Center City Project In Jeopardy

LOUISVILLE, Ky. -- Mayor Jerry Abramson said Friday a developer working on a downtown entertainment complex is moving on to other projects in light of questions raised by Metro Council.

Cordish Center City Letter
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Baltimore-based Cordish Co. has signed a lease agreement with Metro Louisville to develop and operate an entertainment complex called "Center City" on an empty plot of land between Second and Third Streets, and Liberty and Ali.

Thursday, the council was to vote on whether to purchase property on which the complex will sit. But, because of concerns about the level of investment the company will make and about taxpayer protections if the project doesn't take off, council members delayed the decision another two weeks.

"We're giving this developer $36 million in cash and land, and in return, they only had to invest $12 million of their own money in Louisville," said Councilman Hal Heiner Thursday. "There are just so few taxpayer protections that this needs to be stopped."

Abramson said Friday he's received a letter from the company expressing concerns about the delay.

"We were disappointed that Metro Council did not take action on the proposed Center City development at last night's meeting," said a letter from Blake Cordish, senior vice president of the company. "The Center City development agreement was painstakingly negotiated over an extended period of time. In addition, in good faith, we agreed to last minute modifications requested by the Council."

Cordish wrote that without council support, "we have no choice but to turn our focus to other markets that desire our expertise and capital, and understand the dynamics of complex public private partnerships....we had reserved and committed resources and cash to make Center City a reality in a financing market that demands enormous cash equity by the developer. We cannot hold these funds and resources for Center City any longer and reluctantly will move them to other opportunities."

Abramson blasted the council's inaction.

"The nation's top downtown developer wants to invest between $200 million and $430 million in our city and create 3,000 construction and permanent jobs, yet the Metro Council has turned its back on them," Abramson said in a statement Friday. "This is a sad turn of events after more than two years of planning and partnership to bring this project to reality."