Metro Government Update

A Sweetheart Deal for Developer and Medicaid Provider at the Taxpayer’s Expense

The city has created the first tax-increment financing assistance (TIF) district ever in Louisville. This means businesses will be subsidized through tax diversions or refunds for moving to certain blighted areas.

The first business to receive the benefits of the TIF district is Passport Health Plan, a Medicaid provider. It’s a sweetheart deal for Passport, as well as for the developers.

The developers were originally given the land, free of charge, from former Mayor Jerry Abramson in exchange for their promise to demolish the buildings. Now, they stand to sell it to Passport for around $9.1 million. As if profiting millions isn’t enough, the city has also agreed to forgive a $1.1 million loan it made to the Bridgewaterses’ company.

Meanwhile, the city will give Passport $762,000 toward the purchase price of the land as well as another $500,000 “to help generate new jobs.” Through the new TIF district, officials estimate tax rebates between $2.8 million and $4 million.

Proposed Soccer Stadium Raises Questions and Concerns

The Louisville City Football Club wants to build a new soccer stadium, along with hotels and retail districts, on several parcels of land in the Butchertown area.

The soccer team owners have asked the city of Louisville to purchase the land for them while they slowly buy it back from the city as they develop the land parcels, beginning with the stadium. Metro Government would be on the hook for anywhere between $15 million to $27 million as developers work to purchase the land back from the city over an unknown time period.

The arena itself is estimated to cost $40 million, will be paid for with private funds, and has a proposed opening date of 2020.

A Louisville City FC board member said they will also seek between $30 million to $35 million in tax-increment financing assistance (TIF) from the state. Through the TIF, the state would return tax revenue to help pay for the development, while local taxes generated from the TIF would to go to Metro government.

Conversations with both city and state officials appear to be preliminary and no deals have yet been made.

Metro Council Members Call on Police Chief Conrad to Resign

Over the course of the last week, several Metro Council members have called for the resignation of LMPD Police Chief Conrad. The calls follow a recent Public Safety Committee meeting discussion of a resolution to provide LMPD with $9 million more for the hiring of 100 new police officers.

During the meeting, Chief Conrad told Republican Councilwoman Angela Leet he does not have enough officers. But, when Leet asked him exactly how many officers he needs, Conrad indicated that he was not permitted to answer the question and council members would have to wait until Mayor Fischer presents his budget (scheduled for 4/27).

This prompted frustration and outrage from several council members, who pointed out that every moment wasted on getting LMPD the resources needed is another potential loss of life.

Councilwoman Leet was the first to call for Conrad’s resignation and was shortly followed by Republican Council members Scott Reed and Julie Denton.

When Conrad was permitted a reorganization of LMPD, Democrat Councilman David James told the Police Chief he’d give him 60 days after the reorganization to evaluate its success or failure. That 60 days ends on May 1, so it will be interesting to see if he joins the Republicans in the call for resignation. But, only Mayor Fischer can fire the police chief.

The besieged Chief has been under fire for Louisville’s record-breaking homicide rate and for his handling of an alleged scandal in the LMPD Explorers Program. Two officers who were involved in the program have been indicted on charges of rape and sexual abuse of a minor.

Budget

The Mayor will give his budget address to Metro Council this Thursday at 4pm. You can watch it live at here.

Once Metro Council has the proposed budget, they will host hearings with each Department and make changes – expect lots of changes. Then, by law, they must pass a budget near the end of June. 

Here is the tentative schedule:

April 27 – Mayor Fischer presents the FY18 proposed budget to the Council

May 9 – Overview of the Operating and Capital Budgets Hearing

May 10 – Department Hearings begin

June 14 – Last Day of Department Hearings

June 19 – Budget Committee Presents Amendments to budget

June 22 – Approval of budget