Lexington, KY - If voters on the Web site StimulusWatch.org had anything to say about it, the Lexington Distillery District would be the first in line among the myriad of national projects vying for government stimulus funding.
The Web site, created by independent developers to let citizens weigh in on proposed stimulus project proposals, allows page users to vote on whether or not each individual project is critical in nature. The site tallies the "yes" and "no" votes and allows them to offset each other, resulting in a cumulative positive or negative score, or "vote ratio." As of Monday, April 13, the site's vote ratio for the $15 million public improvements to Lexington's Distillery District was 1,140, the most favorable of all the stimulus projects listed, not only for Kentucky but nationwide.
Whether that stands as an objective grassroots validation of the project's worth or a testament to the rallying capabilities of Distillery District advocates, it does indicate a growing contingent willing to register their support in tough economic times for the Manchester Street development. The Distillery District initiative, which has been discussed publicly since early 2007, also currently boasts a Facebook page with more than 2,500 members and growing.
The proposed redevelopment includes plans to revitalize the blighted properties near downtown along Manchester, just west of Rupp Arena, as an arts and entertainment district. The redevelopment plan for the area, which serves as a corridor to Old Frankfort Pike, capitalizes on Manchester Street's history as the former home of the city's substantial bourbon distilleries.
The project is in the final stages of its TIF application process, according to developer Barry McNees. Completion of the independent consultant's report is expected by the end of May, with a final vote from the Kentucky Economic Development Finance Authority (KEDFA) anticipated as early as this June. While he acknowledged the current less-than-opportune economic conditions, he said he considers the timing critical, in terms of both the economic need for "shovel-ready" stimulus and the coordination of Manchester infrastructure investment with the Newtown Pike Extension (NPE) project currently underway. Manchester Street will serve as a "key intersection" for the soon-to-be-constructed extension, according to the NPE plan.
"Out of all the TIFs in Kentucky, this is the first 'Mixed-Use Redevelopment of a Blighted Area TIF,'" said McNees. "It promises to leverage an infrastructure investment through authentic heritage and tourism so far that it's a clear case for the net economic benefit."
As the possible approval of the project's TIF application approaches, McNees is exploring the possibility of using its TIF status to reimburse stimulus funding dollars that might be invested on Manchester for public infrastructure improvements. Theoretically, this scenario would enable the stimulus funding to serve double duty, by funding the Distillery District now and additional projects through the potential TIF reimbursements in the future. The possible use of stimulus money coordinated with TIF reimbursements is uncharted territory and still only speculative. However, other TIF projects, including the Bowling Green Ballpark, have had infrastructure funded at least in part through public investment, with stipulations made for possible future TIF reimbursement, said John Farris, former secretary of Kentucky's finance and administration cabinet and a consultant to McNees.
"The goal of the TIF project is to pay for the public infrastructure," Farris said. "There's more than one way to skin a cat."
LFUCG Communications Director Susan Straub said the possibility of leveraging stimulus funds by investing in a Lexington Distillery District TIF area has been discussed with the mayor, and in terms of the use of stimulus dollars for the project, she pointed to the $12 million in Recovery Act funding committed by the state and the Urban County Government's transportation planning agency to the Newtown Pike Extension from Main Street to Versailles Road, which directly benefits the Distillery District project. Beyond that, however, McNees's interest in leveraging stimulus money with TIF reimbursements may be a moot point, because the availability of stimulus funding for the project has yet to be identified.
"We are not aware of the Distillery District having any public infrastructure projects that are eligible for Recovery Act funding because none of the public infrastructure projects have been designed and, therefore, cannot meet the tight timelines set under the stimulus legislation," Straub said. "However, if the developers become aware of any Recovery Act funding for which the Distillery District is eligible, we will be glad to work with the developers to evaluate their request for possible funding."
In terms of private development, McNees said, the project is preparing to move forward. McNees is in the process of pursuing possible historic tax credits and plans to renovate the five-story, 210,000-square-foot Pepper Distillery warehouse, with a planned civic component of a Multi-Tenant Nonprofit Center and bourbon museum in the distillery proper. Fit-up is also underway at the Old Tarr Distillery to add a 1,000-capacity rock hall to the location's upcoming bar, Buster's. All in all, the development would be in the position to meet the $20 million threshold of the TIF over the next year, McNees said - if the public infrastructure improvements can be funded.
"Right now there's a lot of money on the sidelines waiting," McNees said. "What we need is a champion to help us connect the dots of public infrastructure."