Sunday, July 15, 2007


Jul. 15, 2007 (McClatchy-Tribune Regional News delivered by Newstex) --
Members of the Downtown Development Corp. have no doubt about what will happen to downtown Owensboro if it doesn't get a tax increment financing district to fund major attractions.

'It will die,' said Assistant Daviess County Attorney Shannon Meyer, who serves on the seven-member DDC board. 'If downtown doesn't get at least some of the public projects, it will die.'

There's no doubt about it, said Gene Clemens, a board member who is also one of the owners of The Trophy House, 511 Frederica St.

'It will kill downtown if we don't get some of this,' he said, referring to a hotel, convention center, indoor events center/arena and baseball stadium that are being discussed.

The City Commission has agreed to create a TIF district in the Kentucky 54 area and put a hotel, arena and convention center there.

At the same time, Mayor Tom Watson and the commissioners -- along with the company developing the Kentucky 54 project -- all say they support a downtown TIF and they'll work with Daviess Fiscal Court to create one.

But first, they say, community leaders have to find a developer willing to commit to a downtown project that would finance construction of public facilities.

A TIF district allows public projects to be paid by a bond issue that is financed by the taxes on new construction and new jobs within the district. It does not increase the tax rate.

Behind the scenes, community leaders say, a development company is working on plans for a multimillion dollar, 22-story building that would include retail, offices, condos and a hotel in the heart of downtown.

If it goes forward, they say, that project -- and others that would likely follow it -- could help finance downtown improvements.

Zev Buffman, president of the RiverPark Center, began the push for an arena two years ago.

But it doesn't really need to be downtown, he said.

'An arena doesn't have windows,' Buffman said. 'It doesn't look pretty by the river. There's nothing terribly wrong with not having the events center downtown.'

But he said downtown needs an 'outdoor events center' near the river.

That's what used to be called a baseball stadium.

It should still feature baseball, Buffman said, but the focus should be on entertainment and festivals.

That's where the money is, he said.

'That's one thing we do not have -- an outdoor venue for shows from late April to early October,' Buffman said.

'With a 10,000-seat facility, we could become a stop on a circuit,' he said. 'The closest (outdoor arenas) are in Nashville, St. Louis, Indianapolis and Cincinnati. Louisville doesn't even have one.'

Buffman envisions one big-name outdoor concert a month from late April to early October.

The facility would cost about $15 million, he said.

But, Buffman said: 'We have to resolve the hotel (Executive Inn) situation before we build anything downtown. We need a hotel downtown.'

'There's always been an article of faith that we would do something for downtown,' Russ Wilkey, an attorney who has had a downtown office for more than 25 years, told the City Commission on Tuesday night.

He predicted that a new hotel and convention center on Kentucky 54 would 'mean the end of the Executive Inn' and Owensboro would be stuck with an empty building on a new riverfront.

Creditors are already asking Daviess Circuit Court to seize the hotel from its owners, Minnesota/Owensboro Executive Inn.

Buffman and others want the city and county to buy the hotel and its 16.6 acres for future development.

A new hotel with about 250 rooms should be built downtown -- the DDC recommends the southwest corner of Second Street and Executive Boulevard -- and then, the Executive Inn should be razed, they say.

'Any plan that evolves anywhere that doesn't include a clear vision and plan for downtown will cost the city and county,' Buffman said. 'A dead downtown is more expensive for a community.'

An 'outdoor events center,' he said, 'would help jump-start downtown. And we need some type of conference center downtown.'

River work coming

Construction should begin next year on a $45-million riverfront redevelopment that city officials say will spur other downtown development.

But Clemens says that's not enough.

'People are only going to go look at the river so many times,' he said. 'There has to be more to bring them downtown. The average person isn't coming downtown now.'

Burley Phelan told the City Commission on Tuesday that without incentives, downtown development will never happen.

'If there are three publicly funded projects, we need at least one of them downtown,' Meyer said. 'And to me, it makes sense for that to be the convention center. People will drive from downtown to Kentucky 54 to shop -- if they have the stores.'

She's a mother with young children, Meyer said.

'I certainly want my kids to be able to stay in Owensboro and find jobs,' she said. 'I'm excited about what could happen downtown if we can do this. It's going to be an interesting few months.'

Clemens said his family business has been downtown for 10 years.

'We're doing OK,' he said, 'but we're not growing like we should be. If we can get a convention center and a new hotel, you'll start getting people to build downtown again. They're waiting to see something happening down here.'

The RiverPark Center, Clemens said, 'was one of the greatest things that ever happened to downtown. But we need more. I'm just worried about the future.'

Buffman said the performing arts center plans to turn its Young Adult Theatre Academy into a year-round school for the arts. And he envisions downtown loft apartments serving as dorm rooms for students and faculty.

'I'll be bloody mad if something doesn't happen,' he said. 'I can't imagine another hotel not coming into downtown. Something in the 175- to 225-room range.'

Buffman said he supports the Kentucky 54 TIF -- 'not to take advantage of a TIF would be throwing money away.'

But he told the City Commission on Tuesday: 'You cannot deep freeze downtown. You have to work as hard for downtown as you do for Kentucky 54.'

Large TIF needed

A downtown TIF needs 'to be as large as possible,' Buffman said. 'Nobody knows up front what all the future needs will be.'

TIFs tie up all new tax revenue -- state as well as local -- for 20 to 30 years.

State law allows them to be up to three square miles.

Daviess Judge-Executive Reid Haire said all the property between Center and Sycamore streets and from the Ohio River to Fifth Street is assessed at $73.9 million.

That would be the tax base for that area, he said.

Development that raised the base beyond that could see its taxes go into a TIF fund, he said.

'I think a lot of developers will be interested in it,' Terry Woodward, DDC chairman and owner of WaxWorks/VideoWorks, told Daviess Fiscal Court. 'Let's put the plan on the open market and see what happens.'

The downtown plan, he said, takes in 'one of our greatest assets -- the Ohio River.'

Watson said Owensboro is 'on the cusp' on some of the most exciting developments of the past 20 to 30 years.

Newstex ID: KRTB-0152-18140832


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