The old Bank of Louisville building at 500 W. Broadway is getting new life, after Louisville Metro Council approved a critical incentive for the project.
Luckett & Farley is renovating the space, turning it into a new boutique hotel. The firm is partnering with the IHG Boutique Hotels Worldwide brand for a new Hotel Indigo.
Luckett & Farley purchased the building in 2017 through its development arm with the aim of helping revitalize the South Broadway (SoBro) area. The building has been vacant for about 7 years.
The level of investment needed for such a complex project – estimated at $50 million – would be difficult, if not impossible, to leverage without tools such as TIF.
The TIF will be capped at $2.7 million and collect incremental local property taxes generated in the district over a 20-year period. It will redirect 80 percent of the increased property taxes generated by the building’s redevelopment back to the developer.
Approval of the TIF allows Luckett & Farley to have more certainty on the financing of the project and finalize other details, such as the size, scope and other partners.
“The project will be a great improvement to the Broadway corridor, and bring more jobs and activity,” Aric Andrew, president and CEO of Luckett & Farley said. “Our hope is that it will be a catalyst for more investment in the corridor and downtown.”
With the development of the property, the city will receive more in taxes from the project than it does today.
The new hotel also will help Louisville compete with other regional cities with boutique hotels, such as Nashville and Indianapolis.
Luckett & Farley and IHG have ideas for what the project would look like, but it is still in the planning and concept phase and more details would be coming within the next few weeks.
The hotel is part of Luckett & Farley’s overarching vision of helping revitalize parts of Louisville, along with other places in Kentucky and the region.
The building has 11 floors and contains around 200,000 square feet. Once completed, the hotel is anticipated to have 195 rooms.