Tax increment finance is a financing and development tool that permits local governments to capture future increases in property and other taxes generated by new development within a specified development area. In Kentucky, taxes collected by the State also are eligible to be directed back to the city, which is a completely new revenue source for the city. The captured value of the increase in tax revenues is used to finance public improvements and to attract private development projects. Eligible public expenditures include parks and open space, public parking, transportation and pedestrian improvements, and environmental remediation on historic properties. To learn more about TIF Districts in Kentucky, read the Kentucky League of Cities TIF Explanation.
March 2019 - The City of Paducah and McCracken County passed a resolution and executed an agreement to establish the area’s first Tax Increment Finance District (TIF).
August 2019 - Paducah received Preliminary Approval by the Kentucky Economic Development Finance Authority (KEDFA) for Paducah’s Downtown Riverfront TIF District.
March 2021 - Paducah received Final Approval by KEDFA. News Release - Final Approval of Paducah's TIF
Please watch the 2-minute video below to learn the structure of Paducah's TIF and the benefits.
The City Block Development Project is Paducah’s first major private development project within the Downtown Riverfront TIF District.
Focusing on the growth of Paducah, the City Block Project will bring a new, 3-acre multi-use development to Downtown Paducah. It creates a new Downtown destination that catalyzes economic growth, supports our creative industries and tourism sector, provides more housing options for our changing population, connects Downtown to nearby landmarks, and facilitates the completion of Paducah’s Riverfront Park.
To advance transformative projects that improve Paducah’s quality of life and move our city, county, and region forward.
To create places and spaces that attract people of all ages and strengthen our local and state economy.
To unlock the untapped potential of Paducah’s riverfront for recreation, hospitality, and commerce.
To honor our history and heritage through the ongoing restoration and preservation of our beautiful historic Downtown.
To ensure that future growth complements and reinforces that which came before.
To connect people and places together for a stronger, more resilient Paducah.
The City-owned site is a 2.88-acre parcel located in Downtown Paducah that is bounded by Broadway, 2nd Street, Jefferson, and Water Streets. City Block, also known as the gazebo lot, is at the heart of Paducah. It's where people meet. It's our foundation. As such, high standards are demanded by our Development Program Goals and Design Features.
The current effort has been several years in the making. Change, particularly monumental changes, takes a lot of preparation.
Paducah needs a special partner - one that truly embraces the word partner and has proven integrity. That partner must bring fresh, cutting-edge ideas that have become our tradition. But that partner must listen to the community and respect the historical context of our home.
Weyland Ventures is a multi-disciplinary real estate development firm known for creating unique mixed-use properties in urban areas across the nation. Considered experts in the use of historic tax credits, new market credits, and other layered financing methods, the company is able to tackle tough projects that typically wouldn’t be considered viable to other firms. Weyland Ventures’ projects incorporate residential, commercial, retail, and entertainment venues that often create new and vibrant neighborhoods while preserving the community’s unique heritage. Notable projects include Whiskey Row Lofts and the Slugger Museum and Factory in Louisville and Owensboro Downtown and Riverfront Revitalization.
In April 2019, the City of Paducah entered into a 12-month preliminary development agreement with Weyland Ventures to undertake planning, design, and development for a 3-acre mixed use development on an existing municipal parking lot in Downtown Paducah at the corner of 2nd and Broadway (City Block). As part of this agreement, Weyland Ventures is obligated to create to Development Program that prioritizes a hotel, off-street public parking, public open space, and one or more mixed-use buildings on the City Block site. The City is responsible for undertaking site due diligence work, including environmental review, geotechnical analysis, utility assessment, and a parking assessment.
The Development Agreement between City and Weyland Ventures Development, LLC was approved at the August 12, 2020, meeting of the Paducah Board of Commissioners. There was a presentation about the project at the July 28 meeting.
The City Block project, a $21 million private investment, includes the development of a hotel, parking, open space, and mixed-use residential buildings located on the 2.88-acre city-owned block bounded by Second Street, Broadway, North Water Street, and Jefferson Street. Under this development agreement, the project is divided into two construction phases. The city-owned block is divided into three tracts with Weyland purchasing the two smaller tracts (Tract 1 and Tract 3). The middle tract (Tract 2) is the largest which will remain under city ownership for parking and open space.
Phase 1: The first phase includes Weyland purchasing Tract 1 for $141,000 for the construction of a 4 ½ story boutique hotel, with the final site plan showing 81 rooms, along Jefferson Street. Weyland will invest a minimum of $12 million in the hotel. The City will review the design of the hotel to ensure the design fits the fabric of the historic downtown. Also, during this first phase, Weyland will provide improvements to Tract 2 (the middle tract) to create green space, open space, and parking with the final site plan depicting more than 160 parking spaces. At this time, this parking lot offers 213 spaces. The City will retain ownership of Tract 2 and will reimburse Weyland for the development expenses.
Phase 2: The second phase of this development is the construction of one mixed-use commercial and residential building along Broadway on Tract 3. Weyland will purchase Tract 3 for $155,000 and will invest a minimum of $9 million into this phase. Phase 2 could include approximately 18,000 square feet in commercial space with up to 48 upper-story residential units.
Preliminary Development Agreement
Phase I Environmental Site Assessment
Phase II Environmental Site Investigation
Geotechnical Analysis Report
Real Estate Appraisal
Executed Development Agreement
Letter of Commitment from City to Weyland Ventures for City Block Public Facilities
Weyland Ventures Extension Request
City of Paducah Extension Response Letter
The community has been asking a variety of great questions. This Frequently Asked Questions document summarizes several of the top questions and answers.
The community provided input regarding the public spaces outlined in the City Block Project. This private investment of approximately $21 million in Paducah’s downtown by Weyland Ventures includes a multi-use development on the parcel bounded by Broadway, 2nd Street, Jefferson Street, and Water Street. The center of the parcel would be designed as a Town Square which includes off-street public parking, new green space, and a promenade. A boutique hotel is planned for the section facing Jefferson Street with a mixed-use development facing Broadway.
A listening session for the public spaces was held November 9, 2020, with more than four dozen community participants. The video is provided below (1 hour 23 minutes).
To stay informed about project process and to provide feedback, email Principal Planner Katie Axt at the following address: CityBlock@paducahky.gov.