Louisville City FC's stadium project takes another step forward as state approves tax-increment financing

Louisville City FC's plan to build a soccer stadium district in the Butchertown neighborhood took another step forward Thursday as the state gave preliminary approval to subsidize the development through tax-increment financing.

Louisville Metro Government submitted an application on behalf of the soccer club to create a 20-year tax-increment financing (TIF) district for the $193.1 million project.

The city's proposal estimated the project could have a total economic impact of $3.8 billion and generate $122.9 million in state tax revenues and $33 million in local tax revenues over the 20-year period.

The Kentucky Economic Development Finance Authority (KEDFA) board voted Thursday to approve the TIF proposal on a preliminary basis. The organization's cabinet will hire an independent, outside consultant to complete its own tax revenue projection, which will be used to determine what percentage of that revenue to make available as incentive to a developer.

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The plan will then go back to the KEDFA board for final approval, which is expected in May.

"We're very pleased and we're looking forward to the next stage," Laura Ferguson, assistant director of Louisville Forward, said in an emailed statement.

The 37-acre mixed-use development is to include a 10,000-seat stadium and two hotels with 308 combined rooms as well as 20,000 square feet of retail space, 50,000 square feet of restaurant space and 340,000 square feet of office space.

Louisville City FC must be playing in a soccer-specific stadium by March 2020 in order to remain a member of the United Soccer League. Construction on the stadium is expected to begin by summer, but club and city officials previously said they will not wait until the TIF's final approval to break ground on the site.

In the meantime, Louisville City FC is working to clean up the properties, one of which formerly housed an oil tank company, and to secure tenants for the future restaurants, hotels and offices.

"We've got a lot of work to do still but we are obviously very excited to get through this first step," said Brad Estes, Louisville City FC's executive vice president.

Louisville Metro Government is leveraging a $30 million bond to partially fund the project. The city paid $24.1 million for four pieces of land for the development and will use leftover money for infrastructure improvements.

The deal approved by Metro Council says club owners must spend at least $130 million in private capital on the development, including $45 million on the stadium itself.

Danielle Lerner: 502-582-4042; dlerner@courierjournal.com; Twitter: @Danielle_Lerner. Support strong local journalism by subscribing today: www.courier-journal.com/daniellel