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Apartment developer plans $37M addition on downtown canal

November 30, 2015

The developer of the 9 on Canal Apartments project has disclosed plans for a $37 million second phase that would add 194 apartment units and more than 15,000 square feet of retail space along downtown's Central Canal.

Louisville-based Investment Property Advisors completed the 9 on Canal Apartments last year. The development included 304 apartment units, 7,877 square feet of retail space and a 278-space parking garage.

According to a property-tax abatement request filed with the Department of Metropolitan Development, the developer plans to start construction next year on a second phase that would open in 2017 at 350 W. St. Clair St., immediately south of the existing development.

An affiliate of the Investment Property Advisors, Canal East II LLC, is seeking a real property-tax abatement that would save it an estimated $2.4 million (or 40 percent) over the 10-year abatement period.

The company would pay an estimated $3.5 million in property taxes on the development over that period and an estimated $634,400 annually on the improved property after the abatement period.

The 1.7-acre site, which is occupied by a warehouse, currently brings in less than $6,500 in annual property taxes.

The developer has acquired the property and would need to demolish the warehouse to make way for the apartments.

DMD staff members are recommending approval of the project, which is expected to employ 63 workers making an average wage of $15 an hour after it opens.

Investment Property Advisors began seeking city approval for a second phase to the project last year, but has changed its plans slightly to include about 9,000 more square feet of retail space. Retail space in the first phase is occupied by restaurants. The new phase also is expected to include a 175-space parking garage.

The abatement request is scheduled to be heard at Wednesday's Metropolitan Development Commission meeting.  If passed, the request could received final approval at the Dec. 16 MDC meeting.

 

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