Lexington, KY -
The Manchester Street Distillery District was officially designated as an historic area today, as Mayor Jim Newberry and local developer Barry McNees unveiled a new state historical marker at the intersection of Manchester and Pine Streets.
The marker recognizes the district, which represents Lexington's oldest industrial area, as the site of the former Pepper Distillery, originally started in 1869 by the Headley and Farra Company. The facility continued to operate under the James E. Pepper Company beginning in 1879 and was purchased by Schenley Products in 1933 before closing in 1962. All in all, Manchester Street served as a major whiskey-producing district for more than a century, and in recent years, it has become the site of a slowly developing arts and entertainment revival, as the home of local businesses such as Buster's Billiards & Barroom and Barrel House Distilling Co.
Councilmember Tom Blues recognized the area not only for its historical significance but also for the possibilities it has created for the future, particularly in terms of economic development. Blues, whose district includes Manchester Street and the surrounding communities, said that nearby neighborhoods such as Irishtown and Melrose/Oak Park have raised some concerns about the development, primarily related to noise, parking, and the possible gentrification of the historically working-class community. But Blues said, in light of the opportunities that the Manchester Street project offers for both his district and Lexington as a whole, those are challenges that he and the community are willing to address.
"On the one hand, people can see the potential for this revival," Blues said, "but there are some challenges that I think we have to face. Ö We will have to address ways that we can make this development compatible with the neighborhoods that we have."
Blues also recognized the Distillery District project as "a powerful example of what tax increment financing (TIF) could do."
In October, the state approved the district for up to $45.6 million in TIF reimbursement to the city. Shortly thereafter, the City Council approved $2.2 million in bond funds for projects related to the Town Branch Trail and Manchester Street improvements.
Today's historic marker unveiling was not the first recognition of the area's historical significance. The Pepper Distillery was listed on the National Register of Historic Places last February, and McNees is currently seeking historic tax credits for the renovation of the Pepper Warehouse on the west end of the district. The credits, which have already been approved by the Kentucky Heritage Council, according to McNees, would make the project eligible for federal tax credits equal to up to 20 percent of the rehabilitation costs.
The Distillery District project has also garnered the attention of the National Brownfields Association, having been chosen as one of 14 projects to offer a recent presentation to the association. As a result, McNees said, he has seen some interest from group members in possible future co-development in the district.