C.H. Johnson Consulting, Inc. was retained by CentrePointe, LLC to perform a market, feasibility, and economic impact analysis of the CentrePointe mixed-use development in Lexington, Kentucky to support CentrePointe’s application for Tax Increment Financing (TIF) funding from the Commonwealth under its Signature Project Program.
The project is a 1.7-acre mixed-use development in downtown Lexington that includes a 249-room JW Marriott Hotel with a 14,300 square foot Spa; 80 condominium residences above the hotel; 89,100 square feet of net leasable office space; 14,700 square feet of specialty restaurant(s); 22,600 square feet of net leasable street-level retail; and a 600-space underground parking garage. Total development cost is $205 million.
In this engagement, C.H. Johnson Consulting performed market analysis of each of the land use that is proposed; developed demand and financial projections for the development, by land use; and developed economic and fiscal impact analysis of the development, by parcel. With supports from CentrePointe, LLC, C.H. Johnson Consulting established a baseline tax revenues from the existing site, “as-is.” Finally, based on the baseline tax revenues and the projected fiscal benefit, C.H. Johnson Consulting estimated the amount of TIF revenues that will potentially be available overtime to support up-front, TIF-eligible costs of the development.