy, infrastructure investments or funds to cover environmental remediation costs or the purchase of the Louisville Metro Housing Authority property. As stated in the Solicitation of Interest issued in June 2020, the developer is responsible for environmental cleanup costs and buying the LMHA property at fair market value.