West End TIF board expands programs, outreach in 2024. Here's what to know
The board overseeing a massive West End economic investment effort is rolling out new initiatives as it kicks off 2024, including a new program to help homeowners with rising property taxes, and a series of public feedback sessions set to start this month.
These are the most public-facing steps taken by the West End Opportunity Partnership, a 21-seat public agency that has been tasked with overseeing the West End tax increment financing (TIF) district, since its inception in summer of 2021. The board oversees $30 million in seed funding along with any new tax dollars captured by the TIF.
Over the 20-year TIF lifespan, which will exist until 2042, 80% of new tax revenue that’s generated above a 2022 benchmark will be at the board’s disposal to reinvest into the West End.
Laura Douglas, the partnership’s interim president and CEO, said 2023 was a year of getting the organization in order, including filling seats, conducting training, and contracting with a financial adviser.
“The two years that it has taken us to get off the ground were two years where we had to be very deliberate, purposeful and strategic,” she said. “We’re on the verge of being able to review and determine where the partnership’s funds will be invested, and we’re on the verge of making a real impact on the quality of life in west Louisville.”
Here’s what the partnership has been working on lately.
How was the West End TIF property tax lending program established?
West End homeowners who need help with rising property taxes may benefit from a new partnership between the TIF board and LHOME, a local nonprofit financial institution.
When the Kentucky General Assembly created the West End TIF and its board back in 2021, it also established a tax credit allowing homeowners to regain however much their property taxes rose over their 2021 assessment.
For example, a homeowner owing $1,000 in property taxes in 2021 and $1,500 in 2023 would be eligible for a $500 credit. The credit is meant to shield homeowners from displacement should property values, and in turn, taxes, rise due to the economic energy generated by the TIF.
While the credit is based on a jump in property taxes, it's claimed on a homeowner's individual income tax return. This requires a homeowner to first pay their property tax bill, which is issued in Jefferson County in November. Later, come income tax season, homeowners can apply for the credit.
The new lending program is meant to front homeowners this difference so they don't fall behind in their property tax payments. This lending program was a legislative requirement tied to the TIF district. State law also requires the board to “raise awareness” of the tax credit and help residents as they seek the credit.
Enter LHOME, which already offers loans, financial coaching and support to Louisville residents with low incomes with a focus on West and South End residents. LHOME offers help in the form of loans or grants to help homeowners pay their taxes, which may include a repayment plan fitting their needs.
The West End Opportunity Partnership finalized its contract with LHOME in December 2023.
“We are augmenting their program with the additional finances so they can serve more people,” Douglas said.
Per state law, the program/tax credit is limited to properties that:
Are the owner’s principal residence
Are located within the TIF district (Parkland, Shawnee, Hallmark, Park Duvalle, Russell, Portland, California, Chickasaw, Park Hill, and Algonquin neighborhoods)
Were owned as of Jan. 1, 2021
The credit ends if the property is sold by the owner or when the TIF expires, whichever comes first.
While the TIF is still relatively new, property values have indeed risen because of the 2023 property value reassessment conducted by the Jefferson County Property Valuation Administration, which reassesses properties every four years.
New assessment values were released in April 2023. Tax bills on these new property values were issued on Nov. 1.
The median assessed property value for the area including the West End (it also includes the Central Business District and Old Louisville) jumped nearly 63% between the 2019 and 2023 assessment, the Courier Journal previously reported.
Those with questions about the program are asked to call LHOME at 502-882-8091 or email info@lhomeky.org.
West End TIF engagement sessions set for February-April
A series of “community engagement sessions,” one in each of the West End’s nine neighborhoods, is planned for the coming months. These meetings are meant to gather input from West End residents on what they want to see out of the partnership.
State law mandates the board focus on projects “supported by residents and businesses within the development area.”
“It’s not a check-the-box situation,” Douglas said of the community meetings. “We are seeking community input. We must get that input before we do anything.”
The board’s eventual spending decisions and projects pursued will stem from ideas generated in these meetings, she said.
“This is an entirely different way of doing development work than I think the community has experienced in the past,” Douglas said. “This is driven from the ground up. It’s entirely inappropriate for us to decide on our own where the funds we receive will be invested.”
Ten meetings are scheduled, starting Feb. 6.:
Portland: 6:30-8 p.m. Feb. 6. The Church of the Promise, 1800 Portland Ave.
Park DuValle: 6-8 p.m. Feb. 13. Southwick Community Center, 3621 Southern Ave.
California: 6-7:30 p.m. Feb. 20. Republic Bank Foundation YMCA, 1720 W. Broadway, second-floor conference room.
Parkland: 6-7:30 p.m. Feb. 22. Calvary Missionary Baptist Church, 1368 S. 28th St.
Russell: 6-8 p.m. March 5. Louisville Central Community Center, 1300 W. Muhammad Ali Blvd.
Shawnee: 6-8 p.m. March 15, Shawnee Golf Course Clubhouse, 460 Northwestern Parkway.
Chickasaw: 6-7:30 p.m. March 19. Galilee Baptist Church, 3918 W. Broadway.
Algonquin: 6-7:30 p.m. March 21. Lampkins Chapel CME Church, 2738 Algonquin Parkway.
Park Hill: 6-7:30 p.m. March 28. Mt. Zion Baptist Church, 1472 Dixie Highway.
Combined session: 6-7:30 p.m. Republic Bank Foundation YMCA, 1720 W. Broadway, second-floor conference room.
The partnership is asking West End residents to attend the meeting that corresponds with their neighborhood.
Are there vacancies on the West End TIF board?
Three West End Opportunity Partnership board positions remain vacant. The death of long-time public servant J. Michael Brown in mid-January created an unexpected vacancy in the Simmons College seat.
A financial institution seat also remains vacant. This seat previously had to be filled by the Louisville Branch of the Federal Reserve Bank of St. Louis, as outlined in the original law creating the board, though the Federal Reserve declined to fill the seat, citing its apolitical nature.
State law was amended last year to allow for more flexibility in filling board seats, with the partnership deciding to reserve the seat for a financial institution.
Douglass said candidates for these two seats are expected to be put up for a board vote in March.
A third seat, reserved for a local foundation with over $1 million in assets, remains unfilled.
How much might the West End TIF generate each year?
Exactly how much the partnership might bring in each year is still unknown, pending an analysis by the Kentucky Department of Revenue. The department is calculating a baseline analysis of local tax revenues in the defined TIF district, which combined with future years’ analysis will determine how much incremental revenues the partnership may receive.
Douglas said she anticipates the partnership will receive the first increment payment later this year.
“They’re still working in good faith to determine that number,” Douglas said. “We’re actually talking about a 13-square-mile area, which is a huge TIF area. Huge. So I think it’s to be expected that there will be some challenges in calculating the baseline number.”
With this figure in hand, the partnership anticipates being able to finally create an official operating budget, which it has been operating without.
Meanwhile, the partnership’s initial $30 million in seed funding is earning interest, nearly $420,000, in 2023, according to partnership financial records. As of the end of 2023, total assets stood at $30.1 million.
“That’s a point of pride for us, that we’re earning enough to cover expenses and we’re not eating into our core,” she said.
Is the West End Opportunity Partnership website being updated?
Meeting minutes and video recordings are not up to date on the West End Opportunity Partnership website, a point of concern raised by board members throughout 2023.
The website, too, lacks a list of current board members, up-to-date financial accounts, or information on upcoming public meetings. Some of this information is contained on the partnership's social media channels.
“We understand that the ease of getting info about the partnership is a critical issue,” Douglas said. “We are aware that the current website is frankly inadequate.”
Douglas pointed to the unexpected death of the person overseeing the website, along with a lengthy process to secure a new vendor, as reasons for the lack of timely information on the site.
“It doesn’t help people’s comfort level if they’re trying to find out information about an organization that says they’re going to work with them to revitalize their community and they can’t find anything online,” Douglas said. “That’s frustrating. But it’s an issue that’s being addressed.”
The new vendor’s overhaul of the site is expected to be completed by late June.
Growth & development reporter Matthew Glowicki can be reached at mglowicki@courier-journal.com, 502-582-4000 or on Twitter @mattglo.
This article originally appeared on Louisville Courier Journal: West End TIF board expands programs, outreach in 2024
