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HMM. YEAH. OH, HELP WILL BE THERE. YES, I I'M ALMOST POSITIVE. I WILL BE THERE SHORTLY, SOMETHING COMING UP THIS FRIDAY. THE NEXT ONE.
METRO TV. WE'RE GOING TO START IN 30 SECONDS. METRO TV 30 SECONDS, PLEASE.
GOOD AFTERNOON. MY NAME IS ANTHONY P. ARGENTINE E AND I'M THE VICE CHAIR OF THE LABOR AND
[Call to Order]
ECONOMIC DEVELOPMENT COMMITTEE. I'M GOING TO CALL THE COMMITTEE TO ORDER IT'S CURRENTLY 303 PM TODAY. WE, UH WE ARE BEING JOINED BY CURRENTLY COUNCILMAN ANGLE. COUNCILMAN HAWKINS. AND[Roll Call]
MYSELF. CURRENTLY UH, COUNCILMAN BAKERS HERE. AND I THINK THAT'S IT CURRENTLY WE DON'T HAVE ANYTHING ON THE AGENDA TO TAKE ACTION ON. WE HAVE A ONE SPECIAL DISCUSSION AND WE'RE GOING TO START WITH THAT. SO WITH THAT WE'RE GOING TO ASK MR JEFF O'BRIEN FROM THE DEPARTMENT OF ECONOMIC DEVELOPMENT TO COME UP AND TALK TO US OR AND OR. DEPUTY MAYOR MALLOY, UH, TO TALK ABOUT[Special Discussion]
THE DOWNTOWN REVITALIZATION FUND . THANK YOU VERY MUCH, SIR. IF YOU COULD JUST GIVE YOUR NAME AND TITLE FOR THE RECORD, AND THEN YOU CAN BEGIN WHENEVER YOU ARE READY. THANK YOU. I'M PAT MOLLOY AND THE DEPUTY MAYOR FOR ECONOMIC DEVELOPMENT FOR MAYOR GREENBERG AND THANK YOU ALL FOR SEEING US AND HEARING US TODAY. UM WE WANTED TO COME AND BRIEF YOU AND REALLY ANSWER QUESTIONS.THIS IS SORT OF A SOUNDING BOARD SESSION IF YOU WILL, UM, ALREADY IN THE BUDGET, THE MAYOR ASKED
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FOR THIS IS ALL GOING DOWN RIGHT ABOUT THE TIME I CAME IN FOUR MONTHS AGO HE HAD ASKED FOR I THINK $8 MILLION FOR DOWNTOWN INCENTIVES AND ALL FLESH OUT WHAT THOSE INCENTIVES ARE AND, UM AT YOUR COMPROMISE. THAT 3 MILLION, WHICH IS FINE. WE'RE VERY APPRECIATIVE OF THE NUMBER SO I DIDN'T COME HERE TO HAGGLE ABOUT THE NUMBER IF THE NUMBER GETS SPENT, AND I THINK IT LIKELY WILL, HOPEFULLY IN SHORT ORDER, WHICH WOULD BE A GOOD PROBLEM TO HAVE THEN WE'LL PROBABLY COME BACK FOR A BUDGET AMENDMENT OR ANOTHER CONVERSATION WITH IT. WE DON'T HAVE ANOTHER BUCKET OF MONEY. BUT WE HAVE TO HAVE A CONVERSATION WITH HIM. WE HOPE THAT Y'ALL WOULD BE OPEN TO THAT. LET ME MAKE A COUPLE OF COMMENTS ON WHAT WE'RE SEEING IN DOWNTOWN AND THEN I'M GONNA THERE'S SORT OF TWO THINGS. THERE'S A COVER LETTER THAT I WROTE, AND I WANT TO COMMENT ON THAT. AND THEN I AM GOING TO ASK JEFF TO COME UP HERE. THERE'S SOME MECHANICS ITEMS ONE THROUGH THREE ON THE SECOND PAGE OF THE ATTACHMENT. THEIR IN LAW TODAY.THEY'RE SORT OF THE RESULT OF THE ORDINANCE. COUNCILMAN THAT YOU YOU'RE PAST ITEM FOUR IS A AN ITEM. I WAS IN A MEETING WITH RATING AGENCIES AWHILE AGO WITH ANGIE DONE, AND AARON JACKSON AND THIS IS ABOUT A POTENTIAL REBATE TOOL FOR TENANTS THAT WANT TO MOVE DOWNTOWN OF SOME PORTION OF THE 1% OF THE OCCUPATIONAL TAX THAT BELONGS TO THE CITY. OBVIOUSLY NOT THE SCHOOL BOARD PIECE OF THE TARGET PIECE, BUT THE 1% I'LL LET JEFF FLUSH THAT OUT IN A MOMENT MORE.
SO THE COVID 19 PANDEMIC. COUPLED WITH ALL THE IMPLEMENTATION OF HYBRID WORK MODELS. WHICH FROM WHAT MOST ANALYSTS, WE ARE NOT GOING AWAY ANYTIME SOON. IT'S REALLY CONVERGENCE OF WHAT HAPPENED IN COVID AND TECHNOLOGY TECHNOLOGY . YOU CAN SORT OF WORK ANYWHERE THESE DAYS ON MOST JOBS UNLESS IT'S A HANDS ON THINGS LIKE A NURSE AT A HOSPITAL. IT'S SIGNIFICANTLY IMPACTED DOWNTOWN LOUISVILLE AND WE'RE NOT ALONE. MOST DOWNTOWNS ACROSS THE COUNTRY. ARE SAYING THE SAME THING. THERE WAS A DREADFUL STORY IN FRONT PAGE OF THE NEW YORK TIMES ON SUNDAY ABOUT THE EPIDEMIC HOMELESS IN PORTLAND'S OREGON. THAT REALLY WAS RESULTING THE KIND OF GUTTED THE POLICE DEPARTMENT. THEY'RE FINANCIALLY AND THEN THEY JUST DIDN'T HAVE ENOUGH OFFICERS AND FIRST RESPONDERS ON THE STREET AND IT WE'VE GOT A SERIOUS ISSUE OF 3 TO 400 PEOPLE OR SEVERAL 100 PEOPLE ON THE STREETS OF LOUISVILLE, BUT NOTHING ON THE MAGNITUDE OF SOME CITIES. SO COVID HYBRID WORK RESULTED IN SIGNIFICANT VACANCY RATES. I WAS AT A CONFERENCE THAT G L I HAD A FEW WEEKS AGO AND VACANCY RATES ARE SOMETIMES IN THE EITHER BEHOLDEN OR PROBABLY ABOUT 76% OCCUPIED IN THE DOWNTOWN CENTRAL BUSINESS DISTRICT. AND WE THINK OF THAT FROM YORK TO THE RIVER AND FROM 12TH STREET, JEFFREY ON THE WEST OVER TO ASK 65 ON THE EAST. IT'S CREATED CLEARLY A NEAR TERM DISRUPTION IN THE NUMBER OF PEOPLE IN THE CENTRAL BUSINESS DISTRICT, BUT IT ALSO CREATES A TREMENDOUS OPPORTUNITY AND I WANTED TO IN MID DECEMBER . THE MAYOR IS GOING TO COME FORWARD WITH A COMPREHENSIVE NEW STRATEGIC ECONOMIC DEVELOPMENT PLAN, BUT WE'VE BEEN LISTENING TO A BUNCH OF REALLY GOOD CONSULTANTS AROUND THE COUNTRY.
AND SOME OF THIS IN THIS COVER LETTER THAT I'VE WRITTEN YOU ALL. IT'S SOME OF THE STUFF WE'VE LEARNED, UM, THAT OTHER CITIES ARE EXPERIENCING. AND SO THIS DISRUPTION IT'S BOTH. IT'S DISRUPTION AND IT'S GONNA RESET VALUES OF WHAT THESE OFFICE BUILDINGS ARE WORTH DOWNTOWN.
BUT IT ALSO REQUIRES US TO HAVE A WHOLE NEW FOCUS ON WHAT THE CONSULTANTS AND EXPERTS ARE CALLING SOCIAL INFRASTRUCTURE AND REALLY THE QUALITY OF PUBLIC AND PRIVATE PAY PLACES. AND THAT'S PARKS. THAT'S TREES. THAT'S GREEN SPACE. UH IT'S PUBLIC ART. WE'VE GOT A WOMAN IN THE NEW DIRECTOR OF PUBLIC ART AS YOU ACTUALLY WORKED UNDER GREG FISHERS ADMINISTRATION, BUT SHE'S BEEN ELEVATED THIS ADMINISTRATION YOU ALL GAVE HER $2.6 MILLION BUDGET TO REALLY FOCUS ON PUBLIC ART, AND SHE'S THE ONE WHO'S BEEN TRYING TO FIGURE OUT THE KING LOUIS CONVERSATION WITH SOME OF YOUR AND SHE'S QUITE GOOD, SO WE'RE FOCUSED ON THOSE KIND OF PUBLIC AMENITIES, AND IT REQUIRES US TO RETHINK THE USE OF A LOT OF THESE STRUCTURES AND TO FIND TOOLS TO DRIVE OFFICE OCCUPANCY WITH NEW DOWNTOWN TENANTS. THE OTHER. THE OTHER PHENOMENA THAT'S OCCURRED. THERE ARE I'M NOT GOING TO NAME THE NAMES OF BUILDINGS, BUT THERE ARE MORE THAN A FEW BUILDINGS IN DOWNTOWN LOUISVILLE THAT ARE PROBABLY OBSOLETE. FROM AN OFFICE BUILDING STANDPOINT COUPLE OF BUILDINGS I HAD OFFICERS ENTER. MY DAD HAD LOST US IN WHEN HE WAS A YOUNG LAWYER. THEY'RE NOT LIKELY IN OUR LIFETIME GOING TO BE OFFICE BUILDINGS AGAIN BECAUSE OF HYBRID WORKING BECAUSE OF DEMAND, BUT THEY PROBABLY WILL BE JEFF AND I HAD A TEXAS GROUP OF DEVELOPERS IN THIS WEEK. THEY'RE LOOKING AT ONE OF THE BUILDINGS THAT WOULD BE A MIX OF RESIDENTIAL AND IT WOULD BE A MIX OF A BRAND NEW HOTEL IN DOWNTOWN LOUISVILLE AND ONE NUMBER TO KEEP IN THE BACK OF YOUR HEAD. IF YOU TALK TO CLEO BATTLE OVER TOURISM, WE'VE GOT 20,000 HOTEL ROOMS IN THE CITY. BUT WE'RE WE NEED 30,000 WERE ABOUT 10,000 HOTEL ROOMS UNDER BEDDED. SO MY POINT IS THAT THERE'S A BUNCH OF OFFICE BUILDINGS THAT I THINK WILL HAVE TO BE RECONFIGURED FROM OFFICE INTO HOUSING AND THE HOTEL ROOMS AND ALL OF THIS IS BECAUSE TOURISM FRANKLY, IS AT HISTORIC HIGHS IN ROAD WE'VE NEVER SEEN TOURISM. YOU KNOW THIS. THE CITY STREETS MAY BE QUIET MONDAY, TUESDAY, WEDNESDAY, THURSDAY EVENING. THEY'RE PRETTY CROWDED.
UM A LOT OF THE CITY STREETS ARE ALL THE WAY THROUGH SUNDAY EVENING. YOUR PAST. IN THE
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FISCAL 24 BUDGET YOU GAVE US $3 MILLION IN CASH, AND IT'S NOT A TIFF. IT'S NOT A TAX REBATE.IT'S CASH, AND, UH, IT'S TO ESTABLISH A NEW DOWNTOWN REVITALIZATION FUND. WE'VE TAKEN THAT FUND. WE SAT WITH REBECCA OVER AT THE DOWNTOWN PARTNERSHIP . JEFF AND I WORKED. WE HAD VOLUNTEER GROUP OF CORE GROUP OF COMMERCIAL REAL ESTATE BROKERS, THE BROKERS THAT BRING THE TENANTS INTO THE CITY TO HELP RENT THEIR PROPERTIES AND WE HELPED SAID, HELP US SCRATCH OUT A PROPOSAL AND THAT'S WHAT WE'VE BUILT HERE. BASED ON THE $3 BILLION THAT YOU GAVE US AND SPECIFICALLY, THE FUND IS GOING TO OFFER A SLIDING SCALE INCENTIVE WE'RE GOING TO OFFER UP TO $30, A SQUARE FOOT. FOR NEW OR EXPANDING DOWNTOWN TENANTS. NEW TO THE CENTRAL BUSINESS DISTRICT, ARGENTINA ACCOUNTING FARMERS IN THIS BUILDING ON FIFTH STREET. WE'RE NOT GOING TO PAY AN INCENTIVE TO MOVE TO SIXTH STREET. BUT IF YOU'RE IN HER STUBBORN OR IF YOU'RE IN SHELBYVILLE OR YOU'RE IN NASHVILLE, TENNESSEE, I WANTED TO OPEN AN OFFICE IN DOWNTOWN NEW TO THE CENTRAL BUSINESS DISTRICT. WE WILL PROVIDE UP TO $30 A FOOT AND IF YOU THINK ABOUT THESE DOWNTOWN OFFICE TOWERS IF YOU THINK ABOUT NATIONAL CITY CALLED NATIONAL CITY, PNC OVER AT FIFTH AND MAIN . THOSE ARE ABOUT 15,000 SQUARE FEET. SO IF SOMEBODY CAME IN AND TOOK TWO FLOORS, THAT'S 30,000 TIMES, $30. THAT'S YOU CAN DO THE MATH THERE ON THAT WOULD BE THE CASH INCENTIVE TO HELP THEM AND IT'S DESIGNED TO HELP BECAUSE WHENEVER YOU COME INTO NEW SPACE, YOU GOTTA DO TENANT IMPROVEMENTS. YOU GOTTA MOVE THE DRYWALL. YOU GOTTA PAINT. YOU GOTTA PUT DOWN NEW CARPET. AND THAT SORT OF THING. UM THAT'S REALLY IT. IT GIVES US IT'S A FINITE BUCKET OF MONEY, JEFF AND AHEAD OF TIME NOT GONNA NAME THE NAME, BUT WE HAD A LARGE OUT OF THE CITY INSTITUTION YESTERDAY THAT WANTS TO HAVE A PRESENCE IN DOWNTOWN LOUISVILLE. SOME SIGNIFICANCE THAT WOULD BRING YOU KNOW A LOT OF THE FOCUS OF THIS NEW ECONOMIC DEVELOPMENT PLAN IS GOING TO BE WHAT WE CALL INTELLECTUAL CAPITAL. IT'S GOING TO BE. WE NEED YOUNG PEOPLE WITH BRAINS COMING HERE AND LIVING AND STARTING THEIR OWN BUSINESSES AND THIS PARTICULAR INSTITUTION. THAT'S WHAT IT DOES . IT'S IN THAT BUSINESS, SO WE'RE GOING TO TALK TO THEM, GIVING THEM THREE OR FOUR OPTIONS TO MOVE IN THAT CENTRAL BUSINESS DISTRICT. UM ELIGIBLES . ELIGIBLE IMPROVEMENTS WOULD INCLUDE CONSTRUCTION MATERIALS, PERMANENT FIXTURES, FIXED EQUIPMENT, UTILITIES BUILDING AN INFRASTRUCTURE. JEFF ALSO HAS WORKED WITH MIKE TUTOR WHO RUNS PARK AND WE'VE GOT THEY'RE DOING A PRETTY GOOD JOB IN THIS HYBRID WORK ENVIRONMENT. IT'S KEPT PARKING CASH FLOWING, BUT WE STILL HAVE A BUNCH OF ACCESS. UM UH, UM, PARKING SPOTS DOWNTOWN.
YOU HAVE TRANSIENT LOTS OR YOU'LL HAVE SOMEBODY THAT'S WORKING AT HUMAN ON TUESDAY, WEDNESDAY AND THURSDAY, BUT THEIR SLOT IN THE RIVERFRONT GARAGES EMPTY ON MONDAY AND FRIDAY, SO WE'VE ALWAYS GOT EXCESS CAPACITY. AND I THINK, MARK MIKE UM, CALCULATED. WE'VE PROBABLY GOT 6 TO 700 EXCESS EMPTY PARKING SPACES EVERY DAY THAT WE COULD RENT TO YOU IF YOU DECIDED TO COME DOWNTOWN THAT DAY, SO WHAT WE'RE WE'VE DONE AND IT'S NOT IN THE $3 MILLION BUT SEPARATE FROM THAT MIKE TUTOR HAS AGREED THAT PARK THAT IF YOU'LL LEAST 30,000 SQUARE FEET OR 50,000 SQUARE FEET, EXCUSE ME. YOU'LL COME IN ON THAT INCENTIVE. WE'LL GIVE YOU 80% OFF. UM I CALLED YOU BY THE WRONG NAME. COUNCILMAN ACKERSON, I THINK, UM, THEY IF THEY WILL GIVE YOU 80% OFF, I THINK FOR THE FIRST TWO YEARS, THEN IT'S STAIR STEPS DOWN TO 60% OFF THE RATE THAN 40% THEN 20% AFTER FIVE YEARS, YOU GO BACK TO THE MARKET RATE, AND THE TRUTH IS, IT DOESN'T COST PARK A DIME BECAUSE IT'S FOUND MONEY BECAUSE THIS NEW PEOPLE TO THE CENTRAL BUSINESS DISTRICT UM, THAT'S REALLY IT. AND, UM I HOPE THAT I WANT TO. I WANT TO JUST FRAME UP. THIS GROUP THAT CAME IN FROM OUT OF STATE THAT WAS LOOKING AT A LARGE BUILDING. WE DON'T HAVE A WELL, THE STATE INCENTIVES ONE OF A COUPLE OF PROBLEMS WITH THE STATE INCENTIVES, YOU KNOW, THEY'RE GREAT. IF YOU WANT TO BUILD A MANUFACTURING FACILITY HERE IF YOU WANT TO BUILD, YOU KNOW IF YOU WANT TO BUILD A BATTERY PLANT AND GLENDALE, KENTUCKY, THEY'RE ALL KINDS OF INCENTIVES UNDER THE STATE AND CENTER PROGRAMS. WE GET BEAT SOMETIMES BY INDIANA? BECAUSE WE DON'T HAVE WE LOST A COMPANY. YOUNG WOMAN'S GOT A TERRIFIC SOFTWARE COMPANY OVER IN NEW ALBANY AND BUT YOU GOT $4 MILLION IN CASH TRAINING DOLLARS FROM THE STATE OF INDIANA, AND WE DON'T HAVE THAT KIND OF INCENTIVE AT THE STATE LEVEL, SO WE'RE GONNA THAT'S ONE OF THE ISSUES THAT THE MAYOR'S. WE'RE GOING TO TAKE TO FRANKFURT TO SENATOR STIVERS AND SPEAKER OSBORNE. AND TO THE GOVERNOR TO PUT IN THE NEXT BUDGET BECAUSE WE'VE GOT TO START RESHAPING, NOT GIVE UP THE INCENTIVES WE'VE GOT, BUT WE GOT TO RESHAPE SOME OF THOSE INCENTIVES SO THAT THEY BECOME SO THEY GIVE US THE ABILITY TO CAPTURE BECAUSE ALL THIS WOMAN WHO'S GOT THIS SOFTWARE COMPANY, SHE'S THE ONLY THING SHE'S GOT HIS BRAIN POWER. IT'S ALL PEOPLE DREAMING OF SOFTWARE, AND IT'S A PHARMACY PAY OR SYSTEM, THE OTHER SHE'S BUILT. IT'S ALL INTELLECTUAL CAPITAL. UM SO THE HOPE THAT WE'RE GOING TO WANT TO COME BACK TO YOU WITH AN ASK FOR MORE MONEY FOR OFFICES. LET'S SEE IF WE CAN GET SOME TENANTS DOWN HERE WITH THIS 1ST $3 MILLION AND THEN I'M PROBABLY IN THAT NEXT DAY ASK. WE'LL ASK YOU FOR SOME OF THIS CASH TO BE USED TO
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TAKE X BUILDING THAT ONCE WAS FULL OF OFFICES, BUT IT NEVER GOING TO BE AGAIN AND NEEDS TO BE RESIDENTIAL BECAUSE THE THINKERS ARE TELLING US DOWNTOWN'S GOT TO BECOME A NEIGHBORHOOD. WE KNOW ABOUT POLICE PRESENCE WE KNOW ABOUT THE HOMELESS ISSUES, AND THOSE ARE DIFFERENT INITIATIVES THAT WE'RE NOT GOING TO SOLVE THEM OVERNIGHT. BUT THERE THE CHEAP AND OTHERS, DEPUTY MAYOR GEORGE AND, UH HER TEAM ARE REALLY WORKING HARD. THIS COMMUNITY KEEP YOUR EYES ON THIS C THREE CAMPUS UP NORTH OR SOUTH OF BROADWAY. I THINK IT'S GOING TO MAKE A DIFFERENCE, HOPEFULLY WITH A COUPLE 100 NEW UNITS THERE FOR TRANSITIONAL HOUSING, BUT WE'VE GOT SOME GOOD OFFICE BUILDINGS RIGHT IN THE CENTRAL BUSINESS DISTRICT, AND WE NEED PEOPLE LIVING THERE. THERE'S PLENTY OF HOUSING IN NEW LOOP, BUT WE NEED THEM ONCE YOU COME UNDER 65 INTO THIS CENTRAL BUSINESS DISTRICT WHERE WE ALL SIT AND WE HOPE THAT'S WHAT HAPPENS IN THIS. RFP THE JETS RUNNING RIGHT NOW ON THIS DEMOLISHED FORMER POLICE HEADQUARTERS, THE BACON LOT BEHIND CITY HALL AND THE OLD FISCAL COURT BUILDING WOULD BE TERRIFIC. IF THERE WERE A FEW HUNDREDS OF PEOPLE LIVING RIGHT HERE IN THE HEART OF THE BUSINESS DISTRICT. SO WE HOPE TO COME BACK AND ASK YOU FOR MORE MONEY. BUT THE MONEY TODAY THE 3 MILLION THAT YOU ALL GAVE US IT'S GOING TO GO TO BRING OFFICE TENANTS DOWNTOWN. WORKED LIKE THE DICKENS TO GET THAT DONE SO I'M GLAD TO ANSWER ANY QUESTIONS PERFECT LITTLE MORE DETAIL THAN I DO A COUPLE THINGS. FIRST OF ALL, LET THE RECORD REFLECT. WE'VE BEEN JOINED BY COUNCILMAN ACKERSON, BACHAN AND ELLEN. WE WILL HAVE A EXCUSED ABSENCE FOR COUNCILMAN PURPOSE, PLEASE. AND THEN, UM, SO HAVE A FEW COMMENTS AND MAYBE A QUESTION OR TWO OR OR THOUGHT, UM, FIRST OF ALL, GLAD TO JOIN THE MAYOR FOR ADDITIONAL STATE INCENTIVES IN ADVOCATING FOR ADDITIONAL INCENTIVES WITH THE STATE IN THIS NEXT, UH, THIS NEXT LONG SESSION. IN FRANKFURT. UM. I APPRECIATE. YOU SAID THAT IN DECEMBER, THE MAYOR IS GOING TO COME OUT WITH SORT OF COMPREHENSIVE, AND I'M SURE YOU'RE VERY MUCH VETTED BY YOU AND YOUR DEPARTMENT. A COMPREHENSIVE PLAN REALLY ECONOMIC DEVELOPMENT. I WOULD ALSO SAY, I KNOW I APPRECIATE SEEING THESE PLANS. I MAY NOT AGREE WITH EVERYTHING THAT'S IN THE PLANS, BUT AT LEAST WE KNOW WHERE THE MAYOR STANDS. AND I THINK WE'VE ONE OF THE THINGS WE STRUGGLED WITH HIS LITTLE HISTORY BECAUSE WE DEBATED THE BUDGET BEFORE YOU CAME ON BOARD THAT WE STRUGGLE WITH WITH THE $8 MILLION WAS THIS IDEA OR WERE YOU ON BOARD DURING THE BUDGET CYCLE, RIGHT AS WE WERE ASKING FOR IT, OKAY. I THINK THE I CAN'T REMEMBER. I SHOWED UP. MAY 8TH, RIGHT? OKAY YEAH, THAT WOULD BE RIGHT IN THE MID MIDST OF DEBATING, THAT'S WHAT DO YEAH . SO, UM, WHAT WAS WAS THE LACK OF UNDERSTANDING ABOUT HOW IT WOULD BE USED? SO NOW? TRUTHFULLY WE WERE STILL SHAPING THE IDEAS. OF COURSE. FAIR COMMENT. YES. SO GETTING IT AND THEN AND THEN, HOPEFULLY THIS YEAR SEEING RESULTS WILL HELP US IN HOW WE WANT TO ALLOCATE NEXT YEAR, SO I THINK THAT'S GOING TO BE HELPFUL. SO AND THAT'S RELATED TO THIS ECONOMIC DEVELOPMENT PLAN. I EVEN THINK THE HOUSING PLAN AGAIN. I WAS COMING THROUGH IT. I MIGHT HAVE THINGS THAT I AGREE WITH THINGS I DISAGREE WITH. BUT NOW WE KNOW WHERE THE MAYOR IS WHERE THE ADMINISTRATION IS. IT'S HELPFUL TO FOR NOT JUST FOR US, BUT FOR THE PUBLIC ABSOLUTELY UNDERSTAND THAT AND SO THANK YOU FOR THAT.FIRST OF ALL YOU TALKED ABOUT? NEW BUSINESSES AND RESIDENTS TO THE DOWNTOWN AREA. UM, LOOK, WE ARE SO PACKED FROM A RESIDENTIAL POINT OF VIEW. I DON'T HAVE MUCH CONCERN WITH RECRUITING SOMEBODY WHO LIVES IN DISINTEGRATE PECAN DISTRICT 19 LISTEN DISTRICT, 19 WANTS TO MOVE TO THE DOWNTOWN BUSINESS DISTRICT. THAT HOUSE APARTMENT WILL BE FILLED INSTANTANEOUSLY BECAUSE OF THE YOU KNOW THE HOUSING NEED IN THE COMMUNITY. UM WHAT I DO HAVE A CONCERN WITH YOU MENTIONED BUSINESSES THAT ARE NEW TO DOWNTOWN AND USE. TWO EXAMPLES. USE ONE ABOUT A BUSINESS MOVEMENT REHEARSED BORN. WHAT ABOUT A BUSINESS MOVING FROM INDIANA OR OR TENNESSEE? LET'S CALL IT YEAH. HMM I PREFER THE SECOND AND TRY TO AVOID THE FIRST, RIGHT ONLY AND NOT THAT LOOK. IF BUSINESS WANTS TO MOVE DOWNTOWN. THAT'S A DIFFERENT THING. BUT WHAT I WANT TO AVOID IS IT'S A IT'S A IT'S A ZERO SUM GAME, AND WE'RE JUST MOVING BUSINESSES AROUND THE CITY, AND NOW WE'RE COMPETING FROM REGIONS AGAINST DOWNTOWN. I DON'T WANT TO CREATE. THAT'S NOT UNFAIR COMMENT. WE NEED THE TIDE TO RISE UP. WE NEED. WE NEED A BIGGER TAX PAYS BUSINESSES COMING IN BECAUSE THE MIDDLETOWN BUSINESSES ALREADY PAYING THE TAX, RIGHT, RIGHT. AND SO AGAIN, IF YOU KNOW JUST A CONCERN, RIGHT? THAT WAS YOUR INTENTION, BUT AND THEN, AND THAT'S A SQUISHY NOTION. I MEAN, YOU KNOW , I HAD BUSINESSES DOWNTOWN. I MOVED TO THE BURBS, AND I HAD BUSINESSES WHERE I WANTED TO MOVE DOWNTOWN. IF THEY WANT TO MOVE AGAIN. I'M I'M CERTAINLY I WOULDN'T DO ANYTHING TO STOP THEM OR LET THEM NOT BENEFIT FROM IT. BUT AGAIN TO YOUR POINT, LIKE HOPEFULLY WE SEE A COMPLETE NET GAIN ACROSS THE CITY, NOT JUST SHIFTING CHAIRS IN THE SAME ROOM. THAT IS THE GOAL. YES, SIR. AND THEN PARK. IT'S JUST A TACTICAL QUESTION. I DO UNDERSTAND HOW PARK WORKS. WE HAD A LOT OF DEBATE LOVE DISCUSSION ABOUT PARK WHEN I WAS
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FIRST ON COUNCIL WHEN NOW SENATOR YATES WAS THE CHAIRMAN OF THIS COMMITTEE AND I WAS THE VICE CHAIR OF THIS COMMITTEE. SORRY I GET HOW THEY WORK. I GET THAT THEIR OWN SORT OF P AND L AND OPERATION. I'M SORT OF QUESTIONING HOW OPERATIONALLY THE PARK COMPONENT OF THIS WILL BE LIKE A DISCOUNT CODE TO THE EMPLOYEES OR SOME BREAK ON, UH, YOU KNOW SOME TYPE OF PARKING DECK LIKE, HOW DO YOU IMPLEMENT OR HOW DOES PARK IMPLEMENT SOMETHING LIKE THAT? JEFF O'BRIEN HAD EXECUTIVE DIRECTOR ECONOMIC DEVELOPMENT ONE OF THE SO THAT'S A GREAT QUESTION. THE WHAT THE PARKING AUTHORITY LOOKS AT IS HOW MANY HOW MANY PARKING SPACES ON ANY GIVEN DAY. ARE WE GOING TO USE THROUGH EITHER RESIDENTIAL PERMITTING PROCESS OUR MONTHLY PERMITTING PROCESS OF THE NEW PARK FLEX PROGRAM. UM, AND THEN HOW MANY TRANSIENT PARKER'S, WHICH ARE PEOPLE THAT COME DOWNTOWN FOR A MEETING OR FOR LUNCH OR WHATEVER. SO WHAT THEY BASICALLY SAID IS IN OUR SYSTEM RIGHT NOW WE HAVE ABOUT 1500 SPACES ON ANY GIVEN DAY THAT ARE AVAILABLE FOR WHAT WE CALL THOSE DAILY PARKER'S THAT ARE JUST GOING TO COME IN FOR THAT QUICK ONE OFF MEETING. THEY FEEL THAT IN ORDER TO MAKE SURE THAT WE HAVE THE ADEQUATE SPACES AND WE HAVE PEOPLE THAT CAN CIRCULATE. THEY THINK THAT WE'VE GOT 700 SPACES THAT WE CAN ARE BASICALLY NEVER IN JEOPARDY OF BEING USED ON ANY GIVEN DAY, RIGHT UNDER UNDER THE CURRENT SITUATION, SO WHAT THEY'RE SAYING IS THERE THERE'S A CAP ON THE NUMBER OF SPACES THAT THEY CAN USE FOR THIS. THEY'VE CUT AGAIN DONE, DAVID MUCH DEEPER ANALYSIS AND I'M DOING AWAY JUSTICE TO MR TUDOR AND THE OPERATION. HE'S RUNNING OVER THERE, BUT THEY THEY BASICALLY LOOKED AT THE UNIVERSE OF PARKING SPACES THAT THEY HAVE. IN THEIR DECKS AND IN THEIR SURFACE LOTS AND THEY BELIEVE THEY'VE GOT ABOUT 700 SPACES THAT RIGHT NOW COULD BE AVAILABLE FOR ADDITIONAL MONTHLY PARKER'S OR FOR THE PARK FLEX PROGRAM. SO THE WAY THIS INCENTIVE WORKS IS IT GOES TO THE BUSINESS USUALLY WERE ENVISIONING MONTHLY PARKING. AND TYPICALLY, WHAT HAPPENS IS THE EMPLOYERS WILL PAY FOR THE MONTHLY PARKING AS PART OF AS PART OF THEIR DEAL, SO THEY GET THAT THEY GET THE THEY GET THE DISCOUNT AND THE AND THE AND THE EMPLOYEES PARKING THERE FOR FREE AT THE COST OF THE EMPLOYER. THANK YOU. WE HAVE A FEW PEOPLE IN THE QUEUE. WE'RE GOING TO START WITH COUNCILMAN HAWKINS. THANK YOU. UM. I DEFINITELY UNDERSTAND THAT DOWNTOWN PROBABLY NEEDS A NEW FACE LIFT, ESPECIALLY SINCE COVIC. BUT I HAVE A LITTLE BIT OF CONCERN ON WORTHY. UH. ASSUMPTION OR WERE THE. ACCUSATION CAME THAT DOWNTOWN NEEDED TO BE REVITALIZED. WHERE DID YOU GET THE WAS THERE ANY, UM, INPUT FROM JUST THE CITY ITSELF, OR WAS THIS JUST SOMETHING THAT WAS ON? UM THE MAYOR'S AGENDA THAT HE WANTED TO DO? UH WHERE DID THE ACCUSATIONS COME FROM THAT DOWNTOWN OR WHETHER TOURIST? I NOTICED THAT YOU MENTIONED THAT TOURS WAS IT BASED OFF? TOURIST WHAT WAS IT BASED ON FOUR? CAN YOU GIVE ME A LITTLE BACKGROUND ON THAT? PLEASE LOADING, CHARACTERIZE IT AS AN ACCUSATION . IT'S A STATEMENT OF FACT, THAT OKAY, THAT WERE 88 1992% OCCUPIED 5678 YEARS AGO THERE ABOUT 76% OCCUPIED THE KENTUCKY ON LIFE BUILDING FIFTH AND JEFFERSON, WHERE MY FATHER HAD HIS FIRST LAW OFFICE. IS 100% EMPTY TODAY, AND IT'S 20 STORIES OF VACANT OFFICE BUILDING. IT WAS EMPTY. UH, BUT HE WAS FULL WITHIN THE LAST 10 YEARS. AND SO IT'S EMPTY. STARKS BUILDINGS CLOSED. JUST DRIVE DOWN MUHAMMAD ALI. I MEAN THEIR BUILDINGS DOTTED AROUND IN THE HEART OF THE CITY. BIG, BEAUTIFUL BUILDINGS THAT ARE EMPTY, AND I BELIEVE I'M SAYING IT RIGHT IF YOU FACE DOWN ON MAIN STREET, YOU'VE GOT THE THREE BIG SCHNIEDER BUILDINGS THERE. I THINK THAT LAST ONE. I THINK HUMANA BASICALLY VACATED. IT COULD BE WRONG ABOUT THAT. BUT I BELIEVE I'M CLOSE TO ACCURATE ABOUT THAT. SO IT EVERYBODY'S FEELING IT. IT'S WHAT HAPPENED WAS, LET'S SAY WE WERE 88 90% OCCUPIED. COVID THEY SENT EVERYBODY HOME. AND SO FOR TWO YEARS NOBODY CAME TO WORK. THEN THEY SAID, HOW DO I INCENT PAT AND JEFF TO COME BACK DOWNTOWN, AND NOW THEY'RE DOING HYBRID WORK MODELS. YOU KNOW, FIVE YEARS AGO, NOBODY HAD ZOOM CALLS. NOBODY HAD WEBEX MEETINGS . NOBODY HAD COUNCIL MEN AND WOMEN SITTING UP ON THESE BOXES AND, UM, SO IT'S THAT'S REALLY IT. IT'S JUST IT'S THE EMPTINESS OF THE CITY AND CITIES. THEY NEED PEOPLE TO BE ALIVE AND THEY NEED WE GOT ALL KINDS OF STOREFRONTS ALL OVER THIS DOWNTOWN, WHERE WE NEED PEOPLE BUYING SANDWICHES OR BUYING A BEER AT FIVE O'CLOCK WITH THEIR BUDDIES OR OR, YOU KNOW, IT'S NOT JUST BOURBON TOURISTS, THEY MATTER A LOT. THERE ARE HUGE ECONOMIC ENGINE IN THIS TOWN,[00:25:04]
AND, UM AND ONLY GOING TO GET BIGGER. I BELIEVE, BUT I THINK IT IT'S COUNCILWOMAN. I THINK IT'S JUST THE REALITY OF ECONOMICS IN IN JEFF AND I WERE IN A MEETING. WE'VE SPENT THE LAST TWO DAYS YOU KNOW, ALL OF THE DEAD OF THE CITY GETS RAIDED BY OUTSIDE AGENCIES. THERE ARE THREE BIG ONES. ACTUALLY WE MET WITH MOODY'S YESTERDAY AND STANDARD AND POOR'S AND THE GOOD NEWS IS OUR CITIES. BALANCE SHEET IS IN TERRIFIC SHAPE. CITIES GOT A LOT OF ITS UNSPENT.AARP MONEY RIGHT NOW, BUT THERE'S OVER $700 MILLION CASH. WHAT CITY IS NOT OVERLY LEVERAGED. BUT YOU CAN'T LET THE VALUE OF THE PROPERTIES GO DOWN BECAUSE WE'RE KIND OF A WE'VE GOT OCCUPATIONAL TAX IN THIS TOWN AND WE'VE GOT PROPERTY TAXES AND VALUES GO DOWN, THEN THE REVENUE THAT WE ALL HAVE YOU ALL HAVE A PUBLIC SERVANTS DIMINISHES, WHICH MEANS WE GET TO INVEST LESS IN PUBLIC PLACES AND IN ALL THE NEIGHBORHOODS. AFFORDABLE HOUSING THAT COUNCILMAN P ARGENTINA JUST REFERENCED SO THAT THAT'S SORT OF THE POINT OF IT TO GET THE RISING CATCH. ALL THE BOATS LEFT, RIGHT AND I AGREE WITH THAT, AND I ALSO MY ECHO OFF OF MY COLLEAGUE ENTERTAINING BECAUSE I DO AGREE WITH IF THEY'RE IN. IF IT'S HOUSING, THEY'RE GOING TO FILL UP REALLY QUICK. SO YEAH, I CAN'T AGREE WITH THAT. SO YOU DEFINITELY WOULDN'T HAVE A PROBLEM WITH THAT. MY QUESTION IS WORD, DID THEY? WHAT DID IT WHY DID IT COME FROM? WHERE DID THAT IS IT JUST CAME FROM THE CAME JUST FROM THE HARSH ECONOMIC REALITIES. OKAY THAT'S WHAT I WORLD OF PEOPLE IN REAL ESTATE IN THIS TOWN. THEY MAKE THEIR LIVING RENTING OFFICE BUILDINGS . KIND OF. I MEAN, YOU KNOW, CAPITAL MARKETS GO UP AND THEY GO DOWN. WE'RE NOT THE CAPITAL MARKETS. JUST SO IF I'M ASKED YES, MA'AM. JUST I THINK THE FAIR ANSWER IS THE HARSH REALITY OF DOWNTOWN. IS THAT COVID? THERE'S GIVE YOU ONE INTERESTING FACT. UM BARED OVER HERE. THE BIG INVESTMENT BANK THAT TAKES UP THAT 500 WEST JEFFERSON BUILDING. THEY'VE GOT AN ARM OF THAT IT'S A NATIONAL RESEARCH ARM CALLED STRATEGIC GHOUS.
THEIR CHIEF ECONOMIST WAS IN LAST WEEK, AND HE WAS TALKING TO US AND THIS HAD NEVER DAWNED ON ME. THEY'VE GOT BAR GRASS THAT SORT OF FOLLOWED. THE RECESSION'S UP AND DOWN OVER TIME, AND YOU CAN GO TO FEBRUARY. UH, 20. THAT WAS THE LATE FEBRUARY WHEN COVID FIRST HIT MARCH OF 20. AND THE BOTTOM FELL OUT OF THE LABOR SUPPLY. NOT ONLY DID PEOPLE START WORKING REMOTELY BUT 4 MILLION AMERICANS. THIS IS CLOSE TO WRITE 4 MILLION AMERICANS LEFT THE WORKFORCE. THEY WENT HOME AND THEY HAVEN'T COME BACK. SO WHEN YOU HEAR ABOUT I CAN'T FIND TEACHERS THAT CAN'T FIND NURSES. JACKIE CAN'T FIND POLICE OFFICERS. IT'S BECAUSE THEY'RE NOT ENOUGH PEOPLE. THAT'S THE HARSH REALITY OF IT. AND WE'VE GOT TO MAKE FOR LOUISVILLE TO THRIVE. THERE'S SO MANY SIDES TO THIS UNIVERSITY OF LOUISVILLE IS SO KEY TO THIS BECAUSE THEY'VE GOT TO BECOME A TOP 25% INSTITUTION. SO THAT KIDS FROM ALL OVER AMERICA WHEN IT COME HERE. WE DON'T THINK ABOUT IT A LOT. DOCTOR COSBY'S INSTITUTION. THERE ARE ONLY 107 HBCU S IN AMERICA. EVERY HBCU IN ATLANTA. I WENT TO COLLEGE IN NASHVILLE. I TOOK CLASSES AT FISK, WHICH IS A HCB HBCU GOING BACK 100 YEARS . THE FIRST AFRICAN AMERICAN MEDICAL SCHOOL IN AMERICA IS AN HBCU IN NASHVILLE. AND THEY BRING HUNDREDS OF KIDS AND EVERY YEAR AND IT'S ALL I WANT IS HUNDREDS OF KIDS TO BE IT. SIMMONS COLLEGE AND I'D LIKE TO KEEP ABOUT 20% OF IN LOUISVILLE . GET HIM TO COME HERE. NOT TALKING ON ABOUT SIMMONS. NO DISRESPECT, BUT I JUST REALLY WANT TO APPRECIATE I APPRECIATE YOU BEING HONEST AND TRANSPARENT ABOUT IN ORDER TO THRIVE. THAT ANSWER MY QUESTION, AND THAT'S ENOUGH FOR ME. THANK YOU. THANK YOU. NEXT. WE HAVE COUNSEL INVENTION. THANK YOU, CHAIR. UM . THANK YOU, MR MALLOY AND JEFF FOR PUTTING US PLAYING TOGETHER . I HAVE SOME QUESTIONS, RIGHT? UM I AGREE THAT CONVERGENCE IS HUGE AND WE HAVE TO CONVERT AND WE HAVE TO MAKE THINGS MOVE, ESPECIALLY FOR OUR DOWNTOWN AND OUR CITY AS A WHOLE. UM I'M JUST I'M TRYING TO UNDERSTAND THE $3 MILLION FOR A SECOND, SO IF WE FIND A TENANT THAT'S COMING FROM INDIANAPOLIS, TEXAS, COLUMBUS, WHATEVER RIGHT AND THAT'S WHERE WE WOULD PREFER SOMEONE FROM OUT OF STATE. WE'RE GIVING THEM $30 A SQUARE FOOT AS AN INCENTIVE. UH TO 50,000 SQUARE FOOT MINIMUM OF THAT WHAT I'M READING IF THEY MAXED OUT. THAT'S A MILLION AND A HALF BUCKS ONE POINT TO HER $125,000 A MONTH IN RENT. IF THEY WERE AT $30, A SQUARE FOOT FOR 24. LET'S LET'S SAY ABC BANK FROM COLUMBUS, OHIO, SAID. I WANT TO RENT THREE FLOORS IN THE PNC TOWER. WE EVALUATE THE DEAL . FIRST OF ALL, YOU'RE GONNA HAVE TO TRUST THEM DISCRETION AMONG THE ECONOMIC DEVELOPMENT EXPERTS LIKE JEFF AND HIS TEAM AND OUR TEAM THERE, IT WILL CRAFT A CASH PACKAGE THAT WOULD PAY UP TO THAT MAXIMUM. THAT'S WHY WE USE THE WORD SLIDING SCALE. I WANT TO MAKE SURE THAT WE HAVE SOME DISCRETION, SO WE'RE NOT GIVING ONE PARTICULAR ORGANIZATION. THE WHOLE $3
[00:30:02]
MILLION WE CAN. THAT'S NICE. THAT'S BASED ON THERE'S NOT A STEP. THERE'S NOT A CAP, OKAY, THE WAY WE'VE DESIGNED, IT WOULD BE A GREAT PROBLEM TO HAVE. IF WE HAD THREE TENANTS. IT TOOK A BUNCH OF FLOORS AND WE GAVE ALL THE MONEY AWAY. RIGHT OKAY. AND IT WORKED. AND THEN WE'D BE BACK ASKING YOU FOR ANOTHER ROUND. UNDERSTOOD AND THEN THE RENTS ARE COMING FROM THE PROPERTY OWNERS, NOT NECESSARILY THE CITY. THE GOVERNMENT RATE. YEAH THE CITY. THE $30, A SQUARE FOOT IS FOR TENANT IMPROVEMENTS. AND SO WE WERE WHEN WE AS WE ARE DEVELOPING WHAT IS GOING TO WHAT WHAT ARE WE SEEING IN THE MARKETPLACE? WE ACTUALLY TALKED TO OUR COMMERCIAL REAL ESTATE BROKERS THAT WORK DOWNTOWN TO UNDERSTAND WHAT ARE THE COSTS AND T I PACKAGES THAT BUILDING OWNERS ARE ACTUALLY PUTTING TOGETHER FOR TENANTS. SO WHAT WE'RE PAYING FOR OUR CAPITAL IMPROVEMENTS GOT IT IN THE BUILDINGS WERE NOT PAYING TENANTS RENT. I DIDN'T UNDERSTAND. I GUESS THAT'S WHERE THE QUESTION. I WAS TRYING TO LEAD TO RIGHT BECAUSE IF WE'RE HANDING SOMEBODY $3 MILLION THAT'S ONLY COVERING 24 MONTHS, BUT $3 MILLION INTENDED IMPROVEMENTS CAN LAST 20 PLUS YEARS, AND THERE'S IMPORTANT LANGUAGE IN THAT WE WROTE IN THERE TOO CLOSE. I'M SORRY. THERE'S IMPORTANT LANGUAGE IN THERE, TOO. WE WROTE IN THEIR CLAWBACK PROVISIONS. SO LET'S SAY SOMEBODY CAME IN AND THEY LEFT THREE YEARS IN. WE'RE GONNA WRITE PROVISIONS IN THE DOCUMENTS HAVE CASH BACK, OKAY, AND WE MAKE THAT WE MAY HAVE THE TOOL TO PAY IT INCREMENTALLY MAPEI, SOMETHING AT SIX MONTHS A YEAR 18 MONTHS. I MEAN, THERE'S A MILLIO DIFFERENT WAYS TO STRUCTURE THIS. UNDERSTD. U I AGREE. YOU KNOW WHAT IS THE LANDSCAPE LOOK LIKE FROM YOUR OFFICE? UM ON WHAT DOWNTOWN LOOKS LIKE IN THE NEXT 5 10 20 YEARS. DO WE HAVE SUCH A MASTER PLAN OR IDEAL OF WHAT THAT CONVERGENCE LOOKS LIKE OVER THE NEXT 20 YEARS? UM, BECAUSE I AGREE WITH YOU. THE LONGER THE BUILDINGS SIT EMPTY. THE MORE IT'S GONNA COST TO MAINTAIN THEM EMPTY THAN IT IS. OPERATING RIGHT? I DON'T HAVE ALL THE MAGIC ANSWERS HERE TODAY, BUT THERE ARE THREE THINGS THAT ARE GOING ON THAT I THINK ARE REALLY IMPORTANT IN THE STATE RIGHT NOW. MAYOR IS DOING HIS STRATEGIC ECONOMIC DEVELOPMENT PLAN. YOU SHOULD HAVE THAT BY MID DECEMBER. UM ALL THINGS BEING EQUAL AND SIMULTANEOUSLY BARRY ALBERT'S HELPING REBECCA OVER THE DOWNTOWN PARTNERSHIP THEY'RE WRITING FOR THE CENTRAL BUSINESS DISTRICT, A NEW STRATEGIC PLAN, WHICH HADN'T BEEN DONE IN A WHILE. SECRETARY NOEL AND FRANKFURT HAS MACKENZIE IN BIG INTERNATIONAL CONSULTING GROUP, AND THEY'RE WRITING THEIR PLAN. AND SO YOU'RE GOING TO HAVE A FRESH LOOK AT HOW THE STATE DOES BUSINESS FRESH, LOOKING OUT, WE DO BUSINESS AND A FRESH LOOK AT HOW THE DOWNTOWN DISTRICT DOES BUSINESS. TWO CENTS IS THAT WE START FILLING SOME OF THESE OFFICE BUILDINGS BACK UP. AND WE GET A LOT OF THEM THAT ARE OBSOLETE, FILLED WITH PEOPLE LIVING THERE. AND WE PUT THESE THREE ORGANIZATIONS TOGETHER TO PUT THEIR COMPREHENSIVE PLANS TOGETHER. DOES IT COME TOGETHER AS ONE? OR WE JUST GONNA LET THIS PERSON WORKED ON THEIR PLAN? THIS PERSON WORK ON THEIR PLAN? HOW ARE WE GOING TO ORCHESTRATE THAT AND MAKE SURE THAT WE STAY ON TRACK? ONE OF THE MAYOR SENT BOOK? FIRST OF ALL, WE DON'T CONTROL THE DOWNTOWN PARTNERSHIP. IT'S ON BOARD AND WE FOR SURE DON'T CONTROL THE STATE OF KENTUCKY, SO YOU'LL HAVE THREE PLANS. BUT SECRETARY NOEL ALREADY HE AND I HAVE BEEN AND JEFF HAVE BEEN TALKING EVERY WEEK. THE MACKENZIE GUYS ARE COMING IN TO MEET WITH OUR CONSULTANTS. IN THE NEXT FEW WEEKS WE MET LAST WEEK. THE MAYOR DID FOR A FEW HOURS WITH BARRY ALBERT, WHO'S DRIVING THAT PROCESS FOR REBECCA. SO WE'RE GONNA WE'RE GONNA ALL GET TO COMMON GROUND. I BELIEVE AND THERE BUT IT'LL BE DIFFERENT AREAS OF FOCUS. I'M SECRETARY KNOWLES GOT TO GROW JOBS IN LARUE COUNTY, AND HE'S GOTTA GROW JOBS IN LOUISVILLE AND REBECCA'S GOT TO GROW IN THE CENTRAL BUSINESS DISTRICT, AND WE'VE GOT TO GROW THEM FROM MIDDLETOWN. ALL THE WAY TO RIVER PORT ALL THE WAY DOWNTOWN. SO THANK YOU LAST QUESTION. IF IT'S IF IT'S OKAY, JUST TOTALLY, I THINK NOT NECESSARILY OFF SUBJECT BUT KIND OF ON THE SAME LINE IF WE HAD A GUEST INMATE, UM HOW MANY VACANT QUOTE UNQUOTE OFFICE SPACES. THERE ARE DOWNTOWN. AND HOW THEY CAN CONVERT INTO HOUSING UNITS. HOW MANY WOULD THOSE BE? IT IS LOADED. I'LL JUST TELL YOU WHAT I THINK. WHAT? I'LL TELL YOU WHAT I KNOW WE HAVE ON THE BOOKS RIGHT NOW. JUST IN TERMS OF PROJECTS WE'VE TALKED TO. I THINK WE HAVE ABOUT WE HAVE TO, UM, HISTORIC OFFICE TOWERS THAT ARE ALL THREE OF THEM THAT ARE BEING CONVERTED. UH TWO OF THEM HAVE A RESIDENTIAL COMPONENT IN THEM, UH, THAT I THINK THAT THE TOTAL RESIDENTIAL UNIT COUNT THERE IS ABOUT 400. I THINK IF WE LOOK TO SOME OF OUR OTHER, UM ARE OTHER BUILDINGS THAT WE HAVE IN DOWNTOWN. I THINK THERE IS A LANDSCAPE FOR, UM FOR MORE. BUT THE HISTORY BIG HISTORIC OFFICE TOWERS OR WHERE YOU'RE GOING TO GET THAT THE BLOOD OF THAT. I THINK THERE'S SOME SMALLER OFFICE TOWERS AROUND THAT YOU'LL SEE GO TO YOU KNOW 20 OR 30, OR MAYBE 50 UNITS IN SOME PLACES. THERE'S A LOT OF THOSE THAT THAT WAS KIND OF THE HISTORIC TREND OF CONVERTING. UM A LOT OF THOSE COMMERCIAL BUILDINGS DOWN FOURTH STREET THEY HAVE LOST ON THE ON THE 2ND AND 3RD FLOOR OF THOSE BUILDINGS. AND SO I THINK THERE'S A NUMBER OF THOSE OPPORTUNITIES TO SO I JUST THINK IN THE HISTORIC THERE'S PROBABLY SOMEWHERE IN THE NEIGHBORHOOD OF[00:35:01]
YOU KNOW, 500 TO 1000 UNITS THAT ARE OUT THERE AND THEN WE HAVE THE SPACE. OF COURSE, WE'RE TALKING ABOUT THE FISCAL COURT BUILDING AND THE PROPERTIES THAT WE THAT METRO OWNS THAT ARE PARKING LOTS CURRENTLY, SO THERE'S ANOTHER UNIVERSE OF CONVERTING THOSE. THOSE, UM THIS PARKING LOTS TO SPACE, AND THAT TAKES BUILDING UP MOMENTUM. SO I JUST THINK IT'S AS PAT MAGES DEPUTY MAYOR MENTIONED A LITTLE BIT AGO. IT'S REALLY ABOUT EXPANDING THE UNIVERSE OF TOOLS THAT WE HAVE. TO ADDRESS, UM, DOWNTOWN. AND AS YOU ALL KNOW, DOWNTOWN'S ABOUT SOME OTHER CONSTRAINTS ON IT. THE ARENA TIVE RESTRICTS THE STATE TOOLS THAT WE CAN ACTUALLY USE DOWNTOWN, WHICH DOES PUT IT AT A SLIGHT DISADVANTAGE. WHEN WE THINK ABOUT HOW WE GO IN AND GET BUSINESSES TOGETHER, BUT I THINK THAT THIS IS AN INNOVATIVE AND REALLY PILOT WAY TO TEST HOW CAN THE CITY INVEST IN ITS DOWNTOWN THAT WE'VE THAT WE'VE CONTINUALLY INVESTED IN FOR THE LAST THREE DECADES. WE THINK ABOUT WATERFRONT PARK OR WEST MAIN STREET OR THE KENTUCKY SCIENCE MUSEUM. THOSE SORTS OF THINGS THAT WE'VE HAD A MAJOR HAND AND SO I THINK THAT, UM, JUST KIND OF LOOKING AT A RANGE OF TOOLS AND USING INNOVATIVE TOOLS AND THINGS WE HAVEN'T DONE BEFORE IS GOING TO BE IMPORTANT BECAUSE AGAIN WORD CITIES AROUND AMERICA ARE DEALING WITH THIS IS PAT SAID WE'RE ABOUT WE'RE YOU KNOW 70. WE'RE 25 26% VACANCY IN OUR OFFICE TOWERS. THAT'S PROBABLY REMOVING SOME OF THOSE HISTORIC OFFICE TOWERS AND PEOPLE KNOW OUR WERE B AND C CLASS SPACES THAT ARE RIPE FOR CONVERSION. SO IT'S PROBABLY FUNCTIONALLY A LITTLE BIT MORE THAN THAT. AND THE OTHER THING I KNOW. COUNCILMAN HAWKINS HAD ASKED US EARLIER. YOU KNOW, WE ARE. THE TREND THAT WE'RE SEEING RIGHT NOW IS A LOT OF THESE LEASES ARE COMING. DO THESE FIVE YEAR LEASES ARE COMING DUE, SO WE'RE SEEING TENANTS ACTUALLY DOWNSIZED THAT THAT NUMBER IS GOING TO GO UP. WE'RE NOT GOING FROM 4% TO 30% VACANCY LIKE THEY ARE LIKE THEY SAW IT ON LIKE WE'RE SEEING IN SAN FRANCISCO. BUT WE ARE SEEING AN UPTAKE AND WE EXPECT TO SEE A LITTLE BIT MORE, ALTHOUGH I THINK THERE IS SOME STABILIZATION IN THE MARKET, BUT WE NEED TO. WE NEED TO BE THINKING ABOUT WHAT THESE TOOLS ARE. I THINK THIS IS JUST 11 WAY TO TEST THE MARKET. SEE, WHAT CAN WE DO TO HELP OUR DOWNTOWN? ONE THING WE DIDN'T TALK ABOUT IT. I WANT IT. I WANT TO MENTION THIS BECAUSE WE HAVEN'T MENTIONED THIS YET. AND THIS IS IMPORTANT AND THIS IS DIRECTLY TO CHAIRMAN P. ARGENTINA'S COMMENT ABOUT OTHER OFFICES WE KNOW AROUND THE COUNTY WE HAVE OTHER OFFICE PARKS. THAT ARE STRUGGLING SUBURBAN OFFICES ARE STRUGGLING TO GET TENANTS TO. THEY'RE FACING THE SAME TRENDS THAT THE DOWNTOWN IS AND SO WE'RE NOT IMMUNE TO THAT ONE THING WE WANTED TO TALK ABOUT WITH COUNCIL TODAY. THIS IS NOT PART OF OUR $3 MILLION PACKAGE. BUT AS WE TALKED WITH THE STATE ABOUT, UM, WAYS THAT WE CAN INCENTIVIZE BUSINESSES TO COME TO KENTUCKY KNOWLEDGE BASED BUSINESSES TO COME TO KENTUCKY.IS THERE AN APPETITE FOR METRO COUNCIL TO TALK ABOUT USING OUR OCCUPATIONAL TAX? OUTSIDE OF THE KB TOOLS OR OTHER TOOLS THAT WE USE AS PART OF THIS COMMITTEE AND AS PART OF METRO COUNCIL TO TRY TO ATTRACT THOSE KNOWLEDGE, WORKERS AND ALL OF OUR OFFICE PARKS, NOT JUST DOWNTOWN, BUT ALL OF OUR OFFICE PARKS THROUGHOUT THE COUNTY. IT'S WE HAVE NOT DONE ANY ANALYSIS ON IT. UM WE EXPECTED THAT WE WERE GOING TO GET THAT QUESTION ABOUT. UM HOW DO WHY DO WE FAVOR DOWNTOWN OVER HER STUBBORN OR OR OR BLANK AND BAKER STATION OR ANY OTHERS OTHER ON ANY OF THE OTHER GREAT OFFICE PARKS WE HAVE AROUND THE COUNTY. UM AND SO WE WERE JUST TRYING TO BE INTENTIONAL ABOUT THIS. HOW DO WE STEP OUT AND SHOW THAT HEY, THIS THIS GREAT CITY IN ORDER TO GET THE TALENT THAT WE NEED TO GET IN THE CITY AND THE KNOWLEDGE WORKERS WE NEED TO GET SHOULD WE THINK ABOUT, UM, USING OUR LOCAL OCCUPATIONAL LICENSE FEE FOR NET NEWS? SO AGAIN, NOT GAMBLING SOMETHING WE ALREADY HAVE THIS A TRULY BE TO GET SOMETHING NEW INTO THE END OF THE COUNTY COULD BE FROM THE REGION OR FROM THE OTHER PARTS OF THE STATE. WE DON'T WANT TO SEE THAT. WE WANT TO SEE PEOPLE COMING FROM OTHER STATES. BUT WE WANTED TO GAUGE THE APPETITE FOR SOMETHING LIKE THAT, TOO, AND WE CAN GO BACK AND DO SOME MORE ANALYSIS WITH THE REVENUE COMMISSIONER. NO DIRECTOR BAKER SITTING BACK HERE AND VERY INTERESTED IN THAT CONVERSATION.
GOOD. THANK YOU, UM YEP, JUST A QUICK COMMENT. I'LL TELL YOU I HAVE MY REAL ESTATE LICENSE. I FOCUS ON COMMERCIAL REAL ESTATE ARE INVOLVED WITH DOWNTOWN BECAUSE IT'S JUST SO HARD TO MOVE PARTICULARLY LEASED SPACE. MEANWHILE MULTI FAMILY HOUSING IT'S RENTED SOMETHING LIKE 97% COUNTYWIDE. I MEAN, BASICALLY, IF YOU CAN FIND IT, YOU GOTTA JUMP ALL OVER IT BECAUSE IT'S THAT RENTED. THAT'S WHY THESE CONVERSIONS. THAT'S WHY I'M NOT SWEATING THEM FILLING UP THE FILL UP IN ABOUT 10 SECONDS. YOU KNOW THE PROBLEMS THEY'VE GOT. THE ECONOMICS ARE JUST TOUGH.
YOU GO INTO ONE OF THESE OLD OFFICE BUILDINGS. YOU KNOW, IT'S $100 A SQUARE. IT'S TOUGH, ECONOMICALLY. COUNCILOR MAKER. FINAL JUST FINAL COMMENT IF THAT'S OKAY, SORRY, AND NO SORRY. I SOUND I FEEL LIKE YOU. YEAH YOU'RE GONNA GET A CHAIR. IF YOU WOULD LIKE ME TO CAN I DEFER ONE QUESTION TO COUNCILOR RASHAAN, BRING IT BACK. HOW DO WE, YOU KNOW JUST SOMETHING TO THINK ABOUT. THIS IS IT'S NOT YOU'VE DONE ON YOUR NO ANSWER ON THIS, BUT HOW DO WE SET BARRIERS
[00:40:02]
WITH THIS CONVERGENCE FROM? 4020 WE DID SO WELL ABOUT BUILDING DOWNTOWN UP AND CONVERTING IT TO WHERE IT WAS. AND THEN COVID HAPPENED AND SO ON AND SO FORTH, AND THEN WE LOST IT ALL. THE BOTTOM FELL OUT, RIGHT? HOW DO WE SET BARRIERS TO MOVE FORWARD AS WE INVEST ALL THESE DOLLARS AND ALL THIS MONEY AND ALL THIS INFRASTRUCTURE INTO REVITALIZING DOWNTOWN AGAIN? AND KEEPING IT.FOR 40 50 6100 YEARS RESPECTFULLY, I WOULD SAY WE DIDN'T GO ALL THE WAY BACK TO 2000 BECAUSE IN 2000 NEWLY WASN'T BOOMING AND THRIVING THEIR WHOLE AREAS OF TOWN THAT ARE NOW BOOMING AND THRIVING. WE DID TAKE A BUNCH OF STEPS BACKWARDS. I GET THAT THE ONE QUESTION JEFF AND I GET ASKED. WE HAD THREE OR FOUR TIMES A WEEK. WE GET SOMEBODY IN THERE FROM OUT OF TOWN NASHVILLE GUYS IN THAT ATLANTA CREW WERE IN HERE THE OTHER DAY, LOOKING AT A TERRIFIC HOUSING, MULTI USE SITUATION IN THE WEST SIDE OF LOUISVILLE AND THEY WANT TO KNOW ABOUT THE TOOLS AND THEY WANT TO KNOW. SHOULD WE COME TO LOUISVILLE AND TAKE THE RISK? WHICH IS WHY MY RESPECTFUL MESSAGE AND CHALLENGE WOULD BE FOR ALL OF US. IT'S NOT A TIME TO TAKE STUPID RISKS, BUT IT'S THE TIME TO BE INTENTIONAL. AND LET'S TAKE SOME RISK. I PROMISE YOU, WE WILL MAKE SOME MISTAKES WILL SCREW UP. YOU KNOW, WE'LL PUT SOMETHING IN A DEAL THAT DIDN'T TURN OUT THE WAY WE ALL THOUGHT IT SHOULD. BUT I'D RATHER DO THAT THAN SIT ON OUR HAND QUARTERS AND NOT DO ANYTHING. LOUISVILLE HAS GOT SUCH A TERRIFIC FOUNDATION AND THE CONSULTANT WE HIRED FROM INDIANAPOLIS. HE SAID. YOU'RE POSITIONED RIGHT NOW.
INDIANAPOLIS'S IT'S SORT OF THE UPPER LIMITS OF ITS GROWTH. I LIVED IN NASHVILLE SEVEN YEARS AND IT'S A HECK OF A TOWN. BUT YOU CAN'T GET AROUND ON THE INTERSTATE. YOU CAN'T BUY A STARTER HOME THERE. THE ECONOMICS OF THE TOWN ABOUT STRIPPED THE FIRST HOMEBUYER AND LOUISVILLE IS STILL SITTING HERE , RIGHT? WE DON'T THE MAYOR SAYS THIS A LOT. I DON'T NEED OUR DOWNTOWN STREETS COVERED WITH GAZILLION PEOPLE RUNNING FROM BAR TO BAR EVERY WEEKEND, AND YOU CAN SEE THAT NASHVILLE BUT WE HAVE AN AUTHENTIC TOURIST BASE, A GREAT HISTORY HERE. AND WE OUGHT TO BUILD OFF THAT. I THINK NOW'S OUR TIME. I REALLY DO BELIEVE THAT AND THIS IS $3 MILLION. IT'S THAT'S A LOT OF MONEY, AND WE'RE NOT GONNA BE RECKLESS WITH IT. BUT LET'S PILOT IT IS JUST SAID, LET'S SEE WHAT WE CAN GET DONE WITH IT. COUNCILMAN BAKER. HEY AND AGAIN . WELL, THANK YOU CHAIR. UH I JUST KIND OF WANT TO ECHO. UH WHAT DEPUTY MAYOR MALLOY, JAPANESE SAYING TO MY COLLEAGUES , AS YOU ALL KNOW, I PLAYED FOR TENNESSEE STATE ATTENDED AND GRADUATED BAND DOWN THERE AT THE CRACK OF WHAT YOU'RE TALKING ABOUT, HARRY. BUT ON THE BIG PICTURE, AND THE REALITY IS WE NEED OUR DOWNTOWN TO THRIVE. NOW I AGREE. WE NEED TO LOOK AT, UM AS SOMEONE WHO REPRESENTS. LOUISVILLE HAS A MIXED USE DEVELOPMENT. WE GOTTA START DOING FORWARD THINKING AND SO I JUST WANT TO ECHO AND THANK YOU ALL FOR THE WORK YOU HAVE TO DO, BUT THIS IS THE REALITY THAT WE HAVE GOING FORWARD. A LOT OF YOU ALL KNOW, MY FAMILY HAS INSURANCE BUSINESSES ON FOURTH AND BROADWAY, THE HEBER BUILDING, WHICH IS ON THE TIP OF IT, AND ACROSS 10 YEARS AGO WAS BROWN BROTHER SCOTT LACK. AND WHEN YOU GO IN THAT BUILDING TODAY, UM I I'D LIKE YOU TO REVISIT THE NUMBER BECAUSE I THINK IT'S A MORE SOBERING PICTURE THAN WHAT YOU GOT, YOU KNOW, BEING A LOT OF PEOPLE PAYING RENT ON SPACE AND THEY'RE WORKING. YOU GOT THAT GOING ON TO? YES SO, UH, I MEAN, JUST AS A COUNCIL, YOU KNOW, I JUST CHALLENGED WE'RE GOING TO HAVE TO HAVE FORWARD THINKING AND IN DO INNOVATIVE WAYS TO AT LEAST GET OUR FRIENDS TO COME BACK OUR PEERS, OUR CHILDREN, OUR GRANDCHILDREN, BECAUSE IF WE DON'T WE'LL JUST CONTINUE TO BE STAGNANT AND IT'S AND IT'S NO REASON. LIKE YOU SAID. WE'RE SITTING ON A JEWEL HERE, BUT WE BUT WE HAVE TO GIVE THE FREEDOM TO THESE GUYS TO DO THE WORK. SO I JUST WANT TO JUST WANT TO THANK YOU FOR THE WORK THAT YOU'RE DOING THAT TYPE OF THINKING WE ARE GOING TO MAKE MISTAKES, BUT WE DO HAVE TO START SOMEWHERE. AND THEN ALSO TO MY COLLEAGUE'S POINT. I JUST WANT TO PUT FOR THE RECORD DISTRICT SIX IS ALWAYS OPEN FOR COMMERCE. I'LL JUST LEAVE IT AT THAT. VERY WELL. I DON'T HAVE ANYBODY ELSE IN THE CUBE, AND I'LL JUST CHECK. THANK YOU QUESTIONS, COMMENTS. THANK YOU VERY MUCH. DEPUTY MAYOR, CHIEF.
WHAT'S YOUR? WHAT'S YOUR TITLE NOW? EXECUTIVE DIRECTOR. OKAY KID CAN'T KEEP UP WITH IT.
THANKS VERY MUCH FOR COMING TODAY, AND THAT'S THE ONLY ITEM ON THE AGENDA SO WITHOUT
[Adjournment Note: Agendas are followed at the discretion of the Chair. While an item may be listed, it does not mean all items will be heard and/or acted upon by the Committee.]
OBJECTION, WE WILL BE ADJOURNED. THANK YOU.* This transcript was compiled from uncorrected Closed Captioning.