Despite the Economy, the Beat Goes On

Excitement. Unbridled excitement. The excitement we're talking about is completely unwavering, and it's what you hear in the voices of everyone involved with the development and revitalization of downtown Louisville.

Never mind the downturn of the economy which has, of course, affected Louisville's downtown projects the same as it has in other cities throughout the United States. Yet, the momentum here is strong, the enthusiasm and optimism continue to rise, and it seems there's just no stopping downtown Louisville.

According to Jim Baines, director of research for Louisville Downtown Management District, there are currently 13 downtown projects underway at a total cost of $591.5 million, 20 projects announced or planned at a total cost of $1.52 billion, and seven projects completed the first half of 2009 totaling $141 million.
"We haven't had the kind of bone-crushing, economic fall here in Louisville that some of the other parts of the country have had," says Rebecca Matheny, downtown project manager for Downtown Development Corporation (DDC). "Thankfully, our downtown has been more recession resistant and resilient."

The DDC has been busy keeping the momentum going and focusing on their particular area of expertise, which is not the actual construction of new projects but rather the support system that keeps things moving in the right direction to ensure a project's success now and into the future.

Perhaps the biggest excitement is the construction of the $238 million Louisville Arena, located between 2nd and 3rd streets and slated for completion in November 2010. It will serve as home to the University of Louisville Cardinals' men's and women's basketball teams. In addition to basketball, the arena will attract other sporting events such as high school tournaments and professional exhibition games, NCAA championships in a variety of sports including wrestling, hockey, basketball and volleyball, concerts, family shows, and miscellaneous events such as large group assemblies, conventions, trade and consumer shows, and graduations.

"The new arena is an enormous opportunity to bring people downtown," says Matheny. "It'll give the area a neat, new dynamic. Located right next to the 2nd Street Bridge, the arena will become a very visible new landmark. It'll be a fun day or evening out on the town, with people able to have dinner, drinks, and enjoy some entertainment. Consider it Louisville's version of an 'urban tailgating experience.'"

Part of DDC's focus is to ensure the public's physical experience of getting to and from the arena is a positive one. DDC is addressing the traffic and parking concerns to so that visitors will be able to enter and exit the downtown area with relative ease.
"I think people will be pleasantly surprised," notes Matheny. "They'll be able to park close by and get in and out more effectively than one would think." A 760-space parking garage will be built on the arena site, and there are approximately 12,000 parking spaces within three blocks of the arena.

"We want to make sure the arena and plaza are used all the time—not just for events. The links and connectors of events need to be strong and porous so people will use the arena constantly," says Matheny.

Due to the arena project, downtown has experienced a significant amount of collateral investment, with condo and apartment projects springing up as well as new retail. Matheny cited Whiskey Row Lofts, developed by Bill Weyland and Val and Stephen Jones and located above Bearnos by the Bridge. And Tommy O'Shea, who owns a number of Irish pubs in Louisville, is investing in another location near the arena.
"These are local, responsible, successful people who believe in downtown Louisville so much they are willing to invest their money," says Matheny. "This says something about the future of downtown."

Despite the economic downturn, the current building occupancy numbers are still strong compared with other parts of the region.

"There's been a recent misconception that there's a glut of housing downtown," says Matheny. "But the truth is there have been really strong sales at Fleur de Lis as well as Waterfront Park Place. There's not an oversupply of condos at all."

Matheny noted there is still plenty of opportunity available in downtown for both new and re-development. "This puts us in good stead compared to other cities in the region," she said.

A new focus, however, according to Matheny, is the development of more residential rental properties, with the economic shift opening up opportunities and need for new, upscale rental properties.

Also on the list of things to be excited about is the investment the University of Louisville is making within the city. U of L has transformed the former Haymarket into quarters for their nuclear, bioresearch department. Also new to the university is their Masters of Fine Arts program, which will be based in Museum Plaza. In addition, U of L has committed to locating their graduate business school program downtown, which will be a significant addition to the area.

"U of L's investment and presence downtown is a neat aspect of what's going on," says Matheny. "They're working hard to become the region's premier metro university, investing a great deal of money and doing some really dynamic things."

The "Museum Row" area of town remains as active as ever. Museum row includes Louisville Slugger Museum, Frazier International History Museum, Kentucky Museum of Art and Craft, Louisville Glassworks, Louisville Science Center, and the Muhammad Ali Center. While the project is currently on hold, upon its completion Museum Plaza will become an important addition to this mix.

"It's all knit together well in a physical way," says Matheny. "People can navigate through Museum Row in an enjoyable fashion."

That Louisville's downtown area is vibrant is important not only to large downtown employers but to employers throughout the Metropolitan area. "A vibrant, 24-hour downtown is viewed as critical to overall development within the region," advises Matheny. "Businesses want to entertain their clients in the city, and you've got to have a vital, interesting downtown in order to do that. It's fundamentally important for the area's business development."

Barry Alberts would certainly agree. Alberts served as executive director of Downtown Development Corporation up until last year, when he left to form a private consulting firm called City Visions Associates. City Visions provides an array of urban planning and development services to both public and private sectors.

"I think things are going great downtown. The city's development strategy over the last five to 10 years has increased both the daytime and nighttime activity, as well as the interest in museums and entertainment," says Alberts. "Over the past few years, we've seen renewed interest in people living downtown. They've decided to live downtown not so much because everything they'd like to see downtown is already in place but because things are getting better and more interesting every year."

One cannot claim that the downturn of the economy has had no effect on Louisville. However, Alberts is positive about the current status of city development projects. "People can still see a palpable difference in the energy downtown," says Alberts, "it has slowed down some, but the energy is still pretty visible most of the time."

Alberts notes there have been a number of significant accomplishments over the past several years.

As downtown has grown, it has moved from a "nine to five" downtown to more of a 24-hour downtown. "What's been particularly gratifying," says Alberts, "is the establishment and acceptance of 4th Street Live, with over four million people visiting 4th Street Live over the course of a year. This has shown a sense of confidence that the city has something interesting and exciting for people to do."

Another phase of 4th Street Live—the Water Company Block—is in its design phase right now and will include a mix of retail, hotel, entertainment, and restaurants.

"Twenty years ago," says Alberts, "people weren't on the streets of Louisville. But now, with Waterfront Park and other attractions, the community has embraced the opportunity to experience the city on a pedestrian level. The city has without question become a nice urban experience with a very interesting atmosphere."