LOCATION
Lexington, Kentucky
PROJECT HIGHLIGHTS
Market and feasibility analysis of various land uses: hotel and spa, condominium residences, office, retail, restaurant, and parking
Economic and fiscal impact analysis of the development
Projections of Tax Increment Financing (TIF) revenue that will potentially be available to support TIF-eligible costs of the development
Jobs analysis using IMPLAN
PROJECT DESCRIPTION
Johnson Consulting, Inc. was retained by CentrePointe, LLC to perform a market, feasibility, and economic impact analysis of the proposed CentrePointe mixed-use development in Lexington, Kentucky to support the developer’s application for Tax Increment Financing (TIF) funding from the Commonwealth under its Signature Project Program.
The proposal was for a 1.7-acre mixed-use development in downtown Lexington that included 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. The total development cost was estimated at $205 million.
Johnson Consulting performed market analyses for each of the land uses, developed demand and financial projections, by land use; and projected economic and fiscal impacts, by parcel. With support from CentrePointe, LLC, Johnson Consulting established baseline tax revenues from the existing site “as-is,” and estimated the TIF revenues that would potentially be available over the time to support up-front, TIF-eligible costs of the development. The Development was stalled by the most recent economic downturn. Construction of the parking garage recently commenced although the timing of the overall development is still unknown.
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