LOCATION
Louisville, Kentucky
PROJECT HIGHLIGHTS
Retail space analysis
Economic, fiscal, and employment impact analysis
Tax increment finance projections
Subsequent expansion analysis
Jobs analysis using IMPLAN and RIMS II
Approval of new Omni Hotel in 2014
PROJECT DESCRIPTION
Johnson Consulting has worked on 15 projects in downtown Louisville, all of which have transformed the City. We were retained by The Cordish Companies to assist in their proposed redevelopment of the 266,000 gross square foot Galleria Mall into an entertainment and retail attraction. The developer applied for a Kentucky Tourism Development Act (KTDA) tax refund, thereby requiring that an independent consultant evaluate the project’s eligibility under the program. Our report was commissioned to determine whether the development met the requirements of the program by generating net fiscal impact, net economic impact, and net employment impact. Specifically, we developed projections of future performance under two scenarios: the existing Galleria Mall’s performance if not renovated, and the performance of 4th Street Live!. The team also analyzed the retail market, estimated the direct spending impacts of the project, including spending on the redevelopment. Furthermore, we estimated the indirect and induced economic and employment impacts of the project as well as the fiscal impacts of the project, including sales, income, and property taxes.
Following the successful opening of 4th Street Live!, we were retained again to prepare an impartial, third party study analyzing its possible expansion. The specific expansion proposal presented by The Cordish Companies related to the conversion and upgrade of a 5,000 to 7,000- seat entertainment venue to link its activities to the overall offerings of 4th Street Live! Johnson Consulting analyzed the developer’s initial demand and financial projections and overall redevelopment plan and determined whether the projections would be attainable given the state of the market. We found that the development of the arena was a key ingredient in the expansion of the entertainment district.
