Pepper Distillery LLC is seeking Tax Increment Financing for its $190 million Distillery District project.
Through transparent community participation and collaboration, the Distillery District aims to revitalize roughly 28 acres of blighted real estate in downtown Lexington. Approximately 630,000 square feet of new mixed-use construction and 350,000 square feet of adaptive reuse projects will anchor roughly $80 million in public improvements
TIF will allow incremental tax revenues, generated over the course of twenty years by the Distillery District, to offset roughly $80 million in public infrastructure needed to make the project attractive for commercial and residential development, and private equity investment.
In exchange for this 20 year expenditure of public tax revenue, the state of Kentucky and Lexington-Fayette County will gain a vibrant hub of retail business, mixed-income residential properties, art galleries and performing arts facilities, parks, walking and biking trails, an outdoor market, a 125-room boutique hotel, and signature bourbon micro-distillery and museum.
With over 8,000 acres of blighted, underutilized, and vacant land inside the Urban Service Area, The Fayette Alliance strongly endorses the Distillery TIF district. If supported by LFUCG and adopted in Frankfort, it will be a catalytic tool in accommodating our future growth needs—by transforming tired, crime-ridden properties into dynamic urban spaces and streetscapes without needlessly consuming our finite and threatened natural resources.
On November 18th, the Council tentatively approved the Distillery District TIF development plan and ordinance. The ordinance still requires two official Council readings for final approval. The first reading is scheduled for November 20th, and final approval may come on December 4th 2008. Ultimately, with LFUCG assistance, Pepper Distillery LLC will seek adoption of its TIF application in Frankfort.
View the Alliance’s position statement.
