The Baltimore-based Cordish Companies has been given an extension in its planned expansion of 4th Street Live in downtown Louisville.
Cordish has until the end of 2012 to begin its 30-year period of collecting tax incentives on the Center City development. Those tax incentives, however, mainly apply to sales tax collected in the restaurants and retail establishments in the finished development. Because Cordish will not likely finish the project by the end of 2012, the company may lose several years of potential incentives.
Because of that, Louisville Economic Development Director Bruce Traughber says he doesn’t think the extension will significantly delay the project’s completion.
“There isn’t a deadline for completion,” he says. “They’ll complete it as quickly as they can because if they don’t earn tax dollars they can’t be repaid tax dollars.”
The project is on hold until bond markets improve, and Traughber says he’s convinced Cordish is dedicated to the project.
“The Cordish Company are proven developers in more cities in this country than any other development entity,” he says. “They’re a proven commodity that knows how to do this kind of inner-city retail and that’s what they’re committed to do and we full anticipate they will be able to do that when financial conditions allow it.”
The extension was approved by state government. The state has also lowered the minimum investment Cordish must make in Center City from $200 million to $150 million.