Wednesday August 15, 2007
Over the next two decades the 30 blocks that make up the Louisville health sciences campus will undergo a radical transformation made possible by a projected $2.5 billion of capital investment in expansion, renovation and infrastructure projects. That transformation will receive a boost from a partnership in support of tax increment finance (TIF) funding announced today by officials from the commonwealth, Louisville Metro and the University of Louisville.
Mayor Jerry Abramson joined U of L President Ramsey and Kentucky Gov. Ernie Fletcher in announcing that the taxing district will capture a portion of the incremental tax revenues created by the 20-year capital investment for reinvestment into the development. The TIF increment is anticipated to generate up to $300 million, sufficient to build out the Haymarket Business and Research Park and many components of the UofL Health Sciences Center Master Plan.
“This is exciting for the entire region,” Mayor Jerry Abramson said. “This investment will have a ripple effect on our economy – and on downtown – for years to come.”
“The health sciences campus is the physical, economic and intellectual center of downtown Louisville,” Ramsey added. “Today, medical research, discovery and innovation in Louisville are at an all-time high. In order to bring all potential advancements to fruition for patients, however, we must expand research and clinical areas, infrastructure and specialized commercial space that specifically support the effort.”
According to officials, benefits will include:
§ Attracting and creating up to 8,700 high-paying, high-skilled jobs to the commonwealth
§ Enabling growth of new businesses that generate economic activity across Kentucky
§ Providing infrastructure for researchers and entrepreneurs to take health science technology to the marketplace and for companies seeking proximity to the university’s Health Sciences Center
§ Creating needed research facilities and infrastructure, including technology-enabled labs and buildings, and infrastructure for high-throughput computer analysis
Of the $2.5 billion dollars to be invested in the project development area, $1.8 billion is anticipated to be public investment and $700 million private, with $300 million being invested by Jewish Hospital & St. Mary’s HealthCare. The Louisville Medical Center Development Corporation will manage development of the Haymarket area research park.
“TIF funding is a wise public investment that maximizes the benefits of a public-private partnership,” Fletcher said. “With the participation of the state, Louisville Metro, entities like Jewish Hospital & St. Mary’s HealthCare, private developers and local entrepreneurs, the entire commonwealth will reap benefits.”
Officials hope to begin initial investment and construction soon after anticipated approval of the TIF by the Louisville Metro Council and the Commonwealth’s TIF Commission.