Distillery District disaster averted

by

In the Distillery District, good intentions -- and $85,000 worth of asphalt -- apparently paved the way to an agreement that avoids a disastrous revocation of liquor licenses in the young but thriving entertainment district.

“This was us trying to look into our crystal ball a few years back,” said Lexington developer Barry McNees. “We had made a commitment that by December 2016 ... to pave the lot on behalf of all the other owners there. That’s when we thought we’d have the need for it. So this parking lot has been a victim of our success.”

The parking lot in question, for the uninitiated, is as yet unpaved. And exceeding McNees’ initial prognostications, crowds flocked to the area and business after business opened. The rub came when several of those businesses received conditional occupancy permits from the city that contained language requiring hard top parking much quicker.

On Monday, a hard deadline came. Failure to pave it as required, Derek Paulsen, commissioner of the city’s Department of Planning, warned developers early Monday, could result in the matter being turned over to the Alcohol Beverage Control Office, which could then move to revoke licenses. By midday, though, Paulsen had a contract in hand.

“We were trying to work with them, and they were trying to work with us,” said Paulsen. “But at some point, by trying to give them a firm deadline, it helps.”

McNees said the work will cost $85,000.

“Financing blacktop isn’t easy,” he said. “We were fortunate in working with local entities Bank of the Bluegrass & Trust and C&R Asphalt to get this done.”

McNees purchased the 47,000-square-foot former King’s Food Warehouse at 903 Manchester Street more than a decade ago. Since then, the 27-acre tract just west of Rupp Arena and downtown has emerged as a creative and inspired entertainment-oriented zone. Among the business that now call the district home are Barrel House Distillery, Ethereal Brewing, Middle Fork Kitchen Bar and Break Room.

Property owner and metal artist Tony Higdon said when he and partners bought into the district in 2013, the real estate contract with McNees included a provision that the lot would be paved by 2016. Higdon agreed that the parking issue is a result of the city’s unexpectedly quick embrace of the district. He said he and others expected more gradual growth in popularity, but that the number of visitors (and some complaints about car damage) spurred the city to demand a quicker timetable for the parking lot.

“We’ve had some complaints about the parking lot. We had no idea the space would be so popular so fast, so we’re playing catch up,” he said.

City ordinance requires businesses have a certain number of hard-top lined parking spaces. Paulsen said many of the businesses in the district were given conditional occupancy permits back in April. Paulsen said the city saw a benefit to letting the business open and get money flowing before insisting on the paved lot.

“I really do believe by getting those businesses open, it made it easier to see the area as viable,” Paulsen said. “For lenders as well, they can see this place is packed. If you were trying to get a loan to do paving a year ago, you’d have a much harder time convincing them.”

For a variety reasons, though, the issue sat unresolved. Paulsen said a deadline of Monday for having a contract was met. He said earlier in the day he had sent an email to McNees and others warning that if they failed to address the issue, it could eventually result in liquor licenses being revoked. By afternoon Paulsen said he had a signed contract in hand and that the next deadline for work getting done would be Sept. 17.

Higdon praised McNees for being willing to step up his planning for the parking lot. Noting that the real estate contract he signed with McNees included a provision that the lot would be paved by 2016, Hidgon said the developer is going out of his way for the district’s businesses.

“He’s stepping up to keep the area going,” Higdon said.

Tags

by