• The demographic trends point to downtown Louisville. People are staying single longer, the divorce rate continues to increase, the baby boomers are retiring and looking to downsize in a culturally active environment, young professionals are moving away from the suburban lifestyle and preferring to work and live where sports, entertainment and culture collide and the international community moving to the U.S. prefers an urban spirit. These trends point to reasons why markets are moving to downtown Louisville.

• The energy efficiency (green industry) points to downtown Louisville. People are tired of rising gas prices, long commutes to work or entertainment and wasting long periods of time and money travelling from one point to another during the course of a day to get family business accomplished. Downtown represents a compact neighborhood that offers shopping, education, culture, sports, business and fun. It means that your transportation costs are reduced, walking and exercise time increases and you will most likely work in an energy efficient building with a green roof. You have access to NuLu on East Market St., one of the first Green, sustainable neighborhoods in the country.

• The recession points development to downtown Louisville.   Housing prices and the viability of suburban shopping centers are no longer sustainable at the same rate as pre-recession. It is pointing to the wisdom of future investment being focused on the core and core neighborhoods where markets and pricing has remained more stable. Your return on investment is more stable and sustainable over the long term in downtown with the current trends.

• Lack of government resources points to downtown Louisville. Federal, state and local government resources will be scarce in the years ahead. New public money to expand infrastructure to outlying areas will be limited. Governments will focus on core areas where infrastructure already exists.

• The new Arena points to downtown Louisville. Imagine 22,000 people roaming the streets of downtown before and after events some 150 days and nights a year. Now imagine them spending money. Downtown Louisville experiences well over 10 million people a year in visitors, workers and residents. This represents the largest concentrated market in the state. Downtown is good for your business.

So we know that many people and companies will want to take advantage of these compelling reasons in the days ahead and want to invest in downtown Louisville. With this in mind, LDDC wants to help you leverage your investment to the greatest extent. In short, LDDC wants you to take advantage of all the programs available to you if you decide to invest in downtown Louisville. So LDDC wants you to be aware of every incentive program that exists. LDDC staff is also ready to help you interact with these programs and maximize them.   Whether you are a property owner, business or developer, LDDC wants to make your investment in downtown Louisville a positive experience and a money maker. For all Metro Louisville (City) incentives please visit www.louisvilleky.gov. For State incentive programs visit www.thinkkentucky.com/kyedc/kybizince.aspx, and for New Market Tax Credits visit wwww.cdfifund.gov. Low-Income Housing Tax Credits can be found at http://www.kyhousing.org. Historic Rehab Tax Credits can be found at http://heritage.ky.gov/incentives, and visit www.sba.gov for the Small Business Administration Loan Program, and to learn more about the City’s Community Block Grant program.

 

Commercial Loan Fund

LDDC is in the process of starting a new Commercial Loan Fund for real estate developers in downtown. The new Loan Fund is patterned after the Downtown Housing Assistance Fund (DHA) which was started in 2003. The DHA Fund was started to help housing developers in downtown finance new condominiums and apartments. It was determined that additional housing units in downtown would be unlikely unless a special Loan Fund was available to provide a supplement to traditional bank financing. The Loan Fund has worked well. About $7 million in loans has leveraged about $170 million in housing investments in downtown, resulting in over 400 new units.

Therefore, LDDC is taking the lead on another similar venture to help downtown Louisville to keep growing, producing new investments and new jobs for the community. The new Commercial Loan Fund will assist non-housing projects – office and retail – with the same concept. With traditional financing very challenging at this time, real estate developers need financing help so that they can move projects forward. It is expected that the new Commercial Loan Fund will be capitalized by LDDC and several other private sector investors. The goal is to grow the fund over time to the same level of investment that DHA has experienced for housing. The Loan Fund will only be used in conjunction with a primary lender to minimize risk. For mixed use projects, it will be possible for a developer to explore using both Funds.

The Loan Fund is still in the planning phase and is expected to be operational in the spring of 2011. Several financial institutions are in the process of reviewing the new Fund for possible investments.   LDDC is expected to serve as staff to the Fund similar to what it does now for DHA.

How to Open a Business

Louisville Downtown Management District

• Restaurants and Bars
• Museums and Attractions
• Theaters and Halls
• Services

New Markets Tax Credits  

Downtown Business Clusters

Construction/Real Estate
This industry is well-represented in downtown and includes Real Estate Management Companies, Developers, Appraisers, General Contractors, Title Companies, and Construction Management firms. Eighty-nine such companies are located in the CBD, doing business throughout the region.

Finance/Insurance
One of several industries that are concentrated downtown, this category includes banking, accounting, financial advisors and stock brokers as well as insurance companies. Louisville is home to health insurance titan Humana, one of the area’s largest employers and one of the 153 businesses in this category that call downtown home.

Health Care/Medical
Louisville’s booming Medical District is also centered downtown, with numerous support businesses (labs, tissue banks, etc) and physician’s offices rounding out a vibrant health care community. There are 189 businesses in this cluster in the downtown area.

Legal
Another business cluster centered downtown, the 332 separate enterprises that comprise this sector are primarily law firms, but also include legal support services such as paralegal groups, video reporting and arbitration services.

Media/PR/Marketing
A diverse and dynamic industry cluster, these 71 firms include print, television and radio as well as Public Relations and Marketing.

Non-Profit/Social Services
Foundations, direct services, and numerous non-profits make up the 94 businesses in this cluster located downtown. Their diversity reflects both Metro Louisville and that of the region.

Professional Services
This wide-ranging category includes architects, and consultants of all stripes in its 91 business representation. Individuals providing professional services add significantly to this number.

Public Administration
Federal, State and Local Government have 60 separate agencies, departments and entities located downtown. This includes the region’s court system, as well as most Federal Offices and a large concentration of state employees.

Retail
There are over 300 retail outlets downtown, encompassing antique stores, clothing and shoes, gifts, booksellers, convenience stores, bicycle dealers, florists, grocers and many more.

General Services
Downtown workers and residents alike benefit from the strong service sector downtown. In addition to barbers, beauty salons, spas and manicures, employment agencies, yoga and health instructors, printers and day care centers are among the 93 businesses that supply the essential and non-essential services that contribute to the high quality of life downtown.

Sports/Cultural/Entertainment
Louisville’s nationally-renowned arts scene is comfortably at home amongst the sports venues – including Louisville’s new arena, the KFC YUM! Center, home to the University of Louisville Cardinals basketball teams, and the Louisville Bats baseball team – and exciting nightlife opportunites. The forty-four businesses in this cluster also include Museum Row and other entertainment-related businesses.

Minor Clusters
The Minor Clusters of Education, IT, Manufacturing, Religion, Tourism and Utilities have a major positive impact on both downtown Louisville and the Greater Louisville region. They include the center of Community and Technical College education, Louisville Slugger, Heaven Hill distillers, glass production, several major IT consulting and hardware firms, the head of the Presbyterian Church USA, and Louisville Gas and Electric company. By category, they number the following:
Education—23
IT  -- 43
Manufacturing – 14
Religion --10
Tourism -- 4
Utilities -- 6