Todd Blue plans $50 million retail, office project on West Main Street
Business First of Louisville - Tuesday, March 20, 2007
by John R. Karman III
In the early 1900s, the 100 block of West Main Street was home to distillers and wholesalers and earned the moniker Whiskey Row.
More than 100 years later, the block -- now mostly derelict -- is about to be redeveloped as a mixed-use project with retail and restaurant space, offices and a parking garage.
Local developer Todd Blue, president and CEO of Cobalt Ventures LLC, plans a $50 million development called Iron Quarter for the site, which is bounded by First, Main, Second and Washington streets.
Iron Quarter, which takes its name from the cast-iron building facades prevalent in the block, will include a 12- to 14-story office tower with 110,000 square feet; a 20,000-square-foot retail center featuring upscale boutique stores, restaurants, cafes and coffee shops; and a two-level, 500-space parking garage with access from First or Main streets.
The office tower is being engineered for as many as 23 stories, if demand dictates, according to the developer.
Properties formerly owned by Jim Walters
Blue bought nine of the 13 buildings in the block in February from holding companies managed by developer and architect Jim Walters. He paid about $4.7 million for the properties, according to information on the Jefferson County Clerk's Web site.
For Blue, who has invested millions of dollars in developing commercial and residential properties in the East Main and East Market street corridors, Iron Quarter represents his biggest project to date.
The developer said he was prompted to take on the effort by the city's plans for a $450 million multipurpose arena and hotel on the waterfront at Second and Main streets. Blue is a member of the Louisville Arena Authority Inc., the entity overseeing development of the project.
"But for the arena, I would not be doing this project," he said.
Blue has no partners in the Iron Quarter venture but has tapped Walters' architectural firm, Bravura Corp., to handle design duties for the development.
Walters, who built the Waterfront Park Place residential condominium tower at Floyd and Witherspoon streets, began acquiring buildings in the West Main Street block in 1996. He considered several redevelopment scenarios for the site over the years but never brought one to fruition.
"It's a pivotal block, and it's well located," Walters said.
Blue seeks local, state support
Blue said he is working with several commercial lenders to arrange conventional financing for his project. He added that he also is in talks with local and state government officials for assistance.
He declined to be more specific on what form that assistance might take.
Details of Iron Quarter are expected to be released at a 10 a.m. news conference on Thursday, March 22. Louisville Metro Mayor Jerry Abramson and Kentucky Gov. Ernie Fletcher are expected to attend.
In an e-mail response to Business First questions, Abramson said it is too early to know for certain whether Blue will need city or government incentives.
But Abramson said city officials will work with the developer to ensure that the project is built and successful.
Building facades to remain
If he is able to get city and state support, Blue said, he hopes to begin work on the Iron Quarter project in December.
Initial work would include demolition of the building interiors. The structures' facades would remain.
A contractor is expected to be chosen in a few weeks.
Blue hopes to have Iron Quarter completed in spring 2010, several months before the city's new arena is slated to open.
Because of its proximity to the planned arena, Iron Quarter is considered a "sports-anchored" development, Blue said. Such projects are springing up across the country.
Blue described his project as "pedestrian-based" and "a portal" to other urban developments, including Fourth Street Live, Louisville Slugger Field and Waterfront Park. He also believes that Iron Quarter will complement the coming arena and Museum Plaza, the $380 million mixed-use development planned for Seventh Street and River Road.
"This is not just another building," Blue said. "This is a district. This is a new brand for this community."
Leases pending with unidentified companies
The developer said discussions are under way with several potential tenants, which he declined to identify.
Leases are pending, he said. Retailers are expected to be "lifestyle" oriented, offering high-end merchandise, such as clothing, jewelry, furniture, home decor, art and accessories.
Stores will front Main and Washington streets. There likely won't be anchor department stores, Blue said, and the development won't be dominated by bars and restaurants, although some are expected.
"We are going to bring stores that aren't currently in Louisville," he said. "There is (currently) no shopping downtown."
In his e-mail, Abramson said the coming project will be welcomed by residents of newly constructed lofts, condos and apartments in the city's core and surrounding neighborhoods. "Iron Quarter will bring much-needed retail shopping to downtown."
