This morning at the monthly Kentucky Economic Development Finance Authority (KEDFA) meeting in Frankfort, a TIF of $21.4 million was authorized for Paducah. The project is designed to help revitalize downtown Paducah with state and local dollars, as well as helping developers with public infrastructure.
City leaders Mayor George Bray, Mayor Pro Tem Sandra Wilson, and City Manager Jim Arndt were all very excited about the approval. “As a city government, we look for opportunities to spark development and set the right foundation for growth, job creation, and business expansion. Paducah’s downtown is the heart of this city, and we want to keep it healthy by reinvesting in long-term economic success. I’m thrilled that KEDFA has provided a generous final approval for Paducah’s TIF,” said Mayor Bray.
The TIF project revitalizes the block bound by 2nd Street, N. Water St., Broadway, and Jefferson St. Weyland Ventures is a private investor with plans to develop a hotel, parking, open space, and mixed-use buildings.
Developer Bill Weyland said, “Weyland Ventures is very excited about KEDFA’s approval of the TIF for Paducah. It has been a long process, but it is a significant accomplishment for the entire Paducah community. Our company has valued its relationship with the City of Paducah, and we are looking forward to the next steps in implementing the TIF, breaking ground on City block, and looking ahead to more redevelopment projects in the city.”
What is TIF financing?
Tax increment financing is an economic development tool that permits local governments to capture future increases in property and other taxes generated by new development within a geographic area. It’s not a new tax; it’s reinvestment in the district based on growth. In Kentucky, taxes collected by the State also are eligible to be directed back to the city which produces a new revenue source for the city.