Angliana Development Falls Through
The Fayette Alliance appreciates Mr. Krikorian’s efforts to make this innovative development project happen. Its apparent that many challenges still remain for infill redevelopment projects in Lexington…from financing, zoning, and land-assembly issues. The Fayette Alliance will continue to work with city-hall to implement development incentives, design guidelines, a landbank, and other measures to overcome these hardships. This is essential if we want a downtown Lexington we can all be proud of–one that will improve our economy, environment, and quality of life. We’ll keep you posted of all progress.
The Fayette Alliance supports Showprop Lexington’s TIF application which was approved by the LFUCG Council 14-1 on Thursday December 3rd. Once Mayor Newberry signs the TIF application, it will go to Frankfort for review. We will keep you posted of all progress, and thank you for supporting our town, our farms, and our future.
Showprop Lexington LLC is seeking Tax Increment Financing for its $70 million mixed-use project in downtown Lexington.
Using adaptive re-use and mixed-use new construction, developer George Krikorian aims to revitalize roughly 20 acres of vacant and underutilized industrial land on Angliana Avenue—near South Broadway and the University of Kentucky campus.
Without Tax Increment Financing, this transformative project would not be able to move forward—expressly satisfying the threshold requirement of Kentucky’s TIF statute KRS 65.7051(1)(a) and KRS 65.7049(4).
TIF will allow incremental tax revenues, generated over the course of twenty years by Showprop Lexington, to offset roughly $36 million in public infrastructure needed to make the project attractive for 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 “destination” hub including a bowling center, luxury movie theatre, restaurants, retail, residential and commercial uses, a parking structure, outdoor amphitheatre, pedestrian mall and bridge, public art, museum, exhibition space, and other amenities. It will also produce significant fiscal impacts to our local economy.
As evidenced by the success of Krikorian’s similar projects in the Los Angeles and San Diego California areas, Showprop Lexington promises to create $116 million in total spending, $46 million in increased earnings, and 1,160 direct jobs. In the twenty-year period after Showprop begins full operation, it’s estimated to generate a total of $173.3 million in local and state tax revenues—far exceeding the current tax base of the development site. In short, Showprop Lexington will “net” $83.2 million to the state and $12.5 million to the city of Lexington in new tax revenues—surpassing the $36 million in TIF public infrastructure costs. “Showprop Lexington’s Krikorian Premier Theatres at Angliana Avenue: TIF and Economic Impact Analysis”, Commonwealth Economics LLC, 2009.
With over 12,000 acres of blighted, underutilized, and vacant land inside the Urban Service Area potentially available for infill-redevelopment, The Fayette Alliance endorses the Showprop TIF district. 2009 LFUCG Housing Market Study.
If adopted in Frankfort, Showprop Lexington will be a catalytic tool in accommodating our future growth needs—by transforming tired properties into dynamic urban spaces and streetscapes without needlessly consuming our finite and threatened natural resources.
Please click here to read our official statement of support. Thank you for your support of our town, our farms, and our future.
Read more about the Angliana Project,
“State approves financing for Angliana Project,” Scott Sloan, Kentucky.com, 7.30.10